A delivery app promotion is worth considering when the contribution from orders it adds is greater than the contribution you give up on orders you would have received anyway, plus the campaign’s extra costs. A marketplace-funded discount can improve those economics, but only if the rest of the fee arrangement does not erase the benefit.
Start with the offer terms, then estimate how many orders are truly incremental. Calculate the result at realistic basket sizes and set a stop rule before launch. More orders alone are not proof of a profitable promotion.
Separate discount funding from fees
Ask the marketplace for the offer in writing. Identify the discount amount, who funds it, any funding cap, the campaign dates, and whether the offer applies to all items or only selected products. If the cost is shared, get the restaurant’s share in dollars or as a clear formula.
Then check how the commission is calculated. Is it charged on the menu subtotal before the discount or on the amount the guest pays afterward? Are there additional promotion, payment, delivery, or other per-order charges? A marketplace-funded discount can still leave you with a disappointing result if the fee basis or another charge changes.
Use the same questions for a restaurant-funded offer. A $6 discount is not necessarily the only cost of giving a guest $6 off. The order may also carry commission, food and packaging costs, and extra labor. Guest delivery fees are not restaurant revenue unless your agreement says you receive them; likewise, include delivery or dispatch charges only when the restaurant bears them.
Gather inputs from three places:
- Marketplace terms and statements: discount funding, commission basis, campaign charges, eligible orders, and any limits.
- Your sales records: typical basket sizes, order counts, item mix, and ordinary contribution from the orders you expect the promotion to affect.
- Your operating records: food, packaging, and additional labor costs, plus any likely refund or remake expense that falls on the restaurant.
Keep sales, discounts, and contribution separate. A $30 sale is not $30 available to cover the offer. Contribution is what remains after the costs that change with that order. Existing rent and other fixed overhead still matter to the business, but do not subtract them again in this one-campaign comparison unless the promotion creates an additional fixed cost.
Estimate incremental orders, not just redemptions
An incremental order is one the restaurant would not otherwise have received during the comparison period. A shifted order would have arrived anyway but used the offer, moved from another day, or moved from another channel. Both appear as promotion orders in a report, but they do not create the same value.
For example, a regular customer who orders their usual dinner with a coupon may add no new sale. If that customer would otherwise have ordered directly, the promotion may also replace a direct order with one carrying marketplace fees. A customer who orders an extra dinner they would not otherwise have bought may be incremental. The report alone cannot always tell you which is which.
Build a reasonable range before launch. Compare similar days and service periods, taking account of holidays, weather, hours, menu changes, and other marketing. Look at total restaurant orders across channels as well as marketplace redemptions. If marketplace orders rise while direct orders fall, investigate the shift rather than counting the entire marketplace increase as new business.
You can also compare eligible periods with similar periods without the offer, where the marketplace terms and your operating schedule allow it. This is an estimate, not proof of each guest’s intent. New-to-app or new-to-restaurant labels can help you ask better questions, but neither necessarily means the order was incremental to your restaurant.
Use a conservative case and a stronger case. If the offer works only when almost every redemption is incremental, the risk is higher than if it breaks even with a modest lift. For a closer look at channel economics, see the guide to comparing direct and marketplace contribution.
Calculate contribution at each basket size
The following is a hypothetical calculation, not a marketplace quote. Assume a restaurant-funded discount of 20% of the menu subtotal and a commission of 25% of that subtotal before the discount. Food costs are 30% of the subtotal; packaging and additional labor together cost $3 per order. The restaurant bears no other per-order payment or delivery charge in this example. Existing fixed overhead is excluded.
The table shows why basket size matters. Subtract the discount, commission, food, packaging, and additional labor from each menu subtotal. For this offer, the restaurant keeps $2 on a $20 order but $7 on a $40 order before campaign-level costs.
| Menu subtotal | Discount and commission | Food, packaging, and labor | Promotion contribution |
|---|---|---|---|
| $20 | $4 + $5 = $9 | $6 + $3 = $9 | $2 |
| $30 | $6 + $7.50 = $13.50 | $9 + $3 = $12 | $4.50 |
| $40 | $8 + $10 = $18 | $12 + $3 = $15 | $7 |
At $30, the same order without the discount would contribute $10.50: $30 minus $7.50 commission, $9 food, and $3 packaging and labor. If that order would have happened anyway on the same marketplace terms, the promotion gives up $6 of contribution.
If the marketplace instead funded the full $6 discount and every other assumption stayed the same, the restaurant’s contribution on the $30 order would be $10.50. That comparison depends on the actual agreement: ask whether funding changes the commission basis or adds another charge. A shared discount would fall somewhere between those cases, depending on the restaurant’s share and the other terms.
The table uses a constant food-cost percentage and order cost for clarity. Your mix may differ. A discounted basket heavy on expensive items, or an order requiring more packaging, can contribute less than the average suggests. Calculate separate cases for your common baskets and any items the offer excludes.
Use a break-even calculator before launch
For a single promotion, use this decision calculation:
Net campaign contribution = incremental orders × promotion contribution per incremental order − shifted orders × contribution lost per shifted order − additional fixed campaign costs − estimated exception costs.
Break-even occurs when that result is at least zero. For the shifted-order term, compare against the contribution you would otherwise have earned. If orders are shifting from direct ordering rather than the same marketplace, use the direct-order contribution as the baseline. Keep channel-specific fees and fulfillment costs in that comparison.
Continue the hypothetical $30 case with 10 same-marketplace shifted orders. Each loses $6, for $60 lost contribution. Assume the campaign also has a $30 fixed setup charge and $15 in total restaurant-borne refund or remake costs. Those fixed campaign and exception costs are included here; existing overhead remains excluded.
The incremental orders must cover $105: $60 + $30 + $15. At $4.50 contribution each, $105 ÷ $4.50 is about 23.3, so the campaign needs 24 incremental orders to break even under these assumptions. With 24 incremental orders, the result is $108 − $60 − $30 − $15 = $3. That is a narrow surplus, not a cushion against a worse order mix or higher exception costs.
If the expected incremental contribution per order is zero or negative, adding more orders at that contribution will not recover the campaign costs. Change the offer, eligible items, fee terms, or expected basket economics before treating volume as a solution. If the contribution is positive but the required lift looks unrealistic, pass on the offer or negotiate terms.
Set a stop rule and review the result
Before accepting the campaign, write down the expected basket mix, shifted-order estimate, maximum restaurant-funded discount, and the fixed and exception costs you will include. Set a review time and a spending or contribution-loss limit that fits the restaurant’s budget. Confirm how to pause or end the offer and whether any notice or remaining commitment applies.
During the campaign, track redemptions alongside total orders, average eligible basket, discount expense, fees, refunds, and remakes. Compare actual results with the assumptions, not just with the previous week’s sales. If the discount spend reaches your limit, pause the offer if the terms permit. If the basket mix or incremental lift is materially below the case needed to break even, revise the offer or stop rather than waiting for order volume to make up the difference.
Afterward, reconcile the marketplace statement with your own order records. Note which costs were estimates and update the calculation when refunds or final charges are known. The result can inform the next offer, but it is still an estimate of what would have happened without the promotion.
Use this checklist on your current offer and compare the result with your direct channel. If you want to evaluate Fleksa’s restaurant online ordering, ask Fleksa about current US availability and a setup quote. For the broader channel decision, see the online ordering buying guide.
Frequently asked questions
Is a marketplace-funded promotion automatically profitable?
No. The marketplace may fund the discount while the restaurant still pays commission and order costs. Check whether fees or other terms change, then compare incremental contribution with campaign and shifted-order costs.
Should I count every discounted order as incremental?
No. Some guests would have ordered anyway or may have moved an order from another channel or day. Estimate a range using comparable periods and total restaurant orders, and state that the result is an estimate.
What if a promotion increases sales but reduces contribution?
Review the discount, basket mix, fee basis, and shifted-order estimate. If the extra contribution does not cover the contribution lost and campaign costs, change the terms or stop the offer when permitted.
