Study finds fast-food delivery comes with an extreme markup

(KTLA) - The cost of convenience is adding up for millions of fast-food customers in the United States.

Online food delivery has become a trillion — yes, trillion — dollar business. But with each order comes a slew of fees that can quickly take the cost of an otherwise quick, affordable meal and make it ... less quick and less affordable.

According to Chowhound, delivery services often include fees that aren't immediately obvious. They can range from service fees to small order fees and even higher menu prices compared to in-store purchases.

“While you might be able to grab a meal in-person from one of the cheapest fast-food chains in the U.S. for under $10, it's exceedingly rare to spend less than $20 on delivery once tax, tip, and fees are applied,” the food industry news website notes.

In addition to these hidden fees, there's the standard delivery charge. Those vary by service and distance but can add a substantial amount to the final bill. Charges can range from a few dollars to over ten dollars.

While tipping is an important and expected part of the delivery, it adds another layer of cost.

"Tipping is essential for delivery drivers, but it can also make a seemingly affordable meal quite expensive," Chowhound explains.

Also, some fast-food chains offer promotions and discounts for in-store purchases that aren't available for delivery orders. This means customers could be missing out on significant savings by opting for delivery.

Comparing Delivery Apps

A recent study by FinanceBuzz highlights the costs associated with different food delivery apps.

The study found that Postmates has the highest markups, with costs averaging 92% higher than normal menu prices. DoorDash and GrubHub follow closely, with markups of 83% and 80%, respectively. While still costly, Uber Eats has the lowest markup at 69%.

According to FinanceBuzz, a basic $9.85 Chick-fil-A order can cost up to $23.01 on GrubHub, a 134% markup. Even at restaurants with lower markups, such as Chipotle, Jersey Mike’s and McDonald’s, delivery can add 44% to 77% to the cost of a meal.

"Understanding the full cost of delivery can help customers make better choices and potentially save a lot of money," Chowhound advises.