What Is Swiggy & Zomato Commission? How Aggregator Fees Erode Restaurant Margins
Last updated
Quick Answer
Swiggy and Zomato commission is the fee food-delivery aggregators charge a restaurant on each order routed through their platform — typically a percentage of the order value (commonly quoted in the ~18–30% range) plus applicable GST and other charges. The exact rate varies by city, cuisine, negotiated contract, and plan, and it changes over time, so confirm your current rate with the aggregator.
What Aggregator Commission Actually Covers
When a customer orders from a restaurant through Swiggy or Zomato, the aggregator handles discovery (listing the restaurant in the app), the ordering interface, payment collection, and — for delivery orders — the delivery rider network. In exchange, the aggregator keeps a commission on each order.
This commission is normally expressed as a percentage of the order's item value. On top of the base commission, restaurants may also see payment-gateway charges, delivery-fee arrangements, and GST applied on the aggregator's service — so the effective deduction from a restaurant's payout can be higher than the headline commission percentage alone.
Commission is separate from the discounts and promotions a restaurant may fund itself (for example, a '20% off' campaign or free-delivery offer). Those come out of the restaurant's share too, which is why the amount finally settled to a restaurant can be well below the menu price the customer paid.
How Much Is the Commission? Use a Range, Not a Fixed Number
Publicly, aggregator commissions for Indian restaurants are frequently discussed in a band of roughly 18% to 30% of order value, but this is a general range — not a fixed, guaranteed figure for any specific restaurant.
The actual rate a restaurant pays depends on several factors: the city and locality, the cuisine and average order value, the specific contract negotiated, whether the restaurant subscribes to advertising or premium visibility plans, and the commercial terms in force at that time.
Aggregator commercial terms are revised periodically. A rate quoted in one year may not hold the next, and different outlets of the same brand can be on different rates. Always treat any single percentage as indicative.
Note: Commission rates, payment-gateway fees, and delivery-charge structures vary by restaurant and change over time. The ~18–30% range above is indicative only — confirm the exact rate and deductions applicable to your outlet directly with Swiggy or Zomato and in your signed contract.
A Worked Example: Where Does ₹500 Go?
Consider a customer who places a ₹500 food order on an aggregator. The illustration below uses a mid-range 25% commission purely as an example — your real rate may differ — to show how margin erodes.
Assume the restaurant's raw food cost (COGS) on that order is ₹175 (35% of menu price), a common ballpark for Indian restaurants. Before the aggregator, selling that ₹500 directly would leave ₹325 to cover rent, staff, utilities, and profit.
Through the aggregator at 25% commission, the platform deducts ₹125 (plus GST on that commission and any payment/packaging/delivery charges). Set aside GST-on-commission for simplicity: the restaurant nets roughly ₹375, then pays ₹175 in food cost, leaving about ₹200 to cover all overheads and profit — versus ₹325 on a direct sale. If the restaurant also funded a discount on the platform, the net shrinks further.
- Menu value of order: ₹500
- Illustrative commission at 25%: −₹125 (plus GST on commission + other charges, not shown)
- Approx. amount settled to restaurant: ~₹375
- Food cost (COGS) at 35%: −₹175
- Approx. contribution left for overheads + profit: ~₹200 (vs ~₹325 on a direct sale)
Note: This is a simplified illustration using an assumed 25% commission and 35% food cost. It ignores GST on the commission, packaging, and delivery adjustments. Your actual numbers depend on your real commission rate and cost structure — confirm both before relying on any figure.
How Direct QR Ordering Avoids the Commission
Aggregator commission applies only to orders that flow through the aggregator's platform. Orders a restaurant takes directly — dine-in, direct takeaway, or a customer scanning the restaurant's own QR menu — carry no aggregator commission at all.
This is the core economic argument for owning your ordering channel. A restaurant that shifts even a portion of its repeat customers from 'order on the app' to 'scan our QR and order directly' keeps the commission that would otherwise have gone to the platform.
Aggregators still have real value for discovery — reaching new customers who have never heard of the restaurant. The most balanced approach for many restaurants is to use aggregators for acquisition while steadily moving loyal, repeat diners to a commission-free direct channel.
How Restrofi Fits In
Restrofi gives a restaurant its own direct ordering channel: table QR codes for dine-in and a takeaway ordering page the restaurant controls. Orders placed this way go straight to the restaurant's kitchen display and billing dashboard with no per-order aggregator commission.
Restrofi is a paid platform — Premium is ₹699 per outlet per month, a flat, predictable cost rather than a percentage cut of every order. For a restaurant doing meaningful direct volume, a fixed monthly fee can work out far cheaper than paying commission on each order.
Restrofi is not a replacement for aggregator discovery, and it does not remove commission on orders that still come through Swiggy or Zomato. What it does is let a restaurant build a commission-free channel it owns, so more of each rupee stays in the business.
Aggregator Order vs Direct QR Order
| Aspect | Swiggy / Zomato order | Direct QR order (Restrofi) |
|---|---|---|
| Per-order commission | Yes — typically ~18–30% + GST (varies) | None |
| Cost model | Percentage of every order | Flat ₹699/outlet/month (Premium) |
| Customer discovery | Strong — reaches new customers | Limited — best for existing/repeat diners |
| Customer data ownership | Held largely by the aggregator | Held by the restaurant |
| Discount funding | Often part-funded by restaurant | Restaurant sets its own offers |
| Best used for | Acquiring new customers | Retaining and re-serving loyal customers |
Frequently Asked Questions
How much commission do Swiggy and Zomato charge restaurants?
Aggregator commission is commonly discussed in the ~18–30% of order value range, plus GST and other charges, but the exact rate varies by city, cuisine, contract, and plan, and it changes over time. Treat any single number as indicative and confirm your actual rate directly with the aggregator.
Is aggregator commission charged on the full bill amount?
Commission is typically calculated on the order's item value, and additional deductions such as GST on the commission, payment-gateway fees, and packaging or delivery charges can apply on top. Restaurant-funded discounts also reduce the final payout. The exact basis is set out in your aggregator contract.
How does direct QR ordering save on commission?
Aggregator commission applies only to orders placed through the aggregator. Orders taken directly — dine-in, direct takeaway, or via the restaurant's own QR menu — carry no aggregator commission. Moving repeat customers to a direct channel keeps the fee that would otherwise go to the platform.
Does Restrofi replace Swiggy and Zomato?
No. Aggregators are strong for discovering new customers, and Restrofi does not remove commission on orders that still come through them. Restrofi gives you a commission-free direct channel (QR dine-in and takeaway) for a flat ₹699 per outlet per month, best used to retain loyal, repeat diners.
See how Restrofi handles Swiggy & Zomato Commission
QR ordering, KDS, and GST invoicing — all in one platform from ₹699 per outlet per month.
Get started