Delivery volume can make your weekly sales graph look strong. It can also hide a margin problem if your pricing logic is still based on dine-in economics.
In Australia, you need to handle two things at once: platform fees and GST-inclusive customer pricing. This guide is built for that reality.
Quick Summary
- Solve delivery prices from target margin, not from competitor screenshots.
- Run calculations on net revenue first, then publish GST-inclusive prices.
- Treat Sydney CBD lunch trade and suburban dinner trade as different pricing problems.
- Reprice top delivery sellers monthly before fee drift compounds.
Why Delivery Math Breaks in Practice
Most teams track commission but miss the full stack:
- platform commission,
- payment or marketing add-ons,
- packaging,
- refund and remake leakage.
Once these are combined, delivery can absorb most of the price increase you thought would protect margin.
Platform Fee Snapshot (Australia)
Public pricing pages show tier-based pricing. Always check your contract and statement, but published ranges are a useful baseline.
| Platform | Delivery pricing examples | Pickup/self-delivery examples | Source |
|---|---|---|---|
| DoorDash | Delivery plans up to 30% | Pickup/self-delivery options listed for eligible partners | DoorDash AU merchant pricing |
| Uber Eats | Delivery plans up to 30% | Pickup and self-delivery tiers listed for eligible partners | Uber Eats AU merchant pricing |
GST Rule: Internal Math vs Customer Menu
Use two layers consistently:
Delivery price (ex-GST) = (F / T + P) / (1 - R)
Displayed menu price (incl. GST) = Delivery price (ex-GST) x 1.10Where:
F= food cost per dishT= target food cost ratioP= packaging cost per orderR= effective platform rate (commission + delivery-related paid boosts/fees)
This keeps your accounting clean and your guest-facing pricing compliant.
Worked Example (AUD)
Assumptions:
- Food cost per dish (
F): A$5.20 - Target food cost ratio (
T): 30% - Packaging (
P): A$0.70 - Effective fee rate (
R): 30%
Step 1: solve ex-GST delivery price
F / T = 5.20 / 0.30 = 17.33
Delivery price (ex-GST) = (17.33 + 0.70) / (1 - 0.30)
= 18.03 / 0.70
= A$25.76Step 2: convert to GST-inclusive menu price
25.76 x 1.10 = A$28.34Operationally, you would usually list A$28.50 or A$28.90 depending on your menu ladder.
Local Scenario: Sydney CBD vs Brisbane Suburban Strip
| Trading context | Typical pressure | Practical move |
|---|---|---|
| Sydney CBD weekday lunch-heavy site | Higher labor intensity in short peaks, stronger app convenience demand | Keep core bowls and wraps at margin-safe delivery prices; push pickup bundles for office clusters |
| Brisbane suburban dinner-focused site | Lower lunch rush, broader family basket at night, stronger price sensitivity | Use family bundles and add-on pricing to lift order value before broad menu increases |
The menu can be similar. The price architecture should not be identical.
20-Minute Monthly Delivery Review
- Update ingredient and packaging costs for top 10 delivery SKUs.
- Recompute effective fee rate from actual statement data.
- Reprice items drifting 3+ points above target food cost.
- Check pickup vs delivery margin gap and move low-margin items out of delivery if needed.
- Sync changes across POS, app menus, and printed materials.
Related Guides
- Australia Menu Pricing Guide
- Australia Menu Pricing Calculator
- Australia Food Cost Calculator
- Australia Restaurant Labour Cost Calculator
- Australia Restaurant Surcharge Guide
- Prime Cost Guide
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