Read the fee base before using a percentage
Record whether commission applies to the item subtotal, discounted subtotal, delivery, or another amount. Separate payment processing, fixed order fees, promotions, and refunds. The worked example below assumes one percentage applied to net item revenue with no other charges; replace that assumption with the channel settlement statement.
Compare equal orders across channels
Consider a fictional $16 net order with $7 of ingredients, labor, and delivery packaging. At 30% commission, the fee is $4.80 and contribution is $4.20. If a comparable direct order has a 3% fee and the same $7 variable cost, contribution is $8.52. The $4.32 difference is a channel comparison, not proof that all marketplace orders displace direct orders.
Calculate the price needed for a target contribution
To retain $6 per order with $7 variable cost and a 30% commission, solve price × 0.70 − $7 = $6. The result is $18.57 before rounding. A higher listed price can affect demand and may be constrained by channel terms. Model expected order volume alongside retained currency per order.
Audit a real settlement after changing the menu
Take several completed orders and reconcile net item revenue, discounts funded by you, commission, packaging, and actual receipts. Refunds and promotions can make the headline rate misleading. Keep delivery preparation time and spill-resistant packaging in the channel cost record. Review both total weekly contribution and per-order contribution before calling a price change successful.
Use your own operating data
Supplier prices, yields, labor rates, and channel fees change. KitchenMargin treats them as editable inputs rather than universal facts.