Takeaway: what is left after costs?

Compare the same order

Use the same food, discount and delivery method. An order collected by the guest has different costs from one delivered to their home.

An ordering service may charge a percentage of sales. This is called commission. Check what this fee covers before adding payment, delivery and marketing as separate costs.

Calculate sales excluding value added tax (VAT). Use costs excluding VAT where appropriate too, so the figures are comparable. Check which amount the percentage fee is based on. It may differ from the sales excluding VAT used in your calculation.

A hypothetical example with two deliveries

All figures below are hypothetical. They are not customer data, market prices or rates from Wolt, foodora or other providers.

Both orders generate NOK 300 in sales excluding VAT, after discount. In this example, the percentage fee is calculated on the same NOK 300.

We assume that the 20 % fee covers payment, delivery and the ordering service's marketing. With its own online ordering, the restaurant pays these costs itself. The work of preparing, packing and following up on the food is the same in both cases. Neither column includes separate delivery revenue.

First, we deduct the costs associated with the order. This leaves NOK 127 through the service and NOK 136 through own online ordering. Then we deduct NOK 4 in fixed costs for the sales channel. The results are NOK 123 and NOK 132.

This is money left before the restaurant's other fixed costs. It is not profit.

Try three different percentage fees

Here we use the same assumptions as in the table. Only the percentage fee changes. All three percentages are hypothetical examples.

At 10 %, the fee is 300 × 10 / 100 = NOK 30. This leaves NOK 153 before the restaurant's other fixed costs.

At 20 %, the fee is 300 × 20 / 100 = NOK 60. This leaves NOK 123 before the restaurant's other fixed costs.

At 30 %, the fee is 300 × 30 / 100 = NOK 90. This leaves NOK 93 before the restaurant's other fixed costs. Own online ordering still leaves NOK 132 in this example.

The best fit depends on your costs. Look at the cost of getting the guest to order, the cost of delivery and what the fee covers. Also consider whether the guest would have ordered without the service.

Use your own agreement when calculating. Check the amount the percentage is based on, discounts, refunds and who pays for promotions. Add payment and delivery costs if they are not included in the fee. Do not deduct the same cost twice.

Show fixed costs clearly

Some costs of a sales channel are fixed over a period. Allocate these across a realistic number of orders from the same period. Show them separately from costs associated with each order.

Replace the four kroner in the example with your own calculation. The amount is not a quoted subscription price.

Include extra work on menus and promotions. Also include additional costs for connections to other systems. The restaurant's other wages, premises and fixed operating costs have not been deducted at the bottom of the table. The amount is therefore not profit.

See how it works when it is busy

Check that orders reach the kitchen. See how collection or delivery times are set. Clarify who follows up on delays.

Track what is left after costs, both per order and in total. Also look at mistakes and waiting times. More online orders may leave the kitchen less time for guests dining in.