Delivery profitability
Delivery can produce volume without producing margin.
Plenty of operators discover that their busiest channel is not their most profitable one. The difference only shows once you calculate real margin instead of theoretical margin.
Theoretical margin and real margin
Theoretical margin starts from the menu price. Real margin starts from what lands in the bank account, after every deduction. The gap between the two surprises almost everyone the first time.
Direct ordering as your benchmark
An order taken directly carries no marketplace commission. It is the cleanest reference point for measuring what the platforms actually cost you per unit of revenue.
Trading volume against margin
Cutting promotions usually lowers volume and lifts margin. Which way to lean depends on your fixed costs — and the decision should be made with numbers, not instinct.
Excludes variable and fixed costs (rent, staff and so on): they are not in the platform data.
Real net margin
€33,550
€7.46 per order
26.2%of gross revenue
- Gross revenue incl. VAT€128,250
Step 1 · from gross revenue to platform payout
− Promotional offers€−27,70021.6%- − Platform commission€−27,32021.3%
- − Platform service fees€−5,6804.4%
- = Net payout€67,55052.7%
Step 2 · from payout to net margin
− Food cost33.8% of net revenue€−34,00026.5%- = Net margin€33,55026.2%
Restaurants running on Food'Up
Read next
Pages covering neighbouring questions.
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