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How to Price Your Delivery Menu So Commission Does Not Eat Your Margin

Empire Marketing Team, Bangkok7 min readอ่านภาษาไทย

Short answer

Price delivery menu items by starting from your cost of goods and target margin, then working backward through your commission rate, rather than copying your dine-in price. The formula is: delivery price equals cost of goods divided by (1 minus target margin minus commission rate).

The mistake: pricing delivery the same as dine-in

Dine-in pricing already accounts for your cost of goods and the margin you want. Delivery adds another deduction on top, commission, that dine-in pricing was never built to absorb. Using the same price on both channels means your delivery margin is thinner than your dine-in margin by exactly the commission percentage.

This is one of the most common reasons restaurants feel like delivery is busy but not actually profitable.

The method

Work backward from three numbers you already know: cost of goods per item (including packaging), the margin you want to keep, and your commission rate from your merchant dashboard.

  • Cost of goods (COGS): raw ingredients plus packaging for one item.
  • Target margin: the percentage of the final price you want left as profit after COGS and commission.
  • Commission rate: the GP percentage shown in your GrabMerchant or Wongnai Merchant App.
Commission rateDelivery price needed
15%฿90
22%฿105
30%฿129
Worked example at different commission rates, same 45 THB cost of goods and 35% target margin.

Get help pricing your delivery menu

The formula and a worked example

Delivery price = COGS ÷ (1 − target margin − commission rate).

Example: a dish costs 45 THB to make, you want a 35% margin, and your commission is 22%. Delivery price = 45 ÷ (1 − 0.35 − 0.22) = 45 ÷ 0.43 ≈ 105 THB. At that price, after commission and cost of goods, you keep roughly your target 35% margin on the item.

If that price feels too high next to competitors, the honest options are to either accept a thinner margin on that item, work on reducing cost of goods, or lean on higher-margin items elsewhere on the menu rather than quietly absorbing the loss.

A note on delivery-only pricing versus menu-wide pricing

Some restaurants set a single delivery-specific price list instead of adjusting every dine-in price. That is reasonable, as long as the delivery list is actually calculated against commission, not just set a little higher out of instinct.

FAQ

Should delivery prices always be higher than dine-in?

Often yes, because delivery carries a cost dine-in does not. Whether that is visible to the customer depends on how you structure your menu and any platform-side pricing rules.

What if the calculated price is way above competitors?

That is useful information. It may point to COGS that is too high, a commission tier worth reviewing, or a case for keeping that specific item off the delivery menu.

Does this apply the same way on LINE MAN?

Yes, the formula only needs your COGS, target margin and that platform's commission rate, whichever platform you are pricing for.

How often should I re-check this?

Whenever ingredient costs move meaningfully, or when you notice your commission tier or plan has changed.

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