How to Beat High Commission Fees on Food Delivery Platforms

High commission fees on food delivery platforms are a huge problem. They cut off almost 15% to 30% as a commission from the total order price. This can leave restaurant businesses struggling with tight budgets and rising operational costs.  

The good news is that there are effective strategies for reducing food delivery commissions and taking control of your revenue. From adopting direct online ordering systems to setting up in-house delivery services, there are innovative ways to sidestep the financial burden imposed by third-party platforms.

In this blog, we’ll discover how to reduce the commission cost to zero so that your business can utilize the price of your order. 

The True Cost of High Commission Fees

High commission fees on food delivery platforms are a damaging thing, you can invest these cut-offs in your business to grow it even further.

Erosion of Profit Margin

Every order that you get through a third-party platform, you are paying a significant share to the platform in the form of a commission. For example, on a $50 order, a 25% commission fee means $12.50 is lost to the platform money that could have been reinvested in your business. Over time, these fees add up, cutting deeply into your bottom line.

Hidden Cost Apart from Commission

  • Delivery Fees for Customers: While not directly affecting your revenue, high delivery fees charged to customers can deter repeat orders.
  • Marketing Add-Ons: Many platforms charge extra for premium listings or promotional placements, further increasing costs.
  • Loss of Customer Ownership: By relying on third-party platforms, you lose direct access to your customers, making it harder to build loyalty and drive repeat business.

Massive Impact on Small Restaurant Owners

These commission costs will have a greater hit on small businesses as large and well-off restaurants might be able the absorb the expense, but small businesses can find it difficult to manage the expenses and scale the restaurant business.

High commission fees from food delivery platforms are not an unavoidable cost of doing business. There are practical and effective alternatives that allow restaurant owners to minimize these expenses while strengthening their customer relationships and revenue streams. Therefore, collaborate with solution provider that have zero commission policy, and they do not cut from your profit. They offer transparent pricing structures and often cater specifically to independent businesses.

Conclusion

High commission fees on food delivery platforms have long been a burden for restaurant owners, eroding profits and limiting growth. However, you can explore alternatives like direct online ordering systems, in-house delivery services or commission-free platforms. You can take back control of your revenue and build a more sustainable business model. These solutions not only save costs but also empower you to connect directly with your customers, building loyalty and repeat business.

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