Delivery platforms are brilliant at one thing:
Demand generation.
They are less brilliant at:
Margin preservation.
Most hospitality operators know commission rates hurt. What fewer operators calculate is the true cost per order — and how to shift volume intelligently without losing visibility.
This isn't an "apps are bad" article.
It's a profit clarity article.
Step One: Calculate the True Cost Per Order
Too many venues look only at commission percentage.
You need the fully loaded cost:
- Commission (often 20–35%)
- VAT implications
- Refunds and credits
- Packaging
- Extra labour
- Marketing spend within platform
- Payment processing
- Discounts and promotional contributions
Now compare that to direct ordering:
- Payment gateway fees
- Packaging
- Hosting/software cost
- Marketing spend
- Labour
When you run the numbers honestly, the margin gap is often wider than expected.
Clarity changes strategy.
Delivery Platforms Are Not the Enemy
They are a channel.
A powerful one.
But smart operators treat them as:
- Customer acquisition tools
- Volume stabilisers during quiet periods
- Brand exposure vehicles
Not as their only route to market.
The mistake isn't using them.
It's becoming dependent on them.
The Balanced Channel Strategy
Instead of "platform vs direct", think:
- Platform for reach
- Direct for retention
Your goal isn't to eliminate platforms.
It's to increase the percentage of repeat customers who order directly next time.
That's where profit compounds.
How to Shift Volume Without Losing Reach
Here's what works in practice:
1. Incentivise Direct Reorders
- Include bounce-back offers in delivery packaging
- Use QR codes linking to direct site
- Offer small loyalty rewards
- Promote "best price guaranteed" messaging
Subtle, not aggressive.
2. Optimise Direct Ordering Experience
If your website or app is slow, clunky or unclear, customers won't switch.
Direct must be:
- Mobile-optimised
- Fast
- Simple checkout
- Clear pricing
- Easy re-order functionality
Convenience wins.
3. Increase AOV on Direct
Delivery platforms often control upsell prompts.
On direct channels, you control the journey.
Add:
- High-margin add-ons
- Bundle deals
- Timed upsell prompts
- Dessert and drinks reminders
- Order threshold incentives
Small increases in AOV dramatically improve net profit.
4. Engineer the Menu for Channel Profitability
Not every dish should be on every platform.
Consider:
- Removing low-margin items from high-commission platforms
- Offering exclusive bundles on direct
- Pricing strategy aligned to channel economics
Channel strategy should reflect margin reality.
Multi-Site Operators: Standardise Your Approach
For groups, inconsistency kills strategy.
Create:
- A channel profit template
- A standard direct incentive structure
- Central performance reporting
- Channel-specific KPIs
Without tracking net profit by channel, you're guessing.
And guessing is expensive.
The KPI Framework You Should Be Tracking
At minimum:
- Net profit per order (by channel)
- Average order value (AOV)
- Repeat rate
- Commission cost as % of revenue
- Direct channel growth rate
- Marketing cost per acquisition
If you can't see these clearly, you can't improve them.
The Strategic Reality
Delivery platforms are here to stay.
So is margin pressure.
The winners in hospitality won't be the ones who avoid platforms.
They'll be the ones who:
- Understand channel economics
- Protect repeat business
- Build strong direct infrastructure
- Treat delivery strategically, not emotionally
Profit follows clarity.
3 Practical Takeaways
- Calculate fully loaded net profit per order across all channels.
- Implement direct-order incentives in every delivery package.
- Optimise your direct channel to increase AOV with high-margin upsells.
Ready to Protect Your Delivery Margin?
TaylorMade Management supports hospitality operators with:
- Digital ordering assessments
- Website and app optimisation
- Channel profitability analysis
- Cost and commission reviews
- Multi-site strategy alignment
Book a Digital Ordering Assessment today and take control of your channel profit.
Because visibility is important.
But margin is survival.
