A recent industry survey has revealed growing frustration among restaurant owners in India with major food delivery apps. About 35% of restaurants say they would choose to quit these platforms if given the option. While delivery apps have transformed how customers order food, the relationship between platforms and eateries now shows increasing tension due to rising costs and other challenges.
Rising Commissions Squeeze Profits
The most common complaint from restaurant operators is the high commission charged on each order. Over recent years, average per-order commissions have risen substantially. Restaurant owners argue that the increasing share taken by delivery apps leaves them with much thinner margins, making it harder to turn a profit even when sales rise.
For many small and medium-sized eateries, these fees eat into their earnings, forcing them to absorb costs that were previously manageable. The high commissions have prompted many to reevaluate whether the extra business generated through apps is worth the financial strain.
Other Pain Points for Eateries
Beyond commissions, several other issues contribute to the dissatisfaction:
- Poor customer service: Some restaurants feel that the support from delivery platforms is insufficient when problems arise, such as order issues or disputes with customers.
- Limited customer data: Many restaurants complain that they don’t receive valuable customer information from the platforms, making it difficult to cultivate direct relationships or market to loyal patrons.
- Profitability concerns: Even with steady orders, net profits remain low after fees and costs are deducted. This has led several restaurateurs to question the long-term value of relying on food delivery apps.
These challenges have pushed roughly one in three restaurants to consider leaving the platforms altogether.
Why Many Restaurants Still Stay On Apps
Despite frustrations, most restaurants continue to work with delivery platforms because of the benefits they provide:
- Broader visibility: Being listed on popular apps exposes restaurants to customers they might not reach on their own.
- Increased orders: The platforms help generate more orders, particularly for smaller eateries without established delivery systems.
- Expanded operational reach: Restaurants can serve customers beyond their immediate neighbourhood without investing in their own delivery logistics.
This mix of pros and cons has created a trade-off situation — where restaurants depend on apps for business growth but feel squeezed by the cost of doing so.
