How we analyze delivery as a channel

The mistake we see most often is treating the delivery app ticker as a revenue line. The commission, packaging, separate prep rhythm and refund risk mean every delivery dollar arrives at a fraction of the margin of the same dish served in the room.

We start by separating delivery sales from dine-in in the P&L. Many operators see a headline sales number that looks healthy and miss that the blended margin has fallen. The fix is a contribution margin per channel: revenue minus food cost, commission, packaging and the labor of running a separate ticket stream.

Once the real contribution is visible, the decisions get clearer. Some items should never be on the delivery menu — they do not travel, they cost the same to make, and the commission eats the margin. A curated delivery menu that protects contribution is better than mirroring the full dine-in offering.