Zomato Receives Reprieve As Bengaluru Restaurants Extend Order Halt Deadline

Bengaluru restaurant associations have extended the deadline for halting orders on Zomato until September 1, giving the food delivery platform more time to address concerns raised by restaurant partners. The decision came after Zomato requested additional time to resolve issues related to platform practices and operational challenges, according to people familiar with the discussions.

The extension has not been granted to Swiggy, with restaurant associations retaining the August 15 deadline for the platform. The difference in timelines indicates that discussions between restaurant groups and Swiggy have not reached the same stage as negotiations with Zomato.

Restaurant bodies have been raising concerns over transparency and business practices followed by food delivery platforms. Their demands include clearer commission structures, an end to forced discounting and aggressive promotional campaigns, timely payment settlements and a stop to unilateral deductions from restaurant earnings.

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The dispute intensified in late July when restaurant associations criticised rising commissions, unclear deductions and discount-driven customer acquisition strategies, arguing that these practices were affecting restaurant profitability. Between July 28 and July 30, industry groups warned that they could stop processing orders from food delivery platforms if their concerns were not addressed. The deadline for Zomato was later revised after the company sought additional time for discussions.

The issue has significant implications for both restaurants and food delivery companies. Cloud kitchens and dark kitchens depend heavily on delivery platforms for revenue, with many relying almost entirely on such services for business operations. For dine-in restaurants, delivery contributes a smaller but important share of revenue, depending on their location, format and customer base.

Despite the public disagreement between restaurant associations and delivery platforms, sources said there has been limited disruption to business operations so far. Both sides continue to engage in discussions, with efforts focused on finding a solution rather than escalating the dispute.

The coming weeks will be closely watched as restaurants assess whether Zomato can address their concerns before the revised September 1 deadline. The situation involving Swiggy is also expected to remain a key focus as the August 15 deadline approaches and negotiations continue.

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