How to Negotiate with Zomato and Swiggy for Better Visibility
Learn how to leverage data and restaurant performance to negotiate lower commissions and better visibility on Zomato and Swiggy for your F&B business.
Running a restaurant in India today means you are likely paying between 18% to 30% commission to Zomato and Swiggy. While these platforms provide the logistics and the customer base, high commissions and hidden costs can eat into your bottom line. However, many owners don't realize that visibility and terms are often negotiable—if you have the right leverage.
Here is a guide on how to talk to your account managers and win better space on the apps.
1. Understand Your Platform Metrics First
Before you call your PoC (Point of Contact), you need to speak their language: data. Aggregators prioritize restaurants that make them money with the least friction.
Check your dashboard for these three key metrics:
- Conversion Rate (CVR): The percentage of people who click your menu and actually order. Aim for above 10%.
- Cancellation Rate: Anything above 1% is a red flag that weakens your negotiating power.
- Average Order Value (AOV): If your AOV is significantly higher than your category average, you are a high-value partner.
2. Leverage 'Brand Exclusivity'
This is the biggest bargaining chip for Indian restaurateurs. Both Zomato and Swiggy are in a constant battle for market share.
If you are a popular local brand, you can offer to go exclusive with one platform. In exchange for exclusivity, you can typically negotiate:
- A 3% to 5% reduction in base commission.
- Fixed spots in the 'Top Picks' or 'Recommended' sections.
- Reduced or waived fees for platform-sponsored festivals (like Zomato Gold or Swiggy ITAC).
3. How to Negotiate Advertising Credits (Ad-Spends)
Instead of just asking for lower commissions, ask for reinvestment. If you are spending ₹20,000 a month on CPC (Cost Per Click) ads, ask your account manager for "Bonus Credits."
The Strategy: Tell your manager, "I am planning to increase my ad spend to ₹50,000 this month. If I do, can the platform provide a 20% top-up in ad credits?" Most managers have the authority to grant these bonuses to hit their own growth targets.
4. Building a Case for "High Volume, Low Margin"
If you run a cloud kitchen specializing in high-volume items like Biryani or Thalis, your margins are likely thin.
Approach the platform with a volume-based proposal: "If I hit 2,000 orders this month, can my commission for those orders be capped at 18% instead of 25%?" This tiered commission structure protects your profits during peak scaling periods.
5. Optimizing for the Algorithm (Organic Visibility)
You don't always have to pay for visibility. You can "negotiate" with the algorithm by:
- Improving Preparation Time: Reducing your prep time by 2 minutes can jump your ranking by several spots.
- Menu Engineering: Use high-quality photography. Studies show that professional food photos can increase conversion by up to 25-30%.
- Running Smart Discounts: Platforms favor restaurants that participate in 'Deal of the Day' or offer at least a 10-15% discount for a limited time.
6. The Power of Professional Representation
Individual owners often find it hard to get a response from busy account managers. This is where scale matters. Being part of a managed network or using a consultant can give you the collective bargaining power that standalone cafes lack.
Next Steps for Your Restaurant
Negotiating with tech giants requires patience and proof of performance. Start by auditing your current platform health and identifying your strongest metrics.
Resvito can help you win the delivery game. From professional food photography that boosts your organic ranking to helping you navigate Zomato and Swiggy onboarding and account management, we ensure your restaurant gets the visibility it deserves without burning your margins.
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