The Delivery Dilemma: Is It Worth the Cut?
If you run a cafe in Paddington or a pizza joint in Chermside, you’ve felt the pressure. Every second customer wants their food delivered to their couch, and the big apps—UberEats, DoorDash, and Menulog—are only too happy to help.
But here is the reality I see across Brisbane every day: many restaurant owners are working harder than ever, sending out hundreds of bags of food, yet their bank balance isn't moving. They are "busy," but they aren't making money.
Most of what you read online says you "must" be on these platforms to survive. I’m here to tell you that’s rubbish. You need to be on them only if the numbers work for your specific business. If you’re just paying for the privilege of cooking food for Uber’s profit, it’s time to rethink your strategy.
The Real Cost of a "Free" Customer
Let’s talk about the elephant in the room: the commission. Most of these apps take 30% to 35% of the total order value.
Think about your margins for a second. After you pay for the ingredients, the chef’s time, the electricity, the rent, and the packaging, how much is left? For most Brisbane hospitality businesses, that 35% cut doesn’t just take the profit—it puts the order into the red. You are effectively paying the customer to eat your food.
I’ve sat down with business owners who thought they were doing great because their revenue was up. Then we looked at the UberEats vs. doing it yourself numbers and realised they were losing $2 on every burger sent out via delivery.
The Verdict: If you can’t bake the commission into your app pricing (charging more on the app than in-store), you are burning cash.
Predictions for 2024 and Beyond: The Shift is Happening
The "wild west" days of delivery are over. Customers are getting fed up with $15 delivery fees and cold chips. Here is what we see happening in the Brisbane market over the next 12 to 18 months:
1. The Rise of the "Direct" Order
Smart owners are starting to fight back. They use the apps to get discovered, but then they work damn hard to make sure that customer never uses the app again. They put a flyer in the bag with a discount code for their own website. They know that a customer who orders directly is worth 30% more instantly.2. Menu Streamlining
Gone are the days of putting your whole menu on DoorDash. We are seeing successful venues move to a "Delivery Only" menu. This means only listing items that travel well (no one wants soggy tacos) and items with high profit margins. If a dish is expensive to make and slow to prep, keep it for your in-house diners.3. Quality Over Quantity
People are becoming more selective. They aren't just looking for the cheapest feed; they are looking for the best experience. This is why your reputation matters more than ever. If your delivery bags are sitting on a counter for 20 minutes because a driver is late, your Google reviews will take a hit. One bad delivery can kill the chance of that person ever walking through your front door.Should You Stay or Should You Go?
I get asked this constantly. My advice is always: look at your seating.
If your restaurant is half-empty on a Tuesday night, delivery apps might be a necessary evil to keep the lights on and the staff paid. But if you have empty tables, your primary goal shouldn't be more delivery—it should be getting people into those seats.
You can often make more profit by getting ten people into your dining room than by sending out thirty delivery orders. A great way to do this is by building a direct line to your locals. Instead of hoping the Uber algorithm shows your name, you can fill your tables using your own customer database. It costs cents compared to the dollars you give to delivery apps.
Three Ways to Make Delivery Work (If You Must Use It)
If you decide that the apps are a part of your future, don't just set them and forget them. You need to be aggressive about protecting your profit.
1. The "App-Only" Price Hike
Most platforms allow you to set different prices for delivery. Do it. If a parmy is $25 in the bistro, it should be $32 on the app. Most customers understand they are paying for convenience. If they don't like the price, they can come see you in person—which is exactly what you want anyway.2. Control the Hand-Off
I’ve seen too many Brisbane cafes let delivery drivers crowd the counter, ruining the vibe for walk-in customers. If you're going to do delivery, have a dedicated pick-up spot. Don't let your high-paying in-house guests feel like they’re second-class citizens to a guy in a motorcycle helmet.3. Use Them as a Billboard
Think of UberEats as a marketing cost, not a sales channel. Use it to get your food into a new suburb. Once they’ve tasted your quality, use packaging inserts to invite them to your physical location. Give them a reason to visit—maybe a "free drink with your first dine-in meal" voucher.What’s a Total Waste of Money?
Paying for "Sponsored Listings" inside the apps is usually a trap for small businesses. Unless you have a massive margin or a brand-new opening, giving the app even more money to show your name at the top of the list is a quick way to go broke.
Focus on your food quality and your packaging. If people love the meal, they’ll look for you again. If the food is average, no amount of "sponsored" placement will save you.
The Bottom Line
UberEats and DoorDash are tools, not a business plan. They are great for volume, but they are terrible for profit margins.
If you are a Brisbane business owner feeling the squeeze, take a cold, hard look at your monthly statement from these platforms. If you aren't clearing a decent profit after food costs and commissions, it’s time to pivot. Focus on your local regulars, get your direct ordering system sorted, and stop letting the apps take the lion's share of your hard work.
At Local Marketing Group, we help Brisbane hospitality owners take back control of their customer base. We don't care about "likes" or "app rankings"—we care about your bank balance.
Want to stop relying on delivery apps and start filling your own tables? Let’s chat about a strategy that actually puts money in your pocket.