CLEVELAND — Twisted Taino owner José Melendez keeps track of his sales through third party delivery apps, but using them comes at a cost.

What You Need To Know

  • Restaurants are using third-party delivery services to expand their business

  • The third-party apps get a cut of every sale and charge fees for the drivers and for using the apps

  • Fee and commission structures can vary depending on the app

“They're taking commission, merchant fees, taxes, processing fees," Melendez said. 

In July, he said he didn’t get to keep about 40% of his gross sales though one delivery app, since that amount is for the fees the driver and the app collect for their services. The app gets a percentage of each sale. Melendez said that isn't sustainable. 

Melendez has had to increase prices on an item if it’s ordered through a third party delivery app.

“I have to," Melendez said. "If I don’t do that. I’ll be taking home literally nothing.”

Spectrum News 1 reached out to DoorDash, UberEats and Grubhub. UberEats referred us to their list of cost structure options for restaurants.

“Our rates are structured to give restaurants a variety of options, so they can choose what works best for their business," said a Grubhub spokesperson in a statement. 

DoorDash also referred us to their fee and commission structure plans, and said in their own statement that restaurants are able to select a new partnership plan at any time.

Melendez said for some apps, he also has to pay a fee in order for his restaurant to show up higher in a search on the app.

“You wanna be visible, you need to pay," Melendez said. 

Melendez isn’t sure if it’s worth hiring his own driver, since margins are thin. He said ordering in person or for pickup is preferred, since customers pay less, and he keeps more of the sale. 

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