Running a restaurant today feels like handling ten different things at once, and somewhere in the middle of all that, online orders have become almost impossible to ignore. Many owners sign up for Grubhub because it looks like the easiest way to bring in more customers. And yes, it does help at first. You see fresh names on your order list, a few extra tickets, and the feeling that your food is reaching new people.
Grubhub has a customer base of 31.5 million, making it one of the biggest food aggregators in America. Due to this, many restaurant owners list their eating places on the platform. However, this is not a big deal. The part that surprises most owners is the payout. Grubhub adds multiple fees in layers, and what disappears from each order isn’t always obvious until you check the final numbers. Commission, delivery, processing, and marketing all reduce the profit.
This blog breaks down Grubhub fees so you can see the real picture before deciding if Grubhub helps your business or quietly drains it.
TL;DR
- Grubhub charges a mix of commissions, delivery or service fees, and processing fees, often totaling 15–30% per order.
- The exact cost depends on the plan you choose and whether you use their delivery or your own drivers.
- For small orders or tight-margin dishes, those fees can eat up a big share of profit.
- You can try reducing impact by adjusting menu prices, using your own delivery, or encouraging direct orders.
- Ultimately, whether Grubhub works depends on your food cost, order volume, and how smart you are about balancing fees vs. reach.
Key Points
- Grubhub charges restaurants through different fees that stack up on each order.
- Commission stays one of the biggest costs and changes based on the plan you choose.
- Delivery handled by Grubhub usually costs more than handling it yourself.
- Small menu prices or low margins make the fees feel heavier.
- You can manage these costs better with smart pricing and a clear plan for direct orders.
Understanding Grubhub Fees
Most of the time, the initial reaction of a restaurant after registering with Grubhub is a shock due to the number of different charges that come with each order. Initially, things seem to be very simple, but the longer you look at it, the more it seems that the company has a lot of different layers. Grubhub imposes charges on restaurants for activities such as exposure on the application, delivery assistance, and the payment operations that take place behind the scenes. Individually, these charges may seem small, but the total cost on the same order can be quite surprising.
Grubhub’s fee system is built around commission, promotions, and sometimes delivery costs if the restaurant chooses Grubhub’s drivers. Commission is the main piece, and it changes based on the plan a restaurant picks. A higher commission usually means better placement on the app, which might bring more orders, but it also means more money leaving the restaurant. There are also processing fees that cover card payments, plus optional marketing fees if a restaurant wants extra visibility.
Firstly, an individual order that consists of all these parts will have a visible amount of money associated with it. Certain eating places are impacted on a daily basis, for instance, if they operate on a low margin, while some only become aware of it after a hectic weekend when they look at their earnings. Secondly, understanding these charges is not to put the blame on the platform but to recognize the reality. It simply helps a restaurant see where the money goes, what value it gets in return, and whether Grubhub fits the way the business runs.
Grubhub’s Pricing Structure
The way Grubhub puts together its prices is much like a puzzle. The majority of restaurant owners anticipate one single charge, but Grubhub splits its fees into different segments of the order. As soon as you realize how these pieces come together, you begin to understand the reasons for that total cost, which sometimes is just that much higher than you had anticipated. It’s not one big fee hitting you. It’s several small ones that add up quietly if you’re not paying attention.
Here’s how the structure usually works:
- A commission fee is taken from every order, changing based on the visibility level a restaurant chooses.
- Delivery fee added only if Grubhub handles the delivery instead of the restaurant.
- Processing fee that covers card payments and transaction handling.
- Optional marketing charges if a restaurant wants extra attention or higher placement.
- Promotion costs for running deals to attract more customers on the app.
Grubhub’s Pricing Plans
Choosing the right plan on Grubhub might feel a bit confusing at first, especially when each level promises a different kind of reach. Restaurants often start comparing costs and visibility to see what actually fits their margins. When you look closely at how each plan works, it becomes easier to figure out which Grubhub option lines up with your goals.
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Basic Plan
The basic plan is essentially the first step for those restaurants that intend to be visible on Grubhub without incurring a steep commission cost. With this, your restaurant is given space on the application; however, the visibility remains quite limited, hence you might not be appearing in the top search areas or featured spots. This kind of arrangement is mainly suitable for eateries that merely wish to pilot the platform and grasp the order volume and customer feedback before investing more.
The basic plan charges a commission of 15%.
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Plus Plan
The plus plan sits in the middle, and a lot of restaurants choose it because it offers a better balance between cost and visibility. With this plan, your restaurant shows up more often across the app, so you get more eyes on your menu. It usually leads to a higher-order volume compared to the basic plan. This tier is a good fit for restaurants that already understand their margins and want steady reach without jumping straight into the highest price level. It’s kind of the sweet spot for many owners who want growth without taking a big hit on commission.
The plus plan charges a commission of 20%.
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Premium Plan
The premium plan is built for restaurants that want the strongest reach on Grubhub. With this tier, your listing appears in more search results, recommended spots, and highlighted sections that customers notice first. It costs more, but the tradeoff is stronger placement and usually more orders. This plan works best for restaurants that rely heavily on online sales or want to dominate their local area. If a business has solid margins and wants maximum visibility, Premium is the level that gives the biggest push.
The premium plan charges a commission of 25% plus 5% for sponsored listings.
Breakdown Of Grubhub Fees
When you start looking closely at Grubhub’s fees, you begin to see why so many restaurant owners feel confused. The platform doesn’t take money from just one place. It collects small amounts from different parts of the order, and those small amounts start growing once the orders pick up. Understanding where your money goes helps you stay in control instead of feeling lost each time you check payouts. So here’s a clear explanation of what restaurants and customers actually pay on each order.
What Restaurants Pay
1. Commission Fees
Commission is usually the biggest fee for restaurants on Grubhub, which ranges from 5 to 20%. The rate changes depending on the plan you choose, and it usually sits somewhere between the lower and higher ends listed in the original plans. This fee is taken from the food total, which means every order carries a percentage that goes straight to the platform.
If you go for a higher plan, your restaurant shows up in more places on the app, like in search results or suggested lists. That extra visibility can bring more orders, but the cost is higher. The basic plan is cheaper, but your restaurant appears much lower on the page, and customers end up paying more on their side. This can slow down your order volume and sometimes feel like you’re getting stuck between low cost and low reach.
2. Delivery Fees
Grubhub lets restaurants choose how they want to handle delivery. You can deliver the food yourself, use Grubhub’s drivers, or mix both depending on the day.
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Self-Delivery
With self-delivery, restaurants get orders through Grubhub but use their own drivers, bikes, cars, or third-party helpers. This gives you more control over the food, timing, and customer experience. The downside is that you don’t get the direct customer relationship because the order is still coming through Grubhub. Many restaurants pair this with a direct ordering tool so they can keep new customers from Grubhub but also build loyalty on their own platform, where there are no commissions.
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Grubhub Delivery
If you don’t have drivers, Grubhub will deliver for you. The fee usually changes with distance. The grub delivery charge is 10%.
For example, on a seventy-dollar order, a ten percent delivery fee would cost you seven dollars. Customers also pay a delivery charge on their side. The amount they see depends on how far the food travels. It looks small to the customer, but it adds another layer to the total cost.
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Supplemental Delivery
Suppose you require assistance during busy hours or for places that are beyond your regular zone; in that case, Grubhub includes an additional supplemental delivery charge. While it allows you to have more options, it also raises the total cost. Restaurants that are operating with limited profit margins may be the ones that feel this fee the most, certainly on weekends or holidays when the volume of orders grows rapidly. The supplemental delivery charge is 10%.
3. Advertising Fees
Grubhub lets restaurants pay for extra visibility through sponsored listings. If you choose this option, your restaurant shows up at the top of search pages or in places customers notice more quickly. This can help bring in new orders, especially during peak hours or in busy neighborhoods. The marketing fee is usually 20%(15% + 5% ) of the order value. The marketing cost for these listings is usually a percentage of the order value. Premium plans often include stronger ad features, but they also come with higher rates. Grubhub also offers targeted ads and loyalty tools that reach customers based on location, food habits, or past orders. These tools can help, but each one adds another cost that restaurants need to track.
4. Processing Fees
Grubhub takes a small fixed amount plus a percentage from every order to cover payment processing. This covers card transactions and the systems that handle payments safely. The fee might look small alone, but when you add it to the commission, delivery cost, and marketing charges, it becomes part of a bigger picture. It regularly deducts $0.30 charge plus 3.05% of the total order cost.
What Customers Pay
1. Delivery Fees
When customers order through Grubhub, they are required to pay for their own delivery. The delivery fee is initially set at a base level and varies according to factors such as distance, order size, and peak hours. The customer finds this charge added to their total amount when they are at the checkout stage, and it is sometimes the excuse for a customer to withdraw their order and leave. The delivery fee is 10%.
2. Service Fees
Service fees cover things like support, order tracking, and communication between restaurants, drivers, and customers. The fee is usually a percentage of the order. A ten percent service fee on an eighty-dollar order adds eight dollars to the customer’s total. When these fees get too high, some customers order less often, which quietly affects the restaurant’s sales. The service fee is 10%.
3. Driver Benefit Fees
Customers also pay a driver benefit fee, which helps support drivers with things like healthcare, mileage coverage, or insurance. The amount changes by location. In some states, like California, there are specific rules that require platforms to pay drivers a set amount per mile during delivery.
4. Tipping Drivers
Tips go directly to the driver. Grubhub suggests a certain amount, usually around twenty percent of the order total, but customers can choose any amount. Tips don’t affect the restaurant’s payout, but they do affect how drivers feel about taking certain orders, especially longer trips. The platform suggests a tip of around 20%.
5. Minimum Order Fee
Grubhub sets a minimum order of twelve dollars. If a customer orders less than that, they get charged the difference. Restaurants don’t always notice this fee, but customers do, and it affects how people feel about small orders.
Some restaurants have even reported fees charged by the platform during slow days, which led to a few legal situations in the past. When extra fees pile up, customer satisfaction drops, and restaurant profits take a hit. A simple order, like a nineteen-dollar sandwich, can suddenly jump to over twenty-seven dollars after all the added fees.
Also, read: Top 15 Digital Ordering Platforms for Cafés in 2026
How To Calculate The Total Cost Of The Order?
Figuring out the real cost of a Grubhub order feels a little like peeling an onion. You think you’re done, then there’s another layer sitting quietly below. Most restaurants don’t realize how fast things add up until they check the payout and wonder where the rest of the money went. Once you see every piece that gets pulled from an order, the whole picture finally makes sense. It’s not hard math, just a mix of small charges that hide behind the bright “New Order” alert.
Let’s see how to calculate the total cost of orders for both restaurants and customers
What Restaurants Pay on Grubhub
| Description | Amount |
| Total value of the customer’s order | $60.00 |
| Grubhub’s marketing fee is @ 15% | $9.00 (15% of the order value) |
| Delivery Fees @ 10% | $6.00 |
| Sponsored listing fee @ 5% | $3.00 |
| Order processing fees (3.05% + 30 cents) | $2.13 |
| Total payout to Grubhub | $20.13 (Commission + Advertising Fee + 10% Delivery Fee) |
| Net Revenue for the restaurant after Grubhub fees | $39.87 ($60.00 – $20.13) |
What Customers Pay on Grubhub
| Description | Amount |
| Total value of the customer’s order | $45.00 |
| Delivery fee @ 10% | $4.50 (Varies based on distance) |
| Service fee @ 5% (Varies) | $2.25 (Charged to the customer by Grubhub) |
| Driver benefit fees ($0.34 / Mile) | $2.72 (Assuming an 8-mile delivery) |
| Tip (for Grubhub drivers) @ 20% | $9.00 |
| Grubhub’s total charge to the customer | $63.47 (Food + Delivery + Service + Benefit Fees + Tip) |
How Grubhub’s Fees Really Impact Your Restaurant?
When you look at Grubhub from the outside, the whole setup feels exciting. You get more reach, more people seeing your menu, and the chance to bring in steady online orders. But once the fees start showing up on every ticket, the impact becomes clearer. Some restaurants handle the extra costs fine, while others feel every dollar slipping away. The tricky part is that the effects show up slowly. A small fee here, another fee there, and suddenly your margins look thinner than you expected.
Here’s how these fees quietly shape your day-to-day operations:
1. Tiered Visibility Shaping Your Real Reach
By using higher-tier plans on Grubhub, your restaurant gets visually placed closer to the top of the search results, thus making it easier for new customers to find you. In theory, it looks great, and it is very effective for larger restaurants that already have a steady flow of orders. However, for small or niche restaurants, the additional cost can be a burden, especially if the number of customers does not increase in proportion to the commission rate. Since you are charged a commission on the additional orders, you have to be very careful and constantly check if the extra exposure justifies the higher fees. Some restaurants grow with it, but others end up wondering if the boost matches the expense.
2. Delivery Fees Are Slowly Hurting Customer Retention
Restaurants that use Grubhub’s delivery service deal with the base delivery commission, which can climb depending on distance or order size. You feel it on your side because it eats into your profit, but customers feel it too. Their delivery fees go up, their total gets higher, and some people start ordering less often. It’s not always dramatic. It’s usually small drop-offs that show up over time. Customers shift to cheaper options, or they switch to direct pickup to avoid the extra charges. Little by little, retention takes a hit.
3. Driver Benefit Fees And Tipping Pressure Affecting Sales
Grubhub adds a driver benefit fee for customers to help support driver insurance and healthcare. It’s a good idea in theory, but it makes the final bill heavier. Add the platform’s recommended twenty percent tip, and suddenly the total feels too high for many customers. When the bill climbs past what they expected, some people back out at checkout or cut down on how often they order. For restaurants, this means fewer tickets, quieter days, and sales that don’t move the way they used to. Over time, this kind of hesitation affects your growth more than most owners realize.
Best Ways To Reduce Grubhub Fees
Attempts to reduce your Grubhub fees are somewhat similar to attempts to plug minor leaks in a bucket that is close to overflowing. Although you may not be able to solve all the problems at one time, you can make wise decisions that gradually reduce the burden. The majority of eateries that thrive on the platform are not eliminating the fees. They are simply operating the system in a manner that is more efficient for them instead of allowing the fees to control them. These are some of the real-life, practical, and effective solutions that can be used to your advantage in running your business daily.
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Use Grubhub Delivery Only Where It Makes Sense
A lot of restaurants use Grubhub’s delivery fleet, but it doesn’t have to cover every zone you serve. It makes more sense to use their drivers in busy, high-demand areas where orders come in back-to-back. In slower or far-out locations, you can switch to self-delivery or even a small third-party team that costs less. When you adjust your delivery zones like this, you keep service steady without paying for delivery areas that don’t bring much return. It’s a simple move that saves money over time.
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Balance Grubhub With Your Own Ordering System
Third-party apps are great for getting new customers, but you don’t want all your regulars coming through there forever. Running small, time-limited promotions on Grubhub, such as a small percentage off or a simple free appetizer, is a clever tactic just to attract first-timers. After that, to get them to try your food, take them to your own direct ordering site where you give loyalty rewards, special offers, or personalized discounts. Thus, Grubhub is the channel through which you get new customers, but your direct platform is the one that makes customers return without you having to pay high commissions. It’s a quiet shift, but a powerful one.
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Adjust Your Menu Pricing With Care
Grubhub price increases are a common practice by many restaurants, but the best results come when they are done in small increments rather than a sudden jump. It is possible to slightly raise the prices of those products that have good margins or dishes for which people do not mind paying a little extra. The most popular items of yours should be kept at the closest to regular prices so that customers do not feel pushed away. Bundled meals also work, such as pairing an entree with a side and a drink. People like the feeling of getting a good deal, and the bundle often absorbs the additional cost. At the same time, if you keep your direct ordering prices lower, customers will be more inclined to skip the middleman and order directly from you, thus saving more money.
Suggested Article: Mobile Ordering in Canada: A Game-Changer for Restaurants
Is Grubhub Really Worth It for Your Restaurant?
Once you understand how Grubhub fees actually work, the next question is pretty simple. Is this platform the right fit for your restaurant, or are you paying more than you’re getting back? Grubhub does bring a big crowd. There are tons of active users scrolling through menus every day, which can make your restaurant visible in places you’d never reach on your own. Many restaurants see a steady stream of orders from it, and that alone can feel like a win.
Grubhub also tends to have slightly lower commission rates compared to a few other big delivery apps. For restaurant owners who watch every dollar closely, that small difference can matter. If your goal is to reach more people without dealing with every little delivery detail yourself, Grubhub can be a helpful partner. It takes some weight off your shoulders and exposes your menu to customers who weren’t looking for you before.
But here’s the catch. If you rely only on third-party apps, your profit margin gets thinner every time an order comes in. Grubhub can bring new customers in the door, but it won’t protect your bottom line on its own. That’s where a direct ordering system like iShopo makes a huge difference. You can still use Grubhub to attract fresh faces, then guide those customers toward your direct platform, where there are no commissions on any order.
This mix gives you the best of both sides. You get the reach and steady flow from Grubhub, while iShopo helps you build long-term relationships and keep more of your earnings. Plenty of restaurants use this approach and see strong results. The real trick is balance. Grubhub helps you grow, but your direct system keeps your profits healthy. In the next section, you will learn more about iShopo as the best restaurant partner.
Why Restaurants Should Use iShopo Instead of High-Commission Aggregators?
Running a restaurant in today’s time is not easy, and on top of that, there are third-party apps that take a huge portion of your profits. Can’t be any worse, right? Are you also tired of giving away 15%–30% of every order to third-party apps? It’s time to take the game into your hands. Meet iShopo, your ideal partner in growing a restaurant. iShopo helps you keep more on every order while still offering online ordering & delivery.
Let’s see the pain points you and most of the restaurant owners are currently facing and how iShopo helps to relieve them:
Problems Of Restaurants
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Heavy Commission Cuts
When third-party apps take fifteen to thirty percent from every order, the numbers stop making sense fast. A seventy-dollar ticket can shrink before it even reaches your account. Add extra fees on top, and your real earnings look nothing like the sale amount. It quietly eats into your margin every single day.
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Forced Menu Markups
To survive those commissions, many restaurants increase their menu prices on the apps. It feels like the only choice, but it can make you look overpriced compared to nearby spots. Customers notice the difference, and some stop ordering because it no longer feels like a good value. Repeat orders start falling without warning.
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No Customer Ownership
When you rely on big delivery apps, the customers you serve technically aren’t yours. You don’t get their data, their preferences, or any way to talk to them directly. That makes it harder to build loyalty or bring them back on your own terms. You pay for them again with every new order.
How iShopo Helps
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Keep More From Every Order
With iShopo, you’re not losing a big slice of your earnings on every sale because it charges zero commission. You choose a fair commission or a fixed model, and that’s it. No surprise cuts. This helps you keep more money from each order, plan better, and actually see profit instead of watching it disappear.
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Own Your Customers Completely
Since iShopo is your own system, you keep the customer data that third-party apps usually hide. That means you can reach out directly, offer deals, build loyalty, and turn first-time buyers into regulars. You’re not renting your customers anymore. They actually belong to your restaurant.
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Fair Prices Without Markups
With no heavy commissions to cover, you don’t have to raise menu prices just to survive. Your food stays fairly priced, and customers trust you more because they’re not facing inflated totals. It creates a cleaner, more honest experience that feels better for both sides.
Why This Matters Now
In 2025, there are more restaurants in existence than ever before. Every restaurant is facing the same issue, which is high commission on orders, reducing their profit to much lower numbers. Due to this, having an alternative ordering system becomes not just a luxury but a financial necessity. With iShopo, restaurants can strike a balance: give customers the convenience of online ordering/delivery while keeping control of profits and customer relationships. This gives restaurants independence from the “platform-rent” model and puts them back in the driver’s seat. The restaurants save on every order, increase revenue, and ultimately increase net profit. This extra profit can be put back into the business to improve processes.
Important Article: Restaurant App vs. Website: What Do You Really Need?
Conclusion
After looking at how Grubhub fees stack up, it becomes clear why so many restaurants feel the pressure. One small charge may not seem like much, but when commissions, delivery fees, processing costs, and customer-side charges add up, the numbers start pulling away from your actual profit. Grubhub can still be useful, especially for visibility and bringing in fresh customers, but relying on it alone makes it hard to grow in a steady, healthy way. That’s why having your own ordering system matters now more than ever. It gives you control, protects your margins, and helps you build real relationships instead of renting them from a platform. Join iShopo today and stop losing 15 to 30% per order. Keep your profits, own your customers, and grow on your terms.
FAQs
- How much does Grubhub actually take from each restaurant order?
Grubhub takes money through several fees, not just one. The main fee is the commission, which changes depending on the plan you choose, like Basic, Plus, or Premium. On top of that, there are delivery fees if you use their drivers, processing fees for payments, and sometimes marketing costs if you run promotions. When all these pieces come together, restaurants often end up giving away a huge part of every order. That’s why many owners double-check their payouts at the end of each week.
- Why do customers sometimes complain about high totals on Grubhub?
Customers see more than just the food price when they reach the checkout page. They pay delivery fees, service fees, and a driver benefit fee, plus whatever tip they choose to leave. All these charges raise the total amount quickly, even for a small order. When customers feel the bill is higher than expected, they might hesitate, cancel, or order less frequently. This doesn’t just affect them; it affects restaurants, too, because fewer completed orders mean slower sales over time.
- Can Grubhub still help my restaurant grow, even with the fees?
Yes, Grubhub can still help you grow, especially if you’re looking for visibility or trying to reach people who may not know your restaurant yet. The platform has a huge customer base, and many restaurants get a steady flow of new orders from it. The challenge comes when you rely on it too much. Fees start cutting into your profits, and you don’t get the customer relationship. The best approach is to use Grubhub for reach and then guide customers toward your direct ordering system.
- How do I reduce the overall impact of Grubhub fees?
The smartest way to lower your fee burden is to use Grubhub in a controlled, intentional way. Use their delivery only in busy areas where orders are worth the cost. Run small promotions to attract first-time customers, then shift them to your direct ordering system, where there are no commissions. Adjust menu prices gently, especially on higher-margin items, so you don’t scare customers away. This mix gives you reach without letting fees drain your profit every single day.
- Why should I use iShopo if I already have Grubhub?
iShopo helps you build a balanced system. Grubhub brings in new customers, but it takes a big share from each order. With iShopo, you get your own ordering system where you keep more money, control your customer data, and avoid constant commission cuts. You don’t have to leave Grubhub completely. Instead, you use it as the front door while iShopo becomes your main home for long-term profit. This setup keeps your business steady, predictable, and more in your control.
