The True Cost of Third-Party Delivery Commissions for Canadian Restaurants

If you're an independent restaurant owner in Canada, you've probably felt the squeeze of third-party delivery apps. They promise more orders and wider reach, but at what cost?

Let's break down the real math behind third-party delivery commissions and show why switching to a zero-commission model is one of the fastest ways to improve your restaurant's profitability.

The Commission Problem

Most third-party delivery apps charge restaurants between 20% and 30% commission on every order placed through their platform. That means for every $50 takeout order, you're handing over $10 to $15 before you've even paid for food, labour, or packaging.

Here's what that looks like for a single order:

That $15 difference might not seem like much on a single order. But it adds up fast.

The Annual Impact

Let's say your restaurant processes just one delivery order per day through a third-party app:

• Daily commission loss: $15
• Monthly commission loss: $450
• Annual commission loss: $5,475

Now, most restaurants process far more than one delivery order per day. If you're doing 10 orders a day:

• Daily commission loss: $150
• Monthly commission loss: $4,500
• Annual commission loss: $54,750

That's a new employee's salary. Or a kitchen renovation. Or the difference between a profitable year and just scraping by.

The Hidden Cost: Price Markups

To offset commission losses, many restaurants mark up their menu prices on third-party apps. But this creates a different problem: your customers pay more online than they do in your dining room.

This price disparity erodes trust. Customers notice when a $15 entrée costs $19.50 on a delivery app. Some will stop ordering. Others will switch to a competitor with lower prices.

The Zero-Commission Alternative

Dine Local offers three partnership tiers: Core Ordering Partner, Complete Digital Storefront, and Growth Partner Suite. The managed website is included in Complete Digital Storefront and Growth Partner Suite. See current pricing for each tier's scope and rates.

Zero commission does not mean zero payment-processing cost. Online payments processed through Stripe incur a disclosed processing fee on the total including tax and delivery; see pricing for current terms. Delivery fees are paid by the customer. For non-delivery orders, restaurants may offer payment in person at pickup.

The commission figures above are illustrative, not a net-savings forecast. They exclude subscription fees, payment processing, taxes, delivery, food, labour and packaging. Compare your actual third-party agreement and payment mix before estimating savings.

Beyond the Money: Owning Your Customers

Third-party apps don't just take your margins: they take your customers. When a customer orders through a marketplace, the app owns that customer relationship. They see your competitor's ads on the same screen. They can switch to another restaurant with one tap.

With Dine Local, you own your customer data. Every order, every contact, every preference is yours. You can build loyalty, run promotions, and market directly to your customers, without a middleman.

The Bottom Line

Third-party delivery commissions are a tax on your restaurant's success. Switching to a zero-commission model like Dine Local is one of the fastest, most impactful changes you can make to improve your profitability, without raising prices or cutting quality.

Keep your margins. Keep your customers.

Want to see how Dine Local works for your restaurant? Book a demo and we'll walk you through the full platform.