Online Ordering · Comparison Guide
Third-Party Delivery Apps vs. Direct Ordering: The Full Breakdown
Every order that goes through a third-party delivery app costs you 20 to 30% in commission. Every order that comes through your own direct ordering channel costs you a flat processing fee of 2 to 3%. Here is what that actually means for your restaurant, line by line.
| Third-Party Platforms | Direct Ordering | |
|---|---|---|
| Commission rate | 20 to 30% per order | 2 to 3% processing fee |
| Net margin on $25 order | $17.50 to $18.00 | $24.25 |
| Customer data ownership | No. Platform owns the customer. | Yes. You own email, phone, order history. |
| Reorder marketing ability | Limited. Cannot email or text the customer directly. | Full. Email, SMS, push notifications, loyalty. |
| Setup cost | $0 (already live) | $2,500 flat (our service). Square Online itself is free to run. |
| Monthly cost | Commission on every single order, forever | Free on Square's Free plan, no monthly fee and no marketplace commission |
| Time to launch | Already live | 2 to 4 weeks |
The math on a $25 order
A $25 order through a delivery app at a 28% commission costs you $7.00 in fees. Your net is $18.00. The same $25 order through your direct ordering channel at a 2.9% processing fee costs you $0.73. Your net is $24.27.
That is a $6.27 difference per order. If you do 300 delivery orders a month, that is $1,881 lost to commission every single month. Over a year, that is $22,572.
You do not need to leave the apps. You need to build a direct channel alongside them and shift 20 to 30% of your volume over time. A 25% channel shift on 300 monthly orders saves you roughly $5,643 per year. Read the full strategy in our guide on moving delivery customers to your own channel.
Why customer data matters more than you think
When a customer orders through a delivery app, you do not get their email, phone number, or order history. You cannot send them a promotion. You cannot remind them to come back. You cannot build a loyalty program around them. The platform owns the relationship.
When a customer orders through your direct channel, you own all of it. You can email them, text them, and track what they order. Restaurants with active email and SMS lists see 20 to 25% higher visit frequency from enrolled customers. That is not a marginal improvement. It is the difference between a customer who orders once and one who comes back every week.
Frequently Asked Questions
Is direct ordering worth it if I'm already getting orders through the delivery apps?
Yes. Every order that moves from a delivery app to your direct channel saves you 25 to 30 points of margin. You do not need to leave the apps. You need to build a direct channel alongside them and shift 20 to 30% of your volume over time. That shift is worth thousands of dollars a month for most restaurants.
What does direct ordering actually cost to set up?
Our standard is Square Online, which is free to run on the Square Free plan: no monthly fee, no marketplace commission, just the standard online processing rate of 3.3% plus 30 cents per order. If you already run online ordering through Toast, Clover, or Olo and it works, we optimize what you have instead of migrating you mid-stream. Our service to set it up, optimize your listings, train your staff, and build the shift strategy is $2,500 flat.
Will customers actually use my direct ordering instead of the apps?
Some will, some won't. Customers order through apps for convenience, not loyalty. If your direct channel is easy to find (QR codes, bag inserts, your website), and you price it equal to or slightly below the platform, a realistic shift is 20 to 30% of your delivery volume over 6 to 12 months.
Should I raise my prices on the delivery apps to cover the commission?
Yes, most restaurants should mark up third-party menu prices by 15 to 25% to protect margin after fees. This also makes your direct channel more attractive by comparison. The markup should cover the commission without making your food seem overpriced relative to competitors on the same platform.
What's the biggest mistake restaurants make with online ordering?
Treating the delivery apps as the only channel and never building a direct ordering system. That means every single delivery order costs you 25 to 30% forever, and you never own the customer data to drive reorders. The fix is simple: set up direct ordering, push it in-store and on packaging, and let the economics do the work.
Keep more of your online ordering revenue.
We set up your direct ordering system, optimize your third-party listings, and build the strategy to shift customers to your own channel. $2,500 flat. 30-day money-back guarantee.
See the Online Ordering Service →