Understanding food delivery app fees: what restaurants need to know

The rise of food delivery apps like Uber Eats, DoorDash, and Grubhub has transformed the restaurant industry, making it easier than ever for customers to order meals from their favorite spots, from home or any other place.

While these platforms increase visibility and revenue opportunities, they also come with significant costs that restaurant owners should research thoroughly before using on their business. Many restaurants struggle to maintain profitability due to high commission fees, service charges, and hidden costs associated with these delivery platforms.

Understanding how much food delivery apps cost restaurants is essential for making informed business decisions. In this guide, we’ll break down the real costs of using food delivery apps, compare major platforms, and provide actionable strategies for restaurants to reduce their reliance on third-party delivery services while maintaining customer satisfaction.

How do food delivery apps charge restaurants?

Most food delivery apps operate on a commission-based model, charging restaurants a percentage of each order in exchange for access to their customer base, delivery logistics, and marketing tools. These delivery apps fees can vary based on factors such as location, order volume, and the service tier selected.

Types of fees charged by delivery apps

Good delivery apps generate revenue through a mix of commissions, service fees, and marketing expenses. Here’s a breakdown of the most common charges restaurants face:

1. Commission fees

The primary way food delivery apps make money is by charging restaurants a commission on every order. These rates typically range from 15% to 30%, depending on the platform and service level chosen by the restaurant.

• Standard Commission (15%-20%): Basic listing and order fulfillment.
• Premium Commission (25%-30%): Includes marketing boosts, featured placements, and priority in search results.

2. Delivery fees

Customers typically pay a delivery fee, but restaurants may also be responsible for part of these costs, depending on their partnership agreement with the platform.

3. Marketing and advertising costs

Restaurants that want to stand out on delivery apps often need to invest in paid promotions. These costs can range from $50 to $500+ per month, depending on the level of visibility desired.

4. Service and processing fees

Most platforms charge an additional service fee, covering credit card processing and customer support. This is typically 2%-4% per transaction.

Comparing delivery app fees

Of course, all of these fees can vary depending on the size of your business, the type of service your restaurant will need, and other factors. That’s why it’s important to do some research beforehand.

Among major platforms, Uber Eats and DoorDash typically have the highest commission fees, often reaching up to 30% per order. While Grubhub offers a similar structure, it sometimes provides lower rates for restaurants that opt into higher advertising budgets. ChowNow, on the other hand, uses a subscription model instead of commissions, making it a more predictable and cost-effective alternative.

To make things easier, here are some of the most common rates on the market:

Platform	Commission Fee	Service Fees	Marketing Costs
Uber Eats	15%-30%	2%-4%	Optional, varies
DoorDash	15%-30%	2%-4%	Optional, varies
Grubhub	15%-30%	2%-4%	Optional, varies
ChowNow	Flat monthly fee	No per-order fees	No built-in ads
Slice	No commission	Monthly fee or per-order flat rate	Yes

Read more: How food delivery services can expand your customer base in 2025

The impact of delivery app fees on restaurant profits

With commissions often taking a significant chunk of revenue, restaurant owners need to assess whether the increased exposure and order volume justify the costs. Here are a few factors to consider:

Profit margins

If a restaurant operates with a 10%-15% profit margin, a 30% commission can quickly erase any potential earnings. Adjusting pricing strategies and encouraging direct orders can help mitigate this impact. Some restaurants raise their delivery prices by 15%-20% to compensate for the lost revenue, but this strategy can deter cost-sensitive customers.

Order volume

Higher sales volume can offset lower margins, but it may require strategic pricing adjustments to ensure profitability. Some restaurants choose to mark up their delivery prices slightly to cover commissions, while others focus on increasing order size through upselling or bundling menu items.

Customer retention

While apps provide new customers, they don’t guarantee repeat business unless restaurants invest in branding and customer loyalty programs outside of third-party platforms. 

Customer data is often controlled by the delivery app, making it harder for restaurants to market directly to repeat customers. To counter this, restaurants can include discount codes, promotional flyers, or branded packaging to encourage direct orders in the future.

Operational efficiency

Handling a high volume of delivery orders can strain restaurant operations. The added costs of extra kitchen staff, packaging, and order processing must be factored into the overall profitability of working with delivery apps. Investing in streamlined kitchen workflows and packaging solutions can help improve efficiency and reduce additional expenses.

Read more: Tips for proper food delivery packaging

How restaurants can reduce delivery app fees

1. Negotiate commission rates

Many restaurants don’t realize that delivery platforms are often willing to negotiate rates, especially for high-volume establishments. Reach out to platform representatives to explore better pricing options.

2. Offer direct online ordering

Using your own online ordering system can significantly reduce third-party app fees. Platforms like Otter, Toast, Square, and ChowNow enable direct ordering while minimizing commissions. Offering exclusive deals for direct orders can incentivize customers to bypass delivery apps.

3. Implement a hybrid delivery strategy

Consider using delivery apps for customer acquisition while encouraging repeat customers to order directly through your website. Offering discounts, loyalty rewards, or free delivery on direct orders can shift customer behavior away from third-party platforms.

4. Optimize menu pricing

Adjusting menu prices on delivery apps can help offset high commission fees. Many restaurants increase prices by 10%-15% on these platforms while keeping in-house pricing lower.

5. Use multiple delivery platforms

Rather than relying on a single app, listing your restaurant on multiple platforms can help diversify revenue streams and mitigate high fees from one provider.

6. Utilize in-house delivery services

Some restaurants have found success by hiring their own delivery drivers or using third-party logistics services like Relay or Vromo to handle deliveries at a lower cost. This allows them to keep more control over the customer experience while reducing commission expenses.

Read more: Why customer relationships matter for delivery restaurants and 7 tips to have a good customer relationship

Are food delivery apps worth it for restaurants?

Whether food delivery apps are worth the cost depends on each restaurant’s business model, customer demand, and ability to absorb commission fees. While these platforms provide valuable exposure and convenience, they should be used strategically to increase the odds of profitability.

Pros of using food delivery apps:

1. Increased visibility and customer reach
2. Convenience for both restaurants and customers
3. Access to delivery logistics without hiring in-house drivers
4. Potential for increased sales volume

Cons of using food delivery apps:

1. High commission fees reduce profit margins
2. Limited access to customer data for direct marketing
3. Dependency on third-party platforms for sales
4. Potential brand dilution due to lack of direct customer relationships

Reduce costs & maximize potential profits with CloudKitchens

Food delivery apps can be a powerful tool for restaurant growth, but their high fees require careful planning and cost management. By implementing strategies to reduce dependency on third-party platforms and exploring alternatives like in-house delivery, restaurants can maximize profitability while maintaining customer satisfaction.

At CloudKitchens, we help restaurants optimize their operations by providing cost-effective, delivery-first solutions. 

Ready to take control of your restaurant’s delivery strategy? Check all our services on CloudKitchens.com!

DISCLAIMER: This information is provided for general informational purposes only and the content does not constitute an endorsement. CloudKitchens does not warrant the accuracy or completeness of any information, text, images/graphics, links, or other content contained within the blog content. We recommend that you consult with financial, legal, and business professionals for advice specific to your situation.