The Real Cost of DoorDash
DoorDash is the largest food delivery platform in the US, with over 60% market share. If you're not on DoorDash, you're missing customers. But if you don't understand their fees, you're also missing profits.
Let's break down exactly what DoorDash costs—and how to make it work for you.
Commission Tiers
DoorDash offers three main partnership tiers:
Basic (15% commission)
Plus (25% commission)
Premier (30% commission)
Hidden Fees to Watch
Beyond the base commission, watch for these:
Marketing Fees (6-20%)
If you participate in DoorDash promotions, you'll pay additional fees. "Sponsored listings" can add 6-20% to orders driven by ads.
Error Charges
When orders go wrong, DoorDash often credits the customer and charges you. Always dispute incorrect charges.
Tablet Fees
DoorDash charges $6/week for their tablet if you don't use your own system.
Payment Processing
Built into the commission, but worth noting: you're paying 2-3% for payment processing.
The Math That Matters
Let's say you have a $30 order on the Plus plan (25% commission):
Now factor in your food cost (let's say 30%):
That's a 45% gross margin on a delivery order vs. 70% for dine-in. This is why delivery pricing strategy is critical.
Strategies to Maximize DoorDash Profitability
1. Adjust Menu Prices
Increase delivery prices by 15-20% to offset commissions. Most customers expect this.
2. Optimize Your Menu
Focus on high-margin items. A $12 burger with $3 food cost beats a $12 salad with $5 food cost.
3. Drive Direct Orders
Use DoorDash for acquisition, then convert customers to direct ordering where possible.
4. Monitor Error Charges
Review your statement weekly. Dispute incorrect charges immediately.
5. Negotiate
High-volume restaurants can negotiate lower commission rates. If you're doing $50k+/month on DoorDash, ask for a discount.
The Bottom Line
DoorDash fees are high, but they're the cost of customer acquisition. The key is understanding your true margins and pricing accordingly.
Restaurants that understand DoorDash economics average 40% higher profits on delivery orders than those who don't.
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David Kim
Restaurant Success Manager
David Kim leads restaurant success at Chowfly, helping hundreds of restaurants optimize their delivery operations and recover lost profits.