Should Your Restaurant Use DoorDash and Uber Eats?

How delivery apps make money from you

Apps charge a commission on each order, and other fees may apply for marketing, payment processing or promotions. Check the current plan terms.

Commission tiers differ by plan. Higher tiers generally buy more visibility or app-managed delivery. Other costs can include payment processing, promotional fees you opt into and charges for errors or refunds.

Always read the current agreement and fee schedule, since terms change. Do not assume a number from a blog or a friend's shop.

Many restaurants raise menu prices on apps to partly offset fees. Be aware of local rules and each platform's pricing policies before you do.

Work out the profit on one order

Subtract food cost, packaging, labor and the platform commission from the order total. If the remainder is thin or negative, the order loses money.

That is before rent and utilities. The same order served in the dining room would keep the $10 commission. Run the math with your own costs.

Adjust the menu for delivery

Offer items that travel well, price them to cover fees and keep the delivery menu shorter than the dining room menu.

• Remove dishes that get soggy or cold.
• Use sturdy packaging that protects quality.
• Bundle items into family meals to raise order size.
• Keep prep simple so the kitchen is not slowed during rushes.
• Photograph food well, since photos drive orders.

Customer reviews on apps affect your ranking, so quality and accuracy matter. See ideas in how to boost restaurant sales.

Protect your own channels

Use app orders to meet new customers, then invite them to order direct next time, where you keep the full margin.

Include a card or a flyer in each bag that points to your own ordering page. Offer a small benefit for ordering direct, such as a free side. Build an email or text list with permission.

Many restaurants run their own online ordering in addition to apps. Compare the costs of different small business payment options before you choose.

Review your app performance monthly. Look at order volume, average ticket, refund rate, ratings and the share of orders from repeat customers. If refunds or low ratings are climbing, the problem is usually packaging, ticket times or menu choices, and fixing those often does more for profit than negotiating a lower commission.

Watch the cash cycle

Platforms pay on a schedule, often weekly, so you cover food and labor before the deposit arrives. Plan for that gap.

Growth in delivery means buying more food and paying more staff before the payout hits. If payouts come weekly, that is roughly a week of costs carried in advance.

Track app sales separately in your books, including commissions and refunds, so you can see true profit. A weekly check of the daily cash report helps you spot a cash squeeze early.

When funding helps a delivery push

Funding makes sense for equipment, a second prep line or marketing that brings in profitable orders, not for covering an unprofitable channel.

Illustrative example: a $15,000 kitchen upgrade lets you handle 40 more orders a week, with $12 left on each. That adds about $1,920 a month, so payback is under 8 months before financing costs. If each order loses money, the upgrade only scales the loss.

ROI Funder places funding for restaurants with 500+ FICO, 6+ months in business and $20,000+ monthly revenue. See restaurant funding and working capital, and read restaurant financing options beyond SBA loans.