Ctg restaurant owners threaten to suspend Foodpanda orders, place six-point demands

Restaurant owners in Chattogram threatened to indefinitely stop accepting orders through food delivery platform Foodpanda unless it meets their six-point demands.

They demand a flat 15 per cent all-inclusive commission, no hidden charges, clear itemised invoices, compensation for cancellations beyond restaurants’ control, an end to late-delivery charges caused by riders, no refunds deducted over unverified complaints, and weekly payments.

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The Chattogram city unit of the Bangladesh Restaurant Owners’ Association announced the demands at a press conference at Barcode Food Junction in Muradpur on October 10.

The association’s president, Md Imtiaz Uddin Naushad, attended the event, where General Secretary Manjurul Haque read out a written statement.

Manjurul alleged that Foodpanda’s actual deductions from sales exceeded the commission rates specified in contracts.

Besides commissions, he said, the platform deducted online payment charges, additional VAT on commissions, tablet fees and internet fees, significantly reducing restaurants’ actual earnings.

He said restaurants should be free to decide whether to offer promotional discounts, deals or cost-per-click (CPC) marketing campaigns.

Manjurul also complained that complicated monthly invoices made it difficult to understand individual deductions. He demanded clear, itemised bills explaining every charge.

On cancellations, he alleged that restaurants bore the full cost of prepared food when orders were cancelled due to Foodpanda’s technical problems or delivery complications.

Restaurant owners also alleged that the platform deducted their shares of payments following customer complaints without verifying the allegations or allowing them to explain their positions.

Manjurul alleged that Foodpanda sometimes took 13 days or longer to settle dues, making it difficult for restaurants to pay staff salaries, rent and daily supply costs.

They demanded that all outstanding payments be settled weekly, within a maximum of seven working days.

Citing local delivery platform Foodi as an alternative, the owners claimed it charges a 15 per cent all-inclusive commission without hidden fees and makes weekly payments. The association urged Foodpanda to adopt similar practices to ensure restaurants’ sustainable operations.

The association also urged the Bangladesh Competition Commission, the Directorate of National Consumer Rights Protection and the commerce ministry to intervene and introduce clear regulations to prevent the alleged misuse of market power by multinational platforms.

In a statement released today, Foodpanda said commission rates depend on each partner’s business model, performance, volume and other commercial factors, making a single fixed rate for all partners unfeasible.

Regarding additional VAT, the platform said online product sales are subject to VAT and that it collects applicable VAT on its services in line with prevailing laws and regulations.

“The VAT collected by foodpanda is duly deposited into the government treasury within the stipulated timeframe via official Treasury Challans. Upon request from restaurant partners, VAT Challan details are shared so that the tax deposit can be verified.”

Foodpanda said it would provide restaurant partners struggling to understand invoices with training using state-of-the-art technology to explain each aspect clearly and comprehensively.

On cancellations, the company said it receives no payment from customers but covers up to 40 per cent of food costs from its own funds. Where necessary, it arranges for the food to be returned to the restaurant.

Foodpanda added that it bears all associated marketing, logistics and customer acquisition costs even when orders are cancelled.

To help restaurants avoid unnecessary waiting-time fees, the platform said it would train every partner and allow adjustments to food preparation times based on their feedback and requirements.

Regarding food theft by riders, Foodpanda said it would continue working with restaurants and law enforcement agencies to ensure appropriate action against those involved.

The company said it supports resolving customer complaints through mutual understanding between customers and restaurant partners within a maximum of seven working days.

On weekly settlements, Foodpanda said it had been paying restaurant partners weekly for many years. Its billing cycle runs from Saturday to Friday, with payments disbursed every Tuesday, meaning dues are settled within seven days of the cycle’s end.