If you want to have a Big Mac delivered these days, be prepared to pay double what it would cost to go get it yourself.
That’s according to a new survey of third-party delivery prices by personal finance site Self Financial, which found that McDonald’s costs nearly 100% more on average when delivered rather than ordered in the restaurant.
Self’s research, conducted in April, consisted of placing the same McDonald’s order—a Quarter Pounder meal, a 10-piece Chicken McNuggets meal, a regular fry and a regular Coke—in the 100 largest metro areas in the U.S.
When ordered in the restaurant, that was a $20 order, on average, according to Self. On delivery apps, after fees, taxes and a 15% tip, it doubled: The Uber Eats total was $41.17. On DoorDash, it was $39.20, and on Grubhub, it was $39.10.
The hefty premium includes delivery and service fees, a tip and sometimes other charges. It also includes menu-price markups by the restaurants themselves, which often charge more on delivery apps to help offset commissions charged by the delivery provider.
More surprising than those gaudy numbers is the fact that consumers, who are paying more for just about everything and cutting back on at least some of their restaurant spending, appear to be OK with paying them.
“I think [delivery] is going to be one of the last luxuries people take away from themselves,” Shake Shack CEO Randy Garutti said Tuesday at the Barclays Eat, Sleep, Play conference, according to a transcript on financial services site Sentieo. “You would think it should be the first. But I don't think people are canceling their Netflix subscription, and I don't think they're going to stop getting delivery.”
By some measures, in fact, delivery demand is growing. McDonald’s itself is coming off one of its best quarters for delivery sales ever. In the same period, DoorDash said total orders rose 27% year over year, and delivery revenue increased 30%. Uber Eats gross bookings were up 13%.
The sturdy demand could be a function of today's two-tiered economy, in which higher earners have been less impacted by inflation than people with lower incomes.
But it could also reflect a broader change in how consumers think about dining in a post-pandemic world.
Consider, for instance, that the average price of the aforementioned McDonald’s delivery—$39.80—is in the same ballpark as a sit-down meal for two at Chili’s. That will set you back $35.65, on average, after a 15% tip, according to Technomic data.
On its face, spending Chili’s money at McDonald’s sounds a little absurd. But excluding the food itself (one’s enjoyment of which is subjective, anyway) what you’re getting is two different experiences, each lavish in its own way.
In one scenario, the customer is paying for convenience and the ability to eat in the comfort of their own home, probably in front of the TV. In the other, they’re paying for service, atmosphere, a night out. You can see how both could hold equal value for the consumer depending on how they’re feeling on a given evening, even two and a half years removed from pandemic lockdowns.
"I just think people have an irrational ability to pay for the convenience of things to come and show up in their house," Garutti said. "Our ability to sit at home on a couch is very high."