Grubhub Fees Explained: Complete Guide for Restaurant Owners (2024)

The Grubhub Fee Structure

Grubhub operates differently than DoorDash and UberEats. Their fee model can be confusing, but understanding it is crucial for your bottom line.

Let's break down exactly what Grubhub costs—and how to make it profitable.

Commission Tiers

Grubhub offers three main partnership models:

Basic Partnership (15% commission)

Plus Partnership (20% commission)

Premier Partnership (25% commission)

Additional Fees to Watch

Beyond base commissions, Grubhub charges:

Marketing Fees (6-15%)

When you participate in Grubhub promotions, you pay additional fees. "Sponsored listings" can add 6-15% to orders driven by marketing campaigns.

Processing Fees

Grubhub charges a payment processing fee of approximately 2.5% on all transactions, which is typically included in the commission.

Tablet Rental

If you use Grubhub's tablet, they charge $5-10/week depending on your market.

Order Errors

When orders are disputed, Grubhub may charge you for refunds. Always review and dispute incorrect charges.

The Real Cost Breakdown

Let's say you have a $35 order on the Plus plan (20% commission):

Now factor in food cost (30%):

That's a 50% gross margin on delivery vs. 70% for dine-in. This is why pricing strategy matters.

Strategies to Maximize Grubhub Profitability

1. Optimize Your Menu Prices

Increase delivery prices by 12-18% to offset commissions. Grubhub customers are generally price-tolerant if the value is clear.

2. Focus on High-Margin Items

Prioritize items with 60%+ food cost margins. Grubhub customers tend to order more premium items.

3. Use Promotions Strategically

Grubhub's promotional tools can drive volume, but watch the fees. Only use promotions on high-margin items.

4. Negotiate Better Rates

High-volume restaurants ($40k+/month) can negotiate lower commission rates. Always ask.

5. Drive Direct Orders

Use Grubhub for customer acquisition, then convert to direct ordering through package inserts and follow-up campaigns.

Grubhub vs. Other Platforms

Compared to DoorDash:

Compared to UberEats:

The Bottom Line

Grubhub fees are competitive, but they still eat into margins. The key is understanding your true costs and pricing accordingly.

Restaurants that optimize for Grubhub see 35% higher profits than those who don't.