Food Delivery Commissions: How to Reduce Costs

In short: delivery platforms deduct a percentage from every order, often with additional fees. To reduce commission costs, it's wise to recalculate menu pricing by channel and build a parallel direct ordering system.

The delivery platform commission model

Food delivery platforms typically charge a percentage commission on the total value of every order, sometimes with added fees for services like platform-managed delivery.

The cumulative effect on margins

On a dish with already thin margins, a double-digit percentage commission can leave the order breaking even or even at a loss if you haven't properly adjusted your menu pricing for that channel.

Recalculate prices by channel, don't standardize

Many successful businesses apply a slight markup on delivery platform menus compared to dining-in or direct order prices to compensate for commissions without eroding margins on direct sales.

Building a parallel direct channel

Every delivery customer acquired through a platform is a potential direct customer for the future: communicating the option to order directly next time—perhaps with a small QR code on the packaging—gradually reduces the share of commission-based orders.

How to calculate the true margin of a delivery order

Beyond the platform commission, also consider the cost of additional packaging and any potential drop in perceived quality during transit: an honest calculation of the actual margin—not just price minus commission—helps determine which dishes are truly profitable on this channel.

Diversify across platforms or focus on one?

Being present on too many delivery platforms at once spreads your operational focus thin (menus to update everywhere, different commissions to track): for many pizzerias, focusing on one or two main platforms, managed well, yields better results than having a superficial presence on every available platform.

Frequently asked questions about delivery commissions

How much do platform commissions cost?

It depends on the platform, your contract, and the chosen service (delivery included or not). Check your contract and calculate the actual percentage against your total monthly orders, including any extra costs.

How do I calculate an order's real margin?

Start with the price paid by the customer, then subtract the commission, food cost, packaging, and any promotions you are covering. What remains is your real margin, which can be much lower than for dine-in.

Can I raise prices on platforms?

Many businesses apply a small markup on platform menus compared to dine-in or direct prices. Check your platform's terms and verify that this is permitted under your contract.

How do I drive customers toward direct ordering?

Include a note or QR code in your packaging with a friendly invitation to order directly next time, perhaps offering a small incentive. The QR code can link to your digital menu and direct ordering page.

How much do I save by shifting some orders?

It depends on the percentage you shift: every direct order avoids commissions. For pizzerias and delivery, take a look at our page for pizzerias or for restaurants and bars, including a 14-day free trial.

3 steps to take today

1. Calculate the actual commission paid last month on total orders.
2. Identify your top 3 best-selling dishes and check the margin for that channel.
3. Add a QR code for direct ordering to your next batch of packaging.