Is DoorDash Worth It for Restaurants? A Complete 2026 Cost-Benefit Analysis

"Should we be on DoorDash?" is one of the most common questions restaurant owners ask. The answer isn't simple—it depends on your margins, customer base, and strategic goals. Let's break it down.

TL;DR

DoorDash is rarely "worth it" as a profit center. It may be worth it for specific strategic purposes: brand awareness, filling idle kitchen capacity, or as a transitional tool while building direct ordering. For most restaurants, the math doesn't work: 25-35% total costs on 5-10% margin operations equals losses.

The Case FOR DoorDash

Before diving into the problems, let's acknowledge the real benefits:

1. Immediate Customer Access

• 37 million active DoorDash users
• Zero customer acquisition cost upfront
• Instant visibility in your market

2. No Delivery Infrastructure Needed

• No drivers to hire/manage
• No delivery vehicles
• No insurance complications
• No scheduling challenges

3. Order Volume Potential

• Can add 20-40% to revenue
• Fills slow periods
• Uses kitchen capacity

4. Marketing Exposure

• Featured in app promotions
• Discovery by new customers
• Rating/review visibility

5. Low Barrier to Entry

• No upfront costs
• Cancel anytime
• Tablet provided

These benefits are real. The question is whether they're worth the cost.

The Case AGAINST DoorDash

1. The Commission Problem

At 25-30% commission, DoorDash takes a larger cut than most restaurants keep as profit.

Restaurant average margins:

• Fast casual: 6-9%
• Casual dining: 3-6%
• Fine dining: 4-8%

DoorDash take: 25-35%

The math is impossible for most restaurants.

2. Hidden Cost Multiplication

Beyond commission, real costs include:

• Packaging: +5-8%
• Labor inefficiency: +3-5%
• Error/refund absorption: +2-4%
• Tech fees: +1-2%
• Menu inflation backlash: Hard to quantify

True all-in cost: 36-50% of order value

3. Customer Relationship Loss

With DoorDash orders:

• You don't get customer email
• You can't market to them directly
• Loyalty programs don't apply
• They're loyal to the app, not you

4. Brand Dilution

Your restaurant becomes:

• One of dozens in a scroll
• Subject to driver quality
• Rated on factors you don't control
• Commoditized alongside competitors

5. Operational Complexity

Managing DoorDash adds:

• Tablet management
• Order flow complications
• Staff training requirements
• Quality control challenges

Break-Even Analysis Framework

Calculate Your DoorDash Break-Even Point

To determine if DoorDash works for your restaurant:

Step 1: Know Your Food Cost

• Calculate cost of goods sold (COGS) as percentage
• Industry average: 28-35%

Step 2: Know Your Labor Cost

• Fixed labor (salaried staff)
• Variable labor for order handling

Step 3: Calculate True Commission

• Base commission rate
• Marketing/boost fees
• Payment processing
• Packaging costs

Step 4: Run the Math

Gross Margin = 100% - Food Cost - DoorDash Total Cost
Break-even requires: Gross Margin > Fixed Costs per Order

Example Calculation

Average $30 Order:

• Food cost (30%): $9.00
• DoorDash (28%): $8.40
• Packaging (5%): $1.50
• Labor (5%): $1.50
• Remaining: $9.60 (32%)

Fixed costs to cover:

• Rent, utilities, insurance, etc.
• Per-order allocation: ~$4-8

Result: $1.60-$5.60 profit/loss depending on restaurant

Most restaurants fall on the loss side.

When DoorDash MIGHT Make Sense

Scenario 1: Brand New Restaurant

• Need awareness quickly
• Have unused kitchen capacity
• Plan to convert customers to direct

Strategy: Use DoorDash for 6-12 months while building direct channels, then reduce dependency.

Scenario 2: High-Margin Menu Items

• Some items have 50%+ margins
• Can create delivery-only menu
• Focus app orders on profitable items

Strategy: Only offer high-margin items on DoorDash, steer customers to full menu via direct ordering.

Scenario 3: Ghost Kitchen Operations

• No dine-in to cannibalize
• Lower fixed costs
• Delivery-optimized operations

Strategy: Accept lower margins in exchange for reduced overhead.

Scenario 4: Competitive Necessity

• Every competitor is on apps
• Customer expectation is app ordering
• Visibility = survival

Strategy: Maintain presence but minimize losses, heavily promote direct ordering.

When DoorDash Definitely Doesn't Make Sense

Red Flags

• Thin margins (<6% net profit currently)
• High food costs (>32%)
• Limited kitchen capacity (adds stress without revenue benefit)
• Strong local brand (you're subsidizing discovery of known brand)
• Existing delivery infrastructure (paying commission for nothing)

The Dumbest DoorDash Strategies

1. "We'll make it up in volume" Negative margin × more orders = bigger losses.

2. "It's marketing" $30 per customer acquisition is terrible CAC when they never come direct.

3. "We have to be there" No, you don't. Many successful restaurants aren't.

4. "The orders would go elsewhere" Many wouldn't order at all, or would order direct with proper incentive.

The Strategic Alternative: Controlled Participation

If you decide to use DoorDash, do it strategically:

Pricing Strategy

• DoorDash prices 15-20% higher than direct
• Offset commissions, signal direct value
• Customers understand delivery premium

Menu Strategy

• Limited DoorDash menu (high-margin items only)
• Full menu on direct ordering
• Exclusive items for direct orders

Conversion Strategy

• Insert direct ordering info in every bag
• QR code linking to your ordering system
• "Save 15% next time" card with direct URL

Analytics Strategy

• Track per-platform profitability
• Measure conversion to direct
• Monthly evaluation of ROI

Real Restaurant Case Studies

Successful DoorDash Exit: Thai Orchid (Portland)

The Problem: 35% of orders via DoorDash, losing ~$8,000/month on app orders.

The Solution:

1. Set up direct ordering with 15% off first order
2. Added QR codes to all DoorDash packaging
3. Posted on social media about "order direct, save more"
4. Gradually reduced DoorDash menu

Result:

• 6 months later: DoorDash down to 12% of orders
• Direct orders up 180%
• Monthly profit increased $11,000

Strategic DoorDash Use: Mike's Pizza (Austin)

The Approach: Uses DoorDash only for specific purposes.

Strategy:

• Only high-margin items on DoorDash (40%+ margin)
• DoorDash prices 25% higher than direct
• Every order includes direct ordering pitch
• Tracks conversion rate from app to direct

Result:

• DoorDash orders break-even or slight profit
• 22% of DoorDash customers convert to direct
• Total delivery revenue up, costs down

DoorDash Rejection: Farm Table (Chicago)

The Decision: Never joined delivery apps.

Instead:

• Built email list from day one
• Launched own delivery within 5-mile radius
• Created pickup "fast lane" program
• Invested in local marketing

Result:

• 40% of revenue is takeout/delivery
• All orders are direct
• Higher margins than competitors
• Strong customer relationships

Making Your Decision

Step 1: Calculate Your True Costs

Don't guess. Track everything for a month:

• Commission paid
• Marketing/boost spent
• Packaging costs
• Staff time on app orders
• Refunds/credits absorbed

Step 2: Assess Strategic Value

Ask honestly:

• Are these NEW customers?
• What's the conversion to direct rate?
• Is it building or diluting your brand?
• Could that kitchen capacity be used better?

Step 3: Evaluate Alternatives

Before committing to DoorDash:

• Can you launch direct ordering easily?
• Is your website mobile-optimized?
• Do you have customer contact info?
• Have you tried promoting direct ordering?

Step 4: Make a Clear Decision

Either:

• Exit DoorDash and go all-in on direct
• Strategic participation with clear boundaries
• Full commitment only if math genuinely works

There's no middle ground. Passive DoorDash participation is the worst outcome—all the costs, none of the benefits.

Conclusion

Is DoorDash worth it? For most restaurants, as a primary ordering channel, no. The commission structure doesn't work with restaurant margins.

However, DoorDash can be worth it as:

• A customer acquisition tool (if you convert to direct)
• A surplus capacity solution (if you have unused kitchen time)
• A limited strategic channel (if priced and menu'd correctly)

The key insight: DoorDash isn't your customer—the person ordering is. Your job is to make that person YOUR customer, not DoorDash's. Every strategy should move toward that goal.

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