How to make third-party delivery profitable
Commission, packaging and refunds, worked through on one order. Where the margin goes and which levers you have.
Third-party marketplace commissions commonly run from about 15% to 30% of the order subtotal, depending on the plan, before packaging and refunds. Delivery sales can grow while delivery profit doesn't. Work one order through to see which.
| Subtotal | $30.00 |
|---|---|
| Commission at 25% | −$7.50 |
| Packaging | −$1.20 |
| Food cost at 30% | −$9.00 |
| Left before labor | $12.30 |
The same food sold at the counter would leave $21.00 before labor. A delivery order may still be worth taking — it may be a customer you'd never have served — but it's a different business and should be tracked as one.
The levers you have
- Menu pricing. Some operators price delivery menus above in-store; at 15% higher, the order above would leave $15.68. Check your franchise agreement and brand policy first, and the platform's own pricing rules.
- Plan tier. A lower commission usually means a smaller delivery radius or less visibility. Compare what each tier actually sold for you.
- Accuracy. A missing item can mean a full refund. Track refunds as a share of delivery sales, per store.
- Direct ordering. Your own ordering avoids marketplace commission but not processing fees, and customers need a reason to use it.
- Prep time. Set quoted prep times from real ticket times at each daypart, so drivers aren't left waiting.
For franchisors
System-wide marketplace agreements often set the commission franchisees pay. Reporting delivery margin per store, not just delivery sales, shows whether those terms still work for owners.
Where Franlever fits
Franlever reads sales by channel from your POS and separates a channel losing orders from one losing order size, so a delivery drop is described accurately before anyone acts on it.
Common questions
- How much do delivery apps charge restaurants?
- Marketplace commissions commonly range from about 15% to 30% of the order subtotal depending on the plan, plus any fees for payment processing or promotions. Check your own contract for exact terms.
- Should delivery menu prices be higher?
- Many operators price delivery above in-store to cover commission. Whether you can, and by how much, depends on your franchise agreement, brand policy and the platform's rules.
General information for restaurant and franchise operators, not legal, tax, accounting or financial advice. Figures in examples are illustrations, not predictions or promises of results. Laws and platform policies change and differ by location, so check the current rules and talk to a qualified advisor about your situation.