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Guide

Decoding Delivery Fees

Delivery platform fees are among the largest and least understood costs in restaurant operations. Most operators know roughly what percentage they're paying in commission, but the full picture includes service fees, payment processing charges, marketing minimums, and promotional co-funding requirements that compound in ways that aren't always visible at the order level. This guide from Otter breaks down how each major platform structures its fee model, what the all-in cost looks like for different restaurant types and order volumes, and where operators consistently find margin they didn't know they were losing, from incorrectly applied fees to promotional structures that are costing more than they're returning.