DoorDash Fees for Restaurants: Is It Worth Subscribing?
DoorDash is one of the prominent online food ordering and food delivery platforms. But do you know how much does DoorDash cost for a restaurant to partner with? This blog explores what DoorDash charges restaurants.
Quick Summary: Are you a restaurant owner and want to partner with the DoorDash platform? It’s a crucial first step you are taking. But, you must have some important questions that you may want answers for. And, the first question is “How much does DoorDash cost for a restaurant? This article brings you about DoorDash fees for restaurants. Let’s explore;
Founded in 2013, DoorDash is a big name in the tech arena with over 65% of the food delivery market in the United States. With millions of users, billions of revenue, and restaurant partners, DoorDash is the choice for many restaurants in the United States and beyond. Followed by GrubHub and UberEats.
But, as the trend sets in, many questions we have received at Foodiv are how much DoorDash charges the restaurant? Is DoorDash a good option?
In this article, we have explained a detailed view of DoorDash restaurant fees. Let’s explore;
How Much Does DoorDash Cost for Restaurants & Customers?
There are various types of charges applied to restaurants, for example;
Services Fees
Delivery Fees
Small Order Fees
Restaurant Commission Fees
If you want to partner with DoorDash or register at this platform for online delivery of food, then you need to know these charges. Let’s explore them in detail;
Services Fees
Every order placed from DoorDash to your restaurant will cost you 10 to 15% of the subtotal as service charges. The minimum service charges start at $0.60 and go up to 15% of your order subtotal.
Delivery Fees
Delivery fee is charged by users and charges are different based on the restaurant users order from. It can be $1.99 to $5.99 or even more based on order size and restaurant type. The delivery fee will further increase if there is high demand during a specific period.
Small Order Fees
If the order subtotal is below a certain amount, DoorDash charges $2.50. This is the minimum delivery charge levied by DoorDash for small orders.
Restaurant Commission Fees
How much is the DoorDash for a restaurant? DoorDash pricing is different based on plans subscribed by restaurants. Besides, other factors impact pricing.
Overall, DoorDash charges a commission fee of up to 30% for every order placed using the platform. Restaurants are liable to pay this fee, not customers, though restaurants pass on this fee to customers by charging higher prices for menus. They create digital menus by keeping delivery charges in mind.
DoorDash offers three subscription or marketplace plans for restaurants with zero processing fees. They are;
Basic
Plus
Premier
Basic
The basic plan is for those who want to “save on cost”.
The plan offers pickup and delivery services for customers. The delivery charges for each order are 15% of the order subtotal.
Plus
Along with pickup and delivery, the “Plus” plan offers a ‘get discovered by new customers in your area’ feature. This plan provides support to restaurants in reaching customers in the areas and increasing sales. With 30 days of $0 commission, restaurants have to pay a 25% commission per delivery order.
Premier
The premier plan is good for maximizing sales, albeit it’s expensive as you have to pay a 30% commission fee for every order. It comes with all-inclusive features, such as 30 days of commission-free service, DashPaas, and a Growth Guarantee.
Having seen these plans, you must be wondering if subscribing to DoorDash or implementing your online food ordering system is beneficial. The verdict is simple:
If you can afford a 30% commission, this platform is for you.
If you want your customers to pay $2 to $6 to DoorDash, then this marketplace platform is for you.
If you want to promote your restaurant after paying a 30% commission, this platform is for you.
And, if you want to save all this money and use your platform for online food delivery, then this platform is quite expensive.
Let’s understand this difference from the chart given here.
Own Food Ordering System
Marketplace Ordering System
0% Commission
15-30% Commission
0% Pickup Fee
6-10% Pickup fee
No monthly fee
Monthly subscription may apply (marketplace wise differ)
100% control over marketing/branding
No control over marketing/branding
Should You Choose Marketplace Or Implement Your Online Food Ordering System?
The result is before you. Now you make a better decision. All we can say is if you are new and want to start with a little upfront cost, you can use the marketplace for some time. And, if you are efficient, you can implement or create a food delivery app which can be cheaper in the long run.
Besides, if you are determined to go with third-party food delivery, you need to explore the market, look for some other options, and find a suitable one.
How Does Foodiv Help You Here
If you choose to implement your food delivery system, Foodiv can help you with a SaaS-based online Restaurants ordering and delivery system. Besides, when you implement an online food delivery application provided by Foodiv, you not only get ready to implement an ordering system but also do not have to pay any commission and have complete control over marketing and branding options. Let’s connect today to discuss how the system works.
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