Apr 26, 2026
Anyone old enough to have ordered take-out in the 1980s remembers the sacred promise of pizza delivered in 30 minutes or it's free — an oath that originated with Domino's but soon became synonymous with pizza delivery in general (1).
Eventually that promise evolved into today's rapid food delivery apps like DoorDash and Uber Eats, which allow customers to track take-out orders in real-time as they move from the restaurant kitchen to the front door.
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Such apps came to prominence in the mid-2010s and exploded into a billion-dollar industry during the pandemic (2). The costly commission fees they charge restaurants, however, is increasingly pricing establishments out.
Javier Trujillo, the owner of Javi's Tacos in Omaha, along with four other restaurants, told local news outlet First Alert 6 that he's opting out of delivery apps after paying $188,000 in commissions last year (3). He added that cutting out the fees will help him retain staff while avoiding losses from orders that go to waste when no delivery person shows up to take them.
Meanwhile, in Dallas, chef Andrew Kelley owns and operates a ghost kitchen — a restaurant designed for delivery, with no dining room. But he recently told the Dallas Observer that "It's been very difficult with DoorDash and Uber Eats" because their commissions cannibalize his profits on offerings like a $12 lunch special (4).
"After DoorDash takes its commission, and I sell an Italian sandwich with a bag of chips and a homemade cookie or a potato salad for $12, my take-home is less than 10," he said. "And that doesn't include the cost of food packaging and labor."
Why restaurants have reservations about delivery apps
DoorDash and Uber Eats rake in billions each year — income fuelled in part by the 15%-30% commissions they charge restaurants to use their apps.
An analysis by digital ordering platform ActiveMenus found that, in addition to the commissions, the apps can also charge "marketing and promotional fees" of 1%-5% to boost a restaurant's visibility, as well as up to 3.5% for payment processing (5). As such, the restaurants often increase their prices on the delivery apps by up to 20% to recoup some of those losses.
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The costs to restaurants don't stop there, however. The use of third-party delivery services means that restaurants and their reputations are at the mercy of unknown delivery drivers.
A 2024 study in the International Journal of Hospitality Management found that when there's an issue with deliveries, those experiences are attributed to the restaurant rather than the driver or delivery service (6). And those bad feelings could cost restaurants future revenue.
That said, the switch away from digital tools and back to calling in orders to be delivered by traditional in-house delivery drivers — the kind who hopped into the car with a piping hot pizza as the 30-minute timer ticked down in the 1980s — is also unlikely.
The National Restaurant Association reported last year that 41% of millennials and Gen Z "say they rely heavily on delivery" when it comes to eating out (7).
"The convenience those restaurant apps provide integrate into their lifestyles," Chad Moutray, the association's senior vice-president said. "So, if operators want to tap into that market, they must be available through mobile apps."
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Adapting in-house delivery for the digital age
The solution for many restaurants going forward, according to the trade publication Nation's Restaurant News, is "implementing integrated technology solutions to bring order to the chaos, reduce reliance on third-party platforms, and rebuild direct customer connections (8)."
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That includes "hybrid delivery models" powered by services like Toast — which Trujillo uses at his restaurants — that provide the establishment with the capability to take orders and receive payment through their own website and then assign delivery to either in-house or third-party drivers. This sort of hybrid system allows the restaurants to skip expensive commissions while retaining a digital portal to both engage with customers and curate menu options based on ordering habits.
Restaurant Dive, which also covers the industry, noted that major pizza chains like Domino's, Papa John's and Pizza Hut use delivery apps for exposure, but save on app fees by employing in-house drivers for orders placed through them (9).
Moe Shrikian, the executive vice-president of the Hungry Howie's pizza chain, told the publication that employing such a strategy helps foster and maintain loyalty with customers in the communities where they deliver.
"The key," he said, "is meeting customers with the convenience they want without losing what makes a brand unique."
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
The Hustle (1); U.S. Department of Agriculture Economic Research Service (2); WOWT (3); Dallas Observer (4); ActiveMenus (5); ScienceDirect (6); National Restaurant Association (7); Nation's Restaurant News (8); Restaurant Dive (9)
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Mike Crisolago is a Staff Reporter at Moneywise with more than 15 years of experience in the journalism industry as a writer, editor, content strategist and podcast host. His work has appeared in various Canadian print and digital publications including Zoomer magazine, Quill & Quire and Canadian Family, among others. He’s also served as a mentor to students in Centennial College’s journalism program.
