Third-party delivery services like DoorDash can significantly expand a restaurant’s reach, but these benefits often come at a steep cost. Understanding DoorDash’s fees, along with exploring alternative platforms, is critical for maximizing your restaurant’s profitability.
Why Restaurants Seek DoorDash Alternatives
Restaurants frequently turn to DoorDash alternatives due to concerns about high commissions, loss of control over branding, and the potential dilution of customer loyalty.
Common Drawbacks of DoorDash
- High commission rates ranging from 10%–30%.
- Hidden fees like marketing programs and optional advertising can add another 5%–15%.
- Limited control over customer experience and branding.
- Customer loyalty often goes to DoorDash rather than the restaurant itself.
What Restaurants Really Want from a Delivery Partner
Restaurants typically prioritize lower fees, better branding control, transparent pricing structures, reliable logistics, and access to customer data for marketing.
How Much Does DoorDash Cost for Restaurants?
Commission Rates & Monthly Fees
DoorDash charges commissions typically between 10%–30% per order, varying based on your restaurant’s subscription tier and specific market location.
Delivery Fee vs. Service Fee Explained
DoorDash adds a delivery fee ranging from $2–$8 per order based on distance, plus additional service fees which could be a percentage or flat rate (payment-processing fees are standard).
Hidden Costs to Watch Out For
Beware of additional marketing programs or premium placement costs, which could drive overall fees up by an extra 5%–15%.
DoorDash Delivery Fee Breakdown
How DoorDash Calculates Delivery Fees
Delivery fees are determined by distance, order volume, peak times, and your agreement tier with DoorDash. Peak times can significantly inflate costs.
Impact on Your Menu Pricing
DoorDash fees can force restaurants to raise menu prices by as much as 95% over normal in-store pricing, negatively impacting competitive positioning.
Tips to Minimize Fees
- Opt-out of optional advertising programs.
- Negotiate flat-rate or reduced commission agreements.
- Encourage direct ordering channels for loyal customers.
Top “Food Delivery Services Like DoorDash”
Uber Eats
- Commission: 15%–30%
- Pros: Wide customer base, strong brand recognition.
- Cons: Similar high-cost structure to DoorDash.
Grubhub
- Commission: 5%–20%
- Pros: Strong local presence in specific cities.
- Cons: Variable fees and competitive marketplace.
Postmates
- Commission: 15%–30%
- Pros: Appeals to younger demographic.
- Cons: Higher commissions comparable to DoorDash.
Sauce
- Commission: No commission. Flat rate per delivery.
- Pros: Strong emphasis on restaurant branding, direct customer relationships, SEO-optimized storefronts, AI-driven retention marketing and commission-free delivery.
- Cons: Less brand recognition compared to large marketplace players.
Comparing Delivery Partners: Side-by-Side Matrix
| Platform | Commission | Monthly Cost | Delivery Radius | Branding & Marketing Tools |
| DoorDash | 10%-30% | Custom | ~5-15 miles | Limited |
| Uber Eats | 15%-30% | Custom | ~5-10 miles | Limited |
| Grubhub | 5%-20% | Custom | ~5-10 miles | Moderate |
| Postmates | 15%-30% | Custom | ~5-15 miles | Limited |
| Sauce | 0% | Custom | Virtually unlimited | Advanced, AI-driven |
How to Choose the Right Delivery Service for Your Restaurant
Volume vs. Margin Trade-Offs
Evaluate whether you prefer higher order volumes with lower margins or fewer orders with higher profitability.
Integration & Branding Controls
Consider platforms that offer more control over customer data and branding, like Sauce, which emphasizes direct customer relationships and SEO-driven growth.
Customer-Experience Considerations
Choose platforms that allow you to manage the customer journey closely, ensuring higher retention and satisfaction.
FAQ
Are there other delivery services like DoorDash marketplace facilitators?
Yes, services like Uber Eats, Grubhub, Postmates, and smaller specialized players (like Sauce) also function as marketplace facilitators.
What’s the real cost of delivery to my bottom line?
Third-party delivery platforms can inflate your menu pricing by up to 95% compared to direct-ordering options, significantly impacting profitability.
Choosing the right delivery service partner is crucial for restaurant profitability and customer satisfaction. Evaluate your priorities—cost, branding, customer relationships—and select the platform that aligns best with your business goals.
