Does anyone know if I can charge more for Grubhub orders?

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Peppydogg

New member
I can’t afford to drop them but the 20% commission we pay is getting ridiculous. I had an idea to charge $1-2 more (than my regular menu prices) per pizza and a few other items. If I can squeeze an extra $100 a week, out of the same number of orders, that would help offset the commission. Does anyone know if this is ok? or do my Grubhub prices have to match my menu? Do they even pay attention? Should I have been doing this all along?
 
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They say they need to match your menu prices. We have a local shop that charges more on menu drive and I bitched multiple times. I hate these third partie a- sholes. GH wants us charging the same price and ontop of that they want us to drop our delivery fee, lower our minimum for delivery and offer specials. Screw GH.
 
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You can charge a higher delivery/service charge. Call up and ask your account manager to up your delivery/service charge a couple of dollars per order. Don’t take no for an answer!

On another note, GrubHub got me a couple a years ago. I worked all of this year and half of last year toward getting rid of them while not losing sales. My results year over year are:

12/5/17 - 12/4/18 I was at 20% commission
12/5/18 -12/4/19 I switched to 17.5% commission 2/26/19

GrubHub -19.7%
Integrated Online Ordering +23.9%
Total Online Sales +16.8%

I’m working on my next phase now.

I’ve had enough of these 3rd party sites taking money from us and not getting anything in return. They take 20 to 30 percent!
On a $30 order

GrubHub Commision (20%) $6
Food Cost (30%) $9
Labor with taxes (28%) $8.40
$23.40

$30 - $23.40 leaves you $6.60 subtract all your over head and your left with next to nothing.

This company does not care about you or bringing you business. They don’t bring you customers, they bring their customers to you and your customers to them.

Let me know if you or anyone else wants any help.
 
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We have a local sushi place that offers a 30% discount when ordering directly from the store. So their menu prices are set up that they can make the same margin from 3rd-party orders as they would in house. That’s one strategy.

Our delivery fee on the 3rd-party services is higher to offset some of the cost. Our menu doesn’t list the amount of our delivery fee though, it just says we have an, “additional fee for delivery.”

As a side note: there are now companies that compile orders from all the 3rd-party companies and send them to you on one device so you can ditch the tablet farm. Chowly is one. Your Fare is another. I’m sure there are more.
 
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Hello!

A lot of our customers that we print menus for will have a 3rd party menu created and sent with a 20% increase on each item. It seems to work for them. Just thought I would share that for you.

-Kevin
 
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How does each menu get distributed? Do they give both menus to customers? Why would you want to send someone to a 3rd party site when you can send them to yours? Trying to understand the logic of doing something like this.
 
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I read the contract for one of the 3rd party services in my area. It does allow for in house prices to be lower than on their site but all other 3rd party sites must have the same pricing as their site.

Read your contract to see what loop holes there might be.
 
Rico said:
How does each menu get distributed? Do they give both menus to customers? Why would you want to send someone to a 3rd party site when you can send them to yours? Trying to understand the logic of doing something like this.
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Rico,

Sorry I don’t think I explained it well enough.

We send the third party a single menu with a 20% increase. We don’t mail those menus.

For example: I just had a customer who printed 25k menus that he will use as a his take-out menu. After the initial design, we created another menu for him with a 20% increase on his prices. We then sent the menu with the 20% increase to GH. People who order from that platform pay an extra 20% but it doesn’t hurt my customer on the back end. Does that make sense?
 
Thank makes great sense! I like that idea. If I didn’t work so hard to get rid of GrubHub without losing sales I might have tried this.
 
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