Restaurant owners unite over Foodpanda dispute

A dispute involving Foodpanda and restaurant owners in Chattogram has sparked a wider discussion about unity and fair business practices in Bangladesh’s restaurant industry.

What began as a boycott campaign over alleged high commissions, additional charges, delayed payments and penalties is increasingly turning into a show of solidarity among restaurant businesses across the country.

The collective position taken by restaurant owners in Chattogram has received support from several Dhaka-based restaurant brands, highlighting a growing call for businesses to stand together in protecting their interests and demanding fair treatment.

The Chattogram metropolitan chapter of the Bangladesh Restaurant Owners Association has alleged that Foodpanda’s commissions and additional charges are significantly reducing restaurants’ profit margins. According to the association, commissions and other deductions sometimes account for a substantial portion of total sales.

The association said at least 120 restaurants in Chattogram had already joined the boycott after failing to receive a satisfactory response to their six-point demands. Several other restaurants have also expressed interest in joining the campaign.

The protest has now moved beyond Chattogram, with restaurant owners calling for broader solidarity from businesses operating in the city.

Particular attention has been drawn to the position of Dhaka-based restaurant brand Chillox, which has reportedly suspended its operations on Foodpanda in solidarity with restaurant owners in Chattogram.

Another Dhaka-based brand, Roadside Kitchen, has also reportedly stopped operating on the platform in support of the collective position taken by local restaurant businesses.

Restaurant owners say the issue is not merely about commercial relations with a food delivery platform but also about mutual respect, fairness and responsibility towards local businesses.

They have urged other restaurant brands operating in Chattogram to stand alongside local entrepreneurs and support their demands for fair business practices.

Restaurant owners have alleged that Foodpanda’s commission rates can reach 30 to 35 per cent, with additional deductions for rider waiting time, online payment processing, VAT and other charges.

According to an account shared by one restaurant, 11 orders generated total sales of Tk 7,034. However, after discounts, commissions, rider waiting charges and other deductions, the restaurant received only Tk 3,524.37.

In another case, a restaurant owner claimed that against sales of Tk 5,005 last month, the amount received after all deductions was only Tk 67.

Restaurant owners say it has become increasingly difficult to sustain operations while covering the costs of ingredients, employee salaries, rent, electricity, gas and other expenses alongside such high commissions.

They are demanding that all commissions and additional charges be capped at 15 per cent and that payments be settled within seven days.

Following the boycott, many restaurant owners are turning to alternative food delivery platforms, particularly Pathao Food and Foodi.

Restaurant owners say the comparatively lower commission rates offered by these platforms make it easier to manage operating costs.

According to Faisal Ahmed, assistant manager for the Chattogram region at Foodi, between 450 and 500 restaurants are currently listed on the platform. The company claims it does not impose hidden charges or late fees.

The Pizza Co in South Khulshi has also reportedly moved away from Foodpanda and started delivering food through Foodi and Pathao Food.

Meanwhile, some restaurants are reducing their dependence on third-party delivery services by accepting direct orders through Facebook, Instagram and WhatsApp. Others are expanding takeaway services and their own home delivery arrangements.

Foodpanda Bangladesh has said it operates through individual bilateral agreements with each restaurant and is holding direct discussions with partner restaurants to address their concerns.

The company also claims that it provides compensation of up to 40 per cent from its own funds in cases of order cancellations and covers delivery expenses for cancelled orders.

Foodpanda has additionally alleged that some restaurants are being pressured to deactivate its service tab and use competing platforms.

However, the Restaurant Owners Association has maintained that its campaign is not intended to benefit competing delivery services. Instead, it says the movement is aimed at ensuring the sustainability of restaurant businesses, reasonable commission rates and the protection of business rights.

The position taken by restaurant owners in Chattogram has raised broader questions about the relationship between restaurants and online food delivery platforms across Bangladesh.

Business owners say issues involving commissions, payments, penalties and platform policies affect the entire restaurant industry, making collective efforts increasingly important.

The success of a food delivery platform, they argue, should not depend solely on its brand recognition or customer base. The profitability of partner restaurants, the earnings of delivery riders and customer satisfaction are equally important.

Restaurant owners expect all platforms to follow transparent policies, maintain reasonable charges, ensure timely payments and give due consideration to complaints from both sides.

The growing solidarity over the Foodpanda dispute reflects a wider demand for fairness and mutual respect in the restaurant business.

While brands and business models may differ, restaurant owners say their interests and right to fair treatment remain common.