Why Do Restaurants Disappear From DoorDash? (6 Possible Reasons)

If you are a fan of ordering food from restaurants, you might have seen that they sometimes disappear from delivery services such as DoorDash and other similar platforms. That is no accident, and there are reasons why that is.

This article will learn why restaurants disappear from DoorDash, and some additional things about delivering food, and DoorDash. Before we go into those, let’s look at why restaurants get removed from DoorDash.

If a restaurant disappears from DoorDash, they have decided that they don’t want to pay the delivery service fees anymore, have started their own delivery service, or don’t offer one anymore. Also, many restaurants don’t like how DoorDash operates and how that reflects on the restaurant’s brand.

The reason can be one of the above or a combination of them. Anyways, more and more restaurants are ending the cooperation between DoorDash, Uber Eats, Postmates, and other companies as such.

Now, if you want to fully understand why a restaurant might be removed from the DoorDash platform, we need to check out the possible reasons individually. Let’s get started.

1. Money reasons

This one really depends on the specific restaurant that is using DoorDash. Either way, DoorDash takes commission out of the restaurant’s sales, which is understandable when they give the restaurant better opportunities to sell by adding your restaurant into the platform, where thousands of people can see the restaurant’s menu and brand.

Whether the restaurant is making a profit or loss out of DoorDash services isn’t known to me; however, I know that it can be both ways. Usually, restaurants make more profit by using delivery service providers; however, at the same time, it increases the labor costs and volume drastically, which can be hard for the restaurant, especially when they are giving out a delivery commission of between 15-30%.

Be that as it may, the increased workload or commissions that need to be paid may be the reason why a restaurant is disappeared from DoorDash.

2. Started a delivery service of their own

Another major reason why a restaurant decides to remove itself from the DoorDash platform is to start one of its own. There are major pros and cons in using your own delivery service or using a delivery platform such as DoorDash. Let’s start with the pros.

Pros:

In most cases, when a restaurant starts a delivery service of their own, it’s because they want total control of their brand where a deliverer or DoorDash can’t put the actual restaurant in a bad light for messing up an order or something similar. Another reason for that is that the restaurant what’s to keep all the profits from their deliveries, therefore getting a car, sticking a logo on the side, and hiring a delivery could be profitable.

Cons:

When comparing a delivery service of your own and using a third-party provider, there are cons as well. For example, your brand doesn’t get the exposure by a long shot that they could when appearing in the DoorDash marketplace. Also, it is more convenient to use a third-party provider because the restaurant needs to only worry about preparing the food, and DoorDash takes care of the rest.

As we can see, both options are profitable in their own way; however, if you notice that a restaurant has disappeared from DoorDash, this might be the reason. If so, write the desired restaurant on Google, and you should quickly find out whether they have a delivery service online or not.

3. Don’t want to offer delivery whatsoever

Some restaurants simply want to stay away from delivering food to customers. Therefore if they once were in DoorDash, they might have removed themselves because they don’t want anything to do with delivering.

This is common with the more reputable restaurants because delivery, whether it is their own or using a third-party provider, might compromise the restaurant’s brand reputation. When someone orders from a restaurant, it can take somewhere near an hour when the food to be delivered to the customer; therefore, the restaurant can’t be certain what the dish will look, taste, and smell like when delivered.

If the restaurant has had bad experiences with delivery, especially with third-party providers, it is highly likely that they have removed themselves from DoorDash and didn’t start one of their own.

4. Doesn’t like how DoorDash operates

One possibility is that a restaurant is removed from DoorDash because they don’t like how DoorDaash delivers, does business, and operates in general. If this is the case and the restaurant doesn’t want to do business with DoorDash, they might have disappeared from there because of this.

Some restaurants also feel that they are nearly forced to work with third-party providers because if they don’t, they don’t get online orders nearly at all because everyone is using third-party delivers these days. However, if they use one, they feel that the delivery companies take too much of the profits. Either way, some restaurants have removed themselves to show that they aren’t playing their game.

5. Unprofessional dashers

Imagine this, many of the DoorDash employees or ”dashers” are really young people, some perhaps working their first job, and they are responsible for bringing the restaurant’s food to the customers in good order, which doesn’t always go as planned.

This is why many restaurants disappear from DoorDash because many or even most of the customers don’t understand that the restaurant itself isn’t delivering the food that may have been damaged or ruined in some way. Therefore, that is a serious hit for the restaurant’s brand because some people won’t order again from that restaurant.

6. DoorDash used the restaurant’s brand without permission

Last but not least, there are restaurants in DoorDash that don’t have their permission to be included there. In fact, there have been lawsuits against DoorDash by the certain restaurant’s saying that they create landing pages for restaurants regardless of whether they are partnered up or not.

Naturally, this landing page wouldn’t work, so the customer would need to track that restaurant on the internet or, pick another restaurant with the DoorDash marketplace, giving DoorDash increased customers.

This is why you might see some restaurants that ”aren’t in your delivery area” or are ”closed”. They are fake landing pages of the restaurant, and usually, they get removed when DoorDash gets sued.

As we can see, there are many reasons why a restaurant could disappear from DoorDash, and some of these you can guess, some of you can check from the web, and some you won’t ever know.

Do restaurants lose money with DoorDash?

In short, restaurants can lose money when partnering with DoorDash. The general commission for DoorDash is 15%-30% which is a lot on its own; however, when taking that from the average 3%-5% restaurant’s profit marking, it can be unprofitable to use DoorDash as a deliverer.

Doordash Delivery Driver Salary

By looking at the table above, you can see that top-level dashers can earn a decent living! However, the lowest 25% of earners earn only $27,000 annually or lower, which is quite low depending on your living area.

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