How to Lower Third‑Party Delivery Commissions

Restaurants large and small have felt the squeeze of third‑party delivery fees. Apps like DoorDash, Uber Eats, and Grubhub typically charge 15% to 30% commission per order, which can wipe out a restaurant’s thin profit margins. If you’re a restaurateur feeling this pinch, know that you’re not alone – and there are steps you can take to relieve the burden. Below are practical, empathetic strategies to help you reclaim some of those lost profits while still serving customers who crave convenience.

Negotiate with Delivery Providers (When Possible)

Leverage your volume (if you have it). High-volume restaurants or multi-location brands may have room to negotiate lower commission rates with third-party platforms. Delivery companies compete fiercely with each other, so larger partners have more leverage to ask for better terms. For example, one 14-location café chain negotiated its commission down to about 20% by bargaining as a group, instead of each location separately. If your restaurant generates substantial sales on an app, reach out to your account rep and make the case for a rate reduction.

Be realistic if you’re small. Unfortunately, independent mom-and-pop restaurants have less bargaining power. Platforms are often unwilling to cut fees for single small outlets – they know most local restaurants have “pretty much no choice but to acquiesce” to the standard rates. Still, it doesn’t hurt to ask if you have a strong track record on the app. Emphasize your order volume and customer ratings. The conversation may not always result in a discount, but even a few percentage points off can save you thousands over time. Remember, you’re proposing a business adjustment that could benefit both parties (e.g. exclusivity or higher order volume in exchange for a break on commissions), not just asking for a favor.

Adjust Menu Prices on Delivery Apps

Offset fees with slight price hikes. Many restaurants respond to hefty app commissions by raising their menu prices on the delivery platforms to cushion the impact. In fact, it’s now common to see 10–15% higher prices in-app compared to ordering directly. This strategy passes some of the commission cost to the customer: for instance, if a burger costs $10 in-store, you might list it at $11 on DoorDash so that extra dollar helps cover part of the 20–30% fee you’ll owe the platform. Industry data confirms this trend – a lot of eateries feel forced to mark up delivery items to avoid losing money on each sale.

Balance recovery and retention. When implementing a markup, tread carefully. While the slightly higher app prices can recoup lost margin, savvy customers may notice and resent paying more for the same item online. There’s a risk of driving budget-conscious customers away or tarnishing goodwill if the price difference is glaring. To strike a balance, keep the increase modest (just enough to offset the commission) and consider communicating to your customers that direct orders are “cheaper because there’s no third-party fee.”

Transparency can actually work in your favor: some patrons will switch to ordering direct from you to save a few bucks (a win-win, as you keep the full price). The key is to strategically incorporate fees into pricing without making your food seem overpriced compared to competitors or your own dine-in prices. Monitor customer feedback and order volumes – if you see a big drop-off after a price tweak, you may need to adjust.

Encourage Higher-Dollar Orders (Dilute Flat Fees)

Make small orders into larger ones. A $5 delivery commission on a $20 order hurts a lot more than $5 on a $50 order. Flat fees (like delivery charges or fixed service fees) become a smaller percentage of the bill on larger orders, so you get more revenue for the same fee. To take advantage of this, encourage customers to increase their order size. One approach is setting minimum order requirements on delivery apps – e.g. requiring a $15–$20 minimum for delivery. This nudges customers to add an extra item (like a side or drink) to reach the minimum, boosting the ticket size so that each order is more worth the delivery cost. It also ensures you’re not paying a commission on tiny, unprofitable orders.

Offer incentives for bigger baskets.

Another tactic is to reward larger orders with promos. For example, you might offer free delivery or a small discount for orders over a certain amount (say $30 or $40). Data shows that contributing a few dollars to delivery on big orders can effectively motivate customers to bundle more items into their cart. If a guest is at $25, they might add that dessert or extra entrée to hit $30 and unlock free or cheaper delivery – benefiting them and diluting the commission’s impact for you. You can also create family-style meals or group combos that naturally have higher price points. Upselling and bundling are your friends here: suggest add-ons (“Make it a combo for $5 more”) or introduce catering packages for offices and events via the app. Some restaurants specifically focus on upselling extras and bundled deals to raise the average order value, knowing that a higher average check keeps percentage-based fees more manageable. By tactfully encouraging larger orders, you’ll get more revenue per delivery and make those fixed fees sting a little less.

Promote Pickup or In-House Delivery Options

Steer customers to order direct when possible. Every time a loyal customer orders through a third-party app, you pay a premium for that convenience. One of the best ways to lower commission costs is to convert some of those app orders into pickup or direct-delivery orders that bypass the middleman entirely. Start by making sure your own channels are attractive: if you have the staff, offer in-house delivery (even if limited radius) or at least an easy call-ahead/online pickup system. Then, promote these options enthusiastically. Let customers know (gently) that ordering directly from you helps support the restaurant. For example, implement curbside pickup or a designated pickup station to make takeout smooth and quick. You can advertise “No delivery fees – order pickup on our site and save!” on your social media, website, and even on signage at your location.

Incentivize the switch. To really pull repeat customers off third-party apps, give them a reason to change their habit. Many savvy restaurateurs include a little something extra in orders that come via delivery apps – say, a flyer or business card with a discount code for next time if they order from the restaurant’s own website. You could offer, for instance, “10% off your next order when you use our online ordering (skip the UberEats fees!)”. Loyalty programs are another powerful draw: if a customer knows they’ll earn points or rewards by ordering direct (maybe a free appetizer after 5 orders), they’re more likely to go to your app or site next time. Crucially, highlight that prices are lower when ordering direct – as mentioned earlier, you might have a slight markup on the third-party platforms, so customers actually save money by picking up or using your own delivery. Emphasize the win-win: they avoid extra fees and get the full menu price, and you avoid paying 20-30% to a middleman. Over time, these efforts can shift a portion of your regulars to order straight from you, saving you commission on those orders entirely.

Build Your Own Online Ordering Channel (The Long-Term Fix)

Invest in independence. Ultimately, the most effective way to escape third-party commissions is to develop your own online ordering channel – whether that’s a branded website, a mobile app, or even a simple call-in system paired with your own delivery drivers. This is a longer-term project, but it’s becoming increasingly feasible even for small restaurants. There are services that help set up commission-free online ordering with flat monthly fees or reasonable delivery arrangements (for example, some platforms integrate with third-party driver networks for a flat rate, avoiding percentage commissions). By routing customers to an ordering system you control, you keep 100% of the sale minus your payment processing – instead of surrendering that 15-30% cut to UberEats or DoorDash on each order. In other words, the money you’d have paid in commission can be used to pay your staff, improve food quality, or fund marketing to grow your business.

Reap the rewards (and savings). The upfront work of building your own channel pays off significantly over time. Even shifting a fraction of your orders to commission-free channels will boost your margins. Many restaurants find that once they have a user-friendly direct ordering option, customers are happy to use it – especially if you spread the word that it supports the restaurant. The savings can be huge: one independent restaurant owner reported saving around $100,000 in delivery fees by switching to a direct online ordering platform. Think about that – that’s money back in your pocket instead of lining the delivery app’s coffers. Another industry source flatly states that “the only way out of this mess is by taking matters into your own hands” and launching your own ordering system. By doing so, instead of paying 30% per order to a third party, you can redirect those funds into promoting your own service or improving your operations. Consider it building a loyal customer base that interacts with your brand, not a generic app. You’ll also regain control of customer data and relationships, which third-party apps often shield from you. Over time, a well-promoted in-house online system coupled with either in-house delivery or a low-cost delivery partner can significantly reduce your dependence on commission-based platforms.

Start small if needed. Launching your own digital ordering might sound daunting, but it can be done in stages. You can begin with a simple online ordering page for pickup orders and gradually add delivery capability. Many restaurants start by offering pickup through their website (saving on fees immediately) and later integrate a delivery solution (hiring a driver or using services like local couriers at a flat fee). The important part is to promote your new channel vigorously: announce it on social media, update your Google listing, and tell every customer who walks in. Over time, as more customers order direct, you’ll feel the commission savings grow. It’s the ultimate form of relief from third-party fees – breaking free from the cycle of ever-rising commissions and taking back control of your profits.

Take Back Control, One Step at a Time

Facing 25% delivery commissions on top of slim margins is undeniably tough – it can feel like you’re working harder just to break even. But there is hope. By combining the tactics above, you can chip away at the dominance of third-party apps over your business. Negotiate when you have leverage, even if it’s just a small reduction. Tweak your pricing strategy so the apps aren’t a total loss-leader. Encourage larger orders and more profitable behaviors. Most importantly, build and promote your own channels for the future, so loyal customers have a way to support you directly. None of these changes will eliminate commissions overnight, and you’ll likely still use delivery apps for the exposure they bring. However, implementing these strategies will soften the blow of third-party fees and put more of each sale back in your pocket. It’s about survival and sustainability: taking practical steps to ensure that convenience doesn’t completely cannibalize your profits. With an empathetic yet proactive approach, you can survive the third-party fee crunch and even turn the tables – using those very platforms on your terms until you no longer need to rely on them so heavily. Stay resilient, and remember that every bit you save on fees is a win for your restaurant’s future.