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Small Restaurants Abandon Zomato Over Opaque Fees

Opaque fee structures combined with mounting ad expenses are eroding profits for small eateries, prompting many to leave the platform.

Overview

  • Manish has removed his Noida restaurant Saffroma from Zomato after receiving zero payouts for two months and finding ads placed without his consent.
  • Revanth Dinesh of Bengaluru’s Scoopful ice cream store reported that April sales of ₹17,000 were largely wiped out by 30% commission and ₹10,000 in ad spend.
  • Vandit Mallik of Gurgaon’s The Garlic Bread highlighted a disparity where major chains pay 8–9% commission while small restaurants are charged between 22% and 30%.
  • Owners say Zomato growth managers have encouraged heavier ad investments and steeper discounts, further shrinking already thin margins.
  • Zomato Care has asked affected restaurant owners to share their IDs via direct message but has not outlined a comprehensive solution.