25/09/2025
Are delivery platforms helping UK restaurants grow or quietly draining their profits?
The food delivery market in the UK is booming. Itโs expected to hit ยฃ14.3 billion in 2025, nearly double what it was in 2019.
Apps like Deliveroo, Uber Eats, and Just Eat have become a standard part of how many restaurants operate. For some, theyโre essential.
But hereโs what data is starting to say: More orders are coming in, but the money isnโt adding up.
Letโs look at both sides. Whatโs working for restaurants:
- These platforms give you access to a wider customer base, many of whom may never walk into your restaurant.
- They make it easier to serve off-peak hours and generate extra revenue.
- They take care of logistics like delivery drivers, payment processing, and order tracking, which can be a big relief for smaller teams.
But hereโs whatโs hurting profitability:
- Commission fees can range from 20 to 35 percent per order, cutting into already thin margins.
- Restaurants often donโt get access to customer data, making it harder to build loyalty or bring them back directly.
- Packaging and prep for delivery add extra pressure on kitchen staff.
The relationship with the customer shifts. The platform becomes the brand, not the restaurant.
Itโs common to see in-house profit margins of 10 to 20 percent vanish entirely when orders come through third-party apps.
So what can restaurants do about it?
- Building their own branded websites and apps
- Encouraging customers to order direct with better deals
- Using third-party apps more strategically, not exclusively
- Comparing fees across platforms and negotiating better terms
Delivery is not going away. It plays a key role in how people eat today. But restaurants that rely on it completely are finding it harder to stay profitable.
Are you seeing the same thing in your business?
Have you found a way to make delivery work without giving up your margins?
Would love to hear your thoughts.