Each major delivery platform charges different fees depending on your contract tier, plan, and market. These are the ranges most independent restaurants face:
DoorDash, Uber Eats, and Grubhub fees vary by agreement, service, and market. Use the commission and processing fees in your own contract or merchant statement. The calculations below are examples, not current provider quotes.
Let's work through the economics of a typical delivery order at different fee levels:
| Dine-In Price | At 15% Fee (Break-Even) | At 25% Fee (Break-Even) | At 30% Fee (Break-Even) |
|---|---|---|---|
| $10 | $11.76 | $13.33 | $14.29 |
| $14 | $16.47 | $18.67 | $20.00 |
| $18 | $21.18 | $24.00 | $25.71 |
| $22 | $25.88 | $29.33 | $31.43 |
| $30 | $35.29 | $40.00 | $42.86 |
Note that these are the break-even prices, they preserve the same net revenue per item as dine-in, but don't account for additional delivery-specific costs: packaging (typically $0.50 to $2.00 per order) and any delivery-specific labor.
The break-even markup is mathematically correct but often commercially impractical. Guests compare delivery prices to dine-in prices and have a limit on what feels acceptable.
In practice, most restaurants use a 15-20% blanket markup on delivery menus, accepting that delivery will generate lower margins than dine-in. The logic:
| Approach | Markup | Result | Best For |
|---|---|---|---|
| Full break-even markup | 43% (at 30% fee) | Same net revenue as dine-in | Restaurants where price competitiveness on apps is less important; high-demand concepts |
| Moderate markup | 15-20% | Delivery margin somewhat below dine-in; still incremental revenue | Most independent restaurants; competitive delivery markets |
| No markup (dine-in parity) | 0% | Lose 25-35% of revenue to platform fees; delivery is unprofitable | Brand awareness plays; high-volume concepts subsidizing delivery from dine-in |
This is the honest question every restaurant owner should answer before investing heavily in delivery. Let's run a real scenario:
Even with a 20% markup, delivery contributes less margin per order than dine-in (where you'd keep 100% of revenue). But it's still incremental volume you'd otherwise lose. The key is ensuring every delivery order is priced to contribute positively to overhead, not just to cover food cost.
Your delivery menu shouldn't be a copy of your dine-in menu. Good delivery menu design:
Your delivery competition is different from your dine-in competition. On DoorDash, you compete with every restaurant in the same cuisine category within delivery range, regardless of whether they're your neighbors or not.
When benchmarking competitor delivery prices, track:
MenuSpy prepares a one-time restaurant intelligence report for $79 using available public sources. Review nearby competitors, available menu prices, and questions worth investigating before making a change. Sources and gaps are included. No account or subscription is required.
The best long-term delivery strategy is to reduce platform fee exposure by building direct ordering volume. Every order placed directly (phone, your website, text) saves you 25-35% in platform fees.
| Channel | Platform Fee | Setup Cost | Marketing Required |
|---|---|---|---|
| DoorDash / Uber Eats | 25-30% | Low | None (platform does marketing) |
| Website ordering (Toast, Square) | 0-3% | Medium | High (you drive traffic) |
| Phone orders (staff-entered) | 0% | None | Medium (loyalty + signage) |
| Text/SMS ordering | 3-5% | Low | Medium |
| Own delivery app (e.g., Olo) | 5-10% | High | High |
The most effective restaurant operators use delivery apps as customer acquisition (pay the premium for new customers) and convert repeat customers to direct ordering through loyalty programs, signage, and staff training ("next time, order directly and we'll save you the delivery fee").
MenuSpy prepares a one-time restaurant intelligence report for $79 using available public sources. Review nearby competitors, available menu prices, and questions worth investigating before making a change. Sources and gaps are included. No account or subscription is required.
Get your report · $79