The surprising cost of take-out delivery
Ordering take-out and have it delivered feels convenient in the moment, but the final bill often comes as a shock. On top of the food itself, platform fees, delivery charges, service fees, and a tip for the driver can easily double the cost of a modest meal.
The Facts
- The listed menu price is only the starting point, then come the fees
- Delivery platforms charge both the restaurant and the customer
- A single delivered meal for one person can cost more than a full day of home cooking
- Small, frequent orders are among the most expensive ways to eat
There is nothing wrong with having take-out delivered once in a while. Unfortunately it is easy to underestimate how much this actually costs. The price shown on the menu is just the beginning. By the time the order is confirmed, several additional charges have been added, and the total can be startling.
What goes into the final price of an order?
- Menu price: This is the advertised price of a take-out item and the one people often base their order on. This price may already be slightly higher on delivery platforms than in the restaurant itself. That’s because restaurants try to recoup some of the fees they have to pay to the delivery platform.
- Delivery fee: It is charged per order, and varies by distance, time of day, and platform. It can range from a couple of dollars to a substantial amount.
- Service fee: This is a percentage-based charge added by the delivery platform, typically between 10 to 15 percent of the order.
- Small-order fee: Some platforms add a surcharge if the order total falls below a set minimum, which penalizes small orders most.
- Tip for the driver: It’s customary to tip the delivery person 15 to 20 percent of the order.
How does delivery compare to the dine-in or take-out price at the same restaurant, for a McDonalds Big Mac Value Meal?
- Dine-in or take-out: $12.59
- Delivery platform A: $25.89, or 206% of the dine-in price
- Delivery platform B: $29.35, or 233% of the dine-in price
The final price could actually be even higher if the Big Mac is the only item in the order. In that case, a ‘small order fee’ might also be added to the total.
The yearly cost of eating a Big Mac once a week:
- $655: Dine-in at a fast-food place
- $1,345 to $1,525: Home delivery total
- $691 and $871: Just the home-delivery fees (that's two months worth of groceries for the average single-person household in Alberta)
- $208: Air-frying a copycat Big Mac meal at home
How many hours of work at minimum wage does it take to afford one Big Mac per week for a year?
- 14 hours: Air-frying a copycat Big Mac meal at home
- 44 hours: Dine-in at a fast-food place
- 76 – 88 hours: Home delivery (46 – 58 hours just for the home-delivery fees)
- 7 hours: The cost of an entry-level air fryer!
It's easy to see how convenience extracts a heavy price from a small food budget, over time.