ChooseOutRestaurant Delivery Markups — Why Food Costs More on Apps
Most UK restaurants charge 10-25% more on Uber Eats, Deliveroo or Just Eat than they do in-store or on their own website. The reason is structural — and it is not really the restaurant's fault.
The 30% commission problem
Every UK delivery platform charges restaurants 25-35% commission on every order. On a £20 menu basket, the platform takes £5-£7 — out of a restaurant whose net margin is typically 8-15% on dine-in.
Without raising prices, that commission would turn every delivery order into a loss-maker. Restaurants have three options:
1. Refuse to be on apps. Some do — usually the established places with strong direct customer bases. 2. Eat the cost. Some try, briefly, then change their mind. 3. Raise app prices. The most common solution.
A 15-20% markup on app prices is the typical compromise. The restaurant still earns less per delivery order than per dine-in customer, but it covers most of the commission gap.
What this looks like to you
A burger that costs £14 in the restaurant is typically £16-£17.50 on Uber Eats or Deliveroo. A bottle of Coke that costs £2.50 in-store is £3.50-£4 on the app. A £20 menu basket becomes £24-£25 just from the markup, before any fees.
Layered with delivery and service fees, that £20 menu can land at £30-£32 on the app vs £20 at the counter.
What it looks like to the restaurant
The maths from the restaurant's side:
- £20 dine-in: £20 revenue, £6-£10 net after costs.
- £20 app order at app prices (£24): £24 revenue × 70% = £16.80 net to restaurant, before food costs. After food costs, £4-£7 net.
- £20 direct delivery (£20): £20 revenue, £6-£10 net after costs.
Direct ordering is the best for the restaurant. App ordering is meaningfully worse for the restaurant, even with the markup.
Where markups are smaller
Some restaurants do not mark up app prices much:
- Newer restaurants trying to build volume. App orders are pure customer acquisition, so the commission is tolerable.
- Restaurants with high-margin items. Pizza chains, dessert places, drinks. The commission hurts less when the underlying margin is 60-70%.
- Chains with negotiated commission rates. Major UK chains pay 15-22% rather than 25-35%, and pass less of the cost through.
Where markups are larger: small independents with thin margins, especially family-run or single-location restaurants without negotiating leverage.
What it means for ordering
If you regularly order from a specific independent restaurant, ordering direct (website, phone) saves them and you both money. If you order from a chain, the difference between direct and app is smaller — sometimes just delivery and service fees, not the items themselves.
Why are restaurant prices higher on Uber Eats than in the restaurant?
Because Uber Eats charges restaurants 25-35% commission. Restaurants raise app prices 10-25% to recover most of that, so customers pay part of the commission without seeing it as a separate line.
Do all UK restaurants mark up their app prices?
Most do, but not all. New restaurants and high-margin chains often keep prices the same. Established independents with thin margins almost always mark up.
Is the markup worth it for the convenience?
For occasional orders, often yes. For regular orders to the same restaurant, the cumulative cost of markup adds up — direct ordering becomes the rational choice if the restaurant has its own site or phone delivery.