The contemporary American restaurant experience has changed profoundly in recent years, led primarily by the growth of third-party food delivery companies such as Grubhub, DoorDash, and Uber Eats. These services provide an attractive convenience: food from beloved eateries delivered directly to the door. However, that convenience is increasingly expensive, with service fees, delivery fees, and tips producing a complicated financial profile for both consumers and restaurants. The real cost of this convenience is no longer on the margin but rather at the center of choice, remaking the behavior of consumers and the restaurant business model.
Consumers are taking a closer look at their receipts, with third-party app orders increasing more rapidly than direct restaurant orders from 2022 through 2024, per Technomic. Fee discounts are offered by paid app memberships, but studies and consumer feedback have shown that overall costs tend to be higher on such platforms. This escalating dissatisfaction is a manifestation of an undercurrent tension in the dining system: convenience versus value.
Even as costs rise, third-party delivery service adoption keeps on rising, going from 15% in 2020 to 21% in 2024, fueled by such capabilities as order tracking, promotions, and restaurant discovery. Yet the trend sits alongside a strong consumer pushback against excessive fees, which indicates a market poised on the verge of dramatic change.
1. Increased Costs and Consumer Resistance
Shoppers’ growing examination of delivery prices reflects a broader phenomenon: the convenience price tag is affecting behavior.
- 41% of shoppers said they ordered less delivery because of excessive delivery fees.
- 48% mentioned inflated menu prices on third-party apps as a discouragement.
- Gourmet restaurant menus on delivery platforms have all but doubled in price since 2020.
- Service fees tend to hide the true price until checkout, causing consumer shock.
- Local regulations, including California’s driver benefits fee, add additional cost variability.
- Subscription services such as DashPass, Uber One, and Grubhub+ provide partial relief but don’t remove all fees.
- Tips continue to be an important part of the ultimate cost since service fees do not always adequately support delivery staff.
Delivery firms justify these charges as covering logistics, driver pay, and operational expenses. Grubhub attributed increased expenses for delivering necessitating fee hikes, while DoorDash highlights active customer growth in the face of ongoing fee criticism. Uber’s delivery business is highly profitable with earnings showing the convenience value of services. Consumers, however, continue to be upset, perceiving service fees to be opaque and disproportionately high.
This fiscal stress is not just with consumers. Restaurants pay high commissions, ranging between 15% and 30% for Uber Eats and DoorDash, with Grubhub Marketplace throwing in marketing and delivery fees. Smaller shops such as Professor Pizza in Illinois call those fees predatory but unavoidable, balancing exposure to app consumers against diminishing profit margins. Research finds menu prices on third-party platforms average 20% more than in-dining, demonstrating downstream cost implications of delivery service charges to everyday consumers.
2. Strategic Consumer Shift: Pickup Over Delivery
In the face of increasing expenses, consumers are changing habits and putting pickup over delivery first. Close to half of off-premises diners now opt for pickup to sidestep charges, with younger and price-sensitive cohorts driving the movement.
- 58% of takeout diners opt for pickup to avoid paying delivery.
- 80% of off-premises orders are pickup, vs. just 9.5% delivered.
- 42% say tips avoidance is an incentive.
- Customers are increasingly ‘trading effort for cost,’ preparing to pick up meals themselves.
- This trend cuts across all income segments, pointing to widespread economic pressure.
- Restaurant CEOs say they are seeing significant declines in third-party delivery orders.
- Pickup also enables diners to escape hidden app-based fees and surcharges that are unpredictable.
Erik Frederick, Pizzeria Uno CEO, notes that consumers are actively tightening their purse strings, opting for self-collection instead of paying high delivery fees. This trend reflects a broader shift where consumers prioritize cost-effectiveness and certainty over convenience. Convenience in terms of taking a fast trip to a restaurant, avoiding several charges, is today a deciding factor in dining behavior.
Restaurants are fighting back with curbside pickup, a quick, touchless answer that navigates operational convenience and customer needs. This solution allows organizations to maintain pricing control on the menu, decrease logistical expense, and enhance service integrity. The net effect makes pickup an economical alternative, maintaining customer affinity while boosting restaurant margins.
3. Curbside Pickup as a Profitability Strategy
Curbside pickup is now a restaurant strategy that marries convenience with cost-effectiveness. By minimizing dependence on delivery, restaurants save on labor and operational expenses and maintain menu, price, and quality control. Pickup also provides increased hygiene in contactless transactions, reinforces customer engagement, and aids sustainability by limiting packaging waste and carbon footprint.
- 63% of quick service restaurants have curbside pickup.
- Pickup saves labor and operational overhead compared to delivery.
- Average delivery increases the cost of an order by $10.67, 77% more than pickup.
- Restaurants retain control of menu, price, and quality.
- Direct pickup enhances customer relationships and loyalty.
- Contactless payments enhance hygiene and safety.
- Pickup eliminates packaging waste and reduces carbon emissions.
Curbside pickup reduces reliance on third-party delivery companies while offering a convenient service to customers. By streamlining order fulfillment and reducing operating expenses, restaurants can enhance profit margins and retain pricing and quality control. Direct interaction with customers also encourages greater loyalty and satisfaction.
Aside from profitability, curbside pickup has operational and environmental benefits. High volumes of orders can be handled by existing personnel in restaurants with minimal error rates compared to outsourced delivery. Contactless pickups are welcomed by hygiene-conscious consumers, and less usage of packaging means less waste and carbon footprint. These coupled financial, operational, and environmental benefits make curbside pickup a sustainable and desirable solution for contemporary restaurants, balancing customer convenience with business efficiency and profitability.
4. Technology as the Backbone of Pickup Efficiency
Technology is the backbone of effective curbside pickup, making both customer experience and restaurant operations efficient. Mobile apps provide customization of orders, scheduling, and live update, while POS system integration provides accuracy and seamless workflow. Digital capabilities facilitate handling high-volume orders, minimize errors, and preserve operational control, helping restaurants maximize pickup without diminishing customer satisfaction.
- Mobile apps allow consumers to browse menus, personalize orders, and arrange pickups.
- POS integration provides precise order management.
- Push alerts notify customers that orders are ready.
- Straight-through communication capabilities eliminate errors and enhance satisfaction.
- High-capacity platforms manage large-volume orders at multiple locations.
- Digital capabilities increase operational management and instant fulfillment.
- Platforms such as Per Diem and Clover POS streamline order placement and tracking.
Mobile technology streamlines curbside pickup by unifying ordering, communication, and tracing. Customers are given real-time reminders and concise instructions for pickup, while restaurants retain the control over pricing, menus, and satisfaction standards. This minimizes errors and operational tension and results in a smoother experience for both. Integration of digital platforms enables restaurants to execute more orders efficiently with existing personnel, reducing the need for expensive third-party services. Mobile ordering also enables loyalty programs and visibility into customer data for targeted marketing, further enhancing customer interaction. Through technology integration in pickup operations, restaurants attain both customer convenience and enhanced profitability. This integration forms a viable model balancing efficiency, precision, and satisfaction, assuring curbside pickup is a competitive and scalable solution for contemporary dining.
5. Direct Ordering and Consumer Incentives
Direct ordering over a restaurant’s website or app boosts pickup strategies by increasing profitability and customer relationship building. Restaurants have complete control over fulfillment, price, and service quality by avoiding third-party commissions. Consumers enjoy lower prices and possible discounts, while companies can use loyalty programs and promotions to facilitate pickup and repeat orders.
- Direct orders reduce third-party commission fees.
- Restaurants capture customer information for loyalty and marketing.
- Customers pay less for bloated delivery and menu charges.
- Small incentives (e.g., 5% for pickup) drive consumer behavior.
- Direct ordering provides control over fulfillment, service, and timing.
- Loyalty points and promotions encourage pickup.
- Trend applies to restaurants, grocery, and retail industries.
Direct ordering provides restaurants with complete control of operations while providing customers with cost savings and convenience. Offering incentives such as discount or loyalty points, businesses incentivize customers to opt for pickup over third-party delivery, to the benefit of both parties.
Such examples as Pizzeria Uno demonstrate the cost savings benefit to the customer, with pickup orders coming at a cost that is almost half of third-party delivered prices. Modern Market Eatery and others likewise employ discounts and rewards to direct customers to proprietary platforms. These efforts enhance restaurant profitability but also enhance customer direct relationships. Industrywide, across restaurants, grocery chains, and all points in between, directing consumers toward direct ordering and pickup represents an underlying trend: prioritizing cost, convenience, and operational leverage while generating loyalty and sustainable business development.
