What are the real costs of offering online ordering and delivery for a restaurant?
The real costs of offering online ordering and delivery for a restaurant go far beyond just commission fees. They include technology expenses, payment processing, packaging, additional labor, marketing, and operational adjustments. When calculated properly, these costs can significantly affect your net profit margin.
1. Platform and Technology Costs
Most restaurants use either third-party delivery marketplaces or their own direct online ordering system. Each option carries different financial implications.
- Marketplace commission fees (often charged per order)
- Payment processing fees per transaction
- Monthly subscription fees for ordering software
- POS integration or technical setup costs
In most restaurants, commission-based models reduce gross margins quickly, especially for lower-priced items. Direct ordering systems typically involve fixed fees but require more internal marketing effort.
2. Packaging and Materials
Delivery requires packaging that protects food quality and brand perception. This is a direct, recurring cost.
- Takeout containers and lids
- Branded bags or packaging
- Cutlery, napkins, condiments
- Seals and safety stickers
These expenses are often underestimated. A casual dining restaurant sending 80–100 delivery orders per day can see packaging costs accumulate quickly over a month.
3. Labor and Operational Adjustments
Online ordering changes workflow. Even if you do not hire new staff, labor allocation shifts.
- Kitchen time dedicated to delivery orders
- Staff assigned to packing and quality checks
- Order management and tablet monitoring
- Customer service for delivery issues
During peak hours, delivery orders can compete with dine-in service. In many restaurants, this requires separate prep stations or clear production planning to prevent service slowdowns.
4. Delivery Costs
If using third-party platforms, delivery fees are typically built into commissions. If managing delivery in-house, the structure is different.
- Driver wages or per-delivery payments
- Fuel or vehicle maintenance
- Insurance and liability coverage
- Routing and scheduling tools
In-house delivery offers more control but introduces fixed operational costs that must be covered by order volume.
5. Marketing and Customer Acquisition
Online ordering does not automatically generate traffic. Visibility requires effort.
- Paid promotions within delivery apps
- Discount campaigns or free delivery offers
- Social media and online ads
- Search optimization and website management
Restaurants commonly use discounts to stimulate online demand, but these reduce contribution margins if not carefully planned.
How It’s Typically Managed
In practice, experienced operators calculate contribution margin per online order before launching or expanding delivery. This includes:
- Selling price minus food cost
- Minus commission or processing fees
- Minus packaging cost
- Minus estimated additional labor
If the remaining margin supports overhead and profit, the model is sustainable. If not, menu pricing or item selection must be adjusted.
Menu Structure and Control
Many restaurants adjust their online menu to protect margins. For example, high-margin combo meals may be prioritized, while low-margin items are removed from delivery channels. Managing this efficiently requires centralized item control.
Digital menu systems such as Menuviel allow operators to manage item availability, pricing differences for delivery, and menu variations from a single dashboard. This helps reduce errors and maintain consistency across locations without adding administrative complexity.
Real-World Example
A neighborhood café may see strong online demand for coffee and pastries. However, once commission, packaging, and labor are factored in, small-ticket orders often produce minimal profit. In contrast, bundled breakfast sets or family meal deals tend to perform better because they protect margin while increasing average order value.
The real cost of online ordering and delivery is not just the visible fee per order. It is the combined impact of commissions, packaging, labor, marketing, and operational adjustments on overall profitability. Restaurants that measure these elements clearly tend to make more sustainable decisions.
