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Many restaurant owners use food delivery apps like DoorDash to expand their reach and increase sales. But how much does DoorDash actually charge restaurants?
Typically, DoorDash charges restaurants commission fees ranging from 15% to 30% per order, along with additional service fees and marketing costs.
However, these exact fees depend on various factors, including the plan chosen and promotional options.
This article provides a complete breakdown of DoorDash’s pricing structure, the fees associated with using other delivery platforms, and ways to save money.
DoorDash operates on a commission-based model, meaning restaurants pay a percentage of each order’s total to use the platform.
While it can help you reach more customers, it also means that a portion of your earnings goes toward third-party delivery fees.
These costs can vary based on factors like restaurant size, location, and the type of partnership a restaurant has with DoorDash.
Below is a detailed look at the fees paid by restaurant partners using DoorDash.
The biggest expense for restaurants using DoorDash is the commission fee, which is a percentage of the total order value.
DoorDash’s pricing structure offers three main plans with different commission rates:
Restaurants that rely heavily on third-party delivery services often struggle with high commissions. These fees are taken from every sale, leaving restaurant partners with a smaller portion of the revenue.
Independent restaurants and small businesses often feel the impact more than large chains, as they don’t have the same ability to negotiate lower fees.
Pickup orders through DoorDash allow customers to place an order through the app but collect the food themselves.
Unlike delivery orders, pickups do not require DoorDash drivers, which means restaurants pay lower fees compared to full delivery services.
While a pickup option reduces delivery expenses, there are still fees for processing and using DoorDash’s ordering system.
Some restaurant owners use pickup orders to reduce delivery fees while still benefiting from DoorDash’s customer base. However, the challenge is that many customers prefer delivery over picking up their orders.
DoorDash also offers Storefront, which allows restaurants to accept direct online orders without paying high commissions. Instead, you’re charged a processing fee of 2.9% + 30 cents per transaction.
Many restaurant owners consider Storefront because it helps them avoid paying high commission rates while still allowing them to take advantage of online delivery services.
Although it’s cheaper than using the full DoorDash delivery service, you still need to handle your own delivery or use third-party delivery apps in combination with Storefront.
Aside from the fees paid by restaurants, DoorDash also typically charges restaurants additional fees when placing an order.
These DoorDash fees impact customer experience, as higher costs may discourage people from using the platform:
DoorDash applies delivery fees to customer orders, which vary based on several factors, including:
Although restaurants do not directly pay the delivery fee, the price can influence the number of orders they receive. High delivery fees drive customers away, leading to fewer sales through the DoorDash app.
In addition to delivery fees, DoorDash charges service fees for each order. These charges cover platform maintenance and customer support services.
Service fees typically range from 10% to 15% of the order total but can be higher in some cases.
Customers often get frustrated by these additional fees, especially when they see the final total significantly higher than expected. Many restaurants worry that these costs drive customers away, leading to fewer delivery orders and lower sales.
DoorDash typically charges a commission fee on every order, which can take a substantial percentage of the total sale.
When combined with service fees, processing fees, and other hidden costs, restaurants may struggle to make a reasonable profit from each delivery operation.
Restaurants typically operate on thin margins, meaning that even small associated fees affect revenue.
For example, consider a restaurant that sells a meal for $20:
These fees do not include payment processing costs, service fees, or other applicable charges.
When factoring in ingredients, labor, rent, and operational expenses, you may find that you make little profit on delivery orders.
Some businesses use multiple delivery partners to reach more customers while keeping costs under control. Others explore in-house delivery solutions to avoid third-party apps altogether.
Below is a comparison of third-party delivery services and flat-fee restaurant technology solutions that you can consider.
Several third-party delivery apps provide restaurant owners with access to a large customer base, but they also charge restaurant commission fees and service fees similar to DoorDash.
Choosing the right delivery partner depends on a restaurant’s business model, pricing strategy, and profit margins.
Uber Eats is one of the largest food delivery apps, serving millions of customers worldwide. Many restaurant owners use it alongside DoorDash to expand their customer base.
Best for: Restaurants that want to reach a large number of customers but are willing to accept high commission fees in exchange for the exposure and delivery logistics support provided by Uber Eats.
Grubhub is another major third-party delivery platform that competes with DoorDash. It allows restaurants to use their own delivery partner instead of relying on Grubhub drivers, which can help lower costs.
Best for: Restaurants with delivery drivers or looking for a third-party delivery platform that allows some control over delivery operations.
Postmates, now owned by Uber Eats, operates under a similar pricing structure but has historically focused on on-demand delivery beyond just food.
However, some restaurants still use Postmates as a separate delivery app to reach more customers.
Best for: Restaurants already using Uber Eats that want additional exposure without having to manage another delivery team separately.
Many restaurants depend on third-party apps for online orders, but these apps charge large fees and limit control.
Building a custom ordering system allows for better control over earnings, customer experience, and branding.
With your own website or app, you can avoid high commission fees that cut into profits. You keep direct contact with customers instead of sharing data with third-party platforms.
You can even customize the ordering process to match your restaurant’s style and needs. Special deals and loyalty programs can be set up without restrictions, helping to build repeat business.
Delays and mistakes caused by third-party systems are also reduced, leading to better service.
With Buildify, you can create your own online ordering system without the high costs or technical headaches.
Buildify helps restaurants go digital quickly and affordably.
Instead of spending thousands and waiting months for a custom app, you can get a website and mobile app in under 10 days for a flat monthly fee.
The platform also offers budget-friendly tools for idea development, including market research, landing pages, and business analysis, which makes it easier for restaurants to grow without heavy tech expenses.
By building a website or app with Buildify, your restaurant will gain the following benefits:
Best for: Restaurants that want to reduce third-party app fees, increase direct orders, and maintain full control over their online presence and customer relationships.
To maintain a healthy profit margin, restaurants need to find ways to reduce delivery fees and increase direct sales.
Here are several strategies that can help restaurants save money while continuing to offer delivery services.
Creating an in-house delivery system may be a cost-effective solution for restaurants that handle a high volume of delivery orders.
Instead of paying commissions to third-party platforms, you can hire your own delivery team. The main benefits of in-house delivery include:
However, managing delivery internally requires investment in driver wages, insurance, and technology. Some restaurants find it cost-effective, while others prefer using third-party delivery services for convenience.
Some offer incentives for customer pickup orders to avoid the costs associated with delivery logistics. By promoting pickup discounts or loyalty rewards, you can:
A strong customer loyalty program can encourage repeat business while reducing the need for third-party platforms. Use loyalty programs to:
Buildify makes professional technology affordable for restaurants. You no longer have to pay large upfront costs or lose revenue to third-party ordering apps.
With Buildify, your restaurant gets a fully branded mobile app available on Apple and Android devices. Customers can easily find your menu, place orders, and track rewards from their smartphones.
Your customized website will be professionally designed to turn online visitors into loyal customers. It will be optimized to boost visibility, generate more traffic, and increase sales.
Buildify also gives you tools to create effective customer incentives, like coupons, community deals, and personalized offers. Regular customers stay engaged, and new customers become regulars.
Ready to take control of your restaurant’s online ordering and maximize your earnings? Book a meeting today and start keeping more of what you earn with Buildify.
Yes, DoorDash charges restaurants a commission fee on each order. The percentage varies based on the pricing plan chosen by the restaurant, typically ranging from 15% to 30%. Higher-tier plans provide better visibility on the DoorDash app, while lower-tier plans have fewer benefits but lower fees.
Signing up on DoorDash is free, but restaurants must pay commission fees on every order. The exact DoorDash cost depends on the plan selected. Restaurants may also incur processing fees, service fees, and marketing costs if they choose to promote their listings on the platform.
DoorDash typically takes 15% to 30% of each order’s total price as a commission fee. Additional costs, such as payment processing fees and optional marketing expenses, can further reduce a restaurant’s earnings. These fees can significantly impact profit margins, leading some restaurants to increase menu prices on delivery platforms to offset the costs.
Yes, many restaurants raise menu prices on DoorDash and other third-party delivery apps to cover the commission fees and service charges. Customers often pay higher prices than ordering directly from the restaurant’s online ordering system or for in-person pickup.