On July 1, 85 restaurants in the Namakkal region collectively said “no more” to Swiggy and Zomato, halting all online orders and deliveries. The town in Tamil Nadu decided to put a ban on Swiggy and Zomato due to the steep commission collected by these food delivery platforms. According to the restaurant owners, these charges are unsustainable and deeply frustrating.
Namakkal Restaurants Push Back Against Delivery App Commissions
It boils down to what restaurant owners are calling a “platform tax.” While talkin to The Hindu, N. Arul Murugan, secretary for the Namakkal Town and Taluk Hotel Owners Association, said that Swiggy and Zomato are charging up to 33% commission per order, and sometimes even more, depending on visibility perks and ad placements. This pricing mismatch, he says, is killing trust and profitability of the restaurants.
Furthermore, restaurateurs allege that these platforms often lather on extra costs without proper disclosure–promotional charges, ad fees, and listing boosts–that quietly eat into their earnings. The final twist? Delayed payments! According to N. Arulmurugan, they receive emails informing them of new deductions, sometimes without their consent. As most of the restaurant owners, while skilled but not literate, do not understand terms and conditions properly.
The situation reached its breaking point after a June 23 meeting, where restaurant owners of Namakkal decided to put a ban on these platforms unless something changes fast. In the meantime, Namakkal’s population is caught in the middle. They can’t order dinner with a few taps anymore, and delivery workers are caught up in the mess as well. For them, fewer app orders mean less earnings.
Also Read: Pune Man Shares Heartwarming Story Of A Zomato Delivery Man Who Once Earned ₹1.25 Lakh/Month
Local Delivery Alternative Underway
On a brighter note, it seems like Namakkal has already started thinking about the alternatives. N. Arulmurugan says that the restaurant owners may collaborate with a local agent for food deliveries, and talks about the same are underway. The agent is, reportedly, ready to take up the food delivery on a minimum commission. He also stated outrightly that until demands are met, they will not be taking food orders from online platforms. As a part of this agreement, they have instructed all other restaurants in the city to reject orders for the next one week.
Furthermore, nearby towns of Rasipuram and Tiruchengode are also expected to join Namakkal in this rebellion and talks have already begun for the same.
Namakkal’s move isn’t just about food, it’s about control and whether small businesses should remain silent partners or take back the reins. The National Restaurant Association of India has echoed similar concerns in the past, warning against data hoarding, private labels, and hefty commissions that favor large chains. Swiggy and Zomato haven’t responded to this protest yet. But it looks like the quiet towns of India are waking up as Namakkal may have just served the industry a long-overdue correction.
Cover Image Courtesy: zomatoblog/website
For more such snackable content, interesting discoveries and the latest updates on food, travel and experiences in your city, download the Curly Tales App. Download HERE.