Grubhub alternatives for restaurants that want the margin back

Why operators look for alternatives to Grubhub

For years, restaurants partnered with Grubhub because it promised a stream of new customers. But the cost of that stream is a commission that can reach 15-30% of every single order, plus a payment processing fee of around 3.05% + $0.30. On a $40 order, a restaurant can easily lose $12 to the platform before paying for food, labor, or rent.

This is why operators are leaving. The math no longer works. While Grubhub, along with DoorDash and Uber Eats, can provide visibility, they do so by taking a significant cut of revenue from a business that typically runs on a 3-5% net profit margin. For many, the volume from marketplaces doesn't make up for the direct hit to profitability.

The core issue is that Grubhub bundles two distinct services: customer discovery (getting seen) and delivery fulfillment (getting food to the customer). When operators decide to leave, they often focus only on replacing the ordering system, underestimating the need for a separate plan to handle delivery and, just as important, a plan to attract customers directly.

The marketplaces compared: commission vs. reach

Before leaving the marketplace model entirely, it's worth knowing how the big three stack up. In the US, DoorDash holds the dominant market share at approximately 67%, with Uber Eats at 23% and Grubhub at around 8-10%. This means that in most US markets, DoorDash offers the largest potential audience.

The platforms' commission structures are broadly similar:

• Grubhub: Offers tiered plans with commissions ranging from 15% to 30%. The lower tiers are for restaurants that handle their own delivery, while the higher rates include access to Grubhub's driver network and more prominent marketing placement.
• DoorDash: Also uses a tiered model with commissions at 15% (Basic), 25% (Plus), and 30% (Premier). Higher tiers promise more visibility and inclusion in their DashPass subscription program, which can drive repeat orders.
• Uber Eats: Commissions for marketplace orders also fall in the 15% to 30% range. They are particularly strong in dense urban markets and with customers who also use their ride-sharing service.

While Grubhub's market share has declined, it maintains a loyal user base in some major cities, particularly in the Northeast. For some restaurants, a multi-platform strategy can maximize reach, but it also means managing multiple systems and paying high commissions across the board.

The powerful combo: direct ordering + delivery-as-a-service

The most effective alternative to Grubhub is to unbundle the service. This means separating the ordering process from the delivery process. You handle the order through your own system, and then use a separate service to handle the delivery.

1. Direct Online Ordering: This is the foundation. Instead of paying a commission on every order, you use a software platform that gives you your own online storefront for a flat monthly fee. Customers order directly from you through your website or a branded app. This approach is the core of a commission-free online ordering strategy. You own the customer relationship, the data, and the profit margin.

2. Delivery-as-a-Service (DaaS): Once you have a direct order, how do you get it to the customer? A DaaS provider offers a fleet of drivers on demand for a flat fee per delivery, not a percentage of the order. This allows you to offer delivery without hiring your own drivers or paying a 30% commission. You can set your own delivery radius and even choose to pass some or all of the flat delivery fee to the customer.

This combination gives you the best of both worlds: you control the profitable ordering experience and have access to a flexible, cost-effective delivery network. Systems like SyncBite integrate these two pieces, allowing orders from your site to be automatically dispatched to a DaaS partner.

What you lose: discovery, and how to replace it

Leaving Grubhub means you are no longer listed in their marketplace. You lose the passive discovery from customers browsing the app. This is the trade-off, and it requires a proactive plan to replace that visibility.

Your new job is to drive traffic to your own direct ordering channel. This is not as daunting as it sounds.

• Google Business Profile: This is your new storefront. Optimize your profile with high-quality photos, accurate hours, and your direct ordering link. A well-managed profile is the most powerful free tool for local search.
• Social Media: Use Instagram, Facebook, and TikTok to post compelling photos and videos of your food. Always include a link to your direct ordering site in your bio and posts.
• In-Store Marketing: Your existing customers are your best asset. Use QR codes on tables and takeout bags that link directly to your ordering site. Offer a small discount for their first direct order to change their habit from using Grubhub. A QR ordering guide can provide simple steps to implement this.
• Email and SMS Marketing: Because you own the customer data from direct orders, you can build a marketing list. Send out weekly specials or create a loyalty program to encourage repeat business.

The goal is to convert marketplace users into direct customers. Each customer you convert is a permanent win for your profit margin.

Comparison of Grubhub alternatives

Several platforms offer direct ordering solutions. They differ in pricing, features, and whether they are a standalone tool or part of a larger POS ecosystem. Here’s how some of the leading options compare as of August 2026.

Note: SyncBite, the publisher of this article, is one of the platforms compared. While Toast's hardware is excellent for high-volume dine-in environments, its required multi-year contract and hardware lock-in make it a less flexible choice for a food truck or a pop-up that needs a nimble, month-to-month solution. In that scenario, a system like Square or SyncBite on a simple tablet would be a better fit.

Which route fits which restaurant?

There is no single best path for every operator. The right choice depends on your business model, technical comfort, and marketing capacity.

High-volume restaurants with their own drivers: A direct ordering system is a clear winner. You already have the delivery infrastructure; you just need to stop paying commissions on the orders themselves. A platform like SyncBite or ChowNow can replace Grubhub's ordering function at a fraction of the cost.

Restaurants without delivery drivers: The combination of a direct ordering platform and a DaaS provider is the ideal route. This gives you a predictable cost structure for both ordering and delivery, protecting your margins on every sale. This is the model that offers the most sustainable growth.

New restaurants or those with low volume: Starting with a free or low-cost direct ordering plan, like Square Online's free tier, is a low-risk way to establish a direct channel. You can focus on building your brand and customer base before investing in more advanced tools. Even at low volume, building the habit of direct ordering is a valuable long-term investment.

Large, multi-location chains: Enterprise-level systems like Olo are built for the complexity of managing menus and operations across dozens or hundreds of locations. Their higher cost is justified by centralized control and deep integrations that smaller platforms don't offer.

Ultimately, moving away from Grubhub is a strategic decision to invest in your own brand and customer relationships. The initial effort to build your direct channel pays off with every commission-free order you receive from that point forward.

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