Online Ordering vs Third-Party Apps: What's Best for Your Restaurant?

Third-party delivery apps promise convenience: they handle the technology, the drivers, and the marketing. In exchange, they take 15-30% of every order.

For a restaurant operating on thin margins, that commission can mean the difference between profit and loss. But building your own ordering system requires investment and effort.

So which approach is right for your restaurant?

The True Cost of Third-Party Apps

Let's be honest about what DoorDash, UberEats, Grubhub, and others actually cost.

Commission Fees

Most delivery apps charge between 15-30% per order:

• Delivery orders: 25-30% commission
• Pickup orders: 15-20% commission
• Marketing/featured placement: Additional fees

On a $50 order, you might pay $12-15 in commission fees alone.

Hidden Costs

Beyond commission, there are other expenses:

• Tablet fees: Many apps require their tablets ($3-5/month each)
• Marketing promotions: Discounts and free delivery offers you fund
• Customer disputes: Refunds often come from your pocket
• Menu price inflation: Customers pay more, which can hurt your brand

The Customer Data Problem

Perhaps the biggest hidden cost: you don't own the customer relationship.

When someone orders through DoorDash, DoorDash owns that customer data. They can:

• Market competitors to your customers
• Change algorithms that affect your visibility
• Raise fees knowing you're dependent on them

You're building their business, not yours.

Benefits of Third-Party Apps

Despite the costs, these platforms offer real advantages.

Massive Reach

DoorDash alone has over 25 million active users. That's exposure you can't easily replicate. For new restaurants or those in competitive markets, app visibility can drive significant order volume.

No Development Costs

Building and maintaining an ordering system costs money. Third-party apps handle:

• Payment processing
• Driver logistics
• Customer support
• Mobile apps

Immediate Implementation

Sign up today, receive orders tomorrow. There's no development timeline or technical implementation.

Customer Convenience

Many customers already have these apps installed, payment methods saved, and ordering habits established. Friction-free ordering means more completed orders.

The Case for Direct Online Ordering

Here's why more restaurants are investing in their own ordering systems.

Keep 100% of Your Revenue

Instead of paying 25% commission, you pay only payment processing fees (typically 2.5-3%). On that same $50 order, you keep an extra $11-12.

Over thousands of orders, this adds up to tens of thousands of dollars in saved fees.

Own Your Customer Data

Direct orders give you:

• Customer contact information for marketing
• Order history for personalization
• Insight into popular items and ordering patterns
• The ability to build lasting relationships

Control the Experience

Your ordering system can match your brand:

• Custom design and photography
• Upselling and cross-selling you control
• Loyalty programs and rewards
• Special offers for direct customers

No Algorithm Dependency

Third-party apps control who sees your restaurant. Algorithm changes can tank your visibility overnight. Direct ordering puts you in control.

Building Your Own Ordering System

If you decide to go direct, here are your options.

Website-Integrated Solutions

Platforms like Square Online, Toast, and ChowNow integrate ordering directly into your website. Customers order through your site, you receive orders, and you handle (or outsource) delivery.

Pros:

• Lower monthly costs ($50-200/month)
• Seamless brand experience
• You own customer data

Cons:

• You handle delivery logistics or pay for delivery services
• Less built-in customer traffic
• Requires some technical setup

Commission-Free Marketplaces

Some platforms offer marketplace visibility without per-order commissions. You pay flat monthly fees instead of percentage-based commissions.

Custom Development

For larger operations, custom ordering systems offer complete control but require significant investment ($5,000-50,000+ for development).

The Hybrid Approach

Most successful restaurants don't choose one or the other - they use both strategically.

Use Third-Party Apps for Discovery

Let DoorDash and UberEats bring you new customers. These platforms are discovery engines - people browsing for something to eat find you there.

Convert Customers to Direct Ordering

Once customers know and love your food, incentivize them to order directly:

• First direct order discount: "Order on our website, save 15%"
• Loyalty rewards: Points only available for direct orders
• Exclusive menu items: Specials only on your website
• Faster service: Direct orders get priority

Make Direct Ordering Easy

Your website should make ordering as frictionless as the apps:

• Mobile-optimized ordering experience
• Saved payment methods
• Order history and reordering
• Real-time order tracking

Calculating Your Break-Even

Here's how to think about the economics:

Third-party order ($50):

• Commission (25%): -$12.50
• You keep: $37.50

Direct order ($50):

• Payment processing (3%): -$1.50
• Monthly platform fee: ~$100-200/month
• You keep: $48.50

Difference per order: $11

Break-even calculation:

• If your platform costs $150/month
• You need ~14 direct orders per month to break even
• Everything beyond that is pure savings

For a restaurant doing 100+ delivery orders monthly, the math heavily favors direct ordering.

Making the Transition

If you're currently dependent on third-party apps, here's how to transition.

Step 1: Build Your Direct Ordering Capability

Get your website ordering system live before reducing app dependence. Test it thoroughly.

Step 2: Promote Direct Ordering to Existing Customers

• Include flyers in every third-party order
• Highlight savings and perks
• Make the website URL memorable

Step 3: Gradually Shift Marketing

Move promotional budget from app-based advertising to driving direct traffic. Google Ads, social media, and email marketing can target local customers effectively.

Step 4: Maintain App Presence Strategically

Don't disappear from apps entirely - they still drive discovery. But make direct ordering the preferred path for repeat customers.

The Bottom Line

Third-party apps aren't evil. They provide real value in customer reach and convenience. But treating them as your only ordering channel is expensive and risky.

The smartest restaurant operators use a hybrid approach:

• Third-party apps for discovery and convenience-focused customers
• Direct ordering for relationship-building and profit optimization

Investing in your own ordering capability isn't just about saving commission fees - it's about owning your customer relationships and building a sustainable business.

A strong website is essential for direct ordering success. Make sure yours includes the must-have features that drive reservations and appetizing food photography that converts browsers into customers.

Explore our restaurant website design services and see how we help restaurants in cities like New York and Los Angeles build profitable online presences.

For a complete guide to building a restaurant website that drives direct orders and reservations, read our Restaurant Website Design Guide.