Costs & margins

Is DoorDash or Uber Eats worth it? Delivery margin math

By RestoGrowth Advisor Editorial Team · Published

A delivery app order is worth it when it keeps about as many dollars as the same order eaten in. Take the order value, subtract the app’s commission, your food cost and packaging, and compare that with what the dining room keeps after food and card fees. On a 25% commission plan, delivery prices usually need to be well above dine-in prices to keep the same dollars per order.

What delivery apps charge

Most delivery apps charge a commission on each order, and you choose a plan. More commission usually buys more visibility in the app and a wider delivery area. DoorDash, for example, publishes three plans for its Marketplace:

  • Basic: 15% on delivery orders
  • Plus: 25% on delivery orders
  • Premier: 30% on delivery orders

Pickup orders cost 6% on each plan, with no monthly fee. Uber Eats, Grubhub and others have their own plans, and they change, so check each app’s current merchant pricing page and your own agreement. Some cities have also capped delivery app commissions; check whether yours has.

The delivery margin formula

Compare what each kind of order keeps, before labor and rent:

Delivery order keeps = delivery price − commission − food cost − packaging
Dine-in order keeps = dine-in price − food cost − card fees
Food cost is the same either way: it is the same food. Use your dine-in plate cost.

To find the delivery price that keeps the same dollars as dine-in:

Break-even delivery price = (dine-in keeps + food cost + packaging) ÷ (1 − commission %)

Labor and rent are left out of both on purpose. They are hard to split by order, so compare the two numbers with each other, not with your bottom line.

Worked example

An example restaurant sells an order for $40 in the dining room. Food cost is 30% ($12), card fees are 3%, packaging is $1.50, and it is on a 25% delivery plan.

Example restaurant: one order, three ways
Dine-in: $40 − $12 food − $1.20 card fees$26.80 kept
Delivery at $40: − $10 commission − $12 food − $1.50 packaging$16.50 kept
Delivery at $48 (20% higher): − $12 commission − $12 food − $1.50$22.50 kept
Example restaurant: delivery price that keeps the same as dine-in
($26.80 + $12 + $1.50) ÷ (1 − 0.25)$53.73
Compared with the $40 dine-in price34% higher

At the same price, each delivery order keeps $10.30 less than the dining room. Raising delivery prices 20% closes about 60% of the gap. Matching dine-in would need prices about a third higher, which many guests may not accept. That is a choice, not a rule: some owners accept a lower margin on delivery for orders they would never have had.

Run your own delivery numbersFree Delivery App Profit Calculator. No sign-up needed.

The hidden cost: orders that would have eaten in

A delivery order from someone who would never have visited is extra business. A delivery order from a regular who used to eat in is a swap, and on the numbers above it costs $10.30 each time.

You can’t know this exactly, but you can estimate it. Watch whether dine-in covers drop when delivery grows, and ask regulars how they order. The delivery calculator lets you set a share of orders that would have eaten in and shows what they cost over a year.

How to make delivery pay

  • Price delivery separately. Check whether your app lets you set prices apart from your dine-in menu. Use the break-even formula as a guide.
  • Choose the plan on the numbers. A lower-commission plan with fewer orders can keep more dollars than a higher one with more orders. Test one for a month and compare.
  • Build a delivery menu. Leave off dishes that travel badly or have thin margins. Lead with dishes that earn the most dollars; menu engineering shows which they are.
  • Cost your packaging. Containers, bags, cutlery and sauce cups add up. Put the real per-order figure into the calculator.
  • Move regulars to your own ordering. A direct ordering site still has card fees and a monthly cost, but usually far below a delivery commission. Put a card in every app order bag inviting guests to order direct next time.
  • Promote pickup. Pickup through the app costs much less than delivery on the plans above.

Common mistakes

Frequently asked questions

How much do delivery apps charge restaurants?

It depends on the app and the plan. DoorDash publishes Marketplace plans at 15%, 25% and 30% of each delivery order, and 6% for pickup. Other apps have their own plans, so check their current pricing and your agreement.

Is DoorDash or Uber Eats worth it for a restaurant?

It is worth it when delivery orders keep close to what dine-in orders keep, or when they bring guests you would not otherwise have. Compare the dollars kept per order, not the sales total.

Should delivery prices be higher than dine-in prices?

Many restaurants charge more on delivery apps to cover the commission and packaging. Use the break-even formula to see how much higher prices would need to be, then decide how close to get.

How do I calculate profit on a delivery order?

Take the delivery price and subtract the app commission, the food cost at your normal plate cost, and packaging. Compare that with what the same order keeps in the dining room after food and card fees.

Does delivery margin include labor?

Not in this formula. Labor and rent are hard to split by order, so they are left out of both the delivery and dine-in figures. Compare the two with each other, not with your bottom line.

Sources

Examples use an invented example restaurant with round numbers. See how we calculate for the formulas behind our tools, and our editorial policy for how guides are checked. Spotted a mistake? Tell us and we will fix it.

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