June 11, 2025
Have you noticed your customers balking at the bill when they order through DoorDash? If you've ever wondered why DoorDash prices are higher than restaurant menu prices and whether those markups are costing you loyal diners, you’re not alone.
Independent restaurants, local chains, and ghost kitchens across Canada face the same dilemma: raise delivery prices to protect margins or keep them consistent and risk eating the fees. It’s a tightrope walk that feels almost impossible to get right.
When the customers see a burger listed for $14 in-store but $18 on DoorDash, it can lead to frustration, fewer repeat orders, and even negative reviews.
Customers aren’t blind to the differences. They compare your in-store menu to the app and ask themselves, “Why am I paying more for the same meal?” When that gap widens, it hits trust and repeat orders hard.
In this blog, we’ll unpack why DoorDash prices often exceed restaurant prices and show you how smart pricing can improve your visibility, customer loyalty, and bottom line.
The pricing structures may not always be as simple as they seem. There’s a full system behind how pricing and commissions are structured for restaurants on delivery platforms.
Here’s how it works:
Restaurants on DoorDash can choose from three main partnership plans, depending on how much visibility and customer reach they want:
After a 7-day free trial, restaurants pay a 20% commission on each delivery order. This plan mainly targets nearby customers, but the delivery fee for customers tends to be higher.
With a 30-day free trial, this plan charges a 25% commission per delivery. It extends the restaurant’s reach to a wider area and offers customers a lower delivery fee. Access to DashPass customers, who don't pay delivery fees, is included at a different commission rate.
Also starting with a 30-day free trial, this plan involves a 29% commission per delivery order. It aims to maximize visibility and offer customers the lowest delivery fees. It comes with perks like marketing rebates if certain spending thresholds are met.
While these charges are necessary to maintain DoorDash's convenience and reach, they also mean that simply matching in-store pricing on delivery menus isn't always realistic.
iOrders offers a commission-free platform, allowing you to maintain full control over pricing and customer relationships. With iOrders, you can provide direct ordering through your website or app, bypassing high commission fees and maximizing profits.
First, you need to understand the key reasons behind higher DoorDash Prices. Several key factors contribute to the price difference between restaurant menus and DoorDash prices. Let’s explore them in detail.
1. Commission Fees and Service Charges
One main reason for the price difference is the commission DoorDash takes from each order. Restaurants pay 15% to 30% in commission fees, depending on the plan they choose.
For example, a $10 meal could lose up to $3 in commissions before it even leaves your kitchen. To cover these costs, many restaurants adjust their delivery menu prices, which leads to higher prices on the app for customers.
2. Inflation and Operational Costs
Food and packaging prices have risen significantly in the past few years. With packaging costs going up by as much as 20% and ingredients getting more expensive, restaurants are struggling to maintain profitability.
If you’re not raising your delivery prices to match these rising costs, you could be absorbing the loss. Many businesses increase their prices on delivery apps to protect their margins.
3. Third-Party Platform Policies
While DoorDash doesn’t require you to match in-store prices for delivery orders, it does recommend that you keep the prices as close as possible. This is because price parity, keeping your delivery and in-store prices similar, can boost customer retention.
While it’s tempting to mark up your prices to cover fees, this could hurt your restaurant’s visibility on the platform, as DoorDash tends to prioritize businesses with consistent pricing.
4. Dynamic Pricing and Demand
Another factor to consider is the demand for deliveries. During peak hours or when the weather is bad, prices tend to go up. This dynamic pricing helps cover the extra costs of delivering during high-demand periods. Customers may pay more during these times, but it’s a necessary step for restaurants to manage these spikes in demand and ensure timely deliveries.
With iOrders’ Website and QR Ordering, you can receive direct orders anytime, display the most up-to-date menus, and streamline order management. Book a demo to reduce costs and improve service efficiency!
When deciding on menu pricing for delivery orders, restaurants face a constant dilemma: higher prices can affect customer demand and hurt visibility on the app, while lower prices can cut into profits. Let’s understand this further below.
Raising prices too much on delivery platforms can reduce the likelihood of customers placing orders, which in turn can affect your visibility.
According to DoorDash, significant price discrepancies like charging $24.99 for a meal that’s $19.99 in-store can lead to a 37% drop in sales and a 78% reduction in reorder rates.
Complaints like, “Why is this hamburger so much more expensive on DoorDash?” are common, and these frustrations can lead to negative reviews, hurting your reputation.
Worse, DoorDash may penalize your restaurant's placement in the app, making it harder for potential customers to find you. In some cases, restaurants that mark up prices excessively have seen their visibility drop by up to 40%.
On the flip side, setting prices too low to attract more customers can harm your profit margins. The key is to find a sweet spot where you maintain a healthy margin while still drawing in enough customers. DoorDash data shows that restaurants that adjust their prices to be closer to in-store rates see better results.
For instance, a restaurant that reduced its inflation markup from 35% to 20% saw a 9% boost in sales within two weeks and a 19% increase in order volume.
When your prices are consistent with in-store, you’re more likely to see higher sales and better placement within the app.
With the right strategies, you can protect your margins, maintain customer loyalty, and still stay competitive. Here are five smart approaches to consider:
1. Transparent Menu Pricing
Customers appreciate transparency, especially when it comes to pricing.
Keep your delivery prices reasonable, even if they’re slightly higher than in-store prices. Instead of a steep markup, consider a smaller increase that still covers delivery costs. This approach helps maintain customer trust while avoiding significant drops in sales or negative reviews.
2. Encourage “Pickup” Options
Why not encourage customers to order for pickup at your in-store prices?
By promoting pickup options, you can avoid paying hefty app commissions while still offering your customers the convenience of your menu. Have you considered using a "pickup only" promo to drive traffic to your restaurant and reduce delivery dependency?
3. Build Loyalty Outside the Apps
Have you thought about promoting direct ordering through your own website or app?
Offering loyalty discounts for customers who order directly can help you bypass third-party platforms and their commission fees. You can also collect valuable customer data and build stronger relationships, increasing repeat business.
With iOrders Loyalty and Rewards services, you can extend customized rewards and offers across all platforms. Personalize loyalty programs based on customer behavior, and incentivize loyal guests to become brand ambassadors with targeted rewards and referral programs. Book a demo to learn more!
4. Optimize Menu Offerings
Are you showcasing your high-margin items on delivery platforms?
Positioning your most profitable menu items prominently on your delivery menus can help you maximize your earnings per order. Focus on dishes that are simple to prepare, cost-effective, and popular among customers.
5. In-house Delivery
If your restaurant handles a high volume of orders, why not consider offering in-house delivery?
By managing your own delivery logistics, you can keep more of the profit, reduce reliance on third-party apps, and offer your customers a more personalized experience.
Maintaining the same prices for delivery and in-store orders can have its advantages and challenges. Here’s a quick look at both sides:
Pros:
Cons:
Maintaining price consistency can build trust, but it may strain your margins due to high commission fees. While being transparent with customers is important, finding a balance is key.
Next, let's explore how iOrders can help restaurants navigate the high costs of third-party delivery platforms.
If you’ve been frustrated by high commission fees from delivery platforms like DoorDash, there’s a way to break free from this cycle. iOrders offers a better solution—one that puts you back in control of your pricing, profits, and customer relationships.
Here’s why iOrders is the Smart Choice for Restaurants:
1. Commission-Free Ordering
With iOrders, you can accept orders directly through your own website or mobile app—no middleman, no commission fees eating into your margins. Restaurants that have switched to iOrders have seen some impressive results, including a 288% increase in revenue.
By eliminating third-party fees, you keep every dollar you earn. It’s not just about saving money. iOrders also helps you maintain fair and transparent pricing for your customers, free from hidden fees.
2. Keep Prices Consistent Without the Fees
Many restaurants struggle with maintaining price consistency between their in-store menu and delivery prices. iOrders makes it easy to keep prices aligned across all platforms, so your customers always know what to expect.
When restaurants implement iOrders, they see a 244% increase in monthly orders. It’s clear: when you keep things simple and transparent, customers respond positively.
3. Make Smarter Decisions with Data
iOrders doesn’t just stop at offering commission-free ordering. It also provides data-driven insights that help you make smarter business decisions. Whether it's adjusting your menu or fine-tuning your pricing, you’ll have access to real-time analytics that guide you.
Restaurants using iOrders report a 239% increase in active diners and a 13% increase in average basket size—proving that understanding customer behavior can lead to higher sales.
4. Build Stronger Customer Relationships
Want to increase repeat business? iOrders’ loyalty programs allow you to engage customers with personalized rewards and offers. This helps convert first-time diners into loyal patrons.
With iOrders, many restaurants have doubled their customer frequency, leading to 2X increased visit frequency. A loyal customer is a repeat customer, and iOrders helps you nurture that relationship.
5. Effortless Delivery Solutions
Managing deliveries doesn’t have to be complicated. iOrders offers Delivery-as-a-Service, so you can provide reliable delivery without the overhead of managing your own fleet.
More than 1 million orders have been fulfilled through the platform, and restaurants can expand their reach without adding operational complexity. Plus, with 24/7 support availability, you can rest easy knowing iOrders has your back at all times.
While DoorDash is a popular delivery option, the high commission fees and the need to adjust prices can be challenging. iOrders gives you the best of both worlds: commission-free ordering, full control over your pricing, and a direct connection with your customers. You can keep more of your profits while offering a better experience for your diners.
iOrders also helps you build customer loyalty with tools like customizable rewards programs and real-time insights into customer preferences.
Why pay extra fees when you can have more control and better margins?
Ready to take your restaurant to the next level? Start with iOrders today!
