How to Reduce Restaurant Delivery Costs

Many small restaurants rely on delivery to reach customers, but it can be a double‐edged sword. Third-party delivery apps bring in orders but at a high cost, often charging commissions and fees that eat into already thin profit margins. The good news is there are ways to trim these delivery expenses without sacrificing service. Below are practical tactics to protect your razor-thin margins and keep more revenue in your pocket.

The True Cost of Third-Party Delivery

Third-party platforms like DoorDash, Uber Eats, and Grubhub typically charge 15%–30% commission per order. On top of that, customers pay service fees, delivery fees, and tips – so a meal that costs $20 in-house might end up costing $40+ through a delivery app once all fees are added. Restaurants often inflate menu prices on these apps to offset the commissions, which can further drive up the customer’s total. All told, these fees squeeze your margins and make delivery sales far less profitable. Recognizing the true cost of third-party delivery is the first step toward finding savings.

Encourage Pickup & Curbside (No Fees)

One immediate way to avoid those charges is to promote customer pickup or curbside service instead of delivery. If customers fetch their own orders, you and they skip all delivery fees – a win-win. In fact, many restaurateurs are emphasizing curbside pickup to steer guests away from costly delivery apps. Consider offering pickup-only specials or loyalty rewards as incentives. By making self-pickup more attractive (for example, a small discount or free appetizer for pickup orders), you keep the full ticket price and the customer saves money, all without any third-party commissions or delivery charges involved.

Use Affordable Local Delivery Services

Not all delivery has to go through the big-name apps. Look into local delivery services or driver cooperatives in your area that charge far less. Many independent delivery companies (often part of networks like the RMDA) have single-digit to 15% commissions, versus the 30% from major apps, and some charge restaurants nothing at all by passing the cost to customers. For example, there are community-based delivery services that only add a modest fee (e.g. 7% of the order) to the customer and virtually zero cost to the restaurant. Partnering with these local options or using a commission-free platform (such as Sauce, which connects restaurants to a network of local drivers) can drastically lower your delivery expenses while also supporting the local economy.

Optimize Delivery Zones & Schedules

Another tactic is to tighten your delivery radius and timing to improve efficiency. Limiting how far you deliver can significantly cut fuel and labor costs. For instance, one pizzeria reduced its delivery zone from 5 miles to 3 miles and saw average delivery times drop by 13 minutes, customer satisfaction jump 22%, and fuel costs fall by 15% – saving about $2,100 a year on fuel alone. It pays to analyze which areas and times are most profitable. Consider only offering delivery during peak meal periods or within certain hours when order volume justifies it. Also, schedule your drivers smartly: you might use in-house drivers for nearby orders during normal hours and rely on third-party couriers during exceptionally busy peaks or out-of-area deliveries. By optimizing zones and schedules, you avoid unprofitable long trips and idle downtime, which keeps delivery efficient and cost-effective.

Invest in First-Party Ordering (Long-Term Savings)

Finally, the most sustainable way to reduce delivery cost is to build your own first-party ordering system. Taking orders through your own website or app means you keep the full sale minus only small payment processing fees, rather than losing a big cut to a middleman. In fact, restaurants that shift to direct online ordering often pay a lower flat fee per delivery, compared to 15–35% commission to third parties. Over time, those savings are substantial. Moreover, a first-party system lets you own the customer relationship – you get the customer data and can market to them directly, driving repeat business. (Surveys show about 70% of diners prefer ordering directly from the restaurant’s site or app anyway.) While there’s an upfront effort to set up, first-party ordering and in-house delivery give you greater control, higher margins, and more loyal customers in the long run. It’s a long-term investment that safeguards your profits and sidesteps the ever-increasing fees of third-party platforms.