The Refund Problem
The average restaurant loses 3-5% of delivery revenue to refunds. For a restaurant doing $50k/month in delivery, that's $1,500-2,500 disappearing every month.
Some refunds are legitimate. Items get forgotten. Food arrives cold. Mistakes happen.
But many refunds are preventable—or disputable. Here's how to cut your refund rate in half.
Understanding Refund Types
Legitimate Refunds (Fix These)
Questionable Refunds (Dispute These)
Fraudulent Refunds (Fight These)
The Prevention System
Step 1: Order Verification Protocol
Before every delivery order leaves:
Time investment: 30 seconds per order
Reduction in refunds: 20-30%
Step 2: Photo Documentation
For every order:
Time investment: 10 seconds per order
Reduction in disputable refunds: 50%
Step 3: Seal Everything
Cost: $0.05-0.10 per order
Reduction in "missing item" claims: 40%
Step 4: Quality Control Checklist
Post a laminated checklist at the packing station:
The Dispute System
When refunds happen, don't just accept them. Here's how to dispute:
DoorDash Disputes
Success rate with documentation: 60-70%
UberEats Disputes
Success rate with documentation: 50-60%
Grubhub Disputes
Success rate with documentation: 40-50%
Identifying Repeat Offenders
Track refund requests by customer when possible:
The Results
Restaurants implementing this full system typically see:
The system takes about 2 hours to set up and adds 45 seconds to each order. The ROI is immediate.
Start Today
Your margins will thank you.
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Marcus Chen
Co-Founder & CEO
Marcus Chen leads restaurant success at Chowfly, helping hundreds of restaurants optimize their delivery operations and recover lost profits.