< Online Food Delivery | Glovo Fees and Commissions for Restaurants: Detailed 2025 Guide

Glovo Fees and Commissions for Restaurants: Detailed 2025 Guide

For restaurant owners, partnering with delivery platforms like Glovo has become almost essential to reach a broader audience and accommodate the growing demand for food delivery. However, with this convenience comes a series of fees and commissions that can significantly impact a restaurant’s bottom line. Understanding these fees is crucial to managing costs effectively and ensuring that profits aren’t unexpectedly eroded by hidden charges.

Glovo offers a streamlined platform to connect restaurants with delivery drivers and customers, but the structure of its fees—from delivery and service fees to optional marketing charges—can feel complex. Each of these fees affects the overall profit margin differently, making it important for restaurant owners to dive into the specifics and strategize accordingly. Navigating Glovo’s fee structure wisely can turn what might seem like an expense-heavy model into a profitable partnership.

In this detailed guide, we’ll walk you through Glovo’s fee and commission structure, examine how these charges impact restaurant profits, and share actionable strategies to manage and even reduce costs. Whether you’re new to Glovo or seeking to optimize your current partnership, this guide will help you make informed decisions and maximize your returns.

Understanding Glovo’s Fee Structure

Glovo’s fee structure is designed to cover various aspects of the delivery process, including logistics, platform maintenance, and customer support. For restaurants, these fees might seem complex at first glance, but a clear breakdown can make them easier to navigate and budget for. Let’s look at the primary fees and how they impact restaurants on the Glovo platform.

What Are Glovo’s Main Fees?

Glovo applies several key fees to restaurant orders, each serving a specific function within the platform’s operations. Here are the primary fees to be aware of:

Service Fee: A percentage-based fee applied to each order to cover platform usage.
Delivery Fee: The amount charged for delivery, typically based on distance, order size, and location.
Marketing Fee (optional): Fees incurred if the restaurant chooses to use Glovo’s promotional tools for added visibility.

These main fees make up the core of Glovo’s revenue from restaurant partnerships and ensure smooth platform functionality and support.

How Commission Rates Work on Glovo

Commission rates are generally a percentage of each order’s total value, calculated before taxes and any discounts. These commissions are an essential part of Glovo’s revenue model and are applied to both delivery and pickup orders, though the percentage might differ depending on the order type.

Delivery Orders: Higher commission rates are often applied here due to the added logistics and delivery coordination.
Pickup Orders: Typically, a lower commission rate as delivery isn’t required, making it a more cost-effective option for restaurants.

Commission rates can vary based on factors like location, contract terms, and order volume, giving restaurants some flexibility in their partnership with Glovo.

Are There Any Setup Fees?

Setting up on Glovo may come with initial costs, depending on your restaurant’s location and specific contract. These fees can include onboarding or setup charges to help restaurants get established on the platform.

While not always mandatory, setup fees may apply to help cover the costs of integrating the restaurant’s menu, training staff on order handling, and setting up marketing options. The cost and application of these fees vary and are generally discussed during the initial contract negotiations with Glovo.

Types of Fees and Commissions on Glovo

Glovo charges several specific fees that can impact the profitability of restaurant orders on the platform. Understanding each type of fee and its calculation method can help restaurant owners manage their expenses effectively. Here’s a breakdown of the key fees and commissions you’ll encounter on Glovo.

Delivery Fee

The delivery fee is the charge applied for transporting food from the restaurant to the customer. This fee varies based on several factors:

Distance: Longer distances generally incur higher fees.
Order Size: Some areas have variable fees based on the size or complexity of the order.
Peak Hours: During high-demand times, such as weekends or holidays, delivery fees may increase.

For restaurants, the delivery fee doesn’t typically impact their profit directly, as this charge is often paid by the customer. However, it’s essential to understand how it’s calculated, as high fees might deter customers from placing orders.

Service Fee

The service fee is a percentage of each order’s value, collected by Glovo to cover operational costs like platform maintenance, customer support, and transaction processing.

Percentage-Based: This fee is calculated as a percentage of the total order value.
Applies to All Orders: The service fee applies to both delivery and pickup orders.

This fee directly affects restaurant profits, as it’s deducted from each transaction, reducing the net amount the restaurant receives. Knowing the percentage and factoring it into menu pricing can help offset the impact of the service fee.

Marketing Fee

Glovo offers various marketing tools to help restaurants increase their visibility and reach on the platform. The marketing fee is optional and only applies if a restaurant chooses to use these promotional features.

Boosted Listings: Restaurants can pay for higher visibility in search results.
Special Promotions: Temporary promotions or discounts funded by the restaurant to attract more customers.

By investing in marketing options, restaurants can reach a larger audience, but it’s essential to weigh the costs against potential sales increases. Monitoring the return on investment (ROI) for these marketing fees can help in deciding how much to allocate toward promotions.

Payment Processing Fee

This fee covers the costs associated with processing payments made through the Glovo platform. It’s applied to every order that involves a digital transaction and is deducted before the restaurant receives payment.

Fixed Percentage: Often a small percentage of the order total, depending on the payment provider.
Frequency of Deductions: Applied each time a customer makes an order, regardless of payment method.

For restaurants, payment processing fees are generally minor but add up over time, so it’s important to include them in overall cost calculations.

How Glovo’s Fees Affect Restaurant Profit Margins

The various fees and commissions associated with Glovo can significantly impact a restaurant’s profit margins. While partnering with Glovo can boost a restaurant’s reach, these fees must be carefully managed to avoid eroding profits. Here’s a closer look at how Glovo’s costs affect profitability and some strategies to maintain healthy margins.

Calculating True Profit After Glovo Fees

To understand the true profit from Glovo orders, it’s essential to calculate net income after all fees have been applied. Consider these factors:

Item Price – Total Glovo Fees: Calculate the final profit by subtracting all Glovo fees (service, commission, and payment processing) from the sale price of each item.
Variable Fees: Since fees vary, it’s helpful to calculate an average to estimate the profit per order.
Example Calculation: For instance, on a $20 order, a 15% service fee, a 10% commission, and a 2% payment processing fee could reduce the net revenue to around $14.

These calculations highlight the importance of incorporating fees into menu pricing or focusing on high-margin items to offset Glovo’s fees.

Comparing Profit on Delivery vs. Pickup Orders

Glovo charges different fees for delivery and pickup orders, with delivery orders generally carrying a higher commission. This difference can influence your strategy on the platform:

Delivery Orders: Higher fees due to logistics but can capture customers who prioritize convenience.
Pickup Orders: Lower commission rates make this a more profitable option. Encouraging pickup can boost profits by minimizing Glovo’s cut.

By promoting pickup orders (through offers or discounts), restaurants can reduce the impact of delivery fees, thereby improving profit margins while still benefiting from Glovo’s reach.

Balancing Glovo Costs with Operational Expenses

Glovo’s fees are just one part of a restaurant’s total expenses. Balancing these costs with other operational expenses is crucial for profitability:

Menu Engineering: Design your menu to focus on high-margin items that can absorb fees more effectively.
Adjusting Staffing: Optimize staffing for peak and off-peak times to reduce labor costs without compromising service.
Strategic Pricing: Increase the prices of specific items for Glovo orders to help offset fees without discouraging customers.

Managing Glovo fees in conjunction with operational expenses can enable restaurants to leverage the platform’s benefits without sacrificing profit margins. This balanced approach ensures that partnering with Glovo remains financially sustainable.

Strategies to Offset Glovo Fees and Commissions

For restaurant owners, managing and offsetting Glovo’s fees is essential to maintain healthy profit margins. While Glovo’s platform offers a significant sales channel, incorporating strategies to balance or reduce its associated costs can make a big difference to your bottom line. Here are some practical approaches to mitigate Glovo’s fees while still capitalizing on its benefits.

Adjusting Menu Prices for Delivery

One effective way to counter Glovo’s fees is by setting different prices for delivery versus in-house dining. By slightly increasing the prices of menu items for delivery orders, restaurants can absorb some of the fees without affecting customer demand significantly.

Small Price Adjustments: A modest increase per item (e.g., 5-10%) can help offset the impact of Glovo’s commissions.
High-Margin Items: Focus on increasing prices for popular, high-margin items rather than across the board to avoid deterring customers.
Bundle Deals: Offering combo meals or meal bundles at a slightly higher price for delivery orders can also help balance out fees.

This strategy requires careful price setting to maintain competitiveness but can help absorb delivery costs over time.

Offering Exclusive Deals for Pickup

Encouraging customers to choose pickup orders can significantly reduce commission costs, as Glovo typically charges lower fees for these orders. Creating exclusive deals for pickup customers can drive this behavior, leading to increased profitability.

Discounted Pickup Prices: Offer a small discount for customers who opt for pickup, making it an attractive alternative to delivery.
Special Pickup-Only Menu Items: Consider adding items that are only available for pickup, adding exclusivity and incentivizing this option.
Reward Programs for Pickup: Implement a rewards system for frequent pickup customers to encourage repeat orders without the higher delivery fees.

This strategy not only cuts down on commissions but also reduces delivery-related operational demands.

Leveraging Marketing Options to Boost Sales

Glovo offers a variety of marketing tools to help restaurants increase their visibility, which can, in turn, drive more orders and maximize revenue potential. Using these tools strategically can improve overall sales and help balance out the costs of Glovo’s fees.

Promoted Listings: Investing in Glovo’s promoted listing feature can position your restaurant higher in search results, especially during peak times.
Limited-Time Promotions: Offering exclusive discounts or limited-time deals can attract more customers and drive up order volumes.
Seasonal or Targeted Campaigns: Use Glovo’s promotional tools to run campaigns during specific holidays or events, maximizing sales when demand is high.

These marketing tools can attract more customers, increasing revenue, which can offset some of the platform fees. However, it’s crucial to monitor the return on investment to ensure these efforts contribute positively to your margins.

Key Factors Influencing Glovo’s Commission Rates

Glovo’s commission rates aren’t uniform; they vary depending on several factors that can influence the total percentage charged to restaurants. Understanding these factors can help restaurant owners negotiate better terms or adapt their strategies to minimize fees. Here’s a breakdown of the main elements that affect Glovo’s commission structure.

Location-Based Variations in Fees

Glovo’s commission rates can fluctuate based on geographical location, as local competition, market demand, and cost of delivery logistics play significant roles in determining fees.

Urban vs. Rural: In densely populated urban areas, commission rates may be higher due to increased competition and delivery demand. In contrast, rural areas may see lower rates but might have additional delivery fees due to distance.
Country-Specific Regulations: In some countries, local regulations impact how much platforms like Glovo can charge in commissions, affecting overall rates.
Competitive Markets: In regions with high competition from other delivery platforms, Glovo may offer more competitive rates to attract and retain restaurants on its platform.

Being aware of location-based variations can help restaurants negotiate better terms or adjust pricing to offset fees based on their specific area.

Order Volume and Contract Terms

High order volumes or long-term contract agreements can influence the commission rates Glovo applies. Restaurants that consistently bring in high sales may be eligible for reduced commission rates, making volume an essential factor for negotiation.

Volume-Based Discounts: Some restaurants receive discounts based on the volume of orders processed through Glovo, particularly during busy times.
Contract Duration: Longer contracts might offer stability in rates, with the potential for reductions based on mutual agreement.
Tiered Commission Structures: Glovo may provide tiered rates, where higher order volumes result in lower commission percentages, benefiting high-performing restaurants.

Understanding these dynamics allows restaurants to discuss commission structures based on expected or proven volume, potentially leading to more favorable rates.

Glovo’s Partnerships with Large Restaurant Chains

Glovo often partners with large restaurant chains and offers them lower commission rates due to the high volume of orders and brand recognition they bring to the platform. These partnerships provide valuable insights for independent restaurants as they negotiate their own terms.

Negotiating Power: Large chains typically have greater bargaining power and can negotiate lower rates, which independent restaurants might use as a benchmark in negotiations.
Increased Visibility: High-profile partnerships sometimes grant these chains better placement on Glovo’s platform, attracting more customers.
Impact on Small Restaurants: Independent restaurants may experience pressure to compete but can learn from the strategies employed by larger chains to negotiate better terms.

While it may not always be possible to secure the same rates as large chains, understanding these dynamics can help smaller restaurants position themselves advantageously during discussions with Glovo.

Are Glovo’s Fees Worth It for Your Restaurant?

Deciding whether Glovo’s fees are a worthwhile investment depends on several factors, including your restaurant’s financial goals, target market, and overall sales strategy. While Glovo’s platform can provide access to a larger customer base and convenience, it’s crucial to assess whether the costs align with the value your restaurant gains. Here’s how to evaluate the ROI of partnering with Glovo.

Comparing Glovo to Other Delivery Platforms

Assessing Glovo’s fees against those of other delivery platforms can help determine if it offers the best value for your restaurant.

Commission Rates: Compare Glovo’s commission rates with other platforms to understand how much you’ll retain from each order.
Delivery Reach and Market Share: Evaluate the customer reach and market share of each platform to see if Glovo provides a unique advantage.
User Experience: Glovo’s app design and ease of use can impact customer satisfaction, so comparing this aspect with competitors can influence your decision.

By benchmarking Glovo’s fees against other services, you can identify the platform that best balances cost with exposure to your target market.

Identifying ROI from Glovo Partnership

To determine whether Glovo is profitable for your business, calculating the return on investment (ROI) is essential. Here’s how to approach this:

Revenue Analysis: Track revenue generated from Glovo orders and subtract all associated fees to calculate net profit.
Customer Retention: Determine if Glovo helps retain customers who may later dine in or order directly, adding value beyond immediate sales.
Sales Volume vs. Margins: For some restaurants, high sales volume might justify lower profit margins. Assess if Glovo’s orders boost volume enough to offset thinner margins.

Calculating ROI can help you decide whether Glovo’s fees add value over time and contribute meaningfully to your overall profitability.

Pros and Cons of Staying with Glovo

Evaluating the advantages and drawbacks of using Glovo can provide a balanced perspective and guide your decision on continuing with the platform.

Pros:
- Expanded Reach: Access to a larger customer base that might not otherwise order from your restaurant.
- Convenience: Glovo handles delivery logistics, reducing the burden on your team.
- Marketing Tools: Built-in promotional options help increase visibility and attract more orders.
Cons:
- Impact on Profit Margins: High fees can reduce the net profit per order, especially on delivery.
- Limited Control Over Customer Experience: Glovo manages interactions with customers, which may impact brand perception.
- Dependence on Third-Party Platform: Heavy reliance on Glovo for sales may limit direct customer relationships and loyalty.

By weighing these pros and cons, you can make an informed decision on whether Glovo’s partnership aligns with your restaurant’s goals and profitability targets.

How to Reduce Your Glovo Costs Over Time

While Glovo’s fees and commissions are an inherent part of using the platform, there are strategies that restaurant owners can employ to reduce these costs over time. By optimizing contract terms, improving operational efficiency, and diversifying revenue channels, restaurants can minimize expenses and maximize profitability with Glovo.

Negotiating Better Terms with Glovo

For restaurants with a proven track record on the platform or those expecting high order volumes, negotiating favorable terms with Glovo is a practical approach to reducing costs.

Volume-Based Discounts: If your restaurant generates consistent, high-order volumes, you may be eligible for lower commission rates. Highlight your volume potential to leverage a discount.
Long-Term Contracts: Committing to a long-term partnership with Glovo can sometimes result in more favorable terms, including reduced rates.
Flexible Terms: During contract renewal, discuss any specific terms that could reduce fees based on factors like regional demand or competitive presence.

Effective negotiation can lead to reduced costs and help improve your margins on Glovo orders over time.

Increasing Efficiency in Delivery Operations

Streamlining your restaurant’s delivery operations can reduce indirect costs associated with Glovo orders and enhance your profitability.

Improving Order Preparation Times: Faster preparation reduces delivery wait times, improving the customer experience and potentially leading to better ratings.
Optimizing Packaging: Choose cost-effective yet sturdy packaging that maintains food quality during transport, reducing costs without compromising customer satisfaction.
Coordinating with Delivery Partners: Work with Glovo’s drivers to ensure smooth pickups and deliveries, minimizing delays and maximizing efficiency.

Increasing operational efficiency can lead to smoother deliveries, higher customer satisfaction, and potential growth in order volume, indirectly offsetting fees.

Exploring Alternative Revenue Channels

Diversifying your restaurant’s revenue streams can reduce dependence on Glovo and help balance out the costs associated with the platform.

Direct Online Ordering: Set up your own online ordering system for loyal customers, offering special incentives for direct orders to bypass third-party fees.
Using Multiple Delivery Platforms: Diversify across several platforms to avoid relying too heavily on one service, leveraging the strengths of each for optimal reach and cost management.
In-House Delivery: For larger or nearby orders, consider offering in-house delivery, which can be more cost-effective than Glovo for certain customer segments.

By exploring and establishing alternative revenue sources, restaurants can lower the percentage of revenue impacted by Glovo’s fees, creating a more balanced and profitable sales strategy.

Tips for Maximizing Profits with Glovo

Maximizing profits on Glovo involves more than just managing costs; it’s also about leveraging the platform’s tools and optimizing your offerings to attract more customers and increase order values. Here are practical tips to help you make the most of your presence on Glovo and drive higher profits.

Creating a Profitable Glovo Menu

One way to enhance profitability is to create a menu specifically tailored for Glovo, focusing on items that are high-margin, travel well, and appeal to delivery customers.

Highlight High-Margin Items: Feature items with lower ingredient costs and higher profit potential prominently on your menu.
Offer Meal Bundles: Create bundled deals or combos that increase the average order value, such as meal packs or family-sized portions.
Optimize for Delivery: Select items that maintain their quality during delivery to ensure customer satisfaction and reduce refund requests.

Designing a delivery-optimized menu can encourage larger orders and repeat customers, increasing your revenue from each Glovo sale.

Optimizing for Positive Reviews on Glovo

Positive customer reviews not only enhance your restaurant’s visibility on Glovo but also build trust with potential customers, increasing the likelihood of repeat orders.

Ensure Quality Consistency: Maintain high standards for food quality, packaging, and order accuracy to avoid complaints.
Engage with Customers: Follow up with a thank-you message or discount for their next order to encourage positive feedback and build loyalty.
Respond to Feedback: Address customer complaints or concerns promptly on the platform to show that you value their experience and are committed to improvement.

Building a strong reputation on Glovo through positive reviews can lead to better visibility, attracting more customers and boosting your revenue.

Focusing on Customer Retention Strategies

Retaining customers who order through Glovo is essential to building a loyal customer base and increasing profits over time. By encouraging repeat business, you can maximize each customer’s lifetime value.

Special Offers for Returning Customers: Offer discounts or exclusive deals to customers who have ordered multiple times through Glovo.
Loyalty Programs: Implement a loyalty program that rewards repeat orders, either through Glovo’s features or with follow-up incentives.
Personalized Marketing: Use Glovo’s customer data to create targeted offers that appeal to repeat customers’ preferences, encouraging them to return.

Effective customer retention strategies can drive repeat orders and increase your restaurant’s profitability, making Glovo a valuable channel not just for new customers but also for building a loyal customer base.

Key Takeaways

Partnering with Glovo can bring significant benefits to restaurants, but it’s essential to understand and manage the associated fees and commissions to maintain profitability. Here are the main points to keep in mind:

Understand the Fee Structure: Familiarize yourself with Glovo’s various fees, including delivery, service, marketing, and payment processing fees, to anticipate and plan for costs accurately.
Offset Costs with Strategic Adjustments: Consider raising menu prices for delivery, promoting pickup orders, and using Glovo’s marketing tools selectively to balance the impact of fees on your bottom line.
Factor in Location and Order Volume: Commission rates may vary by location and order volume. Restaurants with higher order volumes or those in specific regions may have opportunities to negotiate better rates.
Evaluate Glovo’s ROI: Regularly assess the return on investment from Glovo orders by tracking revenue, customer retention, and profit margins, and compare Glovo to other platforms for a well-rounded view.
Reduce Costs Over Time: Explore negotiation options, increase operational efficiency, and consider alternative revenue channels to minimize reliance on Glovo and reduce associated costs.
Maximize Profits Through Optimization: Design a profitable, delivery-friendly menu, encourage positive customer reviews, and focus on retention strategies to drive repeat business and build a loyal customer base.

Incorporating these strategies can help restaurants make the most of their partnership with Glovo, balancing costs while maximizing reach and profitability. With a thoughtful approach, Glovo can serve as a valuable tool to grow your business and expand your customer base effectively.

ABOUT THE AUTHOR

Erkin Coban

Erkin possesses a strong passion for empowering restaurant entrepreneurs. He respects the contributions of small business owners to their communities and is dedicated to providing them with the necessary support to realize their aspirations.

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