Delivery can grow top-line sales quickly. What matters is whether those sales still carry enough contribution margin after platform fees and packaging.
For Canadian operators, the common failure point is simple: teams mix pre-tax costing with post-tax checkout totals and lose pricing discipline. This guide keeps those layers separate so pricing decisions are easier to defend.
Quick Summary
- Build delivery prices from pre-tax subtotal math.
- Apply GST/HST only after subtotal pricing is set.
- Use local operating context (downtown office traffic vs suburban family traffic) before copying one increase across all locations.
- Review top delivery SKUs monthly using real statement data.
Platform Fee Snapshot (Canada)
Public merchant pages show tiered commission structures. Your contract and statement data should be final authority.
| Platform | Delivery pricing examples | Pickup/self-delivery examples | Source |
|---|---|---|---|
| DoorDash | Tiered delivery plans commonly listed at 20%, 25%, 29% | Pickup plans listed for eligible partners | DoorDash CA merchant pricing |
| Uber Eats | Tiered delivery plans commonly listed at 20%, 25%, 30% | Pickup and self-delivery tiers listed for eligible partners | Uber Eats CA merchant pricing |
Tax Structure: Keep the Sequence Clean
Use this order every time:
Pre-tax delivery subtotal = (F / T + P) / (1 - R)
Customer checkout total = Pre-tax subtotal x (1 + provincial GST/HST rate)Where:
F= food cost per dishT= target food cost ratioP= packaging cost per orderR= effective platform rate
This prevents tax noise from hiding margin issues.
Worked Example (CAD)
Assumptions:
- Food cost per dish (
F): C$4.80 - Target food cost ratio (
T): 30% - Packaging (
P): C$0.55 - Effective fee rate (
R): 25%
Step 1: solve pre-tax delivery subtotal
F / T = 4.80 / 0.30 = 16.00
Pre-tax subtotal = (16.00 + 0.55) / (1 - 0.25)
= 16.55 / 0.75
= C$22.07Operationally you might list C$22.49.
Step 2: compare checkout by province
Ontario (13% HST): 22.49 x 1.13 = C$25.41
Alberta (5% GST): 22.49 x 1.05 = C$23.61The same subtotal creates different checkout perception by province. Account for that before setting one national delivery ladder.
Local Scenario: Toronto Core vs Calgary Suburban Mix
| Trading context | Typical pressure | Practical move |
|---|---|---|
| Toronto downtown lunch-heavy operation | Higher labor compression in short windows, stronger app dependency at lunch | Prioritize margin-safe pricing on office lunch best sellers; keep pickup incentives visible |
| Calgary suburban dinner-heavy operation | Larger family orders, stronger value sensitivity, slower weekday lunch | Push bundle architecture and add-on discipline before broad single-item increases |
One commission table does not mean one pricing strategy.
20-Minute Monthly Delivery Control Loop
- Refresh ingredient and packaging costs for top 10 delivery items.
- Rebuild effective fee rate from payout statements.
- Reprice items running 3+ points above target food cost.
- Audit promo spending so discounts are treated as planned marketing, not surprise leakage.
- Sync prices across POS, owned web ordering, and delivery apps.
Related Guides
- Canada Menu Pricing Guide
- Canada Menu Pricing Calculator
- Canada Food Cost Calculator
- Canada Restaurant Labour Cost Calculator
- Canada GST/HST Restaurant Pricing Guide
- Prime Cost Guide
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