La Patisserie, a celebrated family-run bakery in Cupertino, California, is renowned for its wide selection of European pastries and custom wedding cakes.
One of the earliest local businesses to partner with DoorDash, it quickly became a customer favorite — earning a spot among the food delivery app’s “Most Loved” eateries.
However, that all changed after the family discovered that DoorDash had been overcharging them on commission for nearly a decade — to the tune of more than $100,000.
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Neeka, whose last name was withheld for privacy reasons, is the manager at La Patisserie and she shared how it felt to discover the popular app had overcharged her family business.
“We had trusted DoorDash — it was just an indescribable feeling,” she told ABC 7 On Your Side. “It’s a life-changing amount of money for anyone, but especially for a small business.”
What exactly did Door Dash do?
The overcharges in commission fees went undetected for eight years until Neeka’s uncle, who handles the family’s accounting, spotted a discrepancy in their records two years ago.
It turns out, DoorDash had been charging a whopping 30% commission rate, even though their contract stated it should be 13%. That amounted to more than $100,000.
When the bakery first reached out to the tech company back in 2023, DoorDash acknowledged the error via phone and email and promised to make the situation right. However, their initial offer of reimbursement was a mere $42,000 — less than half of what the bakery had lost.
Despite repeated attempts to follow up, DoorDash eventually stopped all communication with the family. In 2024, a DoorDash representative once again promised a full refund within 14 days. But that deadline came and went with no payment. Another eight months went by after that.
“We’ve tried to contact DoorDash so many times — I mean, we have proof of all the call logs and email threads,” Neeka said. “[But] we never got paid. It’s so frustrating.”
Frustrated, she contacted 7 On Your Side. After the team contacted DoorDash directly, the company finally refunded La Patisserie $100,000 within two days of hearing from the media outlet.
Although the family pointed out that the refund did not initially include any interest or penalties for breaking their contract, 7 On Your Side confirmed that DoorDash agreed to cover the cost of interest and penalties for “violating the contract” along with any other expenses accrued.
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Delivery app commission rates — and how to avoid being overcharged
DoorDash isn’t the only platform that charges commissions. While these platforms can provide small businesses with visibility and sales, their commissions can eat into already thin profit margins — especially if errors go unnoticed for an extended period of time.
Here’s what the average restaurant owner can expect to pay in commission:
DoorDash: Offers different plans with commissions ranging from 15% to 30%, depending on order volume, delivery zone, and marketing exposure.
Uber Eats: Commission fees typically range from 15% to 30%, depending on whether the restaurant handles its own delivery or relies on Uber’s drivers.
SkipTheDishes (Canada): Charges around 20% to 30% per order and may charge additional fees for promotions or advertising.
Partnering with delivery platforms can be helpful for business growth, but only if you understand the fine print. If you’re considering allowing customers to order from a delivery app, here’s how to avoid costly errors:
Get the commission and terms in writing
Make sure the commission rate, including services and billing cycles, are clearly outlined in your contract. Ensure it states whether the fees are flat rates or percentages and includes any discounts or promotional incentives you discussed with the platform.
If there are processing fees or other hidden costs, make sure you understand them.
Audit your finances regularly
Don’t wait until tax season to review your books. Set a monthly or quarterly schedule to verify that the commission rates match the contract.
Pay attention to the percentage deducted from every order, added services or delivery fees, and promotional adjustments or refunds.
Track each payout
Compare the delivery app’s reports with your point-of-sale system or accounting software. If the numbers don’t add up, ask for a line-item report to investigate further.
Document all communication
If you suspect an error, document your outreach and any responses. Save emails, record the times you called, and keep track of who you spoke with.
If the company doesn’t respond or stops responding, escalate the issue. Third-party advocates, like consumer protection organizations or local media, can help.
Take action if you’re being overcharged
If you find discrepancies with delivery app orders, don’t wait — reach out to the company immediately and ask for a formal audit. If you’re not taken seriously, escalate the issue to a supervisor or corporate team.
If necessary, file a complaint with your state’s attorney general or consumer protection agency. And, if all else fails, consider going public as La Patisserie did.
Partnering with big-name delivery apps can boost businesses, but La Patisserie’s story is a warning for small businesses everywhere: it pays to pay attention.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
