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Study Finds Which Chains, Delivery Apps Charge the Highest Markups

Finance Buzz conducted a study to determine how much consumers overpay through food delivery services, and their findings are astonishing. To determine their results, researchers analyzed the cost of 10 food orders from 11 different restaurants on Uber Eats, GrubHub, DoorDash, and Postmates. The chains examined were Cava, Chick-fil-A, Chipotle, Dunkin, Jason’s Deli, Jersey Mike’s, McDonald’s, Panda Express, Panera, Starbucks, and Tropical Cafe. They then analyzed how much in additional fees, like taxes, tips, and delivery charges, each restaurant and platform charged consumers.

The study found that, of the 11 restaurants studied, Chick-fil-A customers see the most extreme delivery markups. The chain charges anywhere between 82 percent (Uber Eats) to 149 percent (GrubHub) more than in-store menu prices on delivery apps. An order that would cost you $9.25 in-store at Chick-fil-A will run you $23.01 through GrubHub, or $16.87 on Uber Eats.

Coffee kings Starbucks and Dunkin tied for second place, with online consumers seeing menu markups anywhere from 52 percent (GrubHub) to 102 percent (Postmates). A $9.48 in-store order goes for as much as $19.12, depending which app you use.

Tying for third place were fast-casual Mediterranean chain Cava and fairly small, Texas-based establishment Jason’s Deli, which boasts just 245 locations. Consumers of both chains see delivery app price increases between 47 percent (GrubHub) and 87 percent (Postmates).

Even for the restaurants experiencing less app inflation, the increase over in-store prices was still considerable. A lunch order from Chipotle totaling just $18.42 runs to nearly $40 through Postmates. An $11.18 order from McDonald’s will cost you $19.96 on the same app, with a 79 percent increase.

In terms of fees charged by the apps, PostMates was unsurprisingly found to have the highest markups, with the service charging as much as 105 percent more than an item’s given menu price. The study found that ordering a simple beverage and muffin from Starbucks via Postmates will cost you twice as much as the same order in-store.

DoorDash had the second-highest markup, with a 95 percent increase over menu price. GrubHub users see a 93 percent increase, while Uber Eats users are making out relatively well. They only see an 80 percent increase in menu prices.

You can see Finance Buzz’s full results below, and check out the complete study here.

Finance Buzz



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