The restaurateurs argue that by selling private-labeled food, these companies are transforming into direct competitors rather than acting as marketplaces. Credit: Raksha Shelare/Shutterstock.

India’s restaurants reportedly plan to take “legal” course against food delivery giants such as Swiggy and Zomato for the “abuse” of latter’s dominance, following the launch of their new quick food delivery apps, Snacc and Bistro.  

These services promise to deliver snacks, beverages, and meals to customers in as little as 10 to 15 minutes, with these services currently operational only in select areas.  

This move is seen as a direct response to Zepto’s standalone cafe app and has sparked controversy within the restaurant industry, reported Times of India (TOI). 

The core of the contention lies in the allegation from restaurant owners that the food delivery services are leveraging customer data to create and distribute private label food products through these apps.  

The restaurants argue that by selling private-labeled food, these companies are transforming into direct competitors rather than acting as marketplaces, which is what they claim their business model should be. 

National Restaurant Association of India (NRAI) trustee Anurag Katriar told TOI: “This is clearly an abuse of dominance. Swiggy and Zomato are taking unfair advantage of our data and entering our territory. We are going to take legal recourse”. 

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Swiggy and Zomato have built multibillion-dollar businesses over the years through partnerships with restaurants.  

With the Covid-19 pandemic accelerating online shopping habits among Indians, both delivery companies expanded their services to include the delivery of groceries within minutes.  

This led to the development of a market for quick commerce. Zomato, through Blinkit, and Tata’s BigBasket now deliver not only groceries but also electronics, apparel, and occasionally iPhones, all within ten minutes. 

Swiggy offers a ten-minute food delivery service called Bolt within its main app, while Zomato provides a similar 15-minute option Bistro, launched in December 2024.  

However, restaurants have not opposed these services as they operate under the same aggregator model where the food is delivered in partnership with them. 

NRAI president and cofounder and CEO at Wow! Momo Foods Sagar Daryani said: “We have no reason to not believe them migrating our customers to the products they sell as private labels on their apps. Be it data from a tea brand biryani or momos. 

Daryani added “As long as the aggregators are OK working with the restaurants and enable restaurants to go quick we are absolutely fine with it. But we will not want to be demolished as an industry where they end up selling our similar products.” 

As of now, Swiggy and Zomato have not issued any comments regarding the business model for Snacc and Bistro apps or addressed the allegations made by restaurateurs, reported the publication.