GrabFood and Foodpanda dominate Philippine restaurant delivery, and most restaurants accept that 20–25% platform commission as the cost of distribution. But for high-volume operations, direct online ordering through their own website becomes a serious financial decision. This article works through the math.
The short answer
For restaurants paying under ₱15,000/month in platform commissions, stay with Grab and Foodpanda. The cost of building, maintaining, and marketing direct ordering exceeds the savings. For restaurants paying ₱50,000+/month in platform commissions, direct ordering is worth building. The middle ground (₱15,000–₱50,000) is a judgment call based on customer mix and operational capacity.
The commission math
Most Philippine restaurants pay platform commissions of 20–25% of order value. On top of this:
- Promoted listing fees (₱2,000–₱10,000/month for visibility)
- In-platform ad spend (variable)
- Customer acquisition campaigns (variable)
Total platform cost can reach 30–35% of delivery revenue for restaurants leaning heavily on platforms.
Monthly delivery revenue scenario:
| Monthly Delivery Revenue | Platform Cost (25%) | Direct Order Cost (3.5% + hosting) | Annual Savings if 50% Shift |
|---|---|---|---|
| ₱100,000 | ₱25,000 | ₱4,000 | ₱126,000 |
| ₱250,000 | ₱62,500 | ₱9,000 | ₱321,000 |
| ₱500,000 | ₱125,000 | ₱17,500 | ₱645,000 |
The 50% shift assumes half of delivery revenue moves from platforms to direct ordering. In practice, the shift varies — repeat customers move more readily than new customers, who continue using platforms for discovery.
Build cost for direct online ordering
A WooCommerce-based direct ordering system added to a restaurant website costs ₱30,000–₱80,000 on top of the base build. This covers:
- Menu management interface (your staff can add, edit, mark unavailable)
- Cart and checkout flow
- PayMongo or HitPay integration for payment (GCash, Maya, credit card)
- Order confirmation email and SMS
- Customer account creation for repeat orders
- Order management dashboard for kitchen staff
- Basic delivery zone configuration
For restaurants without an existing website, this is added to the Business tier (₱120K–₱180K) for a total project around ₱150K–₱220K.
Operational considerations
Direct ordering requires:
- Someone monitoring orders in real time during operating hours (kitchen tablet, printer notification, or both)
- A delivery solution (in-house delivery, Lalamove or Mr Speedy integration, or third-party for the last mile)
- Customer service capacity for order issues
- Marketing investment to drive customers to your site instead of platforms
A restaurant without operational capacity to handle direct orders should not build direct ordering. The infrastructure must be ready before the website launches.
The hybrid approach
Most successful Philippine restaurants run both channels:
- GrabFood and Foodpanda for new customer discovery and convenience for customers who prefer platform UX
- Direct ordering for repeat customers, larger orders, and catering
- 10% discount for direct ordering vs. platform pricing to incentivize repeat shifts
This combination keeps platform discovery flowing while capturing the highest-value customers at lower commission.
When direct ordering doesn’t make sense
- Restaurants with low delivery volume (under ₱100,000/month) where commissions are small
- Restaurants without operational capacity to handle orders in real time
- Restaurants in market segments where customers exclusively order through platforms (some casual chain segments)
- Restaurants without delivery infrastructure or third-party delivery partnerships
Budget
Adding direct ordering to an existing website: ₱30,000–₱80,000 depending on complexity.
New restaurant website with direct ordering: Business tier (₱120K–₱180K) plus ordering integration = ₱150K–₱220K total.
Restaurant ready to evaluate direct online ordering? Send your details through the contact page for a specific recommendation within one Philippine business day.
Frequently asked questions
- Should my restaurant build direct online ordering?
- If your monthly Grab and Foodpanda commission is over ₱15,000, direct online ordering on your own website is likely worth the investment. Below that, the platform commissions are smaller than the development and ongoing maintenance cost of running your own ordering system. The math changes if you have a strong delivery-heavy customer base willing to order directly.
- How much do GrabFood and Foodpanda commission?
- Commission ranges from 18% to 30% per order depending on your restaurant tier, marketing participation, and contract terms. Most Philippine restaurants pay 20–25%. On top of commission, restaurants pay for promoted listings, in-platform ads, and customer acquisition campaigns. Total platform cost can reach 35% of delivery revenue for restaurants leaning heavily on platforms.
- What does direct online ordering cost to build?
- A WooCommerce-based ordering system integrated into your restaurant website runs ₱30,000–₱80,000 added to the website build. This includes menu management, cart, checkout with PayMongo or HitPay payment, order notifications, and customer account creation. Monthly running costs are minimal — payment processing fees (around 3.5% per transaction) and hosting.
- Can you do both — Grab/Foodpanda and direct ordering?
- Yes, and many restaurants do. Grab and Foodpanda drive customer discovery; direct ordering captures repeat customers who already know you. A 10% discount for direct ordering vs. platform pricing can shift repeat orders to your site without affecting initial discovery. Most successful Philippine restaurants run both channels.
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