How Much Does DoorDash Charge Restaurants? Tips to Cut Delivery Costs

Let's talk about the real deal behind third-party delivery apps like DoorDash. Although they can be a great way to help with promotion efforts and bring in new customers, their delivery fees and commission rates can really add up. But understanding these costs might just show you some clever ways to trim those pricey delivery expenses and help you focus on increasing sales. 

So, how much does DoorDash charge restaurants? In this guide, I’ll give you a rundown of what the popular platform charges, alternative platforms and some of my favorite tips to help lower your delivery fees and increase your restaurant sales.

DoorDash Fees Breakdown  

From delivery charges to commission rates, understanding DoorDash's fee structure can help you reach more customers and grow your profits while navigating the world of food delivery apps. DoorDash offers merchants three different pricing structures — I’ll break the plans down below: 

• Basic: This plan is the most cost-friendly option. They let you try it for 7 days for free, then will charge you 15% on commission per delivery order. 
• Plus: This one lets you try for free for 30 days, then charges 25% commission per delivery order. It also includes DashPass which can help increase sales by accessing customers who pay no delivery fees and lowered service fees. This plan also serves a wider delivery area than the basic plan. 
• Premier: The highest-tiered plan charges 30% in commission per delivery order and lets you try for the first 30 days for free. It includes all of the perks of “Plus” and also features a “Growth Guarantee” — this means that DoorDash will refund your commission costs for the month if you accept at least 20 orders.  

Additionally, DoorDash charges a 6% commission fee for every order that a customer purchases on the app and picks up at your restaurant  — this applies to all three plans. 

All three plans also include Storefront and Marketing Tools. Storefront gives you commission-free ordering on your own website but carries a processing fee of 2.9% + $0.30. Marketing Tools helps you increase your sales with ads and promotions, featuring a $100 credit per store. 

Third-Party Delivery Fees Explained 

Third-party apps prioritize convenience and can introduce your restaurant to a multitude of new customers with their marketing. For example, some apps offer premium placement options, so you can boost your restaurant's visibility even more.

However, if your bottom line is saving money on delivery orders, you may want to consider an alternative online ordering system, which I’ll dive into below. 

DoorDash Alternatives 

DoorDash’s delivery fees can be a bit pricey, but it's a fantastic way to reel in new customers. But once you've hooked your new customers, it's more lucrative to steer them toward direct orders on your website rather than using another platform.

Below, I’ll cover some great DoorDash alternatives for restaurants that can help you save money on delivery, plus a comparison of these fees for each alternative:

Grubhub

Grubhub is another food delivery app option that has a max delivery fee of 10% and a marketing fee ranging from 15% to 25% depending on the plan. Commission fees don’t have to turn you away from an app and it’s important to consider popularity amongst customers — however, Grubhub is becoming less popular than the other apps. For example, its market share has dropped from a high of 70% to less than 20% as of 2020.  

This app is also best for select cities as it’s not widely available. GrubHub’s market mostly covers larger metropolitan areas, like New York, Boston and Chicago — so you double-check that your location is covered if you choose this option.

Uber Eats

Uber Eats and DoorDash are similar in that they’re both a solid platform for restaurants in the beginning stages of rolling out their delivery services and attracting new customers. It currently has a commission fee of 15% to 30% depending on which pricing model you choose, which is comparable to the other pricey third-party delivery apps. 

Additionally, Uber Eats is the most popular food delivery service with 88 million users internationally. It’s also more widely available than apps like Grubhub — serving 10,000 cities as of 2022.  

Postmates

Postmates works similarly to platforms like DoorDash and Uber Eats. However, Like Uber Eats and DoorDash, Postmates’s commission fees range from 15% to 30% — the pricing structure is the same as Uber Eats since Uber owns Postmates. However, what makes Postmates stand out is that they’re partnered with over 600,000 merchants making it a widely available app. 

It’s important to note that you will have to pay a direct deposit fee when you cash out your earnings from the app, which adds to the overall costs of using this platform.

Owner.com

If you’re looking for an alternative to DoorDash that can help you save more money on delivery, try out Owner.com. This platform is made specifically to drive sales and make upselling easier — plus it features commission-free delivery.

Talkin’ Tacos’ online menu using Owner.com for their restaurant website.

Owner.com isn't just another delivery platform — it's designed to increase the number of orders you get and help you (and your customers) save on delivery fees compared to DoorDash’s high fees. For example, you can use third-party drivers without having to pay commissions. It’s a win-win; you’ll save money, and your customers will keep coming back for the value. 

Pay a flat fee, and we'll handle everything by connecting with the driver networks of various delivery apps. Plus, we've got a nifty built-in system that rates drivers, guaranteeing you only get the best, most professional ones. 

For example, Phillip Hang, the owner of Sushi Me Rollin’, needed help getting people to order directly through his restaurant, so he teamed up with Owner.com. As a result, Hang has stated that Owner.com “is the best technology in our restaurant. We’ve increased direct online sales by over $77,000 in the past 10 months alone.”

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Tips To Lower Your Delivery Fees 

As an owner, cutting restaurant costs and increasing your sales should be top of mind. Here are some tips that I recommend to lower delivery costs to help you save some cash: 

• Add in-house delivery capabilities: If you haven’t already, I recommend setting up your website so you can avoid third-party app fees and have customers order directly through you.  
• Use a restaurant website builder: A website builder, like Owner.com, has those online delivery capabilities. It has all you need to drive more direct orders with restaurant SEO baked in to help customers find you better, as well as strategic upsells.
• Make flyers: Consider giving out flyers in delivery bags so your regulars order from you next time. This can help promote your online delivery services — you can also include a promotion code, so they’re more enticed to make an order. 
• Set up a loyalty program: To get more customers to order directly through your website, consider integrating a loyalty program that rewards them every time they order on the website vs. apps like DoorDash.  
• Encourage pick-up orders: Want to save on delivery fees? You can offer special deals or discounts to customers who swing by to pick up their orders instead of having them delivered.
• Control menu prices: Make your menu prices higher on third-party apps than on your website. If you choose to do this, highlight the value of ordering directly through your website and how it will be cheaper for your customers. 

If you need more tips on how to save money on delivery orders, take a look at my video below:

Cut Down On Delivery Costs With In-House Delivery 

There are many third-party apps out there that you can use to help with your online delivery orders, but if you want to steer your focus towards increasing your sales and saving on delivery costs, then Owner may be the right route for you. 

Partnering with third-party apps such as DoorDash can be a great marketing tool to promote your restaurant and get new customers. However, if you want to save on commission costs, consider Owner.com’s online ordering system. That way, you can make online ordering easier and save you and your customers money.

📚 Learn more: What's the Real Restaurant Failure Rate in 2024?