The Real Cost of Food Portals – And What You Can Do About It
- Ronnie Codman
- Jun 6
- 5 min read
Updated: Jun 9
Since the coronavirus pandemic, food delivery platforms have changed the game for restaurants and takeaways, offering instant visibility and plenty of hungry customers. But behind that convenience lies a costly truth:
you and your customers are both paying more than you realise.
In this piece, we’ll unpack the true cost of food portals, explain why your pricing strategy might be doing more harm than good, and introduce practical tools that can help business owners like you make smarter, more profitable decisions. All this without having to leave the portals or hire your own delivery drivers.
The ‘Double Commission’ Problem: Everyone Pays More
When a customer orders from a food portal, the cost they pay isn’t just the cost of the meal. Here’s what typically happens:
Since the restaurant is paying a 14% - 35% commission (ex. VAT) to the aggregator, they are forced to inflate the prices of their menu items if they want to protect their margins.
In addition to these inflated prices, the customer also pays extra fees: service charges, delivery fees, and sometimes small order surcharges.
Let’s see an example from Jenny’s Fish & Chips:
A typical Jenny’s Fish & Chips order of 2 large cods, 2 large chips and 1 can of drink might come to £25
Jenny, the owner, is paying a 30% commission on that order. To help towards the cost, she marks up her menu prices by 30% so that the food totals £32.50 on the platform
On top of this, the customer pays a £1.99 service fee and £3.99 for delivery.
The customer has paid £38.48 for an order that would cost £25 in the shop! What’s worse, Jenny only receives £22.75 of that £38.48. Eh?
Customer pays: £38.48
Jenny receives: £22.75
Effective commission: around 41%!
Jenny’s customers do not know what is going on in the background - they simply perceive her prices as expensive.
What You're Really Earning
Many merchants see “30% commission” and mistakenly assume they can recover this cost by marking up their prices by 30%. The maths sadly doesn’t work out like that:
Make sure to apply the markup before commission, not after
Do not forget to factor in VAT, transaction fees, or other costs
You can use our Commission Calculator to see your true commission rate. You may be shocked.
In our previous example, Jenny would have had to mark up that £25 order to a whopping £39.06 in order to cover her costs!
Why Should Anyone Care? Well, Price Sensitivity Is Real - And Risky!
Why care when customers pay anyway? In the economy we are in, customers are increasingly price-sensitive. During a cost-of-living crisis, people are always looking for cheaper ways to order and many shops are pricing themselves out of local markets.
This is where price elasticity of demand matters. It describes how a small increase in price can lead to a larger drop in customer orders.
For instance, if you raise prices by 10% and demand drops by 15%, you’re earning less revenue and possibly losing loyal customers in the process. Worse still, when using food portals, the merchant is often increasing the price the customer sees, while actually receiving less per order due to commission. So you're raising prices in the market, reducing demand, and still taking home less money!
How many times have you had a customer comment on how much cheaper your in-store prices are than your portal prices? The majority of your customers do not know about the costs you are taking on in the background - it is time to give them a better option.
Build a Smarter Channel: Your Own Branded Ordering Platform
You don’t need to leave food portals entirely. But you do need a platform you control. A platform where you can:
Set your own prices
Keep and utilise customer data
Avoid stacked commissions
Maintain your brand identity
With a branded ordering solution, you can offer better value to customers without sacrificing your profit margin. Even when only offering collection orders!
Pair that with smart, low-cost marketing (more information below) and you’ve got a reliable alternative to paying away a third of every order.
You Don’t Have to Leave the Portals – Just Use Them Strategically
You absolutely do not need to abandon delivery apps completely. In fact, they can be extremely useful when used as lead generators rather than long-term fulfilment platforms.
A simple recipe applies:
Stay listed on the portals to help attract new customers.
Deliver a great experience.
Guide them to your own platform.
What’s for sure is that customers will not come over unless it suits them. You must give them an incentive to change their ordering habits, for example by:
Putting flyers in your delivery bags showing customers the cost savings they could make by ordering direct
Utilising QR codes on your packaging.
Offering a loyalty programme, discounts and exclusives available only via your direct channel.
Placing digital signposts on platforms such as Google and Facebook
Some businesses eventually build enough direct loyalty to step away from portals entirely. Others stay on them forever, but drive most repeat orders through their own, cheaper system.
It’s not all or nothing - you can have the best of both worlds.
Collection Only Still Works - If You Promote It Well
Think delivery is a must? Not necessarily.
Plenty of cost-conscious customers are willing to collect food if the savings are clear. A well-promoted collection-only platform can outperform portals for returning customers.
You simply have to give the customer an incentive to order - and make damn well sure they know about it!
Example flyer from a real client:
Add a QR code, your logo, and a strong call to action. Many merchants find this alone is enough to convert up to 40% of their existing delivery orders into collection orders on their own platform.
For a merchant taking 100 food portal orders a week, this could mean a saving of well over £20,000 a year! See our Showcase for some examples of real clients we have helped.
Conclusion: Stop Renting Your Customers! Start Building Your Brand
Food portals can be helpful. But relying on them for all your business is expensive, unsustainable, and risky.
With a branded ordering platform, purposeful marketing, and smart pricing, you can:
Earn more per order
Offer better value to customers
Build lasting loyalty
Stay visible on food portals while regaining control of your margins
Ready to See the Difference for Yourself?
Take control of your margins, your customers, and your growth - starting today.
Talk to us about setting up a branded ordering system that works for you: simply fill in the form below and we will be in touch.