Pricing 4 min read

How to calculate delivery menu margins

Delivery profit changes once packaging, commission, payment fees, and discounts are included.

A menu item can be healthy for dine-in and weak on delivery. The food cost is only the first part of the calculation. Platforms like DoorDash, Uber Eats, and Grubhub each take a commission that narrows the margin further once packaging, payment fees, and discounts are included.

The formula

Delivery profit = delivery price - recipe cost - packaging - commission - payment fees - discounts - other delivery costs

A worked example

Say a rice bowl costs $3.20 to make and sells for $12 on delivery.

Packaging: $0.65

Delivery commission: 25% of $12 = $3.00

Payment/fixed fees: $0.30

Delivery profit = $12 - $3.20 - $0.65 - $3.00 - $0.30 = $4.85.

Compare channels side by side

The same rice bowl may earn more dine-in at $10 than delivery at $12 if commission is high. That is why delivery needs its own price and assumptions.

What to review

Delivery-only packaging costs

Partner commission per platform (DoorDash, Uber Eats, Grubhub, or custom)

Discounts and promotions

Payment or fixed fees

Whether delivery price should be higher than dine-in

Try it on your own menu.

Cost a dish in minutes. No spreadsheets.

Cost your first dish