Majority (75%) of Brits oblivious to extent of delivery app surcharges

British public shockingly unaware of extortionate price increases when ordering food delivery apps

CONSUMERS are being blindsided by hidden costs when using food delivery apps – with almost half totally unaware of the additional charges they are racking up.

New research commissioned by hospitality technology firm Grafterr, has revealed that 43% of restaurant customers fail to realise that they’re often paying substantially more when ordering their favourite takeaway on popular delivery apps.           

Examples include fast food giant McDonalds popular Big Mac meal, in-store you will pay £5.69 for a medium meal, but when ordering the same meal via Deliveroo, it’ll cost £9.58 before you pay for delivery.

This means consumers are paying 68% more for the same product. The total rises to £11.07 when you include delivery.

Shockingly, three-quarters of customers surveyed (75%) said that they actually expect to pay LESS when ordering a delivery compared to dining in at the same restaurant.

It’s not just McDonalds either, Five Guys charge £12.15 in-store for a Bacon Cheeseburger, but to get the same item delivered on Deliveroo will cost consumers £16.29, a whopping 34% increase.

Consumers may find they could also be paying 17-34% more for the same product depending on the delivery app chosen. The same item from Five Guys on the top three apps would cost:

• Deliveroo: £14.80 (£16.29 inc delivery)
• UberEats: £14.98 (£15.22 inc delivery)
• JustEat: £12.95 (£14.24 inc delivery)  

The stark findings were uncovered in a survey of 2000 restaurant customers across the UK.

Andrew Gibbon, Chief Operating Officer of restaurant technology specialist Grafterr, which commissioned the research, said: “Online food aggregators continue to be the most popular method of ordering a delivery across the UK, yet there is a huge gap in consumer awareness of the costs increases.

“It is vital for customers to understand that they are always paying more to have food delivered than they would if they were dining in at the same venue.

“Businesses continually price their online menus higher than their in-store equivalent to help absorb commissions charged by the platforms. This is before additional platform fees, service fees and delivery costs are charged to the consumer, increasing your bill by up to 90% in some instances.” 

Consumers are not the only ones concerned about rising costs driven by these platforms. With commission rates reaching up to 30%, hospitality venues are finding it increasingly more difficult to deliver savings to their customers.

In 2023, KFC made the controversial decision to leave Deliveroo due to rising commission costs, highlighting the wider impact on both consumers and businesses.

There’s a few tricks consumers can use to make sure they’re getting the best deal:    

• Order directly with the business through their own online platforms, avoiding additional third party costs.
• Dine in where possible.
• Order and collect in-store for smaller orders to avoid service, small order and delivery fees which can add 25% on to the cost of the meal.
• Sign up to the mailing list for each delivery platform. They often send out discount codes which can reduce the cost of your meal. For example, UberEats has been known to regularly send out 50% off promotions.  

To learn more about Grafterr, visit: https://www.grafterr.com/