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Delivery platforms or direct pickup: compare contribution per order

Updated · By SBA Loan editorial

Operational worked example · Independent leased counter-service restaurant; existing kitchen infrastructure; no alcohol, drive-through or franchise fees

Compare channels on net contribution from the same meal order, then ask whether the platform order is incremental or displaces a better order during a busy hour. Direct pickup usually avoids the marketplace commission, but it still needs payment processing, packaging and a way to attract the customer. A lower contribution channel can be useful in spare kitchen capacity; it can reduce earnings when it takes the place of direct demand.

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Hold the meal and accounting basis constant

The example uses a hypothetical $18.00 gross menu receipt before customer sales tax or tips. Recipe ingredients and production waste consume $5.40, refunds/remakes use a revenue allowance of $0.27, and variable utility uses $0.25. Direct pickup packaging is $0.70; delivery packaging is $0.95 because the case assumes a more protective bag/seal/container set. These are complete order budgets to replace with supplier evidence, not observed market averages.

Use the actual merchant subtotal and fee base from your agreement. Customer service and delivery fees visible in an app are not automatically money the restaurant receives. Separate restaurant-funded promotions, ads, refunds, tablet charges, delivery logistics and processing so costs are not hidden or counted twice. If menu prices differ between channels, compare receipts after all those costs and comply with the relevant contract’s pricing terms.

Distinguish marketplace delivery, marketplace pickup and direct orders

DoorDash publishes US delivery plan commission rates of 15.0%, 25.0% and 30.0%. Its published pickup rate is 6.0% subject to terms including pickup-menu parity. Marketplace processing is included in the commission. Direct Online Ordering is described as commission-free, but a payment processing fee remains. Optional tablet, promotion and advertising products can add costs. The published plan is a dated comparison, not our operator’s agreement. US merchant fee FAQ

The direct-pickup comparison uses Square Free online checkout at 3.3% plus $0.30, which costs $0.89 on this receipt. The online API and paid-tier rates are separate offers and should not be silently substituted. Any direct ordering software subscription belongs in the channel’s fixed or incremental cost as well. Square US fee schedule

Read contribution before charging a new shift

Same hypothetical order, USD; no duplicate marketplace card fee
Cost or resultDirect online pickupDelivery BasicDelivery PlusDelivery Premier
Gross receipt$18.00$18.00$18.00$18.00
Ingredients/waste$5.40$5.40$5.40$5.40
Refund allowance$0.27$0.27$0.27$0.27
Packaging$0.70$0.95$0.95$0.95
Processing or commission$0.89$2.70$4.50$5.40
Variable utility$0.25$0.25$0.25$0.25
Contribution before shift payroll$10.49$8.43$6.63$5.73

Marketplace pickup is another channel: at the assumed 6.0% fee and pickup packaging it yields $9.75 after the handling sensitivity below. It uses the restaurant kitchen and customer handoff even though it does not use a delivery driver. This is why “pickup” by itself is not a complete fee definition.

The existing restaurant model pays a fixed shift roster outside order contribution. For a separate incremental decision, the next calculation charges 1.5 minutes of additional paid work at the assumed cook rate and burden, or $0.55 per order. This sensitivity is not inserted into the monthly model on top of the same employee hours. If an existing paid person genuinely has spare time, the immediate incremental payroll can be lower; if a new shift is required, use the whole shift cost rather than a token minute charge.

Ask which orders the platform actually adds

After the illustrative extra handling charge, direct online pickup contributes $9.94 and Plus marketplace delivery $6.08. A new app customer served in idle capacity adds the latter. A direct customer switching to the platform changes contribution by −$3.86 for the same meal. The difference matters even when the app’s total sales look strong.

100 hypothetical Plus orders; same price and handling assumptions
ScenarioPlatform contributionLost direct contributionNet contribution change
30 orders shifted from direct, 70 additional100 × $6.0830 × $9.94$309.85
70 orders shifted from direct, 30 additional100 × $6.0870 × $9.94−$87.55

At these inputs, the contribution calculation stays positive only while the shifted share is below 61.2%, before additional ads, subscriptions or paid shift blocks. That threshold is computed from this receipt and cost set; it is not an industry benchmark or something the platform can promise. Replacement of other high-value peak orders can make the outcome worse. Acquisition spending that genuinely brings new direct customers can also change the comparison.

Capacity is an opportunity cost during the rush

The linked case assumes a usable kitchen rate of 40.8 orders per hour and a lunch requirement of 40.5 in its busiest hour. There is little slack in that initial lunch profile. An additional platform order does not bypass the cook line, even if it arrives digitally. When the line is saturated, examine contribution per constrained station-minute and the displaced order, rather than merely contribution per ticket.

Set realistic ready-time slots, distinguish courier pickup congestion from customer payment queues and measure unserved direct orders. A platform promotion that fills an idle afternoon can have different economics from the same promotion at lunch. Do not raise the model’s kitchen cap simply because an ordering tablet can accept more tickets. Test the menu and paid coverage, then rerun the meal-period model if the actual process changes.

Reconcile sales and settlements before deciding

The sales dashboard records orders; the bank receives a settlement after commissions, refunds and other deductions. Preserve the gross-sales ledger, fee invoice and payout reconciliation for each channel. A higher order count can coincide with weaker weekly cash if the mix changes or the payout is later. Our private timing test lengthens card and marketplace lags and lowers first-month cash by $4,792 without changing EBITDA. Actual timing must come from the merchant agreement and bank observations.

Run the comparison with your real menu mix for at least a defined observation period, including busy and quiet meal slots. Label discounts and new-versus-repeat customers consistently; do not treat a discount-driven trial as an unchanged demand base. Check contribution, paid hours, order backlog, refund rates and settled cash together. Read the monthly profitability guide for profit-versus-cash definitions and the unit-economics guide for the linked kitchen constraint.

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