Why Most Restaurants Overpay for DoorDash
When DoorDash was launched in 2013, it disrupted the restaurant industry for its groundbreaking business model. However, 7 years later, many restaurants using DoorDash, although the service being great, are using it in the wrong way.
We know DoorDash charges 20% on all orders, which obviously is a very large percentage for orders. However, since this allows customers to order carry-outs from your restaurant delivered directly to their home, this price is generally perceived as worth it.
But, the main problem is that many restaurants are now using DoorDash for their pickup carry-outs as well. The only reason the high percentage charge of 20% is justified, is because of the delivery service they offer. When someone uses DoorDash to place a pickup order, being charged 20% on that transaction is being grossly overcharged.
Now, the question may arise, how else should a restaurant take online orders for pickup carry-outs if not DoorDash? This is exactly the point we want to bring up. All restaurants should have their own website with online ordering directly built in. The best part about this is that with our Gold and Silver tiers, this comes completely free of charge, and free of hassle. There is no reason why you should be paying 20% on all pickup orders with DoorDash, when in 2 weeks or less, you could get a website with curbside pickup ordering for free.
Even on deliveries alone, it’s possible the 20% DoorDash charges can simply become too high. The reason DoorDash can charge that high is because it provides you delivery drivers. But, if you’re getting to a point where you’re paying DoorDash more than what you would be paying your own delivery driver (average hourly salary $11-12/hour), it would be worth using our online ordering service for deliveries as well.
Almost all restaurants with a DoorDash partnership are being overcharged in some way. The solution is very easy to fix and can potentially save you hundreds to thousands of dollars a month.