Chennai’s bustling food scene is facing a potential shake-up. More than 1,000 branded restaurants in the city may soon withdraw from food delivery platforms like Swiggy and Zomato, following mounting frustration over aggregator commission structures.
The Chennai Hotels Association has raised the red flag, calling out what they describe as “unnecessary and excessive charges” imposed by delivery apps. The association’s president, M. Ravi, pointed out that both consumers and restaurants are being squeezed — restaurants are paying high commissions, while customers continue to face marked-up prices.
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According to Ravi, the financial strain on restaurants has reached a tipping point. Many establishments, especially smaller brands, are unable to absorb the 40–45% commission fees reportedly charged by aggregators. Vice-president K. Rajkumar further highlighted that restaurants have little to no say in how these charges are determined or modified.
“What’s even more baffling is that despite charging these high rates, delivery apps continue to report losses,” Rajkumar said. “At the same time, delivery partners also complain of low pay. It begs the question — where is all the money going?”
This brewing discontent is not new. Over the past few years, restaurant owners across India have voiced similar concerns. However, the scale of this potential exit — involving over a thousand eateries — signals a serious escalation. If implemented, it could severely impact the city’s food delivery ecosystem and potentially nudge customers back toward direct ordering or dining in.
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As consumers grow increasingly dependent on convenience and quick delivery, this move could disrupt daily habits and force a re-evaluation of pricing and business models by the delivery giants. For now, all eyes are on how Swiggy and Zomato respond — and whether they’ll make changes to retain their restaurant partners.
