For millions of fast food customers in the United States, the price of convenience is piling up.
Online food delivery has become a trillion-dollar, yes, trillion-dollar business. But there are hefty fees for each order that can quickly take away the cost of an otherwise ready-to-eat, affordable meal, making it quickly edible and unaffordable.
According to Chowhound, delivery services often include fees that aren’t immediately obvious. They range from service fees to small ordering fees to higher menu prices compared to in-store purchases.
“You may be able to get a meal directly from the cheapest fast food chain in the U.S. for less than $10, but once taxes, tips, and handling fees are applied, spending less than $20 for delivery is extremely expensive. ” notes a food industry news website.
A delivery worker carries a DoorDash bag in New York, United States, Monday, April 29, 2024. DoorDash is scheduled to announce its financial results on May 1st. Photographer: Yuki Iwamura/Bloomberg via Getty Images
In addition to these hidden charges, standard shipping charges apply. These vary by service and distance, but can add a significant amount to your final bill. Prices vary from a few dollars to more than $10.
While tipping is an important and expected part of the delivery process, it adds another cost that customers may not immediately consider.
“Tipping is essential for delivery drivers, but it can also make a seemingly affordable meal very expensive,” Chowhound explains.
Additionally, some fast food chains offer promotions and discounts on in-store purchases that are not available on delivery orders. This means customers could miss out on significant savings if they choose shipping.
Compare delivery apps
A recent study by FinanceBuzz revealed the costs associated with various food delivery apps.
The study found that Postmates has the highest markup rates, with costs averaging 92% higher than regular menu prices. DoorDash and GrubHub follow with markups of 83% and 80%, respectively. Although costs are still high, Uber Eats has the lowest markup rate at 69%.
Food delivery app costs (FinanceBuzz)
Some concrete examples:
According to FinanceBuzz, a basic Chick-fil-A order of $9.85 can go up to $23.01 on GrubHub, which is a 134% price increase. Even at restaurants with low markup rates like Chipotle, Jersey Mike’s, and McDonald’s, delivery can increase the cost of a meal by 44% to 77%.
“By understanding the full cost of shipping, customers can make better choices and potentially save significant costs,” Chowhound advises.
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