With over 31 million active users and 300,000 participating restaurants, it’s safe to say that Grubhub ranks among the top food delivery apps in the U.S. And, we have to say, these stats make it quite appealing to a diverse range of users.
Whether you’re an eatery owner hoping to grow your clientele or a customer looking to satisfy a craving, we’re here to help you understand how Grubhub works, pricing-wise.
Grubhub Cost for Restaurants
If you have a restaurant and want to partner with Grubhub, you need to be aware of the three major aspects that will influence the cost of this partnership.
With Grubhub Direct, eligible restaurants control their accounts single-handedly, so they won’t be subjected to any marketing commissions whatsoever. However, their visibility will be quite limited.
That’s why you’ll find many eateries opting for Grubhub Marketplace to gain maximum exposure among 33+ million users. This, of course, comes at a price, which is determined by the marketing plan you choose.
Marketing Plans and Pricing
Grubhub Marketplace offers three marketing plans, each with its own set of benefits and pricing. It’s important to note that you won’t be charged any upfront fees but rather a marketing percentage per order.
We’ll walk you through these plans so you can decide which one best suits your needs.
This plan’s marketing rate begins at 5%. It includes the fundamental features you’ll need to get your account up and running.
For example, you’ll have a dedicated advisor to help you with managing your account. You’ll also get a welcome kit that contains key tools to use for your listings and a free professional photoshoot for your menu.
This plan’s marketing rate begins at 10%. It contains the same benefits as the Basic plan but with extra swagger to help you reach a larger customer base.
For instance, if you choose Grubhub’s delivery (more on that below), they’ll set a delivery fee that’s less than what’s imposed on restaurants in the Basic plan. This is to encourage users to order from your eatery.
You’ll also have access to Grubhub Plus (GH+) customers who place orders regularly.
This plan’s marketing rate begins at 15%, and for an additional 5%, you’ll get sponsored listings, which will place your eatery in the top three spots.
It offers you everything in the other two plans, plus more. Along with setting the lowest delivery fee for your restaurant, you’ll have access to Promotions and Loyalty tools to expand your reach.
You’ll also be able to respond to customers’ reviews, which we think is a great way to develop a trusting relationship with them.
Delivery Options and Pricing
You’ll have three options for delivering food with Grubhub. We’ve listed them below, along with their prices.
- Self-Delivery: If you have perfectly equipped delivery drivers, you can use your fleet and avoid the app’s delivery fees.
- Grubhub Delivery: If you want to use only Grubhub’s drivers for your deliveries, each order will be subject to a delivery fee of at least 10%.
- Supplemental Delivery: You can use both your couriers and the app’s delivery service for support, and the orders fulfilled by Grubhub will incur a minimum delivery fee of 10%.
All restaurants pay a processing fee that consists of a constant $0.30 charge plus 3.05% of the order’s total cost.
Grubhub charges you this fee to cover processing credit card transactions, as well as their payment security service that limits fraud.
Grubhub Cost for Customers
When using Grubhub as a standard diner, your order will incur a set of basic charges. However, things become a little different when you pay a monthly subscription to become a GH+ member.
Before exploring the costs associated with both scenarios, we want to clarify something. That is, you might find the price of a meal on Grubhub higher than if you ordered it dine-in.
Well, this happens when restaurants change their prices to cover the multiple fees charged by the app.
Along with the cost of your order and any applicable taxes, you’ll be charged three additional fees.
- Delivery Fee: You can expect to pay anywhere between $1 to $12 for delivery. But, we must admit, we’ve rarely encountered cases where it exceeded $7. This fee is levied by the restaurant if it uses its own driver fleet or by Grubhub if the provider uses the app for delivery.
- Service Fee: Grubhub will charge you a percentage of your order as a service fee; it helps them meet the costs of running their services. This fee varies based on several factors, such as where you live, and can be as low as $2 or as high as $8.
- Tip (Optional): Although tipping drivers on Grubhub isn’t mandatory, it’s much appreciated! If you’re not sure how much to leave, stick to the universal tipping rule of 15% to 20% of your order’s total cost.
If you constantly rely on Grubhub’s food delivery services, you might want to consider signing up for their Grubhub Plus program. It’ll set you back $9 per month, but in exchange, you’ll get:
- Unlimited free deliveries for orders above $12.
- Access to Elite Care, which ensures you receive assistance right away.
- Special exposure to promotions, benefits, and local events.
Frequently Asked Questions
Does Grubhub Charge Extra for Curbside Pickup?
No, the app doesn’t charge restaurants or customers any additional fees or delivery charges for curbside pickup. In case you didn’t know, this is one of Grubhub’s pickup features that allows diners to collect their orders without entering the restaurant; they’re brought out to them.
Do Grubhub Drivers Know if You Tip?
Yes, Grubhub couriers can view the exact amount of your tip after they’ve delivered your order. They can also guess whether you’ll reward them or not before accepting your request by subtracting the total cost of your order from their total payout.
By now, you know that Grubhub offers partners plenty of options to list their restaurants at various price points. If you’re not ready to invest in marketing yet, go with Grubhub Direct; if you are, you should select a plan with Grubhub Marketplace.
For hungry customers out there, the app’s pricing scheme is exactly what we outlined in this blog – no hidden fees. And if you want to save money on deliveries, subscribing to Grubhub Plus is the way to go.