Third-Party Delivery vs. Direct Online Ordering: What’s Better for Restaurants?

For modern restaurants, delivery is non-negotiable, but how you manage it can make or break your profitability. The real decision comes down to this: should you rely on third-party delivery platforms like DoorDash and Uber Eats, or build your own direct online ordering system?

In this article, we’ll compare both approaches from a restaurant owner’s perspective, exploring the pros, cons, and ultimately the best path to balancing visibility and profitability.

Commission Costs and Profitability

Let’s start with the biggest differentiator—cost.

Third-party delivery platforms typically charge restaurants 20% to 35% per order in commissions (sometimes more, depending on service tier and promotion boosts). These fees can quickly erode your margins, especially on low- to mid-priced menu items.

By contrast, direct online ordering platforms—like Sauce—are either commission-free or charge a flat monthly fee. You retain full revenue from each order and can better control menu pricing, promotions, and profits.

Example:

• A $25 order on a marketplace = ~$6–$8 lost to commissions

• A $25 direct order = ~$25 retained revenue (minus payment processing fees)

In a high-volume delivery environment, that difference adds up fast.

Customer Ownership and Branding

When a customer places an order through Uber Eats or Grubhub, they’re engaging with the platform’s brand—not yours. These third-party systems:

• Control the user interface

• Restrict access to customer data

• Compete with your listing by showing nearby alternatives

• Limit how you can communicate with or re-engage customers

With direct online ordering, you:

• Own the full brand experience (logo, colors, voice)

• Collect valuable first-party data (email, order history)

• Can build loyalty programs, send follow-ups, and drive repeat orders

According to research, 58% of consumers say they prefer ordering directly from a restaurant when given the option. That means your brand, not a third-party marketplace, should be the one they remember.

Finding the Right Balance in Your Strategy

Third-party platforms do serve a purpose. They’re especially useful for:

• Customer discovery (especially in large cities or food-dense neighborhoods)

• Reaching app-only diners who default to marketplaces

• Filling gaps in volume when launching a new brand

But they should be used strategically—not as your main channel.

The ideal strategy is hybrid:

• Use DoorDash/Uber Eats for exposure

• Promote your own system on social media, receipts, Google Business Profile, and packaging

• Encourage repeat customers to order directly (with loyalty points, better prices, or exclusive items)

  
  

Platforms like Sauce help restaurants own their digital storefront while still leveraging delivery logistics and third-party reach. You get the best of both worlds—broad visibility, but long-term customer retention and control.

1. What’s the difference between third-party delivery and direct online ordering?

 Third-party platforms like Uber Eats control the customer experience and take a commission. Direct ordering systems let customers order from your site and give you full control over branding, pricing, and data.

2. How much do third-party apps charge restaurants?

 Most platforms charge between 20% and 30% in commission per order. Some may also charge extra for boosted listings or promotions.

3. Is direct online ordering really commission-free?

 Yes—platforms like Sauce offer commission-free ordering with a flat monthly fee, giving you full revenue from each order minus standard payment processing costs.

4. Can I use both third-party delivery apps and my own ordering system?

 Absolutely. Many restaurants use third-party apps for visibility and route repeat customers to their direct site for better margins and loyalty.

5. Why do customers prefer ordering direct from restaurants?

 Customers often trust and prefer direct ordering because they feel it supports the restaurant directly. It also often leads to better accuracy, pricing, and communication.

Own Your Margins and Relationships

Third-party delivery apps help you reach new diners. But building a direct ordering channel is how you turn those one-time customers into loyal regulars—and keep more revenue with every sale.

A platform like Sauce makes it easy to do both: drive traffic to your own ordering system, while giving your team the tools to manage fulfillment and customer engagement under your brand.

In a delivery-first world, your restaurant’s growth depends on more than exposure—it depends on ownership.