Look, I’ve sat in enough cafes in West End and restaurants in the Valley to know the sound of a business losing money. It’s that high-pitched ping from the tablet on the counter.
Every time that noise goes off, a delivery driver in a puffer jacket walks in, and about 30% of your revenue walks out the door with them.
I get why you do it. You’re worried that if you aren't on the apps, you don't exist. You see the shop next door sending out bags of burgers every five minutes and you think you’re missing out.
But here’s my honest take: most restaurant owners are using these apps all wrong. They’re treating UberEats and DoorDash like a long-term business partner, when they should be treating them like a high-interest credit card. Useful in a pinch, but it’ll ruin you if you rely on it.
The Math That Doesn't Add Up
Let’s talk about the 30% commission. Actually, by the time you add in the service fees and the 'marketing' spend they try to upsell you on, it’s often closer to 35%.
If your food cost is 30% and your labour is 30%, you’re already at 60%. Add in rent, power, and insurance. If Uber takes another 30%, you’re left with cents. You’re basically working for free to keep a Silicon Valley company in business.
We’ve seen clients who were doing $20k a week in delivery orders but couldn't afford to pay themselves a proper wage. They were busy. They were exhausted. But they weren't making money.
If you’re going to be on these platforms, you have to be ruthless with your pricing. If a burger costs $18 in-store, it needs to be $24 on the app. If people won’t pay it, then your food isn't right for delivery. Simple as that.
The 'Ghost Town' Mistake
One of the biggest traps is thinking that being on an app replaces the need for your own marketing.
I’ve talked to owners who stopped doing their own promos because "Uber sends us the customers."
No, they don't. Uber rents you those customers. You don't get their email addresses. You don't get their phone numbers. You can't reach out to them next Tuesday when the shop is empty and offer them a deal.
If Uber decides to change its algorithm tomorrow or hike its fees, your customer base vanishes. You’re building your house on someone else’s land.
Instead of just hoping the app sends you people, you need to be building your own assets. We tell our hospitality clients that filling tables with email is way more profitable than waiting for a tablet to beep. When you own the list, you own the relationship.
Quality Control is a Nightmare
You spend years perfecting a recipe. You make sure the steak is rested and the chips are crunchy. Then, you put it in a cardboard box, give it to a bloke on a scooter who has three other deliveries in his bag, and hope for the best.
Twenty minutes later, your customer is eating soggy chips and a cold burger. Who do they blame? Not the driver. They blame you. They jump on Google and leave a one-star review.
Bad reviews are a silent killer. If you aren't careful, a few months of bad delivery experiences will tank your reputation for the people who actually want to come in and sit down.
"If your food doesn't travel well, don't put it on an app. You're literally paying 30% to have someone ruin your reputation in a cardboard box."
— Michael Torres, PPC Specialist
Using the Apps as a Lead Magnet (Not a Crutch)
Is there a way to win? Yes, but you have to be smart.
Think of UberEats as a lead generation tool. Use it to find new people who haven't heard of you, and then do everything in your power to make sure they never order through the app again.
Put a flyer in the bag. Offer a free drink or 10% off if they order directly through your website next time. Give them a reason to walk through your front door.
If you can move 20% of your app customers to direct orders, you’ve just given yourself a massive pay rise without selling a single extra meal.
When to Walk Away
I’ve told mates this over a beer, and I’ll tell you: sometimes the best thing you can do for your profit is to turn the tablet off.
If you find that your kitchen is getting slammed with delivery orders during your peak Friday night rush, and your sit-down customers are waiting 40 minutes for their mains, you are killing your business.
Your in-house customers pay full price. They buy drinks (where the real margin is). They give you the atmosphere that makes a restaurant work. If you neglect them to serve a delivery order that you’re barely making $2 on, you’ve lost the plot.
We see this a lot with specialty spots. If you're wondering why your brewery isn't busy, it might be because you've prioritised the 'invisible' app customers over the people standing at your bar. People go to venues for the vibe. A pile of delivery bags on the counter kills that vibe.
The Catering Pivot
If you have the kitchen capacity and you want more volume, don't look at individual $25 deliveries. Look at the big stuff.
One corporate catering order for a boardroom lunch can be worth thirty individual UberEats orders. It’s one delivery, one invoice, and usually a much better margin. Plus, these people order every week.
Learning how to land corporate catering gigs is a much better use of your time than fighting for scraps on DoorDash. It’s about working smarter, not harder.
What Should You Do First?
If you’re currently drowning in app orders but your bank account is empty, here is your game plan:
1. Check your margins. Sit down with a calculator and work out exactly what you make on your top five delivery items after the 30% cut. If it’s less than a few dollars, raise your prices on the app immediately. 2. Audit your packaging. If the food arrives cold or soggy, you’re paying for bad PR. Change the packaging or take those items off the menu. 3. Drive direct sales. Start putting 'Order Direct' vouchers in every single delivery bag. 4. Own your data. Start collecting emails from your in-house customers so you can reach them without paying an app for the privilege.
Look, the delivery apps aren't going anywhere. They’ve changed the game. But you don't have to play by their rules if those rules are designed to break you.
Focus on the customers you can actually talk to. Focus on the orders that actually leave money in your pocket.
If you want to have a real chat about how to get more people through your doors without giving all your profit to a tech giant, give us a shout at Local Marketing Group. We’ve helped plenty of Brisbane venues get their margins back under control.
Contact us here and let’s sort it out.