Aggregator Economics: What Zomato & Swiggy Commissions Actually Cost Your Kitchen

How to calculate the real contribution of Zomato and Swiggy orders after commission, GST on fees, packaging, discounts, ads and refunds.

Aggregator commission is only one line in delivery economics. Restaurants must calculate contribution per order after platform fees, GST on those fees, packaging, restaurant-funded discounts, advertising, refunds and incremental kitchen labour.

Key Takeaways

Never judge delivery profitability from menu price minus commission alone.

Build a separate P&L for each platform and for direct delivery.

Allocate restaurant-funded and platform-funded discounts correctly.

Packaging belongs in the SKU cost, not in a general overhead bucket.

Platform advertising is customer-acquisition cost and needs order-level attribution.

A high-order brand can still destroy cash if contribution per order is negative.

The aggregator dashboard shows rising orders. The kitchen sees more tickets. The settlement arriving in the bank is much smaller than the menu value that created the excitement.

Between those two numbers sit commission, GST on platform services, restaurant-funded discounts, packaging, advertising, refunds and reconciliation adjustments. When these costs are blended into monthly accounts, weak delivery economics can hide behind profitable dine-in.

The solution is an order-level contribution model that reconciles with the actual platform settlement.

Why the settlement statement matters

Platform contracts and fee structures vary by restaurant, city, campaign and service. Use the signed commercial terms and settlement report rather than a remembered commission percentage.

Delivery also changes the product. A dish that works at the table may need extra packaging, a different portion, tighter holding time or a replacement policy. Those costs belong to the channel.

Operating Benchmarks

Review these controls by platform, outlet and SKU. A blended monthly percentage can hide a profitable lunch offer beside an unprofitable dinner campaign.

Control Point — How to Read It — Review Rhythm. Commission — Model 18-30% plus GST on platform service fee — Order. Packaging — 3-8% depending on cuisine, leakage risk and portion architecture — SKU. Discounts — Split brand-funded and platform-led discounts — Campaign. Ads — Treat visibility spends as customer-acquisition cost — Weekly.

Commission: Model 18-30% plus GST on platform service fee Use the order review to compare the result with the approved baseline and record the commercial action that follows.

Packaging: 3-8% depending on cuisine, leakage risk and portion architecture Use the sku review to compare the result with the approved baseline and record the commercial action that follows.

Discounts: Split brand-funded and platform-led discounts Use the campaign review to compare the result with the approved baseline and record the commercial action that follows.

Ads: Treat visibility spends as customer-acquisition cost Use the weekly review to compare the result with the approved baseline and record the commercial action that follows.

From Rs 500 menu value to actual contribution

For an illustrative Rs 500 order, assume Rs 125 in commission and related platform charges, Rs 35 packaging, Rs 50 restaurant-funded discount, Rs 160 food cost and Rs 20 in allocated advertising. The order contributes Rs 110 before fixed kitchen and administrative costs.

If the same order needs a refund or the discount deepens, contribution can disappear quickly. Reconcile the calculation with the net settlement rather than relying on catalogue pricing.

Record commission, payment, logistics, cancellation and promotional clauses from the contract.

Cost food, packaging and preparation effort for every delivery menu item.

Match orders, deductions, refunds and taxes with the bank receipt.

Track platform ads and discount funding against new and repeat order contribution.

Check 1: Which POS, invoice, settlement, recipe, booking or operating record will demonstrate that “export four weeks of order and settlement data for each platform” improved the result?

Check 2: Which POS, invoice, settlement, recipe, booking or operating record will demonstrate that “calculate contribution by sku, campaign, daypart and delivery radius” improved the result?

Check 3: Which POS, invoice, settlement, recipe, booking or operating record will demonstrate that “remove or redesign items with poor travel quality, refunds or negative contribution” improved the result?

Check 4: Which POS, invoice, settlement, recipe, booking or operating record will demonstrate that “test direct-order retention only where service, payment and delivery operations can meet the promise” improved the result?

30-Day Operating Plan

Step 1: Export four weeks of order and settlement data for each platform.

Step 2: Calculate contribution by SKU, campaign, daypart and delivery radius.

Step 3: Remove or redesign items with poor travel quality, refunds or negative contribution.

Step 4: Test direct-order retention only where service, payment and delivery operations can meet the promise.

Close the month with a written continue, revise or stop decision. Record the contribution effect, guest response, team effort and unresolved risk so the next review begins with evidence rather than memory.

Common Mistakes

Do not add a flat markup without checking demand, taxation and menu architecture.

Do not assume every platform deduction is commission; classify each line accurately.

Do not chase order growth when the kitchen pass, packaging area or complaint rate is already under strain.

Find relevant HORECA partners

Compare packaging, ordering, POS and delivery-operations partners that improve contribution and reconciliation.

Frequently Asked Questions

What do Zomato and Swiggy really cost a restaurant?

The total includes contracted commission and fees, GST on platform services, packaging, restaurant-funded discounts, advertising, refunds and operational costs.

Should delivery menu prices be higher?

They may need different pricing, portions or bundles, but the decision should follow channel contribution and customer response rather than a flat markup rule.

How should packaging be treated?

Include packaging directly in the cost of each delivery SKU so contribution is visible before fixed costs.

What is the best delivery profitability metric?

Use contribution per completed order and contribution by SKU, campaign and platform.

Can direct ordering replace aggregators?

Direct ordering can improve data ownership and reduce some fees, but the restaurant must fund discovery, payment, support and delivery execution.

More from Hospiverse India