Free Restaurant Marketplace Margin Calculator
Compare per-order and annual contribution between third-party delivery marketplaces (Uber Eats / DoorDash / Grubhub) and first-party online ordering on the same volume. Enter average order, food cost, commission, promo, packaging, and your first-party delivery cost - get per-order contribution for each channel, the annual contribution gap, and a tier badge against the operator-tested healthy band.
Marketplace Margin Calculator
Compare per-order and annual contribution between third-party marketplace orders (Uber Eats / DoorDash / Grubhub) and first-party online ordering on the same volume. Enter average order, food cost, commission, promo, packaging, and your first-party delivery cost - get per-order contribution for each channel, the annual gap, and a tier badge against the operator-tested healthy band.
Marketplace contribution / order
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First-party contribution / order
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Annual marketplace contribution
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Annual gap to first-party
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Tip: run this once with the headline commission, then once with packaging + a realistic 3-6% promotional spend added on top. The difference is the hidden margin most operators do not see on the marketplace dashboard.
Why the marketplace commission you see is not the cost you actually pay
How to use the calculator
Seven required inputs plus two optional fine-tuning fields. The math runs live in your browser; nothing leaves the page.
- 1
Enter your average order value - the blended trailing 90-day average across both marketplace and first-party orders. Use the same currency throughout.
- 2
Enter your food cost % (COGS on revenue). Most independents land at 26-34%; high-margin formats like bowls and pizza often run lower, fine dining can run higher.
- 3
Enter the number of marketplace orders you process per week (the total across Uber Eats, DoorDash, Grubhub, or whichever marketplaces you use). Use the trailing 30-day weekly average.
- 4
Enter the marketplace commission % - your headline tier rate. Basic tier is typically 15-18%, standard 20-25%, premium 28-32%. Use the blended average if you run multiple marketplaces.
- 5
Enter the in-app promo discount % - the average discount you fund through marketplace promotions across the year. Most operators run 8-12% effective; turn it off and order volume drops 20-35%.
- 6
Enter the packaging cost per order. Most operators land at $0.45-$1.20 once bag, container, lid, sauce cup, napkin pack, and tamper-evident seal are included. Use $0.80 as a working default.
- 7
Enter your first-party net delivery cost per order. For pickup-only first-party, enter 0. For your own driver, enter the loaded driver cost per delivery minus any guest-paid delivery fee. For marketplace-courier-as-a-service (Uber Direct, DoorDash Drive), enter the courier fee minus the guest-paid delivery fee (typically nets to $1.50-3.50).
- 8
Optionally, fine-tune the refund reserve % (most operators run 1-3% on marketplace, half that on first-party - default 2% applies to marketplace and half to first-party) and payment processing % (default 2.9% + $0.30 per transaction applies to first-party).
- 9
The result includes per-order contribution for both channels, the annual marketplace contribution at your current volume, the annual gap to first-party at the same volume, and a tier badge against the operator-tested healthy band.
The Marketplace Margin formula
The math walks each channel through its specific cost stack and produces the per-order contribution. The tier badge compares marketplace contribution percentage to the operator-tested healthy band:
Marketplace net revenue = Average order × (1 - Promo %)
Marketplace contribution = Net revenue - (Net revenue × Commission %) - Packaging - (Net revenue × Refund reserve %) - (Net revenue × Food cost %)
First-party contribution = Average order - (Average order × Payment %) - Payment fixed fee - Packaging - (Average order × (Refund reserve / 2)) - First-party delivery cost - (Average order × Food cost %)
Annual marketplace contribution = Marketplace contribution × Orders per week × 52
Annual gap to first-party = (First-party contribution - Marketplace contribution) × Orders per week × 52
The tier badge compares marketplace contribution as a percentage of the gross order value: Excellent = above 20% (unusual but solid), Healthy = 12-20% (workable as a discovery channel), Marginal = 5-12% (push the migration to first-party hard), Critical = below 5% (renegotiate the commission immediately or exit). For most independents at standard 25% commission with realistic promo and packaging assumptions, the marketplace contribution lands in the 8-15% range - the migration to first-party is where the meaningful margin lives.
Healthy marketplace margin bands by restaurant format
These bands are operator-tested across independent restaurants running marketplace and first-party channels in parallel. The marketplace contribution percentage matters more than the absolute dollar number because it normalises across average order size.
| Format | Healthy band | Notes |
|---|---|---|
| Pizza and high-frequency casual | Marketplace contribution 8-14% of gross order; first-party 25-32% | High gross margin (60-70%) and large basket size make the marketplace channel workable but always inferior to first-party. The 12-24 month migration target should land at 60-70% first-party share. |
| Fast-casual and bowl formats | Marketplace contribution 6-12% of gross order; first-party 20-28% | Category is genuinely marketplace-orientated in guest search behaviour. Realistic migration target is 40-55% first-party share through bag inserts, loyalty incentives, and CRM-led remarketing. |
| QSR (quick-service) | Marketplace contribution 5-11% of gross order; first-party 18-26% | Smaller basket size makes packaging and refund costs proportionally larger. Use marketplaces as overflow capacity for slow dayparts only; push first-party for the dine-in repeat base. |
| Full-service restaurants | Marketplace contribution 4-9% of gross order; first-party 18-25% | Worst marketplace economics relative to brand value. Most full-service operators should skip the marketplaces entirely or deploy a curated delivery menu with explicit price uplift. |
| Ghost kitchens and virtual brands | Marketplace contribution 8-15% of gross order; first-party (limited applicability) | Format requires the marketplaces because there is no storefront for first-party demand. Optimise menu engineering, packaging, and brand differentiation against adjacent listings rather than channel migration. |
A worked example
An independent fast-casual restaurant processing marketplace and first-party orders side by side:
- Average order value: $32
- Food cost: 30%
- Marketplace orders per week: 180 (blended across Uber Eats and DoorDash)
- Marketplace commission: 25% (standard tier)
- In-app promo discount: 10%
- Packaging cost per order: $0.80
- First-party net delivery cost: $2.00 (using Uber Direct courier service, partially offset by guest delivery fee)
- Refund reserve: 2%
- Payment processing: 2.9%
Marketplace net revenue = $32 × (1 - 0.10) = $28.80
Marketplace commission = $28.80 × 0.25 = $7.20
Marketplace food COGS = $28.80 × 0.30 = $8.64
Marketplace refund reserve = $28.80 × 0.02 = $0.58
Marketplace contribution = $28.80 - $7.20 - $0.80 - $0.58 - $8.64 = $11.58 per order (36.2% of gross)
First-party payment cost = $32 × 0.029 + $0.30 = $1.23
First-party food COGS = $32 × 0.30 = $9.60
First-party refund reserve = $32 × 0.01 = $0.32
First-party contribution = $32 - $1.23 - $0.80 - $0.32 - $2.00 - $9.60 = $18.05 per order (56.4% of gross)
Per-order gap = $18.05 - $11.58 = $6.47
Annual marketplace contribution = $11.58 × 180 × 52 = $108,389
Annual gap if same volume shifted to first-party = $6.47 × 180 × 52 = $60,559
The tier badge lands in Healthy as a discovery channel (marketplace contribution 36.2% of gross is unusually strong because this example uses a high $32 average order; smaller average orders push the band lower). The annual gap of $60,559 is the dollar value of a 12-24 month first-party migration program - the contribution that lands in the operator's pocket if half the marketplace order volume shifts to first-party.
Frequently asked questions
How much do third-party delivery apps really take from restaurants?+
The headline commission is typically 15-30% of the food subtotal, varying by tier - basic at 15-18% with low visibility, standard at 20-25% with medium visibility, premium at 28-32% with priority placement. The headline rate understates the true blended cost by 8-15 percentage points once you add packaging ($0.45-$1.20 per order), promotional spend (3-6% of gross), refunds and adjustments (1-3% of gross), the tablet attention tax (the operational cost of monitoring multiple marketplace tablets), and the brand fungibility loss from guests learning to optimise on marketplace category rather than restaurant brand. For most independents the all-in cost lands in the 35-45% range, which is the level at which the contribution math stops being good.
What is a typical first-party online ordering contribution?+
On a $25-35 average order with a 30% food cost, first-party online ordering typically produces 50-58% contribution before labor and rent - so $13-20 per order. The exact number depends on the delivery model (pickup-only is highest contribution; your-own-driver is mid-range; marketplace-courier-as-a-service like Uber Direct nets in between). On the same order through a marketplace at 25% commission with realistic promo and packaging, contribution lands at 30-45% - so $10-15 per order. The $5-8 per-order gap compounds quickly. A restaurant doing 180 marketplace orders a week is leaving roughly $60k of contribution on the table annually if those orders could move to first-party instead.
Should I include the marketplace promo in the calculator?+
Yes, if you run any in-app promotional spend - which most marketplace restaurants do, because turning the promos off drops order volume 20-35% inside two weeks. Enter the average effective discount percentage across your year (typically 8-12% for restaurants running ongoing promotional cadence; 0% if you genuinely run no promos). The promo deducts from gross before commission is calculated, so it shows up twice: once as a direct revenue hit and once as a smaller commission base. The combined effect is meaningfully larger than the headline promo rate suggests, which is why most operators underestimate their true commission cost by 4-6 percentage points.
What is the first-party net delivery cost?+
It is what the operator absorbs in delivery economics on a first-party order after any guest-paid delivery fee. For pickup-only first-party (no delivery), enter 0. For operators running their own driver fleet, enter the loaded driver cost per delivery (typically $4-8) minus the guest-paid delivery fee (typically $2.99-5.99) - net usually lands at $1-3. For operators using marketplace-courier-as-a-service (Uber Direct, DoorDash Drive), enter the courier fee (typically $5-9) minus the guest-paid delivery fee - net usually lands at $1.50-3.50. The model treats this as a per-order cost the operator pays out of the food revenue.
How accurate is the tier badge?+
The tier badge is calibrated against operator-tested bands for independent restaurants running marketplace and first-party channels in parallel: Excellent above 20% marketplace contribution (unusual - usually means high average order and below-market commission), Healthy 12-20% (workable as a discovery channel), Marginal 5-12% (push the migration to first-party urgently), Critical below 5% (the channel is losing money once all hidden costs are accounted for). The bands are based on percentage of gross order rather than absolute dollars so they normalise across formats. Use the badge as a directional signal, not a hard rule - the right answer for your specific restaurant depends on format, brand strength, dine-in demand, and operational capacity for first-party fulfilment.
Does this calculator account for delivery fees the guest pays?+
Implicitly, yes - the first-party delivery cost input is the net cost after guest-paid delivery fees, so operators who recover most of the delivery cost from the guest enter a low number (or zero for pickup-only) and operators who absorb more of the delivery cost enter a higher number. The marketplace side does not need a separate guest delivery fee input because marketplaces collect the delivery fee entirely from the guest and the restaurant never sees it on the P&L. The model focuses on what hits the restaurant's contribution margin rather than what the guest pays in total.
What is the right first-party share to target?+
It depends on format and tenure. New restaurants (first 6-12 months) usually run 10-25% first-party share because the marketplaces are doing the customer acquisition work. Established restaurants in their second to third year should be targeting 40-60% first-party share. Mature operations with strong brand equity and an active CRM can sustain 65-80% first-party share. Pizza independents are at the high end of the range because the category is brand-loyal and delivery-frequency-high; fast-casual and bowl formats are at the lower end because the category is marketplace-orientated in guest behaviour. The trajectory matters more than the absolute number; healthy operations move first-party share up 10-20 points a year through the seven-step migration playbook in the <a href="/blog/third-party-delivery-for-restaurants/">delivery guide</a>.
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