35% of Restaurants in India Consider Leaving Food Delivery Apps Amid Rising Commissions, Survey Finds

New Delhi, Dec 19, 2025: A recent nationwide survey has revealed that around 35 per cent of restaurants in India would quit food delivery apps if given the choice, highlighting growing concerns over commissions, operational pressures, and profitability. Conducted by the National Council of Applied Economic Research (NCAER) and sponsored by Prosus, the study also emphasizes why a majority of restaurants continue to use these platforms despite challenges. Food delivery apps have become an essential part of India’s food ecosystem, providing restaurants with visibility, access to a larger customer base, and extended delivery reach. However, the same platforms also impose financial and operational burdens, creating a delicate balance for restaurant owners. The survey shows that while 35 per cent of restaurants are considering exiting, nearly two-thirds prefer to continue using the apps for the business advantages they offer. The primary reason driving dissatisfaction is the high commission charged per order. The report notes that average commissions have increased from 9.6 per cent in 2019 to 24.6 per cent in 2023. Smaller restaurants often lack bargaining power and face thin margins, while medium and large establishments have relatively more negotiating leverage. Other concerns include insufficient profitability despite steady orders and occasional poor customer service from platforms. Despite these challenges, many restaurants remain on the apps due to the visibility, network access, and growth opportunities they provide. Being listed on popular platforms allows restaurants to reach customers beyond their immediate neighbourhoods, attract new diners, extend operating hours, and increase menu variety. The study found that 59 per cent of restaurants experienced expanded geographical reach, 52.7 per cent increased menu options, and 50.4 per cent gained more customers due to platform listings. Platforms have also helped formalize operations in a traditionally informal sector by supporting digital payments, licensing, accounting, and inventory management. Restaurants, particularly during the Covid-19 pandemic, heavily relied on delivery platforms, although some Tier 3 cities have seen a slight decline in platform revenue as in-person dining resumes. The NCAER study concludes that the relationship between restaurants and delivery platforms is defined by trade-offs. While high commissions and operational challenges push some to consider leaving, the benefits of reach, visibility, and business stability encourage most to stay. Going forward, the sustainability of this partnership will depend on how platforms address concerns about fairness, transparency, and support for restaurants, ensuring a balance between growth and profitability. 35% of Restaurants in India Consider Leaving Food Delivery Apps Amid Rising Commissions, Survey Finds A new survey by the National Council of Applied Economic Research (NCAER) reveals that around one in three restaurants in India would quit food delivery apps if they could. The study, sponsored by Prosus, shows that while these apps help restaurants reach more customers, the rising commissions and operational challenges are making many owners reconsider their dependence. High commissions are the main concern. The report says average charges per order rose from 9.6% in 2019 to 24.6% in 2023. Small restaurants struggle the most, as they have little room to negotiate and face thin profit margins. Even with steady orders, profits often remain low. Other issues include occasional poor customer service from the apps and the overall pressure of running a delivery business alongside normal restaurant operations. Despite these challenges, most restaurants continue using the platforms. Apps give visibility and help reach customers beyond the local area. Many restaurants also expand their menus, attract new diners, and generate orders during off-peak hours without investing in their own delivery network. According to the survey, 59% of restaurants reported reaching more locations, 52% added menu items, and 50% saw an increase in customers because of these platforms. The study highlights that the relationship between restaurants and food delivery apps is a mix of benefits and challenges. While some restaurants think about leaving due to high costs and stress, others stay because of the growth opportunities and business stability the apps provide. Moving forward, the future of this partnership depends on how the apps address commission fairness, support services, and profitability for restaurants, ensuring they remain helpful rather than burdensome.