DELIVERY PRICING TOOL
How much do you have to mark up to break even on the apps?
Enter an in-store price and see what it takes to get paid the same on DoorDash, Uber Eats or Grubhub. At a 30% commission the answer is a 42.9% markup, and at a 50% payout ratio it is 100%. That is the point of this calculator: you can't price your way out of delivery fees.
Your $14.00 burrito becomes
$20.49
a 43% markup (exact parity: $20.00)
Nobody's buying this. Technically you broke even. Practically, nobody clicked Add to cart.
Marking up by the same 30% the platform takes puts the item at $18.20. After the platform's cut you keep $12.74, which is $1.26 less than you get in-store. The cut is taken from the marked-up price, so the markup has to be bigger than the cut.
THE CHEAT SHEET
The markup you need depends on what you actually keep.
Commission is only part of the cost. Your payout ratio includes promos, ads and refunds, so it is the number to price against.
| You keep (payout ratio) | Typical situation | Markup for parity | A $14 item becomes |
|---|---|---|---|
| 85% | 15% commission, no promos | 17.6% | $16.47 |
| 75% | 25% commission, no promos | 33.3% | $18.67 |
| 70% | 30% commission, no promos | 42.9% | $20.00 |
| 60% | Commission plus some promos | 66.7% | $23.33 |
| 50% | A heavy promo month | 100.0% | $28.00 |
| 40% | Promos plus ads plus refunds | 150.0% | $35.00 |
Rule of thumb: parity markup = 1 ÷ (share you keep) − 1. Keep 70% and you need 42.9%. Keep 50% and you need 100%.
SO WHAT DO YOU DO?
Sell on the apps, but fix the economics with your menu and offers.
Third-party apps are a necessary evil. They bring customers who would never find you otherwise, and they take a big cut for it. A moderate markup on the apps is normal. A markup big enough to fully cover every fee prices you out of the search results.
What works better: keep the items people search for close to your in-store price, put more of the markup on add-ons and drinks, split premium ingredients into paid add-ons, and aim promotions at new customers instead of everyone.
Before running a buy-one-get-one, check it with the BOGO profit calculator. For the full breakdown of the markup math, read how much to mark up menu prices on DoorDash.
COMMON QUESTIONS
Delivery menu pricing, explained simply.
How much should I mark up my menu on DoorDash or Uber Eats?
To get paid the same as in-store, divide your in-store price by the share you keep. At a 30% commission you keep 70%, so a $10 item needs to be about $14.29, a 42.9% markup. Most restaurants should not mark up that much across the whole menu. Price by item role instead: keep the items people search for close to in-store, and put more markup on add-ons, drinks and items with strong margins.
Why doesn't a 30% markup cover a 30% commission?
The commission is taken from the marked-up price. Raise a $10 item to $13 and a 30% commission takes $3.90, leaving $9.10. You need a bigger markup than the commission to end up back at $10.
What is payout ratio?
Payout ratio is the money that reaches your bank divided by your gross app sales. It includes commission, promotions, ad spend, marketing fees and error charges, so it is the most honest single number for a delivery channel. With no promotions it usually lands around 70% to 85%. Heavy promo months often land near 50%.
Is it allowed to charge more on delivery apps than in-store?
DoorDash, Uber Eats and Grubhub let restaurants set their own app prices, and many restaurants price higher on the apps. Some platform features and badges look at how close your app prices are to your in-store prices, so check your platform's current rules before raising prices.
If big markups don't work, how do restaurants make delivery profitable?
Treat the apps as a customer acquisition channel and fix the economics with menu structure and offers: a moderate markup, base items with paid add-ons, promotions aimed at new customers instead of everyone, and promo items whose food cost can survive a discount.
WANT A SECOND OPINION ON YOUR PRICING?
Blender sets delivery pricing, promos and ads for restaurants.
We manage DoorDash, Uber Eats and Grubhub for independent and multi-location restaurants, with payout ratio as the number we report on every month.