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Delivery Profit Margin: Calculate Your Real Number Per Order

Empire Marketing Team, Bangkok6 min readอ่านภาษาไทย

Short answer

Your real delivery profit margin per order is: order value, minus cost of goods, minus commission, minus packaging, minus any promotion cost, divided by order value. Most restaurants only track cost of goods and miss commission and packaging, which overstates margin.

Why dine-in margin thinking misleads on delivery

Dine-in margin is usually just revenue minus cost of goods. Delivery has at least two more deductions that dine-in does not: platform commission and often extra packaging. Skip either one in your mental math and your real margin is thinner than what you believe it is.

A restaurant can be growing delivery sales month over month and still be making less profit than it looks like, because the growth in orders came with the same thin, under-counted margin on each one.

The full formula

Net profit per order = order value − cost of goods − commission − packaging − promotion cost (if any).

Margin percentage = net profit per order ÷ order value.

Line itemAmountRunning total
Order value฿250฿250
Cost of goods-฿90฿160
Commission (22%)-฿55฿105
Packaging-฿8฿97
Net profit฿97 (38.8%)
Worked example: where a 250 THB order actually goes.

Get help tracking your real delivery margin

Worked example

An order is worth 250 THB. Cost of goods is 90 THB. Commission at 22% of 250 THB is 55 THB. Packaging is 8 THB. There is no active promotion on this order.

Net profit = 250 − 90 − 55 − 8 = 97 THB. Margin = 97 ÷ 250 = 38.8%.

Run this same calculation on an order where a discount promotion applied, and the margin often drops well below what it looks like on the sales report, because the promotion cost is easy to forget when eyeballing totals.

FAQ

Do I need to calculate this for every single order?

No, a representative sample across your top few menu items is usually enough to see your real average margin.

Should I include my own labor cost?

That is a legitimate deeper layer, but start with the four items above first, since those are what most restaurants are missing entirely.

What if margin comes out negative on a promoted item?

That is useful to know before running the promotion again. It does not automatically mean stop the promotion, since promotions can still bring in new customers worth acquiring at a loss once, but it should be a deliberate decision, not a surprise.

Does this change by platform?

Yes, since commission rates differ between GrabFood and LINE MAN. Calculate separately for each platform.

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