DoorDash overcharges family bakery for 8 years, shorts them $100K+: 'They didn't respond'
CUPERTINO, Calif. (KGO) -- Cupertino-based La Patisserie is a beloved bakery known for its large display of European pastries and custom wedding cakes. The charming family-owned business was among the first to partner with DoorDash and soon became one of the "Most Loved" businesses on the app. A sweet partnership -- until this happened.
"We had trusted DoorDash - it was just an indescribable feeling!" said Neeka (last name withheld), manager at La Patisserie.
The San Francisco-based food delivery giant mistakenly overcharged the popular South Bay bakery more than $100,000 in commission fees for years - and it wasn't resolved until 7 On Your Side's Stephanie Sierra and our team got involved.
Neeka says her uncle, the family's accountant, just happened to be checking their financials when he found the tech company was charging the small business more than double what they should be: a 30% commission rate, when their contract clearly states it should be 13%.
Records show this went on for eight years, amounting to more than $100,000.
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"As a small business, every dollar really counts, we have so many expenses and... really small profit margins," said Neeka, adding they are grateful for the platform DoorDash gives them. "But to know we were unnecessarily overpaying... it's a really heartbreaking feeling!"
It went from heartbreak to frustration as the family tried to get their money back.
Neeka says at first DoorDash acknowledged the mistake over the phone and via email, promising to make amends and refund the amount owed. But the company's original offer was about $42,000 -- less than half of what they had lost.
"As they say, we are a small fish in the sea and for them to strong-arm us... it doesn't leave a good taste," said Kevin Zahedi, co-owner and accountant for La Patisserie.
That taste turned sour as the family tried following up -- again and again.
"We've tried to contact DoorDash so many times - I mean, we have proof of all the call logs and email threads," said Neeka.
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Yet, she says they were ignored for months until a DoorDash representative finally emailed back in 2024, promising to refund them within 14 days.
But that time passed, and? "We never got paid," said Neeka. "It's so frustrating."
It's been nearly two years since the family discovered all of this, and eight months since DoorDash promised to pay -- and the family still had not received any word about the money.
Fed up with the silence, Neeka decided to contact 7 On Your Side. Our team reached out to DoorDash, and within two days the tech giant agreed to refund La Patisserie $100,000.
"To be honest, the only reason why DoorDash ended up responding to us again was because of 7 On Your Side," said Neeka.
Although, as Neeka and her uncle explain, that figure did not include interest or any penalties for what appears to be a violation of the contract. Not to mention, she says it was barely enough to cover payment for their employees, let alone other expenses to craft their delicacies.
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So their hope is that DoorDash - valued at more than $100 billion - will honor the contract.
"I hope that DoorDash starts... playing fair and square!" said Zahedi.
Even if it took years and this story to do it.
"That amount they owe us... it's a life-changing amount of money for anyone, but especially a small business," said Neeka. "I'm really grateful for 7 On Your Side!"
A DoorDash spokesperson told 7 On Your Side: "DoorDash is actively investigating the payment for La Patisserie. We are committed to ensuring our merchant partners are compensated accurately. DoorDash is working directly with La Patisserie to resolve this matter as quickly as possible."
According to DoorDash they have three types of commission rates: a "Basic" plan at 15%, a "Plus" plan at 25%, and a "Premier" plan at 30%, which offers the highest level of exposure, marketing benefits, and potentially lower customer delivery fees. La Patisserie acquired the 13% plan with benefits, in part because they joined in 2015 - two years after the company was founded.
After our story aired, DoorDash let us know they will be giving the bakery the full amount back. And on top of the $100,000, the company will also cover the cost of interest and penalties for violating the contract along with other expenses.
Take a look at more stories and videos by 7 On Your Side.
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