Grubhub charges restaurants a commission rate ranging from 5% to 30% per order, which can significantly impact your restaurant’s profits. The delivery fee alone starts at 10%, and marketing fees vary depending on the level of exposure you desire on the platform.
In this article, I’ll break down exactly how much Grubhub costs restaurants, from food delivery and marketing fees to optional commission-free tools like Grubhub Direct. If you’re considering using food delivery apps to expand your restaurant business, I’ll help you understand how to select the correct pricing package and determine whether Grubhub is worth the investment.
Key Takeaways
- Grubhub Fees Add Up: Restaurants typically pay between 15% and 30% per order, including marketing, delivery, and processing fees.
- Watch the Fine Print: Grubhub’s processing fee applies to all orders, even with Grubhub Direct, so be sure to factor it in when selecting this option to manage your restaurant costs wisely.
- Use Grubhub Direct Smartly: While it offers 0% marketing commission, there’s a $1.99 delivery fee, a $99 one-time setup fee, and a $49 monthly hosting fee per location (plus Grubhub’s standard credit card processing fee of 3.05% + $0.30 per order). It’s most cost-effective if you handle delivery yourself to avoid extra charges.
- Lower Delivery Costs: Using your own drivers helps avoid the delivery fees, keeping more of your restaurant revenue in-house. Keep your delivery fleet on track with a driver app.
- Avoid Marketplace Dependency: Grubhub can boost visibility, but it makes you reliant on its ecosystem. You lose access to customer data and control over the customer experience.
- Reduce Costs by Using Your Own Ordering System: Create a branded restaurant website with an online ordering system to accept commission-free orders and reduce costs by up to 90%. With a platform like UpMenu, you pay a fixed price instead of high commission fees.
- Encourage Direct Orders: Add flyers with a QR code menu to your Grubhub orders, offering restaurant discounts to customers who order directly from your website or mobile app next time.
- Use Third-Party Logistics Wisely: If you can’t deliver yourself, consider third-party delivery services like DoorDash Drive, or Wolt Drive to maintain control over delivery while reducing fees.
What is Grubhub?
Grubhub is an online and mobile food ordering and delivery platform that connects diners with local restaurants. It operates in numerous cities across the United States, and it extends two key services to restaurants:
- Option to be featured on their platform (Grubhub Marketplace)
- Integration of their online ordering system onto the restaurant’s website (Grubhub Direct)
Through the Grubhub marketplace, hungry customers can browse menus of independent restaurants, place orders, and either pick them up or have them delivered to their doorstep.
Alternatively, with Grubhub Direct, customers can place orders directly on the restaurant’s website.
How Does Grubhub Work?
I prepared this visual breakdown of how Grubhub works, from the moment a customer places an order to when it reaches their door.
Through its online platform, Grubhub connects hundreds of millions of customers with local restaurants. Users browse through various cuisines and restaurant options, selecting dishes and customizing orders to their preferences.
Once the order is confirmed and payment is processed securely online, the restaurant receives the order through the Grubhub platform. From there, they prepare the food according to the customer’s specifications.
Grubhub dispatches a delivery driver to pick up the order from the restaurant and transport it to the customer’s specified location, or a restaurant delivers food with its own delivery driver fleet for orders placed on Grubhub.
After receiving their order, customers can rate their experience and provide feedback, ensuring continuous improvement in service quality.
Alternatives to Grubhub: How to Save on Commissions
Regarding online food ordering, there are numerous alternatives to Grubhub. Some of these alternatives include the following:
- UpMenu
- DoorDash
- Uber Eats
I have created a comparison matrix of Grubhub and its alternatives, which you can view below.
| System | Grubhub | UpMenu | Uber Eats | DoorDash | ChowNow |
|---|---|---|---|---|---|
| Commissions | Starting from 5% | No commission fees | Starting from 15% | Starting from 15% | $199 monthly and $1.19 + 2.95% per order |
| Free Trial | ✅ | ✅ | ✅ | ✅ | ❌ |
| Setup Service | $99 one-time + $49 monthly | Free | £650 (UK) N/A (USA) | Free | $119 – $499 |
| Customer data ownership | ✅ | ✅ | ❌ | ❌ | ✅ |
| Your Own Branded Mobile App | ❌ | ✅ | ❌ | ❌ | ✅ |
| Your Own Website With Ordering | ✅ | ✅ | ❌ | ❌ | ✅ |
| Control Over Marketing Activities | ❌ | ✅ | ❌ | ❌ | ✅ |
| Delivery Service | ✅ | Yes, with third-party services | ✅ | ✅ | ✅ |
Sources: Grubhub Pricing, Uber Eats Pricing, DoorDash Pricing, ChowNow Pricing
Remember that another option worth exploring is establishing your own delivery service or outsourcing to a third-party provider. Running your own operation with the help of restaurant delivery software gives you full control over delivery dispatch, route planning, and driver management, while also reducing third-party commission fees.
You can start accepting direct orders through an online ordering system on your restaurant website. Don’t have a site yet? A restaurant website builder makes it easy to get online and begin managing your delivery service independently.
Learn more about how to create a restaurant website and how to set up an online ordering system.
- Over half of customers who avoid third-party apps cite high fees and markups as the main reason they order directly. Those who use them are less concerned about cost.
- 78% of delivery orders go through restaurants, while only 22% use third-party platforms. The reason? 74% of customers prefer ordering directly because they trust the restaurant more.
- Consumers say they order takeout more often because restaurant mobile apps and websites are now easier to use and more widely available.
How Much Does Grubhub Cost for Restaurants?
Commission rates for restaurants vary from 5% to 30%. The price depends on several factors, including the marketing fee, delivery fee, and additional fees such as credit card processing fees and optional paid advertising through Grubhub ads.
Let me walk you through the individual fees below.
What Are the Marketing Fees on Grubhub?
I put together a clear table that breaks down the marketing costs Grubhub charges restaurants. Below it, you’ll also find a detailed explanation of each marketing plan available.
| Plan | Marketing Fee | Key Considerations |
|---|---|---|
| Partner | Starts at 5% (pickup & self-delivery) +10% for Grubhub Delivery | Includes essential listing tools, welcome kit, and free professional menu photoshoot, but diners pay standard delivery fees |
| Plus | Starts at 15% (pickup & self-delivery) +10% for Grubhub Delivery | Includes lower delivery fees for diners, access to Grubhub+ members, and a 15% ad credit on advertising spend |
| Premium | Starts at 20% (pickup & self-delivery) +10% for Grubhub Delivery | Includes the lowest delivery fees for diners, maximum exposure, increased visibility via Sponsored Listing placements, and a 20% ad credit on ad spend |
Source: Grubhub Pricing
The marketing fee differs depending on the marketing plan a restaurant selects.
- Partner: The marketing rate for this plan starts at 5% for pickup and self-delivery orders (+10% for Grubhub Delivery). This plan includes essential listing tools, zero platform or maintenance fees, access to Amazon ordering, on-demand account support, a free welcome kit, and a professional menu photoshoot. However, diners pay standard delivery fees, which may make your listing less competitive.
- Plus: The marketing rate for this plan starts at 15% for pickup and self-delivery orders (+10% for Grubhub Delivery). It includes all Partner plan benefits, plus lower delivery fees for diners, access to Grubhub+ members, and a 15% credit back on all advertising spend with Grubhub ads.
- Premium: The marketing rate for this plan starts at 20% for pickup and self-delivery orders (+10% for Grubhub Delivery). It includes all Plus plan benefits, the lowest delivery fees for diners, priority exposure, increased visibility through Sponsored Listing placements on Grubhub, access to loyal Grubhub+ members, and 20% ad credit on all advertising spend.
How Much Does Grubhub Charge for Delivery?
When signing up, restaurants can choose their delivery method: their own drivers, Grubhub’s fleet, or a combination of both.
Grubhub charges delivery fees based on the selected delivery method:
- Self Delivery: No delivery fees when using your own drivers for Grubhub orders.
- Grubhub Delivery: A delivery fee starting at 10% applies when you choose Grubhub’s professional drivers to handle the logistics.
- Supplemental Delivery: Use Grubhub drivers as backup during busy periods or to reach areas outside your standard delivery zone. The fee, starting at 10%, only applies when Grubhub drivers are used.
Please note that delivery fees are charged in addition to marketing fees. Pickup is always available to customers, regardless of the delivery option you select.
What Extra Fees Does Grubhub Charge?
There is an additional service fee that varies, but it typically represents a percentage of the order total, which is paid to Grubhub to cover their operating costs.
The Grubhub standard processing fee is 3.05% of the order value + 30 cents per prepaid transaction to cover credit card processing and restaurant fraud monitoring.
How Much Does Grubhub Charge Restaurants on Average?
The average fees charged by Grubhub to restaurants typically vary depending on the type of services utilized (such as delivery, marketing, etc.) and the specific agreements made between Grubhub and individual restaurants.
On average, restaurants may expect to pay fees ranging from 15% to 30% of the total order value.
Below, I’ve created a table showing marketing, delivery, and processing fees, so you can understand the total cost of using Grubhub for restaurants.
| Plan | Delivery Method | Marketing Fee | Delivery Fee | Processing Fee | Total Fees |
|---|---|---|---|---|---|
| Partner | Self-Delivery | 5% | 0% | 3.05% + $0.30 | 5% + (3.05% + $0.30) |
| Partner | Grubhub Delivery | 5% | 10% | 3.05% + $0.30 | 15% + (3.05% + $0.30) |
| Plus | Self-Delivery | 15% | 0% | 3.05% + $0.30 | 15% + (3.05% + $0.30) |
| Plus | Grubhub Delivery | 15% | 10% | 3.05% + $0.30 | 25% + (3.05% + $0.30) |
| Premium | Self-Delivery | 20% | 0% | 3.05% + $0.30 | 20% + (3.05% + $0.30) |
| Premium | Grubhub Delivery | 20% | 10% | 3.05% + $0.30 | 30% + (3.05% + $0.30) |
| Grubhub Direct | Self-Delivery | 0% | 0% | 3.05% + $0.30 | 0% + (3.05% + $0.30) |
| Grubhub Direct | Grubhub Delivery | 0% | $1.99 flat fee | 3.05% + $0.30 | $1.99 + (3.05% + $0.30) |
Sources: Grubhub Pricing, Grubhub Profit Calculator, Grubhub Direct Website Cost
Remember that Grubhub Direct also includes a one-time setup fee of $99 and a monthly hosting fee of $49 per location, which should be considered when calculating long-term costs.
By using UpMenu as their go-to online ordering system, many restaurants have significantly reduced third-party commission costs and saved thousands of dollars.
Here are a few examples:
- Sushi Kushi saved more than $1.5 million
- Michelangelo 301 saved $129,474
- Dedicate Healthy Kitchen saved $118,397
Want to achieve similar results? Explore more case studies and see how you can boost your restaurant’s profits.
Consider building your restaurant’s mobile app and paying a flat monthly fee instead of commissions.
Check out our article on how to create a food delivery app to get more details and learn about the benefits of delivery apps for restaurants.
Is Grubhub Worth It for Restaurants?
Grubhub can help restaurants reach new customers, increase visibility, and grow delivery sales, but it comes at a cost. With fees ranging from 15% to 30% per order, it can significantly reduce profit margins.
For most restaurant owners, Grubhub is best utilized as a marketing channel, rather than a long-term fulfillment solution. It works best when paired with your own online ordering system, where you control customer data and avoid high commissions.
If you handle self-delivery or use Grubhub Direct, the platform becomes more cost-effective. The key is to use Grubhub strategically to increase delivery orders while focusing on direct sales to maintain control and protect your bottom line.
