The No-Nonsense Guide to Grubhub for Restaurants

In today’s world, food delivery platforms like Grubhub have become a major convenience for both diners and restaurants. As one of the most prominent food delivery services in the US, Grubhub connects hungry customers with their favorite local restaurants, offering convenience and expanding the digital presence of many eateries.  

But how exactly does Grubhub work, and how can you make the most of it? This article explores the platform in depth and discusses how it can benefit restaurants that want to tap into the online delivery market. 

 What is Grubhub and How Does it Work? 

Grubhub is an online food delivery service that partners with over 365,000 restaurants in more than 4,000 cities across the United States. It lets customers place online orders for food from hundreds of local eateries, which are then delivered to their doorstep or made available for pickup. In 2023, Grubhub generated $9.4 billion in gross transaction volume, highlighting its potential for restaurant owners who want to grow their customer base.

Grubhub Marketplace: A Platform for Local Restaurants 

The Grubhub Marketplace is a platform that allows local restaurants to drive more online orders. Through the platform, restaurants can list their menus, offer delivery or pickup options, and reach new customers. Grubhub handles everything from payment processing to customer support, making it easier for you as a restaurant owner to manage your delivery offerings without added hassle.   

3 Benefits of Partnering with Grubhub 

Grubhub offers significant benefits to its partners, from increased local exposure that can potentially help a restaurant experience a sizable influx of new customers to customizable delivery options. By using Grubhub, you can: 

• Reach more customers through the Grubhub app and website, broadening their market. 
• Offer delivery only menus, allowing them to adapt their offerings for takeout and delivery. 
• Access marketing tools, promotions, and loyalty programs designed to increase visibility and boost sales. 

Increased Exposure and Reach 

Partnering with Grubhub allows your restaurant to connect with more customers and increase takeout order volume. Since the platform has a large user base of roughly 24.6 million, this gives your restaurant rapidly increased visibility and the opportunity to attract new customers without spending money on advertising. Many restaurants also utilize Grubhub’s customizable marketing tools to further attract new diners and drive more Grubhub orders. 

3 Features of Grubhub for Restaurants 

Grubhub offers various features to help you streamline your restaurant operations and simplify your online ordering process. These features include: 

• Tech and point-of-sale (POS) integrations: By integrating Grubhub with your existing POS system, you can efficiently manage orders and reduce errors. You may also use tools like Ordermark by UrbanPiper to centralize orders from multiple delivery platforms. 
• Menu management: Your restaurant can easily upload and update your menus, complete with high-quality images.  
• Customer feedback and insights: With Grubhub, you have access to customer reviews and performance insights, allowing you to optimize your delivery business.  

Grubhub Fees and Pricing 

Understanding Grubhub’s fees and pricing structure is crucial for restaurant owners. We’ll break it down for you:  

• Commission: Grubhub charges a commission on online orders; this ranges from 10% to 30% depending on factors like location and the number of restaurants in your area.  
• Delivery fees: If you’re using Grubhub’s drivers instead of your own, you’ll also have to pay delivery fees, which range from 10% to 20% of the order total.  
• Marketing fees: If you opt for sponsored listings to boost visibility, this will incur an additional cost, which is a 20% marketing rate compared to the 15% marketing rate of the Premium plan. 

Managing and Optimizing Your Grubhub Profile 

A well-maintained Grubhub profile is critical for attracting new customers. Here are the steps you should take: 

• Verify your restaurant’s details, such as your address, hours, and contact information. This ensures that your customers have accurate information and reduces the risk of errors and complaints.  
• Optimize your menu by uploading high-quality images of your dishes to entice customers. Keep the online menu accurate and updated. 
• Use keywords and descriptions in your menu to improve your chances of appearing in customer searches. Only include keywords that are relevant to your restaurant and dishes to avoid confusing customers or risk being de-indexed by Google.  
• Use Grubhub’s marketing tools and promotions to increase visibility and attract new customers. These tools are especially useful for virtual restaurants that lack a physical storefront to draw in diners. 

Choosing the Right Plan on Grubhub: Basic, Plus, or Premium? 

Grubhub offers three business plans: Basic, Plus, and Premium. Each plan caters to restaurants at different stages in their business lifecycle: 

• The Basic plan is ideal for smaller, local businesses just getting started with online delivery.  
• The Plus plan balances cost and visibility; it comes with more marketing tools at a moderate cost. 
• The Premium plan maximizes exposure, giving you additional features designed to drive higher sales.

Food Delivery Options and Logistics 

Grubhub provides three delivery options for restaurants: self-delivery, Grubhub Supplemental Delivery, and Grubhub Delivery. You can use your own drivers, opt for Grubhub drivers, or combine both, depending on your business needs and goals.  

As mentioned earlier, if you opt to use Grubhub drivers, this will incur a delivery fee ranging from 10% to 20% of the order total. 

Pros and Cons of Partnering with Grubhub 

While partnering with Grubhub offers many benefits, it also has certain drawbacks. Restaurant operators should weigh the benefits and drawbacks before deciding whether to join the platform: 

• Benefits: Increased exposure, leading to new customers and more orders 
• Drawbacks: Additional fees, which will eat into your restaurant’s profit margins 

Is the trade-off between cost and increased visibility worth it? You’ll need to make the decision based on your restaurant's goals, budget, and target market. 

Frequently Asked Questions (FAQ) about Grubhub 

This frequently asked questions (FAQ) section addresses common questions to help you understand the ins and outs of partnering with Grubhub. Whether you're curious about the signup process, fees, or menu management, check in with the answers here. 

Q: How do I sign up for Grubhub? 

A: To sign up for Grubhub, visit the Grubhub for Restaurants website and complete the registration process. You’ll need to provide your restaurant’s details and select a plan that suits your needs. 

Q: What are the fees and pricing structure for Grubhub? 

A: Grubhub charges a commission fee that ranges from 10% to 30% of the order total, depending on your location and other factors. Additionally, there may be delivery fees if you use Grubhub’s drivers, and marketing fees if you opt for sponsored listings.  

Q: How do I upload and manage my online menu? 

A: You can upload and manage your menu through the Grubhub for Restaurants dashboard. Simply log in, navigate to the menu section, and add or update your items. 

Q: How do I verify my restaurant’s details and menu? 

A: To verify your restaurant’s details, log into your Grubhub account and ensure that your address, phone number, and hours of operation are accurate.  

Q: What are the benefits and drawbacks of partnering with Grubhub? 

A: The benefits include increased visibility and access to a larger customer base. Drawbacks include commission fees and potential impact on profit margins. 

Is Grubhub Right for My Restaurant? 

If you’re wondering whether you should go ahead and partner with Grubhub, the answer is… it depends! 

Partnering with Grubhub can offer tremendous benefits, but also comes with some drawbacks. consider your restaurant’s goals and unique circumstances before deciding. 

For example, a fast-casual brick and mortar restaurant offering popular takeout items like burgers and salads would likely thrive on an online ordering platform, as these dishes appeal to a wide audience and are well-suited for delivery. Conversely, a fine-dining restaurant with intricate dishes that are meant for immediate consumption may struggle, as the quality of the food can diminish during delivery. 

If you decide to use Grubhub, remember to optimize your menu for delivery, regularly update your listings, and actively engage with customer feedback. This will set you up for success, allowing you to unlock additional revenue through Grubhub.  

Getting online is crucial to any restaurant business—whether you’re using platforms like Grubhub or exploring other online ordering systems. To learn more, check out our 2024 Online Ordering Guide or book a demo to see how our platform creates frictionless guest experiences.