Bengaluru Hotel Body Seeks Curbs on Swiggy Promotions, Extra Charges

The Bengaluru Hotels Association has raised concerns over operational and financial issues faced by hotels and restaurants using Swiggy. In a letter addressed to Swiggy Chief Executive Officer Rohit Kapoor, the association sought immediate corrective action on promotions, commissions, service charges, payout deductions and several additional fees imposed on restaurant partners.

The association demanded that Swiggy should not activate promotional campaigns for any restaurant without obtaining the hotel owner’s prior written consent. It also opposed the automatic renewal of promotion and marketing agreements, arguing that every extension should require explicit approval from the establishment concerned. The body said such measures were necessary to give restaurant owners greater control over their participation and expenses.

Another major demand concerned deductions made from restaurant payouts. The association said Swiggy should deduct only the commission mutually agreed upon in the contract and charges required under applicable laws. It also insisted that service charges should be calculated exclusively on the value of food ordered and should not be imposed on the Goods and Services Tax component of the customer’s bill.

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The hotel body objected to several charges that it described as unauthorised financial burdens on restaurants. These included long-distance charges, payment collection charges, Pocket Hero fees, Swiggy One fees, restaurant cancellation charges, call centre charges, restaurant-funded delivery fees and Bolt fees. It called for such deductions to be stopped unless they had been transparently explained and specifically accepted by the hotel owners.

The association also sought stronger direct support for restaurants facing operational, accounting and payout-related problems. It demanded that Swiggy’s designated point of contact visit every partner hotel at least once a month to review unresolved concerns. Regular interaction, it said, would help address problems faster and reduce the dependence of owners on remote support channels.

In addition, the association asked Swiggy to establish a dedicated helpdesk at its office every Friday. The proposed facility would assist restaurant owners with platform operations, account reconciliation, payment discrepancies and other concerns. The hotel body urged the food-delivery company to treat the demands as a priority and introduce immediate changes, though no response from Swiggy was mentioned in the available report.

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