A significant shift may be brewing in India’s food-tech ecosystem as 35% restaurants are willing to stop using food delivery platforms, according to a recent industry survey. The finding highlights growing dissatisfaction among restaurant owners over high commissions, pricing control, and profitability concerns.
The development raises questions about the long-term relationship between restaurants and major food delivery aggregators.
What the Survey Reveals
The survey shows that more than one-third of restaurants are open to exiting food delivery platforms if conditions do not improve. Many respondents said they are actively exploring alternatives such as direct ordering, in-house delivery, or social media-based sales.
The results indicate increasing strain between restaurants and online food aggregators.
Why Restaurants Are Unhappy With Delivery Platforms
The main reason why 35% restaurants willing to stop using food delivery platforms is linked to cost pressure. Key concerns include:
- High commission fees eating into margins
- Additional charges for visibility and promotions
- Discount-led pricing hurting brand value
- Delayed settlements and operational dependency
- Limited control over customer data
For small and mid-sized restaurants, platform costs can significantly impact profitability.
Rising Costs and Thin Margins
Restaurant owners say rising input costs — including raw materials, rent, labour, and utilities — have already squeezed margins. Adding platform commissions on top has made online orders less sustainable for many outlets.
Some restaurants claim they earn little to no profit on delivery orders despite high order volumes.
Shift Toward Direct Ordering Models
As a result, many restaurants are now investing in:
- Direct ordering through websites or WhatsApp
- Loyalty programs for repeat customers
- Social media-based marketing
- In-house or local delivery partnerships
This shift is accelerating as restaurants seek better margin control and customer ownership.
What This Means for Food Delivery Platforms
The fact that 35% restaurants willing to stop using food delivery platforms poses a potential risk to aggregator business models. Platforms rely heavily on restaurant participation to maintain selection, user engagement, and growth.
If more restaurants reduce dependency, platforms may face pressure to revisit commission structures and partnership terms.
Platform Response and Industry Context
Food delivery platforms argue that commissions cover logistics, technology, marketing, and customer acquisition. They also point out that platforms help restaurants access a much larger customer base than offline channels alone.
However, industry experts say long-term sustainability will depend on balancing platform profitability with restaurant viability.
Impact on Consumers
If restaurants reduce platform presence, consumers could see:
- Fewer restaurant options on apps
- Higher delivery prices
- Increased push toward direct ordering
- Potential fragmentation of the ordering experience
That said, popular chains are likely to remain on platforms due to visibility and scale benefits.
Broader Trend in the Food-Tech Sector
Globally, similar tensions have emerged between restaurants and delivery platforms. Many markets have seen restaurants renegotiate terms, adopt hybrid models, or push customers toward direct channels.
India now appears to be entering a similar phase of recalibration.
What Happens Next
Industry observers believe the next phase could include:
- Revised commission slabs
- More transparent pricing
- Stronger restaurant-focused partnerships
- Growth of SaaS tools for direct ordering
The ecosystem may evolve toward a more balanced, multi-channel model.
Conclusion
The finding that 35% restaurants willing to stop using food delivery platforms is a clear warning signal for India’s food-tech industry. While delivery apps have transformed food ordering, rising costs and margin pressure are forcing restaurants to rethink dependency.
The future of food delivery may depend on collaboration, fair economics, and sustainable growth for both platforms and restaurant partners.
