Food delivery has become almost everyone’s go-to option. It saves people the time of visiting restaurants, makes organising large family gatherings easier, and more. But are restaurants happy with it? After Bengaluru, many Kolkata restaurant owners have raised concerns that rising commissions and extra platform charges are making it harder to earn profits. Read on to know more!
Kolkata Restaurants Raise Concerns Over Food Delivery Platforms
Over the past few days, restaurant owners in Bengaluru have complained about food delivery platforms. Now, it looks like restaurant owners in Kolkata are also unhappy. As per Telegraph India, several restaurant owners say increasing commissions, advertising costs and unexplained deductions are making it harder for them to earn profits.
Many restaurants have started building their own delivery networks, while others have stopped using one or more food delivery platforms. In talks with Telegraph India, chef Sushanta Sengupta, founding director of 6 Ballygunge Place, said commissions have almost doubled over the years. According to him, restaurants initially paid around 12–15% commission per order. After the Covid-19 pandemic, the rate increased to 19–23% for older restaurants. Newer ones are reportedly paying between 28% and 32%. On top of this, restaurants also pay 18% GST on platform services, along with other additional charges.
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What Other Owners Have To Say?
Asif Ahmed, owner of Sanjha Chulha, also shared similar concerns. As per Telegraph India, he said the total deductions can go up to 40%, and sometimes even 50–60% of an order’s value. According to him, customers pay extra for convenience, but restaurants end up bearing most of the cost. His restaurant has used its own delivery system since 2002, and he believes more restaurants may soon stop depending on food delivery apps.
However, not every restaurant owner agrees. Debjani Mukherjee, founder of Nanighar, said platforms like Swiggy and Zomato usually charge around 33% commission. She feels the charges are fair because these platforms also spend on technology, delivery and logistics. However, she believes the paid advertising system and the way restaurants get visibility on the apps should be more transparent and fair.
What are your thoughts on this? Tell us in the comments below!
Also Read: Strangers Send Meals To CJP Protesters At Jantar Mantar Via Zomato, Swiggy
Cover Image Courtesy: X/ @rajeshreddyega
FAQs
Why Kolkata restaurant owners are planning to stop using Zomato & Swiggy?
Many Kolkata restaurant owners say rising commissions, advertising costs and unexplained platform charges are reducing their profits, prompting some to consider moving away from Zomato and Swiggy.
How Zomato & Swiggy is charging restaurant owners?
Restaurant owners say Zomato and Swiggy charge commissions, GST, advertising fees and other platform deductions, which together reduce their profits.
How Kolkata restaurant owners are finding a way for delivery?
Because of the rising costs on Zomato and Swiggy, many Kolkata restaurants are building their own delivery networks.