Article Takeout and Food Delivery Fees: What to Know About Online Ordering Commissions and Fees Let’s make sense of food ordering fees for your restaurant — both for you, as a restaurant owner, and for your guests. Last updated on July 19, 2023.Online ordering can be a valuable addition to a restaurant's business model.Many restaurants have rapidly adjusted to an online ordering system and delivery services to match the demands of the pandemic. However, there’s no end in sight when it comes to takeout and delivery demand from guests. What does this mean for your restaurant? Well, while offering delivery and pickup order options was once a special perk to provide your guests, off-premise is now an essential part of generating revenue and growing your business.While restaurant owners typically understand the value in offering off-premise options for guests via online ordering, there is one thing that can mystify them and hold less-eager restaurateurs back from taking the leap: confusing fees.Today, we’re going to dive into the world of food delivery fees, from online ordering fees to delivery order commissions and more.In this article, we’ll cover:The definition of each type of delivery or commission fee and what makes them differentWhat common delivery services charge restaurants as of the date of this articleHow the next generation of digital ordering from Toast can help restaurant owners do moreLet’s go! Common food delivery and pickup order feesCommissions, fees, and other costs — oh my! It can be intimidating to make sense of the takeout order and food delivery fees incurred via third-party apps or first-party online ordering platforms.Let’s cover some of the most common costs associated with online ordering and delivery, based on whether they are incurred by the restaurant or the guest.Fees for the restaurantRestaurant-facing commission feesA commission is a form of variable pay for services or goods. Here, the term variable pay means that it’s in addition to the base compensation/charge and the amount varies. Typically, commissions are calculated as a percentage of the total charge.To put it simply, commissions in the restaurant industry, in regard to online ordering, often occur as a per-transaction fee that is calculated as a percentage of the order’s subtotal. For example, restaurant owners who list their restaurants on a third-party marketplace might pay a commission rate for each order processed through the platform.Many third-party food delivery platforms — which are platforms that are separate from your restaurant's point of sale and provide delivery services on your behalf — charge restaurant owners a commission rate for orders placed on their sites or apps. We’ve included some common commission fee rates for delivery apps below. However, some first-party ordering platforms — such as Toast TakeOut and Online Ordering — offer online ordering tools for restaurants that are commission-free, meaning they do not charge restaurants a per transaction fee calculated as a percentage of the order’s subtotal.With commission-free ordering tools, like Toast, the restaurant pays to use the online ordering tools but does not get charged a commission on the money generated by each individual order. Commission fee rates for common delivery appsBelow are some of the most common food delivery apps and what they state on their websites that they charge for percentage-based restaurant-facing commission fees, as of May 2023.DoorDash: 15-30%, depending on whether a restaurant is on the Basic, Plus, or Premier plan. DoorDash offers its plans with zero payment processing fees. (DoorDash also offers a commission-free plan called Storefront)Grubhub: 5-15+%, depending on whether a restaurant is on the Basic, Plus, or Premium plan. (Grubhub also offers a commission-free plan called Grubhub Direct)Uber Eats: 15-30% for delivery orders, depending on whether a restaurant is on the Lite, Plus, or Premium plan, and a 6% fee for pickup orders, regardless of the plan.Note: This information was taken from these companies’ websites, and was last updated on June 1, 2023, and, as a result, may not accurately reflect changes or updates that have been implemented since then by the featured third-party providers. This information may not account for additional products or services offered by these companies that are included with these fees. Interested in learning more about the true cost of your online ordering platform? Check out this article. Products Toast Online Ordering Learn how a better online ordering system can help you save time and grow revenue. Restaurant-facing flat feesFlat fees are charges that do not fluctuate based on other variables. For example, restaurant owners may pay a flat fee to use a first-party online ordering platform. For third-party platforms, such as DoorDash’s white-labeled solution called DoorDash Drive, restaurants are charged a flat fee to use DoorDash’s delivery drivers. Depending on the provider, restaurants who are charged a flat fee for delivery services can sometimes choose to pass the fee onto their guests, or cover all of it themselves but adjust menu prices for delivery to cover the cost. Fees for the guestGuest-facing flat feesMany online ordering platforms, both third-party and first-party, charge guests a flat fee, which may be referred to as service charges, order processing fees, or a “small order fee.” These service fees are often charged regardless of whether the guest is ordering for takeout or delivery. They may also vary for delivery orders based on the distance between the restaurant and the delivery address. This fee may or may not go to the delivery driver, the restaurant, or the technology platform, depending on the tool the restaurant uses for online ordering. Resource The Restaurant POS Comparison Tool A free, customizable Restaurant POS Comparison Tool to research and compare point of sale systems in one Excel spreadsheet or editable PDF. RESOURCE Find the right POS for your restaurant's unique needs You must have Javascript enabled in order to submit forms on our website. If you'd like to contact Toast please call us at:(857) 301-6002 First and last name* First and last name* is required Email* Email* is required Phone number* Phone number* is required Restaurant Name Restaurant Name is required What is your current POS? 2Touch POS Advantix Agilysys Aldelo Aldelo Light Ambur Breadcrumb Breakaway International Brigade Brink Clover DigitalDining Dinerware Focus Foodtec Gusto Halo Harbortouch Hula Leaf Maitre' D Menusifu MICROS 3700 MICROS 9700 Microsale MICROS Simphony NCR - Aloha NCR - Compris NCR - RPOS NCR - Silver None - Cash Register None - Paper & Pencil Other Partech PDQ Pixel Point Positouch POS Lavu Revel Revention R Power Salido Sam4s Shopkeep Sicom Speedline Square Squirrel Talech Task Retail Technology TouchBistro Transax Treatware Trident Versitouch Vivonet Winrest XPIENT What is your current POS? What is your current POS? is required Zip Code Zip Code is required By requesting a demo, you agree to receive automated text messages from Toast. We’ll handle your info according to our privacy statement. Additional information for California residents available here. This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation. DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.