Is DoorDash Worth It for Restaurants?
DoorDash can help restaurants reach new customers, but 15-30% commission fees often eliminate profit margins. Most restaurants lose money on individual DoorDash orders. It may be worth it for customer acquisition, but you should transition customers to direct ordering for profitability.
In This Article
Quick Answer
The Math: Can You Make Money on DoorDash?
When DoorDash Might Be Worth It
When DoorDash Is NOT Worth It
The Smart Strategy: Use DoorDash for Acquisition Only
Better Alternatives to Consider
Quick Facts
Related Questions
More FAQs
Quick Answer
This is one of the most common questions restaurant owners ask. The honest answer is: it depends on your goals and strategy. Let's break down when DoorDash makes sense and when it doesn't.
The Math: Can You Make Money on DoorDash?
Let's look at real numbers for a typical restaurant order. Assume a $40 order with 30% food costs:
| Item | Without DoorDash | With DoorDash (30%) |
|---|---|---|
| Order Revenue | $40.00 | $40.00 |
| DoorDash Commission | $0.00 | -$12.00 |
| Food Cost (30%) | -$12.00 | -$12.00 |
| Payment Processing | -$1.20 | -$1.20 |
| Gross Profit | $26.80 | $14.80 |
| Profit Margin | 67% | 37% |
When DoorDash Might Be Worth It
Despite the high costs, DoorDash can make sense in certain situations:
• New restaurant seeking discovery and brand awareness
• Location with limited walk-in traffic
• Testing delivery demand before investing in your own system
• Filling slow periods when kitchen is underutilized
• Reaching customers in areas you can't serve directly
When DoorDash Is NOT Worth It
For many restaurants, the costs outweigh the benefits:
• Already established customer base who would order directly
• Thin profit margins that can't absorb 30% fees
• High-volume restaurants where fees add up quickly
• Restaurants in areas with high DoorDash saturation
• When most orders come from existing customers (not new)
The Smart Strategy: Use DoorDash for Acquisition Only
Many successful restaurants use DoorDash as a customer acquisition channel, not as their primary ordering platform:
• Accept that DoorDash orders may break even or lose money
• Include branded materials encouraging direct ordering
• Offer loyalty rewards only through your direct platform
• Track which customers found you through DoorDash
• Measure success by direct order conversion, not DoorDash revenue
Better Alternatives to Consider
If you want delivery without the high commissions, consider these options:
• Commission-free ordering platforms like RestauNax
• Your own website and branded mobile app
• Local delivery partnerships with flat-fee services
• In-house delivery drivers for nearby orders
• Pickup-focused ordering that eliminates delivery costs
Quick Facts
25-30%
Avg. Commission
-50% margin
Profit Impact
30-40%
New Customer Rate
High
Repeat on Platform
More Frequently Asked Questions
Do restaurants actually make money on DoorDash?
Most restaurants lose money or break even on individual DoorDash orders due to 15-30% commission fees. Profitability depends on using DoorDash strategically for customer acquisition while transitioning repeat customers to direct ordering.
What percentage of restaurants use DoorDash?
Over 390,000 restaurants in the US are on DoorDash. However, many are re-evaluating due to commission costs, with a growing number shifting focus to commission-free direct ordering platforms.
How can I get customers off DoorDash and onto my own platform?
Include flyers with every DoorDash order promoting your direct ordering with incentives like discounts or loyalty points. Train staff to mention direct ordering. Use social media to drive traffic to your website or app.
Keep DoorDash Customers, Lose the Fees
Build your own branded ordering platform. Convert DoorDash customers to direct orders and keep 100% of your revenue.