The Long-Term Impact of High Commissions on Menu Pricing

The Long-Term Impact of High Commissions on Menu Pricing

Author

Taylor Brewser

food menu on the wall
food menu on the wall

Are you inadvertently training customers to think you're "too expensive"? Learn how app markups damage your brand perception and how to fix it.

To offset high commissions, many restaurants resort to "menu inflation"—raising their prices on delivery apps by 20% to 30%. A $15 pasta dish in the dining room becomes $19.50 on the app. While this protects your margin in the short term, it creates a dangerous long-term problem: Sticker Shock.

The Perception Problem

A potential customer browsing the app sees your $19.50 pasta and thinks, "Wow, that place has gotten expensive." They don't realize the markup is there to cover the app's fees; they just associate your brand with high prices.

This perception bleeds over into your dine-in business. That same customer might choose not to visit you on a Friday night because they subconsciously remember the "expensive" price they saw on the app on Tuesday. You lose the delivery order and the dine-in visit.

Protecting Your Brand Integrity

The solution is price parity—offering the same fair price on your website as you do in-store. This builds trust. When customers discover they can get the "real" price by ordering direct, they feel like insiders getting a deal. This strengthens their loyalty to you and encourages them to delete the other apps.

Read: Boosting Revenue with Commission-Free Ordering

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