Image Source: The Hindu
A major shift is underway in Namakkal’s food delivery landscape as nearly all local restaurants have stopped accepting orders via Swiggy and Zomato from July 1, 2025. The move, led by the Namakkal City and Taluk Hotel Owners’ Association, comes after months of escalating tensions over high commissions, hidden charges, and delayed payments by national food aggregators.
Key Highlights
• Restaurant owners cite commissions as high as 33%, with additional hidden fees for advertising and promotions, making it impossible to offer affordable prices to customers. For instance, a dish priced at Rs 150 in-house appears as Rs 230 on aggregator apps, leading to customer dissatisfaction and eroding restaurant margins.
• Negotiations with Swiggy and Zomato failed to yield a standard commission cap (demanded at 18%) or greater transparency in fee structures. The association also protested delayed weekly payments and unilateral discount policies that further squeezed profits.
• The collective halt affects about 85 eateries in Namakkal taluk, which previously generated daily online orders worth Rs 10 lakh. The sudden move has also impacted delivery partners, whose incomes have sharply declined due to the drop in order volumes.
• In response, restaurant owners are turning to Tamil Nadu-based online delivery platforms and local logistics partners. These alternatives promise a flat delivery charge for customers and eliminate the commission-heavy model, allowing eateries to retain a greater share of revenues and offer more transparent pricing.
• The association acknowledges a potential short-term loss but views the switch as essential for long-term sustainability and fairer business practices. Local platforms are expected to gain traction as both restaurants and consumers seek more equitable solutions.
Sources: The New Indian Express, Economic Times, Times of India, CEO Insights India, Startup News, Instagram
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