How to Reduce Commission Costs on Restaurant Delivery Orders by 40%

Third-party delivery apps have become essential for restaurant visibility, but their high commission fees—ranging from 20% to 35% per order—can eat into profits. Fortunately, restaurants can take strategic steps to cut these costs by up to 40%.

1. Promote Direct Orders:

Encourage customers to order directly through your website or app by offering exclusive deals or loyalty rewards. Direct orders eliminate third-party commissions entirely, helping you retain more revenue.

2. Invest in Your Own Delivery Fleet:

While setting up an in-house delivery team requires upfront investment, it can significantly reduce long-term costs, especially on high-volume orders. You retain full control over logistics and customer experience.

3. Use Lower-Cost Delivery Partners:

Partner with commission-free or flat-fee platforms like ChowNow, Flipdish, or Lunchbox. These platforms charge a subscription or one-time fee, rather than a percentage per order.

4. Set Menu Prices Strategically:

Slightly increasing prices on third-party apps can help offset the commission without hurting dine-in or direct online customers. Just be transparent to avoid customer backlash.

5. Promote Pickup Options:

Push for curbside pickup or takeaway through your own ordering system. It removes delivery costs entirely and keeps more profit in your pocket.

Reducing commission costs isn’t about abandoning delivery apps—it’s about balancing visibility with profitability. By diversifying channels and strengthening your direct ordering options, your restaurant can reclaim margins and thrive.