The short version
Delivery fees eat 20–35% of your order value, but you can manage them by upcharging 10–15% on app menus, limiting high-commission items, and tracking true margins per order. Aim for 10–15% net profit after fees.
The real math: delivery fee breakdown
Stop guessing at "what the app charges." Break it down with 2025 averages:
- Commission: 15–30% of order subtotal (DoorDash 20%, Uber Eats 25–30%).
- Service fees: $2–$5 per order (passed to you or customer).
- Packaging: $0.50–$1.50 per item (bags, containers, seals).
- Hidden: Promo credits, refunds, and driver tips you cover indirectly.
Total bleed: 25–40% of gross. If your food cost is 30%, that's 55–70% gone before labor or overhead.
Example: $20 order - 25% commission ($5) - $1 packaging = $14 left. Subtract $6 food cost = $8 gross margin (40%).
Factors that make delivery fees worse in 2025
Fees aren't static—here's what amplifies them:
1. Order size and type
- Small orders ($10–$15): Fees hit 30–50% effective rate.
- Large/group: Better at 20–25%, but more packaging waste.
- High-margin items: Drinks/apps dilute if low-value.
2. App promotions and visibility
- Free delivery promos: You eat the driver fee (5–10%).
- Boosted placement: Extra 5–10% commission for top spots.
- Refunds/chargebacks: 10–20% of orders, full fee still applies.
3. Operational leaks
- Overstaffing for rushes: +5–10% labor on delivery volume.
- Waste from remakes: 2–5% of delivery sales lost.
- Inflation: Fees rise with menu prices automatically.
4. Contract terms
- Basic plans: 30%+ fees.
- Negotiated: 15–20% for high-volume spots.
- Own tablet: Saves 5% on some platforms.
Quick delivery fee audit
Spot-check your real costs in under 10 minutes:
Step 1: Pull last month's statements
- Total delivery sales vs. net payout (fees deducted).
- Divide fees by sales = effective rate (aim under 25%).
- Use our POS Cost Reduction Checklist from templates to verify.
Step 2: Calculate per-item margin
- Item cost + packaging + (fee % x price).
- Target: 10–20% net after all.
Step 3: Test tweaks
- Upcharge apps 10%: Monitor order volume drop (under 5% is win).
- Hide low-margin items: Track overall mix shift.
How to manage delivery fees without killing volume
Cut fees without turning off the apps:
- App-specific pricing. Mark up 10–15% on delivery menus to offset commissions—guests expect it.
- Menu curation. Push high-margin items (fries, drinks) and hide bleeders (steaks, salads).
- Packaging efficiency. Bulk buy seals/bags, standardize portions to minimize waste.
- Negotiate rates. Use volume (over $10K/month) to drop to 15–20%—or bundle with your POS.
- Own your delivery. Promote in-house for 0% fees, but factor driver costs.
Grab the Delivery Margin Calculator from our pro calculators to run the numbers.
Where the RPS tools plug in
Managing fees manually is a grind. Our stack automates the fight:
- Contribution Margin Calculator: See real profit per delivery item after fees.
- Prime Cost Spreadsheet: Track delivery's impact on overall costs.
- Menu Engineering Matrix: Optimize your app menu for margin stars.
- Live Menu Engine service: Auto-adjust prices across apps as fees or costs change—check Menu Engine for setup.
If you’re comparing DIY spreadsheets and live menu pricing to the big all-in-one restaurant platforms, our Us vs Them page breaks down why Restaurant Profit Systems is different.
Simple next step for this week
Audit one app's fees vs. payouts. If over 25%, upcharge 10% on 5 items and track for 7 days. Adjust from there.
FAQs
Why do delivery orders hurt profit?
High commissions and packaging costs.
What is delivery margin?
Profit left after delivery fees and food cost.
How do I improve delivery profits?
Adjust delivery pricing and menu mix.