Delivery Margin Optimization

How To Price Menu For Delivery Apps

Delivery apps take 20-30% commissions, so standard in-house pricing loses money fast. Learn how to adjust prices using food costs, margins, and sales data to stay profitable without turning off customers.

Delivery

The short version

In 2026, price delivery menu items 15-30% higher than in-house versions to offset 20-30% app commissions, packaging costs ($0.50-1.50 per order), and smaller average tickets. But don't blanket markup—use contribution margins to protect high-sellers.

Delivery pricing is 60% math, 40% menu strategy. Get it wrong, and you're subsidizing every order. Get it right, and delivery becomes a profit center instead of a loss leader.

The real math: delivery cost breakdown

Standard menu pricing ignores delivery's hidden fees. Build from the ground up with 2026 numbers:

  • Food cost: Same as in-house, but add 5-10% for portion waste on travel-ready items.
  • Packaging: $0.50-1.50 per item (bags, boxes, seals).
  • App commission: 20-30% of subtotal (Uber Eats/DoorDash average).
  • Labor bump: +$1-2 per order for packing and handoff.
  • Marketing fees: 2-5% if you pay for app promotions.

Total added cost per delivery order: $4-8 on a $20 ticket. Without pricing adjustments, that's a 20-40% margin hit.

Example: $6 in-house item cost + $1.50 packaging + 25% commission ($1.50 effective) = $9 total cost ÷ 0.30 target margin = $30 minimum delivery price? No—spread across the menu.

Factors that bump your delivery prices in 2026

Commissions aren't going down, but these tweaks let you price smarter:

1. Item type and travel-ability

  • High-margin dry goods (fries, burgers): +10-15% markup.
  • Fragile/wet items (salads, soups): +20-30% to cover remakes and waste.
  • Cold items (drinks, desserts): Minimal markup—use as upsells.

2. App and location

  • High-commission apps (DoorDash): +20-25%.
  • Own delivery or low-fee (Grubhub): +10-15%.
  • Urban/dense: Lower markups possible with volume.

3. Menu mix and bundles

  • Stars (high profit, high popularity): Protect with minimal markup.
  • Plowhorses (low profit, high sales): +15-20% to boost margins.
  • Bundles: Price combos 10% below a la carte to drive tickets.

4. Overhead and inflation

  • Delivery-specific labor: +5-10% buffer.
  • Packaging inflation: Up 10% YoY—build in now.
  • App fee creep: Plan for 2-3% annual increases.

Quick delivery pricing audit

Audit your menu in under 30 minutes:

Step 1: Calculate true delivery cost

  • Pull last month's app statements—add up commissions, fees, packaging.
  • Divide by orders to get per-order overhead.
  • Use our Delivery Margin Calculator for the math.

Step 2: Set targets by item

  • Aim for 15-25% net margin after fees (vs. 30-40% in-house).
  • Group items: protectors (minimal markup), boosters (higher markup).

Step 3: Test and track

  • Roll out on one app first—monitor order volume.
  • Track in Menu Engineering: Adjust based on sales drop-off.

How to price delivery without losing orders

Markups work when you add perceived value:

  • App-exclusive items. Create "delivery bundles" with extras that justify the price.
  • Minimum orders. Set $15-20 mins to spread fees over larger tickets.
  • Dynamic pricing. Lower during slow times, higher in peaks (if app allows).
  • Transparency. Note "delivery pricing reflects app fees" to reduce backlash.

Use the Delivery Menu Pricing Template from our templates to map your full menu.

Where the RPS tools plug in

One-item fixes are easy. Scaling to a full delivery menu? Our tools automate it:

  • Delivery Margin Calculator: Input costs and fees for per-item break-evens. From calculators.html.
  • Contribution Margin Calculator: Rank items by true profit after delivery cuts.
  • Menu Engineering Matrix: Optimize your app menu based on sales and margins.
  • Live Menu Engine service: Auto-updates prices across apps as costs or fees change. See menu-engine.html.

If you’re comparing DIY spreadsheets and live menu pricing to the big all-in-one restaurant platforms, our Us vs Them page breaks down why Restaurant Profit Systems is different.

For beginners, start with our fillable templates like the Delivery Menu Pricing Template. Ready for pro-level? Dive into the calculators in The Vault at calculators.html.

Simple next step for this week

Pick your top 5 delivery sellers. Run the margin math with current fees. If net margin is under 15%, markup 10% and test on one app.

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FAQs

How should I price menu items?

Use food cost %, margins, and sales mix data.

Why does menu pricing matter?

Pricing drives profitability and customer perception.

What tools help with pricing?

Recipe cost cards and menu costing systems.