Viral invoice shows amount restaurants actually make from Grubhub orders

Invoice includes deductions from commissions, processing fees and promotions

Invoice shows how much restaurants actually make when using Grubhub (Stock)

A pizza shop owner has shared an invoice from Grubhub that shows the expensive fees restaurants face when relying on third-party delivery services.

On Wednesday, Giuseppe Badalamenti, a consultant and owner of food truck Chicago Pizza Boss, uploaded a screenshot to Facebook of the March invoice a client of his received from Grubhub.

“Stop believing you are supporting your community by ordering from a third-party delivery company,” Badalamenti captioned the photo. “Out of almost $1,100 of orders [the] restaurant you are trying to support receives not even $400.”

In the photo, which has since been shared more than 2,000 times, it shows that the total amount of pre-paid orders for the restaurant in March was $1,042.63.

However, after Grubhub’s fees and commissions are deducted, the final amount distributed from the delivery service to the restaurant comes out to $376.54, which Badalamenti wrote is “almost enough to pay for the food”.

According to the invoice, costs such as commission, delivery commission, processing fees and promotions are all deducted from the money that restaurants partnered with Grubhub make each month.

The invoice has been met with shock on social media, where people have announced their intentions to avoid using the third-party service and instead rely on the delivery services offered by the restaurants themselves.

“Wow. I realised they got commissions, but I had no idea how much. I think I'll try calling the restaurant directly rather than use Grubhub,” one person commented.

Another said: “I have used Grubhub and DoorDash in the past but never again. I had no idea how much the restaurant gets shorted. When you know better you do better.”

On Grubhub’s website, it explains the various fees it charges restaurants for its services, which can include a “phone order commission rate” that “applies to food and beverage totals and delivery fees for orders placed via the routing phone number listed on Grubhub”.

According to the delivery service, it also charges an order processing fee of 3.05 per cent + $0.30 for each order.

In a comment under his post, Badalamenti accused the company of "predatory" behaviour.

"The small guys don't have negotiating power and the leverage the big guys do but do not want to be forgotten about," he wrote. "These companies make your customers their customers. It is predatory to a degree. They suggest other foods and other restaurants."