Announcing Updates to Provide More Choice, Flexibility, and Transparency for Local Restaurants
Tags: Small Business, Delivery, Restuarants

Announcing Updates to Provide More Choice, Flexibility, and Transparency for Local Restaurants DoorDash Follow Apr 27 · 5 min read

DoorDash, the nation’s leading last-mile logistics platform, unveiled new pricing changes designed to better support restaurant partners. Beginning today, all U.S. local restaurants will have a choice of three different delivery commission price points with new Partnership Plans, starting with a 15% option. Additionally, DoorDash is lowering Pickup commission costs to 6% and making Storefront, a commission-free online ordering product, free (except for payment processing fees) for all restaurant partners. These actions are intended to create more choices and solutions across a portfolio of restaurants’ needs and put more profits into the pockets of local businesses.

Improving DoorDash Pricing With More Choices for Local Restaurants and Lower Pickup Fees

To empower every restaurant to meet their individual goals, all local, U.S. restaurants on both DoorDash and Caviar will have a choice of three different Partnership Plans, with commission rates that vary based on the level of marketing support included. Restaurants will also always have the flexibility to update their Partnership Plan selection to accommodate their evolving needs.

DoorDash Basic (15%): Basic is the most cost-effective way for restaurants to offer delivery and pickup to customers on DoorDash.

Basic is the most cost-effective way for restaurants to offer delivery and pickup to customers on DoorDash. DoorDash Plus (25%): Plus helps restaurants grow orders through access to our most loyal customers as part of DashPass, an expanded delivery area, and reduced delivery fees for customers.

Plus helps restaurants grow orders through access to our most loyal customers as part of DashPass, an expanded delivery area, and reduced delivery fees for customers. DoorDash Premier (30%): Premier helps restaurants maximize the number of new customers and the total volume they receive from DoorDash. It offers the lowest customer fees and the largest delivery area, in addition to the benefits of DashPass.

Premier helps restaurants maximize the number of new customers and the total volume they receive from DoorDash. It offers the lowest customer fees and the largest delivery area, in addition to the benefits of DashPass. New Pickup Pricing (6%): DoorDash is also reducing Pickup commission to 6% across all restaurant partners and plans so they can leverage the reach of the DoorDash Marketplace and connect directly with customers in their neighborhood. This rate includes payment processing.

“Jai Meals operates out of a local mall, so delivery has been an important part of how I have made up for lost income over the past year of dine-in closures. Despite this, my previous commission didn’t work for my business; it was hard to absorb that high of a cost, especially when delivery became a large percentage of my orders,” said Sherry Copeland, owner of Jai Meals in Plano, Texas. “With the Basic plan, I can offer delivery to customers, who increasingly enjoy the convenience delivery provides, but at a cost that is more aligned with my products, my goals and my customers’ needs.”

“We are a new restaurant who just opened our doors in December of last year. To help grow our business, we partnered with DoorDash in March, and have been excited by the early reception from local customers. We are seeing incredible sales and growth through the app, and even Dashers are coming back to order their dinner after they complete a delivery,” said Bethan Johnson, co-owner of PizzaCo in Kokomo, Indiana. “As a new business, we can’t predict what six months or a year will look like or what our needs will be. Right now, the Premier plan makes sense for us to continue growing, but it’s great to have the option to move to a plan that might be better aligned with our future goals. That flexibility is key as we are just starting out.”

Restaurants can take a short, interactive quiz about their business and their goals to identify which tier works best for them and find more information on the plans, here. On May 4, restaurant partners can join DoorDash executives for a Town Hall event to ask questions on the new Partnership Plans and how to approach them for their business.

Giving restaurants the power to create their own online stores, commission-free

DoorDash Storefront is a product that enables any restaurant to turn their website into an ecommerce store. Delivery orders placed directly through the restaurant’s online store are fulfilled using DoorDash Drive. Since its launch last May, thousands of restaurants have used DoorDash Storefront to offer delivery and pickup to their customers, owning the customer relationship end-to-end and turning website visits into sales, all without paying a standard commission fee.

It’s important for restaurants to build their own online channels. That’s why DoorDash is eliminating the one-time set-up fee, monthly software fees, and per-order merchant delivery fees for Storefront, and restaurants will only pay a payment processing fee on all Storefront orders. Storefront is available to all restaurants in the U.S., regardless of whether they are partnered with DoorDash on Marketplace.

“We currently use Storefront across nine of our locations. Over the past year, when every order and dollar counts, Storefront has saved some of our businesses — enabling us to convert website traffic to sales without any commission fees,” said Tyler Kaune, Director of Strategic Technologies at LM Restaurants. “With Storefront, DoorDash is taking what it has built over eight years and making it available for its small business partners, and now, with reduced fees. This is a game changer for us and so many other independent restaurants who are looking to build their own online ordering platform.”

Continuing Main Street Strong Initiatives To Help Restaurants Today and Tomorrow

Moving forward, feedback and accountability are important to continue delivering solutions to restaurant partners. In continuation of Main Street Strong, DoorDash will be appointing a Chief Restaurant Advisor who will work in an integrated advisory role, acting as a “Voice of the Industry” within DoorDash and as an influential liaison between DoorDash and the restaurant industry.

As the world begins to reopen, DoorDash will continue to listen to restaurant partners and take additional actions to build a better, more fair relationship with local restaurants.

*DoorDash Premier Growth Guarantee: Accept at least 20 orders per month or DoorDash will refund your commission costs at the end of the month. Partners are eligible for this rebate only if (1) they cancel fewer than 5 orders that month and (2) maintain “open hours” on DoorDash for 90% of the Store Hours that they have set in the Merchant Portal.