Delivery Channel Margin
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What this tool does
What an aggregator order really leaves after commission, promos and the royalty you still owe on the gross.
Other tools for this stage
- Ops CopilotDescribe what's going wrong in the unit; get causes, this week's actions, and metrics.
- Multi-Unit BenchmarkPut your units side by side — find the drag, and what closing the gap is worth.
- FDD Builder AIFor franchisors: your disclosure outline, the data to gather, and the earnings-claim call.
- Break-Even CalculatorThe revenue — and customer count — a unit needs each month before it makes a cent.
- Working Capital & RunwayModel the ramp-up: the working capital a unit burns before break-even, and whether your reserve survives it.
- Occupancy Cost RatioCheck rent + occupancy as a share of revenue against healthy benchmarks, and your max sustainable rent.
What this calculates
What an aggregator order actually leaves you. Working down from the gross order value it removes platform commission, any promotional discount you funded, the incremental packaging, and — the line most operators forget — the royalty and ad fund, which are usually charged on gross revenue including the part the platform keeps.
What you will need
Commission rate. The effective rate, including any additional charge for promoted placement or a lower-commission tier you are not actually on.
Promotional funding. Discounts you pay for rather than the platform. Running two offers at once compounds faster than it appears.
Royalty basis. Check your agreement for whether the royalty is charged on gross order value or on what you receive. If it is on gross, you pay a royalty on the platform's commission too.
How to read the result
Compare the margin per delivery order against the same item sold in-house. Delivery is worth running when it uses capacity you already pay for and cannot otherwise fill; it becomes a problem when it displaces higher-margin dine-in trade or pushes the kitchen past the point where service quality holds. If the margin is thin but positive, the honest question is whether the incremental volume covers the kitchen strain — not merely whether the number is above zero.
Questions about this tool
Do I really pay royalty on the platform's commission?
Often yes. Many agreements calculate the royalty on gross revenue, which includes the portion the aggregator retains. Read your agreement, because it changes delivery margin materially.
Should I price delivery items higher?
Many operators do, and platforms increasingly permit it. Weigh the margin recovery against the customer reaction when the difference is visible — and check whether your franchise agreement allows separate pricing.
Is thin-margin delivery still worth doing?
Only if it uses genuinely spare capacity. Delivery that slows the dine-in service or displaces higher-margin orders can reduce total profit even while total revenue rises.
For reference only; not legal, tax, or investment advice. Results depend entirely on the figures you enter — check them against your own quotes and your franchise agreement before acting on them.