Namakkal restaurants stop supply of food to online delivery platforms Swiggy, Zomato

Restaurants in Namakkal town, on Tuesday (July 1, 2025), stopped supplying food to online food delivery platforms like Swiggy and Zomato due to commission dispute.

Last week, the restaurant owners in Namakkal district claimed that they will stop supplying food to online food delivery majors from July 1, alleging that the delivery aggregators are demanding more commission and not paying the restaurants for food on time. Based on the announcement, the restaurants stopped supplying food to the online delivery companies on Tuesday. This has led to the gig workers of the platforms waiting outside the restaurants in Namakkal town, to fulfil the orders of the customers.

N. Arul Murugan, secretary for the Namakkal Town and Taluk Hotel Owners Association, said that these online companies are demanding exorbitant commissions. For food costing ₹100, they get ₹36 (30% to 35% of commission and also 18% GST). When the restaurant owners increase the food price to cope up with the losses, it affects the public more, he stated.

Though hidden charges and advertisements, these aggregator companies announce flat offers that result in big losses for the restaurant owners and notify the hotel owners of it merely through emails. Most of the restaurant owners in Namakkal town only skilled businessmen who are mostly illiterate. So, they are not well-versed with the terms and conditions of these companies, Mr. Arul Murugan added.

Stating that none of the restaurant in the town are providing food to these companies from Tuesday, Mr. Arul said that restaurant owners are ready to give only a 10% commission for these companies. After this, the companies the food aggregators have come forward to announce flat discounts to customers only after obtaining consent from owners and to send details of hidden charges and advertisements through WhatsApp.

“We are in talks with a local agent who is ready to take up delivery on a minimum commission. Until our demands are met, we will not supply food to these online companies and have given instructions to all restaurants to reject the orders for the next one week. On Tuesday, restaurants in Namakkal town alone stopped providing food. Soon, restaurants in Rasipuram and Tiruchengode are also expected to join us and talks are going on in this regard,” Mr. Arul Murugan added.