Trying to decide if you should sign your restaurant up with DoorDash, Uber Eats, Grubhub, or another third-party delivery service? On one hand, these platforms promise more visibility, more orders, and access to customers who may not have discovered your restaurant otherwise. On the other, they come with commission fees, less control over the customer experience, and the question of whether you’re making any money on these orders.
Unfortunately, there isn’t a one-size-fits-all answer. Third-party delivery can be a valuable growth tool for some restaurants and a costly mistake for others. The key is understanding what you’re hoping to accomplish before you sign up.
Why so many restaurants use third-party delivery
The biggest advantage of services like DoorDash, Uber Eats, and Grubhub is reach. Millions of people open these apps every day looking for somewhere to order dinner. If your restaurant isn’t listed, you’re invisible to those customers.
For newer restaurants, that exposure can be incredibly valuable. Even established restaurants often find that third-party platforms introduce them to customers who might never have driven past their location or searched for them online.
These services also handle much of the logistics. Customers can browse menus, place orders, pay online, and track deliveries without your staff having to coordinate drivers or process phone orders. For busy operators, that’s a significant convenience.
If your dining room has extra kitchen capacity during slower periods, delivery orders can also help generate revenue without adding more tables or expanding your space.
The downside to third-party delivery for restaurants
The biggest concern for most restaurant owners is commission fees. Depending on the platform and service level you choose, commissions can take a significant percentage of each order. That may leave much smaller margins than your dine-in or direct takeout business. For restaurants with already tight margins, those fees can quickly turn what looks like a profitable order into one that barely breaks even.
Also, when a customer orders through a third-party app, much of the experience is outside your control. If the driver is late, the food arrives cold, or the order is mishandled during delivery, the customer often associates that poor experience with your restaurant instead of the delivery company.
Is third-party delivery right for your restaurant?
The answer really depends on your concept and your goals. Quick-service restaurants, pizza shops, sandwich restaurants, Asian cuisine, burgers, and many casual restaurants often perform well on delivery apps because their food travels well and customers already expect delivery.
Restaurants that rely heavily on atmosphere, presentation, or table service may find delivery less rewarding. If your signature dishes lose quality during a twenty-minute drive, delivery may not showcase your restaurant at its best.
Assess your goals, too. If you’re trying to increase brand awareness, fill slower kitchen hours, or reach customers in nearby neighborhoods, third-party delivery can be an effective marketing channel.
If your primary goal is maximizing profit on every order, you’ll want to take a much closer look at the numbers.
Run the math before making the decision
Before joining any delivery platform, calculate what an average order will earn your restaurant after food cost, packaging, labor, and delivery commissions. A $60 delivery order sounds great until you realize it generates less profit than a customer ordering directly from your website for pickup.
Understanding your contribution margin as well as your revenue is essential before deciding whether delivery makes financial sense.
Don’t let third-party delivery become your only online ordering strategy
Your website should remain the center of your digital presence. When customers visit your website, they’re interacting directly with your brand. They see your story, your photos, your menu, your events, your catering options, and your promotions.
If you offer direct online ordering through your own website, returning customers have a way to support your business without paying third-party commissions. Over time, encouraging repeat guests to order directly can significantly improve profitability while strengthening customer relationships.
Many successful restaurants use DoorDash, Uber Eats, or Grubhub to attract new customers while encouraging repeat guests to order directly through their website for future visits. Some even adjust their menu for delivery, featuring items that travel well and maintain quality, while reserving specialty dishes for the dine-in experience.
This balanced approach allows restaurants to benefit from the exposure these platforms provide without becoming overly dependent on them.
So, does third-party delivery help or hurt restaurants?
For some restaurants, third-party delivery opens the door to thousands of new customers and meaningful revenue growth. For others, the commission fees and loss of control outweigh the benefits.
The best decision should be based on your concept, margins, operational capacity, and long-term goals.
If you decide to use third-party delivery, treat it as a tool and continue investing in your own website, your Google Business Profile, and direct online ordering so you’re building relationships with customers. If you need help with integrating online ordering into your restaurant’s website, reach out to our team! We’d love to help you out.
