What is Zomato’s commission percentage in 2026?
In 2026, Zomato’s base commission for restaurants typically ranges between 18% and 28% of order value (GMV) depending on restaurant category, city, and negotiated partnership tier.
However, the effective total cost per order is usually higher, often landing between 23% and 38% of GMV once GST on commission, promotional spend, and platform advertising are included.
Many restaurant owners focus only on the base commission percentage, but the real profitability impact comes from the combined cost structure of commission, ads, discounts, and taxes.
Understanding this full cost breakdown is essential for any restaurant operating on Zomato.
Why Understanding Zomato Commission Matters
Food delivery platforms operate on a commission-based marketplace model.
Zomato connects restaurants with customers, handles order routing, and provides delivery infrastructure. In exchange, restaurants pay a percentage of each completed order.
The issue is that commission affects gross revenue, not profit.
Example:
| Metric | Example Order |
|---|---|
| Order value | ₹400 |
| Base commission (25%) | ₹100 |
| GST on commission (18%) | ₹18 |
| Net payout before food cost | ₹282 |
If food cost for the order is ₹140, the restaurant is left with:
₹142 before rent, staff, and operations.
This is why many restaurants underestimate the real impact of delivery platform commissions.
Zomato Commission Rates 2026
The base commission rate varies based on several factors including:
Restaurant category
City
Order volume
Negotiated contract
Below are the most common ranges observed across restaurant partners.
Typical Zomato Commission Slabs
| Restaurant Type | Commission Range |
|---|---|
| New restaurants | 24–28% |
| Mid-volume partners | 22–25% |
| High-volume restaurants | 18–22% |
| Large chains | 15–20% |
Restaurants with strong order volume often negotiate lower commission slabs.
For example:
A restaurant generating ₹5 lakh monthly GMV on Zomato typically qualifies for 20–22% commission tiers.
Base Commission vs Effective Commission
Many restaurant operators assume that the base commission rate is their only platform cost.
In reality, several additional costs affect the effective commission rate.
Cost Components of a Zomato Order
| Cost Component | Description |
|---|---|
| Base Commission | Platform fee for each order |
| GST on Commission | 18% tax on the commission amount |
| Promotional Ads | Optional marketing spend |
| Discounts | Platform-funded or restaurant-funded |
| Packaging Costs | Containers, bags, labeling |
When these costs are combined, the true take rate increases significantly.
Example Order Cost Breakdown
| Item | Amount |
|---|---|
| Order Value | ₹500 |
| Base Commission (24%) | ₹120 |
| GST on Commission | ₹21.6 |
| Ad Cost Allocation | ₹30 |
| Net Revenue | ₹328.4 |
This means the restaurant effectively paid 34% of the order value in platform-related costs.
Understanding this distinction between base commission and effective commission is critical when calculating profitability.
GST, Payment Gateway & Hidden Fees
The Zomato commission structure includes additional financial components that many restaurant owners overlook.
GST on Commission
Restaurants must pay 18% GST on the commission charged by Zomato.
Example:
If commission is ₹100, GST adds ₹18.
This tax is applied to the commission amount, not the full order value.
Payment Gateway Charges
Although most payment processing is bundled into the platform commission, in certain partnership structures restaurants may incur additional settlement costs.
These costs are typically small but still contribute to the effective take rate.
Promotional Discount Funding
Zomato frequently promotes discounts such as:
20% off
Buy 1 Get 1
Flat ₹100 off
The funding for these offers may be split between Zomato and the restaurant.
Example:
| Offer | Who Pays |
|---|---|
| 40% off up to ₹120 | Split between platform and restaurant |
| Buy 1 Get 1 | Mostly restaurant funded |
| Free delivery promotions | Platform funded |
Before running any offer, restaurants should verify the discount funding structure.
How Zomato Commission Affects Restaurant Profit
To understand profitability, restaurants must combine commission with food cost.
Profit Example
| Metric | Value |
|---|---|
| Order value | ₹450 |
| Effective platform cost | ₹150 |
| Remaining revenue | ₹300 |
| Food cost (35%) | ₹158 |
| Gross margin | ₹142 |
This margin must still cover:
Staff salaries
Kitchen utilities
Rent
Packaging
Marketing
Restaurants with poor menu pricing often discover they are losing money on delivery orders.
Can Restaurants Negotiate Zomato Commission?
Yes. Zomato commission is negotiable under certain conditions.
Restaurants typically gain negotiation leverage when they demonstrate:
High monthly order volume
Strong customer ratings
Popular cuisine category
Multi-outlet presence
Restaurants generating ₹3–5 lakh monthly GMV often negotiate commission reductions of 2–5 percentage points.
For example:
| Scenario | Commission |
|---|---|
| Standard rate | 25% |
| Negotiated rate | 21% |
That 4% reduction can significantly increase profit margins.
How Zomato Commission Compares to Swiggy
Restaurant owners frequently ask whether Swiggy or Zomato has lower commission.
In practice, both platforms operate with very similar pricing structures.
Platform Commission Comparison
| Parameter | Zomato | Swiggy |
|---|---|---|
| Base commission | 18–28% | 18–27% |
| GST on commission | 18% | 18% |
| Ad costs | Optional | Optional |
| Effective take rate | 23–38% | 23–37% |
Because the structures are similar, the more important variable becomes order volume and visibility on each platform.
Restaurants often perform best when operating on both platforms simultaneously.
Strategies to Maintain Profit Despite Commission
High commission does not automatically mean delivery is unprofitable.
Restaurants that succeed on Zomato typically apply several operational strategies.
1. Delivery-Specific Menu Pricing
Delivery menu prices are often 10–20% higher than dine-in prices to offset platform commission.
Customers expect some pricing difference on aggregator platforms.
2. Combo Bundles to Increase AOV
Higher cart value improves profitability.
Example:
| Item | Price |
|---|---|
| Single dish | ₹240 |
| Meal combo | ₹420 |
Even with the same order count, higher AOV increases margins.
3. Packaging Cost Recovery
Zomato allows restaurants to add packaging charges that are paid by customers.
This helps offset packaging materials and logistics costs.
4. Commission Negotiation
Restaurants with growing order volume should renegotiate commission tiers every 6–12 months.
Most restaurants fail to revisit their initial agreement.
Real Profit Example: Commission Impact on Monthly Revenue
Consider a restaurant generating ₹6 lakh monthly Zomato revenue.
Scenario 1 — Standard Commission
| Metric | Amount |
|---|---|
| Monthly GMV | ₹6,00,000 |
| Commission (25%) | ₹1,50,000 |
| GST on commission | ₹27,000 |
| Net payout | ₹4,23,000 |
Scenario 2 — Negotiated Commission
| Metric | Amount |
|---|---|
| Monthly GMV | ₹6,00,000 |
| Commission (21%) | ₹1,26,000 |
| GST | ₹22,680 |
| Net payout | ₹4,51,320 |
That small negotiation increases monthly revenue by ₹28,000+.
Over a year, this difference becomes substantial.