Is DoorDash Eating Your Profits? Do the Math Before You Sign Up

The DoorDash Dilemma

DoorDash, Uber Eats, and Grubhub promise more customers and more orders. And they deliver on that promise — literally. But at what cost?

Commission rates range from 15% to 30% per order. On a $30 order, that's $4.50 to $9.00 going to the platform before you've paid for food, labor, or packaging. For many restaurants, this turns profitable dishes into break-even or loss-making ones.

But the calculation isn't as simple as "commission bad." Let's do the real math.

The True Cost Breakdown

Here's what a typical $30 DoorDash order actually costs you:

Cost Component	Amount	% of Order
DoorDash commission (25%)	$7.50	25%
Food cost (30% of menu price)	$9.00	30%
Packaging (container, bag, utensils)	$2.00	7%
Labor (prep + packaging time)	$3.00	10%
Total cost	$21.50	72%
Your profit	$8.50	28%

Compare this to the same $30 order from a dine-in customer:

Cost Component	Amount	% of Order
Food cost (30%)	$9.00	30%
Labor (server + kitchen)	$6.00	20%
Overhead (rent, utilities, etc.)	$4.50	15%
Total cost	$19.50	65%
Your profit	$10.50	35%

The delivery order makes you $2 less per order. But here's the nuance: if that delivery order is INCREMENTAL (a customer who wouldn't have come to your restaurant otherwise), it's still $8.50 you wouldn't have had.

When DoorDash Makes Sense

It's worth it when:

You have excess kitchen capacity (slow periods where your kitchen is idle)
The orders are truly incremental (new customers who discovered you on the app)
You've adjusted your delivery menu prices upward to offset commission
You're using it as a marketing/discovery channel (customers find you, then order direct next time)

It's NOT worth it when:

Delivery orders are cannibalizing your dine-in business
You're at full kitchen capacity (delivery orders slow down dine-in service)
You haven't raised delivery prices (you're subsidizing the platform's commission)
Your food cost on delivery items is above 35%

Strategy: The Delivery-Specific Menu

Smart restaurants don't put their entire menu on DoorDash. They create a delivery-specific menu with:

Higher prices: Raise delivery menu prices 15-20% to offset commission. Most customers expect delivery to cost more and won't notice.

High-margin items only: Remove low-margin items that become unprofitable after commission. Feature dishes with low food cost and high perceived value.

Travel-friendly dishes: Remove items that don't travel well (crispy items that get soggy, delicate plating that falls apart). This reduces complaints and refund requests.

Larger portions/combos: Encourage higher order values. A $50 order with 25% commission ($12.50) leaves you $37.50 to work with — much healthier than a $15 order leaving you $11.25.

The Alternative: Build Your Own Ordering Channel

What if customers could order directly from you — no commission?

This is where a free QR menu with built-in ordering becomes powerful. MenuForma lets you:

Create a digital menu with online ordering (free)
Share the ordering link on social media, Google, your website
Accept orders directly — 0% commission
Keep 100% of the revenue

The hybrid strategy:

Use DoorDash for discovery (new customers find you)
Convert them to direct ordering (include a card in every delivery bag: "Order direct next time and save! Scan this QR code")
Over time, shift volume from 30% commission orders to 0% commission orders

The $12 Meal Deal Trap

DoorDash's promotional programs (like the $12 meal deal) sound like great exposure. But do the math:

Customer pays $12 for a meal
DoorDash takes their commission (let's say 25% = $3)
You receive $9
Your food cost for that meal is $5
Your profit: $4

$4 profit on a meal that normally makes you $10+. You're essentially paying $6+ per customer for "marketing." Is that worth it? Maybe for a new restaurant building awareness. Probably not for an established one.

Decision Framework

Ask yourself these questions:

What percentage of my delivery orders are from NEW customers? (If most are regulars who would have come anyway, you're paying commission for nothing)
Is my kitchen at capacity during delivery peak hours? (If yes, delivery orders are slowing down your more profitable dine-in service)
Have I raised my delivery menu prices? (If no, you're leaving money on the table)
Do I have a way to convert delivery customers to direct orders? (If no, you're permanently paying 25-30% for every repeat order)
What's my actual profit per delivery order after ALL costs? (If it's under $5, reconsider)

The Bottom Line

DoorDash isn't inherently good or bad for your restaurant. It's a tool with a specific cost. The key is understanding that cost precisely and having a strategy to either make it work for you or build alternatives.

The smartest approach: use delivery platforms for discovery, but build your own direct ordering channel for retention. A free tool like MenuForma gives you that direct channel at zero cost — no commission, no middleman, no dependency.

Set up free direct ordering →