How delivery app commissions affect restaurant margins

Most restaurants list the same menu across multiple delivery apps and assume profitability is roughly the same on each. In reality, each channel has its own commission, fee structure, discount expectations, and customer behaviour — and that combination can change your restaurant margins dramatically.

How commissions actually work

Delivery channels typically take a percentage of the order value as commission. That percentage often ranges from the mid-teens to around 30%, depending on the platform, your contract, and any extra services you opt into (marketing placements, delivery handled by the platform, and so on).

On top of the commission, you might be paying:

• Fixed per-order fees.
• Co-funded discounts and promotions.
• Optional placement or visibility fees.

A small change in commission percentage has an outsized effect on margin, because it comes off the top of every order before food and packaging costs are even considered.

Why the same menu performs differently across channels

Two channels with seemingly similar commissions can produce very different per-item profit because:

• One channel runs heavier discount campaigns than the other.
• One channel attracts smaller average baskets, so fixed fees hurt more.
• One channel pushes specific items via promotions, shifting sales mix toward lower-margin dishes.
• Pricing is set the same on both, but the effective commission, after fees and discounts, is not.

Why per-channel comparison matters

Looking at total delivery revenue across all apps blends everything together. A strong channel can mask a weak one, and an item that wins on one app can be a quiet loss on another.

A per-channel view answers more useful questions:

• Which channel is genuinely profitable for us?
• Which items should be priced differently per channel?
• Where are discounts pushing us below our target margin?
• Which channel deserves more attention — or less?

Practical next steps

• Pick your top 10–20 items and check per-item profit on each channel.
• Identify any item that is healthy on one channel and risky on another.
• Use those findings to set target delivery prices per channel rather than copying dine-in prices.

For a deeper look at pricing, see how to price your restaurant menu for delivery apps.