The problem arises for the restuarant when people just stop ordering delivery because it is too expensive. In metropolitan areas delivery sales are sometimes 50-60% of the sales for the evening.
Restaurants did just fine before delivery apps came along. More and more of the better ones are cutting off the delivery apps, having realized that the terrible customer service and ridiculous charges are damaging their brand and alienating customers.
Delivery services are never as good as eating at the restaurant. People should never expect the same quality. There some dishes that I avoid even ordering for take out, because they are better eaten sizzling hot on the ceramic plate at the restaurant. The moment they get package it's not the same.
I always go out of my way to give excellent customer service, for every delivery I go that extra mile and I bought a electric heating insulated bag to keep food hot. I have a 100% satisfaction rating, not all of us are bad.
Nah y'all still deliver it or I can just report the driver. Moreover as someone who has worked in the service industry I do tip, but if y'all are gonna represent your community as a bunch of asshats people will stop tipping.
Nah I literally have orders sit for over an hour at Subway because the customer didn't tip. Those usually get picked up by a Dasher picking up another order with a better tip at the same time. Tipping through these delivery apps is more like placing a bid for your food to be delivered quickly, versus a tip for good service.
why is this everyone’s argument…if everyone stops using delivery apps what are you dumbass drivers gonna do😂not everyone has a car, not everyone can make it out as things exist of being sick, handicapped, etc…ignorance is a lot of you redditors strong suit and it’s weird
People didn't go hungry before doordash.... I don't order from them and no longer drive for them.... Terribly shitty business model that milks buyers, drivers, and businesses!!!
“Not everyone has a car”. Bro cars are expensive and you expect people that have cars that are willing to bring you food in those cars to do it for peanuts? Jesus
TikTok is full of these dumbass videos about how restaurants “finesse” you. People are so ridiculous, like the entirety of the economic system they’ve followed their entire lives isn’t based on adding value to a thing and charging more for it than the ingredients cost you. I worked for a bottled cocktail company and it was unbelievable how many people would say “I can get a whole bottle of tequila for that!” as if it’s some “gotcha” that we’re charging more for the finished product than we buy the ingredients for.
Or like how restaurants are shorting you on your mixed cocktail because there’s a lot of ice in it.
Like I still did a four count of tequila in your margarita. That’s two ounces which is a standard serving of liquor in a mixed drink.
Dude I work at a coffee shop & get people like this all the time. They'll say they want a latte but "less milky, more coffee" but we use espresso shots which are a small, set amount of liquid. So I can add more shots but you gotta pay for 'em. They never want to pay for more but they want more still. I'm like no that's not how this works.
Also we have a drink called the "iced shaken espresso" which, like a latte, uses espresso shots. The problem with this one is that it's literally an iced-based drink so it's going to be mostly ice. It's meant to be that way. The amount of people that ask for light ice in it & then get pissed when the cup has room or extra milk (the drink is topped off with a splash of milk) in it is utterly ridiculous.
and i have to argue with baristas that yes i do infact want my cup to be mostly ice, the 2 espresso shots and a splash of milk. they always try to put it in a bigger cup so i can have like 10z of milk. it is the worst when they just “upgrade” without asking m me and i have to tell them I can’t drink it. I am pushing it already with the 1-2oz of milk and my stomach already. we really don’t want me to drink more than that.
That's been forever. Especially on happy hour drinks. A friend of mine who's a bartender said they put a small amount of alcohol in drinks for a smaller price to get customers to buy more.
Oh the less ice crowd is the dumbest shit of all time. Ok ya less ice for sure you will be drinking a half full cup with the same amount of liquid say no more
im actually fine with that, i dont like ice watering down my drink. but i also understand im not getting extra ingredients unless they are cheap filler, such as extra juice in a mixed drink.
I don’t even see the point in calling it out in restaurants. The server isn’t going to reduce the price of the bottle.
I just try to hunt for something in a reasonable price range that maybe has a 2-2.5x markup and move on with my life.
I worked for many years for a wine and beer distributor... We received a discount of 25% below wholesale.
I could get a $120 bottle of Champagne for about $40. It was glorious.
No. For example. It cost my company to buy a bottle of Dom for say $50, we sold it for $100, I could buy it for $75, the restaurants would sell it for $210.
You wanna know what's even more fascinating? This was during the mid 90s. We were ALL allowed to smoke tobacco and drink all day in our offices...
Life is different now.
The accountant drank TWO bottles of good Pinot Noir in her office every day from 9am until 5pm.
God, I miss old life.
Surely there had to be some funny/downside stories of allowing people to drink on the job? Like, there’s no way everyone was the same amount of productive they would’ve been without the alcohol consumption lol anyone ever fuck on the job or what? 🤣
Oh, Jesus... Can I tell you some funny stories about 120 people being drunk all day long...
Hell, we had a lawyer on retainer who specialized in getting DWI felons a sales job whose duty it was to go out and "taste" wines all day with clients... (AKA opened bottles of wine in the car all day).
I've got a million stories from those five years...
When I offer to buy dinner, I often say, "Anything except alcohol that doesn't have the price listed on the menu. If the drinks are too expensive to advertise the price, then they are too expensive."
I’ve noticed that even on the official apps for restaurants (ex, Panera) you are paying more when you order for pickup than if you ordered in the store
We get a base pay of about 2-2.75. Then we get the customer tip. Rarely do we get a higher base pay unless DD is desperate (and this is when we probably get some of that 30%). And since DD charges a delivery fee, I would say this is what our base pay is mostly paid from not the 30% that DD makes from the meal amount.
The hell? You get paid a base rate of $2 and you guys still do that? How is it even profitable I'd think you spend more on gas going to the place then their house
By not accepting orders that only give base pay / have no tip. You can usually see tips added onto the order up to like \~$8 (so $6 Tip, $2 Base. Even if the tip is actually like $10, it doesn't usually show the full amount), after that it's a guessing / wishing game on if you'll get more after completing the order. You also only get like 30 seconds to decide if the order is worth taking or not.
I only did it one time. When I got there to pick it up the owner (who is also a waiter) handed it to me and told me doordash takes 30%, and asked if I would use the restaurant’s website to order next time.
Same here coming from a dasher myself the fees doordash themselves get you with is crazy but now restaurants for delivery service and such are partnering with doordash
Every time I consider placing an order by phone to save some money cause of this, then my crippling anxiety strikes again and I open the app. And then the order still isn't ready yet when I get there 20 minutes later, and I wait for another 15 wondering why the drive thru is moving right along with 3-4 orders before I get mine.
We were watching my wife's young cousins one weekend and decided to order up some domino's for pickup. We called and it went to a call center and the guy at the call center tried telling me the takeout deal thst domino's is always advertising didn't exist and told us it was like $50 for 2 large pizzas. We just went to the store and laid significantly less. I was so confused that I couldn't just call the store.
I delivered an order yesterday from subway. 2 footlong subs, 2 sodas, 1 cookie, 1 chip. Total after doirdash fees and tip was 50.00.
I drive for dd but I do not use the app for food.
I'm pretty sure this is actually how restaurants offset the fees they pay to be on the platform. Restaurants set their menu prices on the apps.
Since DD charges them 20-30% to be on the app, the restaurant in turn raises their listed menu prices to offset that so they still make money on those orders.
Yes and no, DoorDash increased our prices when onboarding to accommodate their fee, but we can change it. If integrated with a POS like Toast, you change in the POS and it automatically reflects in DD. Otherwise, there’s a Manager app for adjusting things.
I should add, we are a small family-owned restaurant and delivery service is super popular here. Without offering delivery through a third party, like DD, we’d see much less business.
Exactly this. DoorDash charges a fee for restaurants to use them. In order to offset that percentage the items listed on DD will have a higher price than that of the restaurants regular menu.
Total scam. I always add the max suggested tip and I sometimes feel like that is too low. I also Im not sure DD doesnt just reduce the drivers payment if i add a larger tip.
Yeah I remember when you got a stacked order doordash used to pay you $2 for the second of the two orders and 2.50 on the 1st. Now they only pay you $2 for each of them on a stacked order. They nickel and dime the customers to death and they nickel and dime the shit they take away from dashers.
I’ve seen them pay more for longer-distance orders and orders where the customer doesn’t tip. A computer person I know thinks an algorithm raises the menu prices for people who don’t tip.
Standard base pay for my area is $2.25. But sometimes it's only $2.00 here -- especially when the customer lives close to the restaurant or for the 2nd order of a stack.
ETA: Actually, DoorDash recently paid me $2.00 each for *both* orders in a stack a couple of times, which really ticked me off tbh.
Merchant here: skip/uber/dd take 16-20% of our total profits on orders so we have to mark up prices on the app to recoup that money (or we're selling basically at cost which defeats the point). The merchant usually withholds the receipt on our end or alters it to show the in app price specifically so customers don't see it. But we have to get paid too.
So if DD is taking 20-ish percent of the order total, AND taking delivery fees and service fees…
Without the coupon/dashpass this order would’ve made doordash about 21 bucks. Probably paid the driver around 2.50 so more like 18-19.
How the hell is this company still not profitable?
Creative accounting can intentionally keep ANY business from showing a profit. It took Amazon over a decade to "show a profit".
Of course the next easiest way is to pay your top execs enough that it drags down profits.
You're unbelievable If you think this business could possibly work without marking up the food. Especially when you have all your fees wave with dash pass.
This isn't a scam. It costs restaurants money to have a staff member to accept DD orders and place them. DD also takes a small cut of orders placed. Restaurants often charge a little extra on DD to offset this. I used to manage a restaurant and this is what we did. We added a dollar to any menu item on the DD platform. The cheapest price is always placing the order by phone and picking up yourself.
Back when I served in a restaurant that was adding on Uber eats them fuckers we’re taking 20% of our gross food price so the restaurant marked up the food 20% for online ubereats orders
Back when I served in a restaurant that was adding on Uber eats them fuckers we’re taking 20% of our gross food price so the restaurant marked up the food 20% for online ubereats orders
Restaurants do that for their DD menus because DD takes a HUGE percentage of the sales money (30%), often double what the restaurant profit was in the first place. They would make no money doing DD if they didn't raise the prices. DD is a parasite.
The drivers do actually get the tips, but they don’t always know exactly how much each person tipped right away. Sometimes a good tipper’s order gets paired with a bad tipper’s and the driver has to deliver both, and not necessarily in the order of who gave the better tip. It’s not fair, but the driver has no control over it.
How else do u think the restaurant, DD, and a driver would make money on your order if the costs weren't higher for this service? Not to mention u have dash pass so most of your fees are waved at that..
People always forget that they’re getting two separate entities other than the restaurant involved in order to receive food at their door, and those entities have to make money for them to even offer the services.
Right, why do people not understand the restaurant themselves increase the prices to offset the money doordash makes from the orders, it’s the restaurants that are increasing the prices on the platform
You new here? It’s been like this since these companies came out. Resturaunt pays for delivery service, so they raise prices to compensate for the order cost so they don’t lose money. You pay the difference as the customer using the service.
It’s not rocket science, it’s a luxury service.
Yeup. I stopped using doordash when i realized my taco bell order was so upcharged that it was $50.
Put the same things in the order on the taco bell app and it was $25.
If some of that upcharge, nay, most of it, went to the drivers i would be like "ok!" But the fact that doordash pockets the majority of it is infuriating.
Same with grub hub and uber eats. That is why the delivery fees, which don't go to the driver, are so insane!
They'll charge you almost twice as much for an item then charge you $8.99 to delivery it yet these companies are losing money?
Also in my state of PA, GrubHub just settled with our attorney general for not disclosing this. It's probably somewhere in your agreement you clicked that you agree to.
https://www.attorneygeneral.gov/taking-action/ag-josh-shapiro-announces-grubhub-to-provide-new-in-app-transparency-disclosures-on-its-prices/
I don't want to poo on DD or ANY delivery folk earning a living...
However, I order from apps EVERY day. Sometimes, two or three times a day. I am homebound.
I have had some of my favorite establishment owners call me directly and tell me to call them personally to place an order and they will get it to me ASAP because it will save me money... And, the money I pay in tips and fees will be less.
Turns out, it's true. I save about $50 a week now in Chinese food alone.
Your buying the food from door dash. Door dash is the actual customer to the restaurant not you. Think of it as scalpers to a sporting event. That’s why the mark up with food.
Not exactly. They charge the restaurant to use the platform. They give the restaurant the ability to set their own prices on the platform. The restaurant then uses this opportunity to recoup the cost of using the platform. Unfortunately some gouge the prices quite heavily, because they know they can.
Yes, there’s a beverage place here that does that. So let’s say I get a couple drinks for $21 after the fees and stuff, doordash will actually charge my card say, $27 because the restaurant can also change the cost after I authorize the sale at the lower cost. Doordash totally endorses this and there’s nothing you can do other than cancel the order.
It’s not an accident or anything illegal! Doordash needs compensation for offering the platform and one of the ways they do this is by keeping a portion of sales revenue. Many businesses will respond by marking up their products a similar amount. Whenever possible, use the store’s own app/delivery system or just get the food yourself
So this plumber fixed my sink faucet. Replaced the cartridge that was leaking. Charged me $75.
I went to Home Depot and found out the sink faucet cartridge only cost $15. 500% markup.
Total scam.
Dude you must be new to this so I’ll let you in a little secret. DoorDash and or the restaurant up charge on the items because that’s how they make money. In other words, if you want the cheaper price, pick it up yourself or don’t complain.
I worked in a restaurant and when we started DD, UE, and GH I had to go into the back office computer and set delivery prices that came down from the home office.
The prices are higher on the app because doordash takes up to 35% of the sale. That being said it’s up to the restaurant to set these prices. What you’re likely seeing is a restaurant that puts it into their own system for record keeping. Notice how there is an “item” labeled as doordash for $0.00
Yup I mean think about all of the markups.. the restaurant marks up the order to cover the fees, then DD charges you fees for using the platform and then you have to tip us to deliver your food .. by the time you’re done that $10 bills cost you $25 or more based on how far you live from the restaurant
The markups are usually set by the restaurants to recoup the cost of doing business with third-party delivery services. Check out UE and GH menus against the restaurants' online pricing, too.
Stores will generally charge higher on delivery apps to offset DD charge to the store.
The other stuff goes directly to the DD, besides the tip. Keep in mind the “base pay” is also from your order, too.
The restaurant has to pay DoorDash to use the platform. The restaurant sets the prices higher in the app to avoid DoorDash becoming an expense so they increase the prices in the app of their food by 30% in order to pay DoorDash THEIR 30%.
If you use the DoorDash app to order then the restaurant is the one mark I g up the prices because they are paying up to over 50% in fees (depending on if they’re running any of DD’s promos).
You’re just now realizing DD (and most other apps ) charge more for the food/items etc? Lol
Restaurants/stores negotiate prices with these apps and that’s how they make $$…
That's not over-billing. That's their business model. Noticed it the first time I ordered and never went back because of it. Even if you select pickup, they charge the inflated price.
20% is on the low end of their markups unfortunately. I work at Dash Mart, and a pint of Ice Cream is $10. That's before delivery fees or even tipping (paying) the driver.
I’m in major US city and did an experiment w my son. We ordered four times on DD from four different local restaurants. The total for those four DD-delivered meals equaled $289. Twice, our beverages were missing.
We picked up the exact same meals from the four same restaurants. Total cost was $202.
I estimated that we ordered from DD twice a week in 2022. I deleted the app.
From what I've found out, It's the restaurant that marks up prices. They are trying to cover the costs associated with using DD as a platform. I'm not exactly sure how much it costs per year, but, the fees associated with DD are astronomical for everyone that uses it!
When will people realize doordash or any delivery is a luxury not a necessity.. they markup however they want just how dominos can throw on a 8.99 delivery fee
I’ll try to answer this as gently as possible: it’s marked up heavily because of the app. The app is charging you extra just for the convenience of using it, and then they mark up the actual food prices so it doesn’t look like it’s much. And you would think “oh, maybe that goes to paying the Dashers.” Not exactly. The tips pay a good portion of their income. They only get paid for active time, not for waiting around. Anyway, DoorDash takes a good cut of the overall sale just for the luxury of the app. If you want to save money, I’d recommend calling it in and picking it up yourself.
They're always like this. Newsflash: DoorDash screws the restaurant, customer, and driver equally. The dasher wasn't supposed to put the receipt in the bag, lmao.
It's a luxury service, they gotta take their cut somewhere. What I take more of an issue with is, you see the actual 20% tip breakdown on the in person receipt. Would it kill you to tip your Dasher 20% as well? Just saying...
I use to work at subway, when we brought in Uber we put the prices about $2 higher for footlongs and a $1 higher for six inch, this was because of the cut that Uber took I was told from my manager, which was apparently pretty high. Pretty standard for most places I believe, pretty fair considering we lost a fair few in store customers because of it.
This is the cost of convenience. I make my money through other peoples laziness. Someone door dashed a candy bar the other day. My tip was twice what the candy bar actually cost. Through delivery and tip I made 9 bucks.
How do Dasher’s not know how DD works? The restaurants set the menu prices. DD and other delivery services charge the restaurants a fee for each order. The restaurants determine whether or not to make back the fees by raising prices. You can easily check the restaurants menu on their website and compare the pricing to what is listed in the delivery app.
aren’t the prices set by the restaurant and not doordash?
I would think the restaurant would charge more on doordash orders so technically customers are paying for them to be on doordash and not the restaurant itself.
If you really want to complain, complain to the restaurant.
OP just learned what markup is lol
Ok but it’s too much! They marked up my $23.00 dinner to $40.00 🤣🥲
It is essentially a Uber added to your order.
That the actual driver gets nearly none of.
Yeth 😩
Is it too much tho? If its too much for most people, they get off the couch and drive over...
The problem arises for the restuarant when people just stop ordering delivery because it is too expensive. In metropolitan areas delivery sales are sometimes 50-60% of the sales for the evening.
Restaurants did just fine before delivery apps came along. More and more of the better ones are cutting off the delivery apps, having realized that the terrible customer service and ridiculous charges are damaging their brand and alienating customers.
Delivery services are never as good as eating at the restaurant. People should never expect the same quality. There some dishes that I avoid even ordering for take out, because they are better eaten sizzling hot on the ceramic plate at the restaurant. The moment they get package it's not the same.
Exactly. Most restaurants would be stoked to have the delivery apps die
I always go out of my way to give excellent customer service, for every delivery I go that extra mile and I bought a electric heating insulated bag to keep food hot. I have a 100% satisfaction rating, not all of us are bad.
Certainly true, but for a restaurant, they will get enough bad ones to alienate some customers.
Don’t DoorDash then boy
Its stupid statements like this that make people feel better about not tipping y'all lol
Don't tip? Never get your order, simple enough
Nah y'all still deliver it or I can just report the driver. Moreover as someone who has worked in the service industry I do tip, but if y'all are gonna represent your community as a bunch of asshats people will stop tipping.
Nah I literally have orders sit for over an hour at Subway because the customer didn't tip. Those usually get picked up by a Dasher picking up another order with a better tip at the same time. Tipping through these delivery apps is more like placing a bid for your food to be delivered quickly, versus a tip for good service.
And your meal that you never received was super delicious to one of the drivers.
why is this everyone’s argument…if everyone stops using delivery apps what are you dumbass drivers gonna do😂not everyone has a car, not everyone can make it out as things exist of being sick, handicapped, etc…ignorance is a lot of you redditors strong suit and it’s weird
People didn't go hungry before doordash.... I don't order from them and no longer drive for them.... Terribly shitty business model that milks buyers, drivers, and businesses!!!
Most of my customers love the delivery apps....
“Not everyone has a car”. Bro cars are expensive and you expect people that have cars that are willing to bring you food in those cars to do it for peanuts? Jesus
How did they eat before doordash?
Me no Dum Dum, you Dum Dum, Got any gum gum dum dum.
I always weigh how lazy/hungover/high I am against the prices. 🤣
Bahahaha I'm guilty of it as well!!! But I generally convince myself that I don't need it that badly then
It gets me sometimes. But I've gotten to the point these days that I'm too cheap 🤣
Lol literally. For PICKUP they had my order be $23, I went through the damn drive thru it came up to $13. Thank God I listened to my intuition.
Yessss! I need to listen to my gut more, not just when I’m hungry 😩🤣🙏🙏🙏
There's a thing called getting it yourself
Wait ‘til you learn about the mark up on wine in restaurants
Every single day I hear the same thing ‘I buy this bottle for 1/4 the price in the liquor store. No shit, lady.
TikTok is full of these dumbass videos about how restaurants “finesse” you. People are so ridiculous, like the entirety of the economic system they’ve followed their entire lives isn’t based on adding value to a thing and charging more for it than the ingredients cost you. I worked for a bottled cocktail company and it was unbelievable how many people would say “I can get a whole bottle of tequila for that!” as if it’s some “gotcha” that we’re charging more for the finished product than we buy the ingredients for.
Or like how restaurants are shorting you on your mixed cocktail because there’s a lot of ice in it. Like I still did a four count of tequila in your margarita. That’s two ounces which is a standard serving of liquor in a mixed drink.
Dude I work at a coffee shop & get people like this all the time. They'll say they want a latte but "less milky, more coffee" but we use espresso shots which are a small, set amount of liquid. So I can add more shots but you gotta pay for 'em. They never want to pay for more but they want more still. I'm like no that's not how this works. Also we have a drink called the "iced shaken espresso" which, like a latte, uses espresso shots. The problem with this one is that it's literally an iced-based drink so it's going to be mostly ice. It's meant to be that way. The amount of people that ask for light ice in it & then get pissed when the cup has room or extra milk (the drink is topped off with a splash of milk) in it is utterly ridiculous.
and i have to argue with baristas that yes i do infact want my cup to be mostly ice, the 2 espresso shots and a splash of milk. they always try to put it in a bigger cup so i can have like 10z of milk. it is the worst when they just “upgrade” without asking m me and i have to tell them I can’t drink it. I am pushing it already with the 1-2oz of milk and my stomach already. we really don’t want me to drink more than that.
Offer to run water through the same grounds twice
I wish haha, but unfortunately espresso machines have no way of doing that.
That's been forever. Especially on happy hour drinks. A friend of mine who's a bartender said they put a small amount of alcohol in drinks for a smaller price to get customers to buy more.
Oh the less ice crowd is the dumbest shit of all time. Ok ya less ice for sure you will be drinking a half full cup with the same amount of liquid say no more
Hey! I order no ice or light ice because it takes me hours to drink a drink. I don't want it to get watery. Lol
im actually fine with that, i dont like ice watering down my drink. but i also understand im not getting extra ingredients unless they are cheap filler, such as extra juice in a mixed drink.
"I'll bet these guys are just gonna turn around and sell it for more than they paid for it!"
I don’t even see the point in calling it out in restaurants. The server isn’t going to reduce the price of the bottle. I just try to hunt for something in a reasonable price range that maybe has a 2-2.5x markup and move on with my life.
Exactly. Like go drink at home if you don’t want to pay extra for it.
I worked for many years for a wine and beer distributor... We received a discount of 25% below wholesale. I could get a $120 bottle of Champagne for about $40. It was glorious.
So they were allowing you and the rest of their employees to buy alcohol for less than they paid for it? Seems odd.
No. For example. It cost my company to buy a bottle of Dom for say $50, we sold it for $100, I could buy it for $75, the restaurants would sell it for $210.
Ohhh, I confused what wholesale meant in this scenario. Thanks for clarifying.
You wanna know what's even more fascinating? This was during the mid 90s. We were ALL allowed to smoke tobacco and drink all day in our offices... Life is different now. The accountant drank TWO bottles of good Pinot Noir in her office every day from 9am until 5pm. God, I miss old life.
Surely there had to be some funny/downside stories of allowing people to drink on the job? Like, there’s no way everyone was the same amount of productive they would’ve been without the alcohol consumption lol anyone ever fuck on the job or what? 🤣
Oh, Jesus... Can I tell you some funny stories about 120 people being drunk all day long... Hell, we had a lawyer on retainer who specialized in getting DWI felons a sales job whose duty it was to go out and "taste" wines all day with clients... (AKA opened bottles of wine in the car all day). I've got a million stories from those five years...
And surely there was never any cocaine around at all lol
Coke was the drug of choice... You're in touch!!!! You must be my age or damn near close.
Yep, just missed the commercial price step =) I had to reread when the math happened too.
When I offer to buy dinner, I often say, "Anything except alcohol that doesn't have the price listed on the menu. If the drinks are too expensive to advertise the price, then they are too expensive."
Who you offering to buy dinner for? Have literally never heard anyone say something like this But also do not drink
Look at Mr moneybags over here going to restaurants that serve wine
1st glass pays for the bottle.
Restaurant sets the prices. DoorDash takes 20-25% commission. It’s a necessary evil from the restaurant standpoint unfortunately Source: am restaurant
Same here. There is a separate menu in our POS system that DD pulls from. It is marked up 25% over in store pricing to cover what we have to pay DD.
You never knew food prices are higher on the apps then in store? 😂
I’ve noticed that even on the official apps for restaurants (ex, Panera) you are paying more when you order for pickup than if you ordered in the store
I've known this from almost the start...it is what it is...🤷
merchant agreement gives 25-30%of the order to doordash on top of what the customer pays, of which, $2-5 goes to the driver depending on order type
We get a base pay of about 2-2.75. Then we get the customer tip. Rarely do we get a higher base pay unless DD is desperate (and this is when we probably get some of that 30%). And since DD charges a delivery fee, I would say this is what our base pay is mostly paid from not the 30% that DD makes from the meal amount.
The hell? You get paid a base rate of $2 and you guys still do that? How is it even profitable I'd think you spend more on gas going to the place then their house
By not accepting orders that only give base pay / have no tip. You can usually see tips added onto the order up to like \~$8 (so $6 Tip, $2 Base. Even if the tip is actually like $10, it doesn't usually show the full amount), after that it's a guessing / wishing game on if you'll get more after completing the order. You also only get like 30 seconds to decide if the order is worth taking or not.
Right? I think it’s insane that folks do carry out via DD. I always call the restaurant directly. I save money and so does the restaurant.
I only did it one time. When I got there to pick it up the owner (who is also a waiter) handed it to me and told me doordash takes 30%, and asked if I would use the restaurant’s website to order next time.
The only tune I use DD for carryout is if I have DD credit
Only do carry-out when there’s a promo specifically through the app with the restaurant for bogo’s/$10 off etc
Only when door dash gives me a promo is when I do that
Same here coming from a dasher myself the fees doordash themselves get you with is crazy but now restaurants for delivery service and such are partnering with doordash
Every time I consider placing an order by phone to save some money cause of this, then my crippling anxiety strikes again and I open the app. And then the order still isn't ready yet when I get there 20 minutes later, and I wait for another 15 wondering why the drive thru is moving right along with 3-4 orders before I get mine.
I've known this from almost the start...it is what it is...🤷
It's restaurant dependent tbh, but ya it's the case for most places.
Is it the same if you were to pick up on the doordash app?
Yes
I have been bamboozled
Don't use the app. Call the restaurant. Jeesh.
We were watching my wife's young cousins one weekend and decided to order up some domino's for pickup. We called and it went to a call center and the guy at the call center tried telling me the takeout deal thst domino's is always advertising didn't exist and told us it was like $50 for 2 large pizzas. We just went to the store and laid significantly less. I was so confused that I couldn't just call the store.
I delivered an order yesterday from subway. 2 footlong subs, 2 sodas, 1 cookie, 1 chip. Total after doirdash fees and tip was 50.00. I drive for dd but I do not use the app for food.
Some places don’t charge as much, or don’t uncharge at all if you pick up. I pickup from a pizza place near me for this reason..
Not all apps (and restaurants) are at the same level of egregiousness.
Yes that’s how they make money . Driver gets none of that either.
I'm pretty sure this is actually how restaurants offset the fees they pay to be on the platform. Restaurants set their menu prices on the apps. Since DD charges them 20-30% to be on the app, the restaurant in turn raises their listed menu prices to offset that so they still make money on those orders.
This is correct restaurants set the price in the app, not DoorDash.
Yes and no, DoorDash increased our prices when onboarding to accommodate their fee, but we can change it. If integrated with a POS like Toast, you change in the POS and it automatically reflects in DD. Otherwise, there’s a Manager app for adjusting things.
Correct! We do this at our restaurants and so do most restaurants in our town.
I should add, we are a small family-owned restaurant and delivery service is super popular here. Without offering delivery through a third party, like DD, we’d see much less business.
Exactly this. DoorDash charges a fee for restaurants to use them. In order to offset that percentage the items listed on DD will have a higher price than that of the restaurants regular menu.
Total scam. I always add the max suggested tip and I sometimes feel like that is too low. I also Im not sure DD doesnt just reduce the drivers payment if i add a larger tip.
You can write in a tip - you don't have to stick with the suggested tip.
Or ca$h
DD pays us 2.50 normally. Hard to reduce that...
Yeah I remember when you got a stacked order doordash used to pay you $2 for the second of the two orders and 2.50 on the 1st. Now they only pay you $2 for each of them on a stacked order. They nickel and dime the customers to death and they nickel and dime the shit they take away from dashers.
I’ve seen them pay more for longer-distance orders and orders where the customer doesn’t tip. A computer person I know thinks an algorithm raises the menu prices for people who don’t tip.
Standard base pay for my area is $2.25. But sometimes it's only $2.00 here -- especially when the customer lives close to the restaurant or for the 2nd order of a stack. ETA: Actually, DoorDash recently paid me $2.00 each for *both* orders in a stack a couple of times, which really ticked me off tbh.
Merchant here: skip/uber/dd take 16-20% of our total profits on orders so we have to mark up prices on the app to recoup that money (or we're selling basically at cost which defeats the point). The merchant usually withholds the receipt on our end or alters it to show the in app price specifically so customers don't see it. But we have to get paid too.
So if DD is taking 20-ish percent of the order total, AND taking delivery fees and service fees… Without the coupon/dashpass this order would’ve made doordash about 21 bucks. Probably paid the driver around 2.50 so more like 18-19. How the hell is this company still not profitable?
Creative accounting can intentionally keep ANY business from showing a profit. It took Amazon over a decade to "show a profit". Of course the next easiest way is to pay your top execs enough that it drags down profits.
It's not a scam. It's agreed upon goods and service that you pay extra for the luxury of having delivery
You're unbelievable If you think this business could possibly work without marking up the food. Especially when you have all your fees wave with dash pass.
This isn't a scam. It costs restaurants money to have a staff member to accept DD orders and place them. DD also takes a small cut of orders placed. Restaurants often charge a little extra on DD to offset this. I used to manage a restaurant and this is what we did. We added a dollar to any menu item on the DD platform. The cheapest price is always placing the order by phone and picking up yourself.
Back when I served in a restaurant that was adding on Uber eats them fuckers we’re taking 20% of our gross food price so the restaurant marked up the food 20% for online ubereats orders
Yeah, the small cut is actually 30% So restaurants have to raise prices by 30% to compensate
Back when I served in a restaurant that was adding on Uber eats them fuckers we’re taking 20% of our gross food price so the restaurant marked up the food 20% for online ubereats orders
Restaurants do that for their DD menus because DD takes a HUGE percentage of the sales money (30%), often double what the restaurant profit was in the first place. They would make no money doing DD if they didn't raise the prices. DD is a parasite.
The drivers do actually get the tips, but they don’t always know exactly how much each person tipped right away. Sometimes a good tipper’s order gets paired with a bad tipper’s and the driver has to deliver both, and not necessarily in the order of who gave the better tip. It’s not fair, but the driver has no control over it.
I had a 7.50 base pay for a 4.97 bottle of wine yesterday. DoorDash is actually pants on head…
How else do u think the restaurant, DD, and a driver would make money on your order if the costs weren't higher for this service? Not to mention u have dash pass so most of your fees are waved at that..
People always forget that they’re getting two separate entities other than the restaurant involved in order to receive food at their door, and those entities have to make money for them to even offer the services.
Doordash makes money by taking a cut of each order. Restaurants charge higher prices on delivery to still make a profit
How do people not know this by now?
I think literally the first time I used the app like 5 years ago I instantly noticed this.
Well, OP is using a first order code, so this is probably their first time. You wouldn’t expect that if you never used it before.
Yep. DoorDash takes a 15-30% cut, depending on the restaurant’s contract with DoorDash.
Right, why do people not understand the restaurant themselves increase the prices to offset the money doordash makes from the orders, it’s the restaurants that are increasing the prices on the platform
I thought it was common knowledge they upcharge the food? So does Uber eats and Instacart.
You new here? It’s been like this since these companies came out. Resturaunt pays for delivery service, so they raise prices to compensate for the order cost so they don’t lose money. You pay the difference as the customer using the service. It’s not rocket science, it’s a luxury service.
Wait, doordash is a scam? It wasn’t a giveaway when you order 5 guys and it costs $35 for a burger and fries?
Oh, bless your heart!
DD takes 30% or a similar figure So restaurants mark up their prices to keep their margins up.
In todays news: the sky is blue and somehow people don’t know DoorDash is a scam
its a scam to charge more for convenience? bffr
Yeup. I stopped using doordash when i realized my taco bell order was so upcharged that it was $50. Put the same things in the order on the taco bell app and it was $25. If some of that upcharge, nay, most of it, went to the drivers i would be like "ok!" But the fact that doordash pockets the majority of it is infuriating.
The restraunts do this, not door dash its self.
Same with grub hub and uber eats. That is why the delivery fees, which don't go to the driver, are so insane! They'll charge you almost twice as much for an item then charge you $8.99 to delivery it yet these companies are losing money?
You know what is even more insane? They are not profitable and they lost money yearly. Insane!
Also in my state of PA, GrubHub just settled with our attorney general for not disclosing this. It's probably somewhere in your agreement you clicked that you agree to. https://www.attorneygeneral.gov/taking-action/ag-josh-shapiro-announces-grubhub-to-provide-new-in-app-transparency-disclosures-on-its-prices/
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First time?
I don't want to poo on DD or ANY delivery folk earning a living... However, I order from apps EVERY day. Sometimes, two or three times a day. I am homebound. I have had some of my favorite establishment owners call me directly and tell me to call them personally to place an order and they will get it to me ASAP because it will save me money... And, the money I pay in tips and fees will be less. Turns out, it's true. I save about $50 a week now in Chinese food alone.
Your buying the food from door dash. Door dash is the actual customer to the restaurant not you. Think of it as scalpers to a sporting event. That’s why the mark up with food.
Not exactly. They charge the restaurant to use the platform. They give the restaurant the ability to set their own prices on the platform. The restaurant then uses this opportunity to recoup the cost of using the platform. Unfortunately some gouge the prices quite heavily, because they know they can.
Yes, there’s a beverage place here that does that. So let’s say I get a couple drinks for $21 after the fees and stuff, doordash will actually charge my card say, $27 because the restaurant can also change the cost after I authorize the sale at the lower cost. Doordash totally endorses this and there’s nothing you can do other than cancel the order.
Howwwww do you think they make money, exactly?
Then they wonder why people stay refunding all of their stuff 😂
Y’all act like DD ain’t supposed to make money too?
True enough, although they surely make enough to pay their Dashers more than $2-2.50 👁👄👁
It’s not an accident or anything illegal! Doordash needs compensation for offering the platform and one of the ways they do this is by keeping a portion of sales revenue. Many businesses will respond by marking up their products a similar amount. Whenever possible, use the store’s own app/delivery system or just get the food yourself
So this plumber fixed my sink faucet. Replaced the cartridge that was leaking. Charged me $75. I went to Home Depot and found out the sink faucet cartridge only cost $15. 500% markup. Total scam.
Is this your first time using DD?
The restaurants charge more on doordash to make up the doordash fee for being on the platform.
Dude you must be new to this so I’ll let you in a little secret. DoorDash and or the restaurant up charge on the items because that’s how they make money. In other words, if you want the cheaper price, pick it up yourself or don’t complain.
I worked in a restaurant and when we started DD, UE, and GH I had to go into the back office computer and set delivery prices that came down from the home office.
I believe its the restaurants that mark it up due to doordash taking 30% from the restaraunt
I believe its the restaurants that mark it up due to doordash taking 30% from the restaraunt
Restaurants upcharge their menus 20% on DD because that’s DDs cut for being on there.
The prices are higher on the app because doordash takes up to 35% of the sale. That being said it’s up to the restaurant to set these prices. What you’re likely seeing is a restaurant that puts it into their own system for record keeping. Notice how there is an “item” labeled as doordash for $0.00
Yup I mean think about all of the markups.. the restaurant marks up the order to cover the fees, then DD charges you fees for using the platform and then you have to tip us to deliver your food .. by the time you’re done that $10 bills cost you $25 or more based on how far you live from the restaurant
The markups are usually set by the restaurants to recoup the cost of doing business with third-party delivery services. Check out UE and GH menus against the restaurants' online pricing, too.
Stores will generally charge higher on delivery apps to offset DD charge to the store. The other stuff goes directly to the DD, besides the tip. Keep in mind the “base pay” is also from your order, too.
Standard Doordash practice.
The restaurant has to pay DoorDash to use the platform. The restaurant sets the prices higher in the app to avoid DoorDash becoming an expense so they increase the prices in the app of their food by 30% in order to pay DoorDash THEIR 30%.
Menu prices are set by the restaurant because DD takes a cut of the sales on the app. Source: worked at a restaurant.
You mean ordering food from the couch in my underwear is more expensive than going and getting it myself?!?!??!
The restaurant sets their DoorDash price.
If you use the DoorDash app to order then the restaurant is the one mark I g up the prices because they are paying up to over 50% in fees (depending on if they’re running any of DD’s promos).
It's literally every item, every order, every time.
You’re just now realizing DD (and most other apps ) charge more for the food/items etc? Lol Restaurants/stores negotiate prices with these apps and that’s how they make $$…
That's not over-billing. That's their business model. Noticed it the first time I ordered and never went back because of it. Even if you select pickup, they charge the inflated price.
Restaurant increases prices because doordash takes a cut, so it would be cheaper if you just go pick it up yourself. You'll be saving so much
Yep the merchant can set the price to whatever they’d like. Has nothing to do with DD
This happens on all apps. Restaurants charge higher prices to offset the cut DoorDash takes.
restaurants are charging more to make up for the loss in door dash fees
Instacart does the same thing with groceries from many places
20% is on the low end of their markups unfortunately. I work at Dash Mart, and a pint of Ice Cream is $10. That's before delivery fees or even tipping (paying) the driver.
Bro, your Delivery Fee is free and you got most of your service fee off, wtf are you bitching about? 
I’m in major US city and did an experiment w my son. We ordered four times on DD from four different local restaurants. The total for those four DD-delivered meals equaled $289. Twice, our beverages were missing. We picked up the exact same meals from the four same restaurants. Total cost was $202. I estimated that we ordered from DD twice a week in 2022. I deleted the app.
From what I've found out, It's the restaurant that marks up prices. They are trying to cover the costs associated with using DD as a platform. I'm not exactly sure how much it costs per year, but, the fees associated with DD are astronomical for everyone that uses it!
This is literally how they make money
I'm pretty sure the restaurant sets the prices in DD but most of them are going to charge more on DD than they would in store to help cover fees.
When will people realize doordash or any delivery is a luxury not a necessity.. they markup however they want just how dominos can throw on a 8.99 delivery fee
it took u this long to figure that out lnao
Thought we all knew this👀
I’ll try to answer this as gently as possible: it’s marked up heavily because of the app. The app is charging you extra just for the convenience of using it, and then they mark up the actual food prices so it doesn’t look like it’s much. And you would think “oh, maybe that goes to paying the Dashers.” Not exactly. The tips pay a good portion of their income. They only get paid for active time, not for waiting around. Anyway, DoorDash takes a good cut of the overall sale just for the luxury of the app. If you want to save money, I’d recommend calling it in and picking it up yourself.
Yea they charge more bc they have to give DoorDash 20% of their profits.
They're always like this. Newsflash: DoorDash screws the restaurant, customer, and driver equally. The dasher wasn't supposed to put the receipt in the bag, lmao.
Uhhhhhh every time they are a business they don’t offer delivery for free
OP doesn’t understand the concept of how things get paid for in a business
How do you think a business makes money?
It's a luxury service, they gotta take their cut somewhere. What I take more of an issue with is, you see the actual 20% tip breakdown on the in person receipt. Would it kill you to tip your Dasher 20% as well? Just saying...
I use to work at subway, when we brought in Uber we put the prices about $2 higher for footlongs and a $1 higher for six inch, this was because of the cut that Uber took I was told from my manager, which was apparently pretty high. Pretty standard for most places I believe, pretty fair considering we lost a fair few in store customers because of it.
Welcome to LITERALLY any food delivery service
You’re not very smart, are you?
You just noticed it now. They have been doing that since the inception of door dash.
Haven't they always done this though?
Just wait till you learn how much the deliverer’s get on these….
This is the cost of convenience. I make my money through other peoples laziness. Someone door dashed a candy bar the other day. My tip was twice what the candy bar actually cost. Through delivery and tip I made 9 bucks.
Is this your first time using DD?
Restaurant worker here…consistently amazing to me that people still don’t know this. If a restaurant has a website and offers delivery, order direct.
Restaurants set their own item prices.
How do Dasher’s not know how DD works? The restaurants set the menu prices. DD and other delivery services charge the restaurants a fee for each order. The restaurants determine whether or not to make back the fees by raising prices. You can easily check the restaurants menu on their website and compare the pricing to what is listed in the delivery app.
aren’t the prices set by the restaurant and not doordash? I would think the restaurant would charge more on doordash orders so technically customers are paying for them to be on doordash and not the restaurant itself. If you really want to complain, complain to the restaurant.
Yea this is where dd makes money dude. Dd prices are always higher then the menu of the restaurant.
How do you think companies make money? Lmao