Delivery & Growth
Delivery Break-Even Point: How Many Orders Per Day Your Restaurant Needs for the Channel to Pay Off
Your delivery break-even point is the number of daily orders where the channel's contribution covers its assignable fixed costs. The formula is simple: break-even orders/day = fixed delivery cost per day ÷ contribution per order, where contribution per order = ticket − food cost − app commission − packaging − variable ads. Most restaurants land between 15 and 40 orders/day depending on ticket size and take rate.
Ops ritual
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Contribution margin per order tells you if each individual order makes money. But that's only half the picture. The real operator question is: how many orders per day does delivery need to pay for itself as a channel? That's the break-even point, and it's the number that decides whether delivery is a profit center or a cost the dining room is quietly subsidizing.
What the delivery break-even point is
The delivery break-even point is the daily order volume at which the channel's total contribution equals the fixed costs you've assigned to it. Below that number, delivery loses money or leans on the dining room. Above it, every extra order drops straight to profit.
Two moving parts drive it:
- Contribution per order — what's left from one order after all variable costs.
- Assignable fixed cost — the fixed expenses that exist because you run delivery.
Apps bring the demand; your job is making sure the math behind each order clears the fixed cost. The commission is just one variable in that model, not a verdict on the channel.
The formula, clean
Start with contribution per order:
Contribution per order = Ticket − Food cost − App commission − Packaging − Variable ads per order
Then divide your daily assignable fixed cost by that number:
Break-even orders/day = Daily fixed delivery cost ÷ Contribution per order
That's it. The output is your "magic number" — the orders per day you need just to cover the fixed cost of operating the channel. Everything above it is margin.
Fixed vs. variable: how to split delivery costs
Getting the break-even right depends on classifying costs correctly:
- Variable costs move with each order: food cost, app commission (take rate), packaging, and any per-order ad spend. These live inside contribution per order.
- Fixed costs exist whether you do 5 or 50 orders: a dedicated packing station, a delivery-only staff shift, a share of rent/energy for the prep area, subscription tools, and baseline marketing you pay regardless of volume.
A common mistake is dumping all labor or rent into the delivery P&L. Only assign the portion that exists because of delivery. If a cook would be there anyway for the dining room, don't load their full salary onto the channel.
Worked examples: LATAM and USA
These use realistic benchmarks (take rates of 15–30%, food cost ~30%) to show the mechanics. Adjust to your own numbers.
Example 1 — LATAM, mid-ticket
- Average ticket: $12 USD equivalent
- Food cost (30%): $3.60
- App commission (22%): $2.64
- Packaging: $0.60
- Variable ads: $0.40
- Contribution per order = 12 − 3.60 − 2.64 − 0.60 − 0.40 = $4.76
If your assignable fixed delivery cost is $95/day (a partial shift plus tools and baseline marketing):
Break-even = 95 ÷ 4.76 ≈ 20 orders/day. Below 20, delivery is subsidized. At 30 orders/day, you're generating roughly $48/day in channel profit.
Example 2 — USA, higher ticket
- Average ticket: $28
- Food cost (30%): $8.40
- App commission (25%): $7.00
- Packaging: $1.20
- Variable ads: $0.90
- Contribution per order = 28 − 8.40 − 7.00 − 1.20 − 0.90 = $10.50
With $180/day in assignable fixed cost:
Break-even = 180 ÷ 10.50 ≈ 18 orders/day. Higher commission, but the bigger ticket produces a bigger contribution per order, so the break-even stays reasonable.
Example 3 — Low ticket, thin contribution
- Average ticket: $8
- Food cost (32%): $2.56
- App commission (28%): $2.24
- Packaging: $0.70
- Variable ads: $0.30
- Contribution per order = 8 − 2.56 − 2.24 − 0.70 − 0.30 = $2.20
With $95/day fixed cost:
Break-even = 95 ÷ 2.20 ≈ 43 orders/day. This is the warning sign: a low ticket with thin contribution pushes break-even high. The fix isn't "quit the app" — it's raising the ticket (combos, minimums, upsell) or trimming packaging and fixed cost until the number is reachable.
How commission and ticket move the number
Two levers change your break-even the most:
- Commission (take rate): a higher take rate shrinks contribution per order, raising the orders you need. It's a variable to manage — through menu pricing and in-app promo strategy — not something to resent.
- Average ticket: raising the ticket is the fastest way to lower break-even, because food cost and commission are percentages while packaging is roughly fixed per order. A bigger order spreads those costs better.
This is why the answer to "at what ticket does delivery stop losing money?" is always: the ticket where contribution per order covers its share of fixed cost at your realistic volume.
Common mistakes that distort the break-even
- Ignoring assignable fixed cost and declaring delivery profitable just because contribution per order is positive.
- Overloading fixed costs with dining-room expenses that would exist anyway.
- Using list price instead of the real in-app price after promos and discounts.
- Forgetting variable ad spend when you run in-app visibility campaigns.
- Blaming the platform instead of adjusting menu, pricing, or ops. The villain is operating without the numbers, not the app.
One app or several?
Break-even math also informs the multi-app decision. Concentrating volume in one app can simplify ops and sometimes unlock better placement; spreading across several widens demand but splits volume, so each app may sit closer to its own break-even. The right call depends on which mix gets you past break-even fastest without inflating fixed cost. Run the formula per app and compare — don't decide on vibes.
Want your real delivery break-even calculated with your tickets, take rates and costs across every app? At Pimentón we build the channel P&L so you know your magic number per app and per location — and how to get above it. Message us on WhatsApp for a free consultation.
When delivery stops being an acquisition cost
Early on, delivery often runs below break-even and acts as an acquisition channel — you're paying to get discovered. It becomes a true profit channel the day your sustained daily volume clears the break-even point with margin to spare. Measure it monthly: track orders/day against your break-even, and watch the trend. That's the difference between "more volume" and "more profitable volume."
Frequently asked questions
How many delivery orders do I need to cover costs?
Divide your daily assignable fixed delivery cost by your contribution per order. For a typical mid-ticket restaurant with ~$5 contribution per order and ~$95/day in fixed cost, that's about 20 orders/day. Low-ticket operations with thin contribution can need 40 or more.
How do I separate fixed from variable delivery costs?
Variable costs change per order: food cost, app commission, packaging and per-order ad spend. Fixed costs exist regardless of volume: dedicated staff shifts, a share of rent and energy for prep, tools and baseline marketing. Only assign the fixed costs that exist because you run delivery.
Does delivery on apps cover its own cost or does the dining room subsidize it?
It depends on whether your daily volume is above your break-even point. If contribution per order times daily orders exceeds assignable fixed cost, delivery pays for itself. Below that, the dining room is subsidizing the channel — which is fine during acquisition but not as a permanent state.
How does the app commission affect my break-even point?
Commission is a variable cost that reduces contribution per order, so a higher take rate raises the number of orders you need to break even. Manage it through menu pricing and promo strategy rather than treating it as abuse — it's one input in the model, and raising your average ticket is the fastest offset.
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