How to Stop Losing Money on Delivery Apps (Without Leaving Them)

Delivery apps are a double-edged sword. They bring in orders, expand your reach, and keep your kitchen busy—but they also eat into your margins with high commission fees, force you to compete in a sea of discounts, and make it easy for customers to be loyal to the app instead of your brand.

So, how do you make these platforms work for you instead of against you? Here’s how to keep more of your profits without pulling the plug on third-party apps.

1. Optimize Your Menu for Maximum Profitability

Not all menu items are built for delivery, and not all of them are making you money. Some travel terribly, and others have razor-thin margins.

Fix It:

• Feature high-margin items. Your menu should highlight dishes that give you the best profit, not just your best sellers.

• Create delivery-exclusive items. Bundle meals, offer combo deals, or introduce an online-only dish that customers can’t get in-store.

• Increase perceived value. Instead of slashing prices, add value—offer a free side, better packaging, or an exclusive bonus for repeat customers.

2. Take Control of Your Pricing Strategy

Apps charge 25-35% commission per order, which means every dish sold through them is automatically less profitable. If you don’t adjust for this, you’re losing money with every click.

Fix It:

• Increase prices on delivery apps. Offset commission fees by slightly raising prices without making it too noticeable for customers.

• Differentiate in-store vs. delivery pricing. Many brands offer exclusive in-store-only deals that make visiting the restaurant more attractive.

• Leverage promotions strategically. Don’t rely on discounts alone—use them to upsell or create loyalty, rather than just cutting into margins.

3. Own Your Customers (So Apps Don’t Own Them)

Delivery apps want customers to be loyal to them, not to your restaurant. That means they control your customer data, prevent you from marketing directly, and make it harder for you to build real relationships with your diners.

Fix It:

• Use packaging as a marketing tool. Include QR codes linking to your website, loyalty program, or special offers to drive direct orders.

• Encourage first-party ordering. Incentivize customers to order directly from your website by offering a discount or loyalty points.

• Build a strong brand presence. When people recognize and love your brand, they’ll seek you out instead of relying on the app to show them what’s available.

4. Negotiate Like a Pro

Most restaurants don’t realize that delivery apps’ commission rates aren’t always set in stone. If you’re bringing in a significant number of orders, you have leverage.

Fix It:

• Talk to your account manager. Many apps offer tiered pricing, reduced rates for exclusivity, or better deals if you meet volume thresholds.

• Push for better visibility. If you’re driving traffic and boosting orders, ask for increased exposure in return.

• Partner on promotions. Some platforms will co-fund discounts or marketing initiatives—don’t foot the whole bill yourself.

5. Invest in Your Own Delivery System

While delivery apps dominate the market, that doesn’t mean you should rely on them entirely. Building an alternative direct ordering system can help you reduce dependency and take back control of your margins.

Fix It:

• Set up online ordering. Use tools like Square, Toast, or your own website to take direct orders.

• Offer better incentives for direct customers. Free delivery, faster service, or loyalty perks can convince customers to order straight from you.

• Market it hard. Let your customers know that ordering directly supports your business and helps keep prices fair.

Let’s Make Delivery Work for You, Not Against You

Delivery apps aren’t going anywhere, but that doesn’t mean they should be calling the shots. By optimizing your menu, pricing smartly, owning your customers, negotiating better deals, and driving direct orders, you can make delivery a profitable part of your business instead of a cost center.

Ready to make smarter moves with your delivery strategy? FATKID helps F&B brands turn profits, not just plates.

Let’s get to work.