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Delivery Fee vs. In-House Margin Analyzer

Third-party delivery apps are a great way to reach more customers, but their commission fees can heavily impact your profitability. Use this tool to compare the margins on a delivery order versus a standard in-house sale.

/ 01

Protect Your Margins

Understand the true cost of commission fees and adjust your delivery pricing to stay profitable.

/ 02

Analyze Channel Profitability

Make data-driven decisions about which delivery platforms offer the best return for your business.

/ 03

Drive Direct Orders

Quantify the benefit of converting app users to your own, more profitable ordering system.

The calculator

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Delivery vs. In-House Analyzer
Results

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The theory

Understanding Delivery Margins.

The key challenge with third-party delivery is that the commission is calculated on the total menu price, not your profit. This can have a disproportionate effect on your margins.

/ Formula

Many restaurants increase their prices on delivery apps (a 'markup') to help offset the commission fee. This tool helps you see if your markup strategy is effective.

Delivery Profit = Delivery Price - Item Cost - (Delivery Price × Commission %)
/ Industry standard

Delivery apps commonly charge commissions of 15-30%. Many customers are willing to pay a premium for the convenience of delivery, so a moderate markup on the delivery app is a common strategy to protect margins.

Questions, answered

Frequently asked questions.

These fees cover the app's operational costs, including driver pay, marketing to attract customers to the platform, credit card processing fees, and customer support. They are a platform company, and their revenue comes from connecting you with their user base.
It's a common strategy to protect your margins. Many customers are willing to pay a premium for the convenience of delivery. However, you must be careful not to price yourself out of your market. Check what competitors are doing.
Commission dilution refers to how the fixed commission percentage takes a larger chunk of profit from lower-priced items. For example, a 30% commission on a $10 item ($3) might wipe out most of the profit, while on a $50 catering order ($15), the remaining profit is still substantial. It's important to analyze per-item profitability.
Promote your own ordering channels. Put flyers in every delivery bag advertising a discount for ordering direct. Use social media and email marketing to link to your website. Ensure your online ordering system is user-friendly and reliable.
Yes. Consider the cost of more robust to-go packaging to ensure food quality. There can also be 'chargebacks' or customer refunds that the platform may pass on to you. Finally, there's the cost of potential mistakes, which are harder to fix when an anonymous driver is the middleman.
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