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What Your Restaurant’s Online Ordering Service Really Costs You

what-your-restaurants-online-ordering-service-really-costs-you

Ayseli Izmen

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Dec 7, 2021

What Your Restaurant’s Online Ordering Service Really Costs You - FineDine Digital Menu

The addition of online ordering is an important add-on to the restaurant business in 2020. While social interaction is minimized, many customers still want to eat from their favorite restaurants. As a result, they seek online ordering. But the platform customers choose their order, directly affects restaurants’ profitability.

Third-party vendors such as Uber-Eats or Grabhub can offer ease and convenience, but that arrives with a cost; loss of profitability.

The question for restaurants is: Are you experiencing a decrease in profits because of the high fees and commissions charged by delivery services?

During the pandemic, many of the restaurants had to close their doors for indoor services. As a result, there was a growing demand for delivery. So, in order to tap the growing demand for dine-out services and to connect with consumers, restaurants turned to 3rd party delivery apps.

These online ordering platforms offer an extensive network of new potential clients, can increase brand awareness, and ensure a flow of orders which might not otherwise occur. But that will have a price.

Third-party online ordering services charge restaurant owners a significant amount of commission and processing fees. Here is the breakdown of how much online food ordering services charge restaurants.

Grubhub

The base commission rate for Grubhub orders is 10% and a processing fee of 3.05% plus $0.30. If you want to have more marketing space, it asks for an additional 20%.

UberEats

Restaurants can choose from 3 options; zero commission for pickup orders; a reduced 15% fee for restaurants who have their own delivery people, and 30% for full-service ( such as marketing ) with delivery people available on the Uber Eats platform.

DoorDash

The commission for the company is around 20%. In addition, customers pay between $5 to $8 for delivery.

Postmates

Depending on the services, Postmates charge 15%-30% as commission. The app also charges a delivery fee from customers.

Careem

The range for commission depends on the agreement. However, it is around 30%.

Deliveroo

The company did not share their commission rates online, however, reports online suggest that they charge up to 35%.

Talabat

Talabat charges a fee between 15% and 20% percent on orders. However, additional reductions are given when there is an exclusivity deal.

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