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Attracting customers and increasing sales is a top priority for restaurants and cafes, and delivery apps like DoorDash are now a go-to solution for engaging local community. However, many restaurant owners are not fully aware of what fees they need to pay for using these delivery services, and how those costs affect their revenue.
In this article, we break down how much does DoorDash charge for delivery, explain how the fees work, and discuss the ways to cut costs on deliveries and increase your restaurant sales.
Over the past years, food delivery has grown rapidly. Many restaurant owners have found that joining delivery platforms can lead to increased sales, better visibility, and new customer opportunities. At the same time, delivery apps often charge restaurants a fee that can range from a small percentage to a more significant portion of each order. Understanding these charges is important for any restaurant that wants to use DoorDash and stay profitable.
The basic DoorDash fee structure
Basic: Budget-friendly option with a 7-day free trial, after which a 15% commission is applied to each delivery order.
Plus: 30-day free trial before a 25% commission per delivery order. It also comes with DashPass, helping boost sales by attracting customers who enjoy no delivery fees and reduced service charges, plus it covers a larger delivery area than Basic.
Premier: Top-tier plan with a 30% commission per delivery order and a 30-day free trial. It includes all the benefits of Plus, along with a “Growth Guarantee” — meaning DoorDash will refund your commission costs for the month if you complete at least 20 orders.
DoorDash, like many third-party delivery services, works by charging restaurants different types of fees. In simple terms, the costs for restaurants can include a commission fee on orders, service fees, and sometimes additional charges for marketing or other support.
Commission fees
A large part fees comes from the commission fee. This fee is a percentage of the total order amount. Percentages can vary from one contract to another, yet it is common to see rates between 15% even above 20%. This fee covers the use of DoorDash’s platform, including the technology that enables ordering, the logistics of managing a delivery service, and customer support.
While the extra order volume is beneficial, the high commission percentage can be easily noticeable in the profit margin, especially for small restaurants. For many, the challenge is finding the sweet spot where increased sales justify the cost.
Service and transaction fees
In addition to commissions, there is sometimes a service fee applied to orders. This fee covers operational expenses on the DoorDash platform such as payment processing, app maintenance, and customer service. Service fees, unlike commission fees that are percentage-based, are often charged as a flat amount per order or may change slightly depending on the order total.
Transaction fees support the platform’s operations and, while individually small, can add up quickly with high order volumes. That’s why it’s important for restaurant owners to understand all the fees tied to each order to evaluate whether the benefits of using the platform justify the overall cost.
Marketing and additional charges
Some contracts might include fees for marketing or promotional support. DoorDash sometimes offers advertising options that boost a restaurant’s visibility on the app. While these promotional tools can drive extra orders, they come at an additional cost. Restaurants need to decide if investing in extra advertising through the platform is cost-effective.
For many restaurants, the decision to participate in these additional programs depends on their overall goals and current order volume.
How fees affect restaurant profitability
The fees that DoorDash charges can have a significant impact on a restaurant’s profitability. When calculating profits, restaurant owners must subtract these fees from their overall revenue. High commission rates can drastically reduce the profit margin on each order, particularly when dealing with food items that already have a low margin.
For some restaurants, delivery services have changed the way they operate. While the increased order volume through DoorDash can be positive, the cost per order must be carefully managed. Some restaurants opt for higher menu prices to help cover the fees, though this approach risks pricing out certain customers. Others might limit their participation or negotiate for better terms if they have a high volume of orders.
Profitability isn’t just about the fees—it’s also about the added value. Many restaurant owners report that even with the fees, the increased market reach and convenience offered by DoorDash have made it worthwhile. The key is to ensure that the incremental revenue from additional orders more than compensates for the deducted fees.
Comparing DoorDash to other ordering alternatives
While DoorDash is one of the most popular delivery services, it is not the only option available to restaurant owners. Alternatives range from other delivery platforms to self-run online ordering systems. Every option comes with its own pros and cons.
Some delivery platforms may charge lower commissions or use different pricing models, but they often lack the broad customer reach that DoorDash offers. Alternatively, running your own ordering system gives you more control but usually requires extra spending on tech and marketing—something that smaller restaurants may not be able to afford. Therefore, many owners weigh these factors carefully when deciding where to invest their resources.
Some restaurant owners work with multiple platforms to diversify their risk. By not relying entirely on one service, they spread out the fee weight and reach a wider customer base. However, juggling multiple systems can also add complexity and require more management time. Thus, the choice comes down to individual business needs and available resources.
Strategies for reducing the impact of fees
Understanding that delivery fees can be placed on margins, many restaurant owners have looked for ways to reduce this impact. One common strategy is to adjust the menu prices on delivery orders slightly. Although raising prices for delivery orders isn’t always welcomed by customers, it can help cover the gap between total sales and actual profit.
Another strategy is to turn the visibility gained from delivery apps into long-term loyalty. For example, restaurants can promote dine-in only specials to motivate customers to visit in person. This not only helps boost overall profits but also creates an opportunity for upselling and building customer loyalty in a controlled setting.
A further approach involves negotiating with the delivery service. Although many fees are non-negotiable, some high-volume restaurants have successfully secured better rates by leveraging their order numbers. These negotiations can sometimes lead to custom agreements that benefit both parties, though they are not available to every business.
Technological improvements also play a role. As restaurants continue to integrate more sophisticated POS systems and backend software, the overall efficiency of order handling improves. In such cases, the operational costs might decrease enough to make the higher commission fees less of a burden.
Additionally, incorporating digital loyalty cards for restaurants using TurboPush can incentivize customers to order directly or visit in person, reducing over-reliance on high-fee delivery orders.
Value proposition of delivery platforms
At first glance, the fees imposed by delivery services might seem expensive. However, it is important to view these charges in the broader context of a restaurant’s overall marketing and operational costs. Delivery platforms like DoorDash have a large customer base that many restaurants cannot easily reach on their own. For many small and mid-sized restaurants, this exposure can result in a significant boost in orders.
Moreover, the technology provided by these platforms—such as real-time order tracking, customer feedback, and integrated payment processing—is an investment that can streamline operations and enhance the dining experience. Although the fees lower the net profit per order, the additional business volume and increased brand awareness often compensate for this expense.
For new restaurants in a competitive hospitality market, the marketing benefits alone can be worth the cost. The idea is that by bringing in more customers through the app, restaurants may recover the commission fees through higher overall sales and improved customer loyalty. This value proposition has driven many restaurants to partner with DoorDash despite the fee structure.
Final thoughts
In summary, DoorDash charges restaurants a mix of commission fees, service fees, and potentially extra charges for marketing support. These fees are designed to cover the costs of operating a vast delivery network that connects restaurants with thousands of new customers. For many restaurant owners, the increase in order volume and exposure to a wider customer base justifies the expense.
However, the decision to work with DoorDash requires a careful evaluation of one’s profit margins, order volume, and local market conditions. Each restaurant must decide if the benefits of joining a delivery platform like DoorDash outweigh the costs. Some owners may choose to balance out high fees by increasing menu prices on orders placed through the app, while others might negotiate for better terms if they see a significant number of orders coming in.
There is no one simple answer, and what works for one restaurant may not work for another. Restaurant owners should look at the big picture—how fees affect total earnings, what other options exist, and whether the added visibility brings in loyal customers.
Even though the fee structure may raise concerns, it comes with access to a wider audience and a built-in ordering system. When used strategically, platforms like DoorDash can drive strong growth and customer retention despite the costs.
The key is to find the right balance between using these digital tools and maintaining healthy profit margins. By staying aware of fees and finding smart ways to manage them, restaurants can benefit from delivery services while keeping their operations profitable.
FAQ
Is DoorDash expensive?
The cost depends on your contract, but, for many restaurants, increased orders and exposure make the fees worthwhile.
How much is DoorDash's monthly fee?
DoorDash doesn't charge a monthly fee—they take a commission on every order instead.
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