Food portal commission in the UK can reach 41% per order when you factor in markups and fees. Here's what takeaway owners are really paying, and how to take back control.
Since the coronavirus pandemic, food delivery platforms have changed the game for restaurants and takeaways, offering instant visibility and a steady stream of hungry customers. But behind that convenience lies a costly truth: you and your customers are both paying more than you realise.
In this post we will unpack the true cost of food portal commissions, explain why your current pricing strategy might be doing more harm than good and introduce practical tools that help takeaway owners make smarter and more profitable decisions without having to leave the portals or hire your own delivery drivers.
/// 01
The Double Commission Problem: Why Everyone Pays More
When a customer orders through a food portal, the price they pay is not simply the cost of the meal. Here is what typically happens:
Because restaurants pay a 14% to 35% commission (ex. VAT) to the aggregator, they are forced to inflate menu prices to protect their margins. On top of those already inflated prices, the customer also pays extra fees: service charges, delivery fees and sometimes small order surcharges.
Real Example: Jenny's Fish & Chips
Jenny's customers have no idea what is happening behind the scenes. They simply see her prices as expensive.
/// 02
What Are You Actually Earning Per Order?
Many takeaway owners see “30% commission” and assume they can recover the cost by marking up prices by 30%. Unfortunately the maths does not work that way.
- ×Applying the markup after commission rather than before it
- ×Forgetting to factor in VAT, card transaction fees or other costs
Commission Calculator
You can use the Takeaway Growth Agency Commission Calculator to find your true effective commission rate. Many owners are shocked by the result. In Jenny's case, she would have needed to mark her £25 order up to £39.06 just to cover her actual costs.
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Why Food Delivery Pricing Is Riskier Than You Think
Why does it matter if customers pay anyway? In the current economic climate, customers are increasingly price-sensitive. During a cost-of-living crisis, people actively look for cheaper ways to order. Many takeaways are pricing themselves out of their local markets without even realising it.
This is where price elasticity of demand matters. Raise prices by 10% and demand could drop by 15%, meaning less revenue and potentially fewer loyal customers.
The Portal Trap
-35%
Commission eating your margin
- Raise prices customers see
- Receive less per order
- Demand falls as prices rise
- You own nothing
The Direct Channel
0%
Commission on every direct order
- Set your own prices
- Keep full order value
- Own customer data
- Build lasting loyalty
How many customers have mentioned that your in-store prices are cheaper than your portal prices? Most of them do not know about the costs you carry in the background. It is time to give them a better option.
/// 04
Build a Direct Ordering Channel You Actually Control
You do not need to abandon food portals entirely. But you do need a platform you own and control. One where you can:
- →Set your own prices
- →Keep and use your own customer data
- →Avoid stacked commissions
- →Maintain your brand identity
A branded direct ordering solution lets you offer better value to customers without sacrificing profit margin, even if you only start with collection orders. Pair that with smart low-cost marketing and you have a reliable alternative to giving away a third of every order.
/// 05
Use Food Portals Strategically, Not as Your Only Channel
You do not need to leave delivery apps completely. In fact they are extremely useful when treated as lead generators rather than long-term fulfilment platforms.
A Simple Approach
- →Stay listed on portals to attract new customers
- →Deliver a great experience
- →Guide those customers to your own platform
Customers will not switch unless it benefits them. Give them a reason to change their habits:
- →Include flyers in your delivery bags showing the savings available by ordering direct
- →Add QR codes to your packaging linking to your direct ordering platform
- →Offer a loyalty programme with discounts and exclusives only available through your own channel
- →Use Google and Facebook to point customers directly to you
“Some businesses eventually build enough direct loyalty to step away from portals entirely. Others stay listed but drive the majority of repeat orders through their own cheaper system. It does not have to be all or nothing.”
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Collection-Only Still Works If You Promote It
Think delivery is essential? Not necessarily.
Plenty of cost-conscious customers will happily collect their food if the savings are clear and well promoted. A collection-only platform can outperform portals for returning customers.
You simply have to give customers an incentive to order directly and make absolutely sure they know about it.
Client Result
£14.88
saving shown on a single flyer, before loyalty points or discounts
Add a QR code, your logo and a strong call to action and many merchants convert up to 40% of existing portal delivery orders into direct collection orders.
For a takeaway processing 100 portal orders/week
£20K+
potential yearly saving by converting 40% to direct orders. Take a look at our Showcase to see real results.
/// The Bottom Line
Stop Renting Your Customers. Start Building Your Brand.
Food portals have their place. But relying on them for all of your business is expensive, unsustainable and risky.
With a branded ordering platform, purposeful marketing and smart pricing you can:
- →Earn more per order
- →Offer better value to customers
- →Build lasting loyalty
- →Stay visible on food portals while taking back control of your margins
Ready to See Your Number?
Run a free Google Visibility Scan to see where portals are intercepting your customers right now. Or get in touch to talk through a branded ordering system that works for your business.