Hello restaurant warriors, this is your coach. A landmark industry report has just sounded an alarm that should be on every food entrepreneur’s dashboard: a staggering 35% of restaurants on food delivery platforms say they would quit if given a clear path. This isn’t a minor grumble; it’s a seismic shift in sentiment, driven by a single, painful number: the average commission per order has skyrocketed from 9.6% in 2019 to 24.6% in 2023. If you’ve felt your margins evaporate with every “Kaun Banega Crorepati” notification, you are not alone.

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But here’s the paradox: while one-third of us want to leave, nearly two-thirds stay. This is the central dilemma of modern Indian food service. You’re trapped in a relationship that brings undeniable customers but eats away at your profits and autonomy. This article is not just about the problem; it’s your strategic blueprint. We’ll dissect the NCAER report data, translate it into direct impact for your business, and, most importantly, provide a clear, actionable playbook to navigate this crisis. Your goal isn’t just to survive on these platforms—it’s to thrive beyond them.

Decoding the Data: Why the Love Affair with Platforms is Souring

The comprehensive NCAER-Prosus survey, covering 640 restaurants across 28 cities, paints a clear picture of a fraying partnership. The primary culprit is the relentless squeeze of rising commissions. A jump from under 10% to nearly 25% in four years has fundamentally changed the economics of delivery for countless eateries from Mumbai to Mysore. For many small and medium-sized restaurants, the dream of high-volume, low-margin sales has become a nightmare of high-volume, no-margin sales.

The frustration, however, extends beyond the pricing sheet:

• Negotiation Power Gap: The report clearly states that “medium & large restaurants had relatively greater negotiating power”. A chain with 50+ outlets can broker a better deal, while a single-outlet owner in a Tier 2 city often feels powerless, with nearly 45% of platform restaurants feeling they cannot negotiate commissions.

• The Data Black Box: 67% of restaurants reported platforms shared only customer names, leaving you in the dark about contact details, order history, and preferences. This prevents you from building direct, profitable relationships with your most loyal patrons.

• Hidden Campaign Costs: While special campaigns can boost orders, the fine print is brutal. In Tier 3 cities, 44.2% of restaurants perceived offering discounts as mandatory. Of those participating, a significant portion bore more than 80% of the discount cost, often making the volume surge a loss-making endeavor.

Yet, the platforms are not without value. They provide critical visibility, expanded geographical reach (reported by 59% of restaurants), and have become a vital revenue stream, contributing an average of 28.8% of total revenue for platform restaurants. The challenge is learning to use them without letting them use you up.

What This Means for Your Restaurant Business in India

This news is not an abstract economic trend; it’s a daily reality check that impacts every facet of your operation.

• For the Cloud Kitchen & QSR Operator: Your entire model is built on delivery economics. When a quarter of every order goes to the platform, your unit economics are under extreme stress. You are likely “subsidizing growth” for the platform, not for your own brand. The lack of customer data means you have no defense against a customer who simply searches for “pizza” next time, rather than your pizza.

• For the Cafe Owner & Casual Diner: You face a critical brand dilution risk. When your carefully crafted coffee or gourmet burger is presented alongside endless discounts and combo meals, you compete on price, not experience. The report notes the average platform order value (₹302) is lower than direct delivery (₹332), highlighting the platform’s budget-conscious ecosystem.

• For All Restaurant Owners: This is a stark wake-up call on financial control. The current model makes you vulnerable. If commission rises another 5%, or a new “promotion fee” is introduced, your business plan could collapse overnight. As a coach, the first question I ask owners at RestaurantCoach.in is: “Who owns your customer relationship?” If the answer is “Zomato,” we have our first strategic priority.

This isn’t about quitting platforms overnight. It’s about strategic rebalancing. The goal is to shift from being a dependent “vendor” on a platform to being an independent “brand” that uses platforms as one of many channels.

Your Action Plan: 7 Steps to Reclaim Control and Profitability

The data is clear, and the need for action is urgent. Here is your step-by-step playbook, drawn from proven strategies we implement with our coaching clients.

1. Master the Platform Game (Before You Change It)

You must optimize your presence to maximize every rupee spent.

• Audit Your True Cost Per Order: Don’t look at commission in isolation. Calculate the all-in cost including GST on commission, delivery partner fees, packaging, and your share of discounts. A ₹300 order might only net you ₹190-₹195. Know this number for every item.

• Smart Menu Engineering: Create platform-exclusive combos or slightly larger portions that justify the higher effective price post-commission. Move your high-margin items to the top of your digital menu.

• Negotiate from a Position of Strength: Use your own data. If you have over 300 orders a month, approach your account manager with a proposal for a tiered commission. Show them your growth and ask for terms that reward loyalty.

2. Launch Your Direct Ordering Engine Immediately

This is your most critical strategic move. Your website and WhatsApp are not just communication tools; they are profit centers.

• Build a Simple, Mobile-First Ordering Website: Services like Shopify, WooCommerce, or DotPe can get you set up quickly. The key is a frictionless, 3-click ordering process.

• Activate WhatsApp Commerce: Use a dedicated business number and a clear ordering protocol (e.g., “Type MENU”). It’s personal, direct, and has zero commission. We’ve helped cafes in Delhi increase direct orders by 30% in three months using this simple channel at RestaurantCoach.in.

• The Physical-Digital Bridge: Place QR code table tents, stickers on delivery packaging, and posters in your outlet that scream “Order Direct & Save 20%!” Incentivize the behavior that builds your asset—your customer list.

3. Capture and Own Your Customer Data

Every direct interaction is gold. Start building your database from today.

• Offer a Clear Value Exchange: A 10% discount on their next direct order in exchange for their phone number and permission to message them.

• Segment and Personalize: Use a simple free CRM or even a well-organized spreadsheet. Tag customers as “Vegetarian,” “Loves Desserts,” “Weekend Diner.” Send them targeted offers, not bulk blasts.

4. Explore Alternative and Emerging Platforms

The market is reacting to the duopoly’s pain points. Keep a close watch on Rapido’s “Ownly” service, which is piloting in Bengaluru with a promised commission of just 8-15% and an agreement with the NRAI to share customer data. While new entrants have historically struggled, a model built on fairness for restaurants could gain traction. Being an early adopter on a restaurant-friendly platform could give you a first-mover advantage.

5. Re-invest in the Irreplaceable: The Dine-In Experience

The report hints at a consumer shift: people are returning to dine-in for connection. Double down on what platforms can never replicate: the ambiance, the aroma, the personalized service, the Instagrammable moment. Train your staff to convert a first-time visitor into a regular. A loyal dine-in customer has a lifetime value that dwarfs a one-time platform order.

6. Form Alliances and Leverage Your Community

You are not alone. Engage with your local restaurant association or the NRAI. The NRAI is already piloting new, equitable commission models with aggregators. There is power in a collective voice. Share challenges, learn from peers, and advocate for fair terms together.

7. Run the Numbers: The Platform Dependency Audit

Ask yourself these questions quarterly:

• What percentage of my revenue comes from platforms vs. direct channels?

• What is my net profit margin on platform orders after all costs?

• How many customer contacts have I added to my own database this month?

The Coach’s Perspective: This is Your Moment for Strategic Evolution

From the coaching room, this “crisis” looks different. It looks like a long-overdue catalyst for maturation. For years, the convenience of platforms allowed many businesses to postpone building direct marketing muscles and robust financial controls. That era is over.

The successful restaurant owner of 2025 and beyond will be a hybrid operator. You will be a savvy tactician on third-party platforms, extracting maximum value at minimum cost. More importantly, you will be a strategic brand builder off them, cultivating a direct community of patrons who are loyal to you, not to an app icon.

This is the core philosophy in our coaching at RestaurantCoach.in: building businesses that are “anti-fragile.” A fragile business breaks under stress (like a 25% commission). An anti-fragile business uses that same stress to get stronger, more efficient, and more connected to its customers. The platform squeeze is that stress. Your response—building direct channels, owning data, creating unforgettable experiences—is what will make you stronger.

Conclusion: Own Your Future, Don’t Rent It

The data is undeniable: 35% of your peers are actively looking for the exit. The question is no longer if the current model is strained, but how you will adapt. The path forward requires a deliberate shift from total dependence to empowered independence.

Treat food delivery apps as a marketing and discovery channel—a powerful billboard, but not the foundation of your business. The real foundation is the direct relationship you build with the person who loves your food. Start today by implementing just one action step: set up a WhatsApp ordering number or print those “Order Direct” QR codes.

Feeling overwhelmed by the pivot? You don’t have to navigate this alone. Our specialized restaurant coaching programs at RestaurantCoach.in are designed to help Indian food entrepreneurs like you build profitable, sustainable, and anti-fragile businesses. We provide the strategy, accountability, and actionable plans to transform your operations and reclaim your margins.

Ready to build a business that works for you, not just the platforms? [Contact us for a consultation] and let’s start crafting your freedom plan.

FAQ: Navigating the Food Delivery Platform Dilemma

Q1: Should I just quit Swiggy and Zomato completely?
A: For most restaurants, a sudden, complete exit is not advisable. These platforms still provide significant discovery and can contribute 20-30% of revenue. The smart strategy is “and,” not “or.” Use them strategically while aggressively building your direct ordering channels. The goal is to reduce your dependency, not necessarily eliminate your presence.

Q2: How can I realistically negotiate lower commissions as a small, single-outlet owner?
A: Focus on performance, not pleas. Come to the negotiation with data: your month-on-month order growth, your high customer rating, and your low cancellation rate. Propose a small, performance-based incentive (e.g., “If I hit 400 orders next month, can we review my rate?”). Also, explore bundling services—committing to using their advertising or payment services can sometimes unlock better terms.

Q3: What are the most effective low-cost tools for direct ordering?
A: For a quick start, WhatsApp Business is free and powerful. For a more branded experience, DotPe and Razorpay POS offer integrated QR-based ordering and payment. For a full-fledged website with ordering, WooCommerce (if you’re tech-comfortable) or Zomato Direct (yes, they offer this too) are good options. The best tool is the one you and your customers will use consistently.

Q4: Is the entry of new players like Rapido’s Ownly a real solution?
A: It’s a promising development that increases competition on restaurant-friendly terms like lower commissions and data sharing. However, as history shows, scaling profitably in food delivery is extremely difficult. Diversify, but don’t depend. Use new platforms as an opportunity to test and learn, but continue building your own direct assets as your primary strategy.