Promotions can boost order count and still hurt your cash.
That is the trap many small operators are facing in 2026: traffic is uneven, costs are sticky, and discounting feels like the fastest lever.
This guide gives you the math to test promos before they drain margin.
Quick Summary
- In January 2026 data (released February 2026), small-business pricing pressure is still elevated
- Community discussions show the same concern: promos can drive volume but leave weak net payout
- Use a break-even lift formula before launching any discount
- Run short tests with stop rules tied to contribution dollars
Why promo discipline matters now
Three live signals:
- NFIB January 2026 survey: net 32% of owners plan to raise prices in the next 3 months
- BLS January 2026 CPI release: food away from home remains above headline CPI
- NRA 2026 release: a large share of operators reported not being profitable in 2025
In this environment, discounting without math is expensive.
The promo ROI formula
Step 1: contribution per non-promo order
Base contribution = Selling price - Total variable cost
Step 2: contribution per promo order
Promo contribution = (Selling price - Discount - Additional promo spend) - Total variable cost
Step 3: incremental orders needed to break even
Required incremental orders =
Total promo spend
/ (Promo contribution per order)
If promo contribution is near zero or negative, stop. Higher order count will not fix it.
Worked example
Assumptions:
- Average selling price: $19.00
- Total variable cost (food + packaging + fees): $12.40
- Base contribution: $6.60
- Promo offer: $3 off
- Additional paid placement cost per order (estimated): $1.00
Promo contribution:
($19.00 - $3.00 - $1.00) - $12.40 = $2.60
If campaign spend is $520:
$520 / $2.60 = 200 incremental orders needed
If you cannot realistically generate 200 incremental orders in the test window, the offer should be redesigned.
4 rules that protect margin
- Never launch promos without a minimum order threshold
- Use fixed-dollar discounts first for downside control
- Exclude low-margin items from promo eligibility
- Set stop rules before launch (for example: pause if promo contribution < $2/order)
14-day scorecard
Track daily:
- promo orders
- non-promo orders
- average check by segment
- contribution dollars by segment
- repeat rate after promo
The goal is not one-time volume. The goal is profitable repeat behavior.
Community signal
Owner conversations repeatedly highlight this pattern:
- “Sales were up, but money left after fees and discounts was thin”
- “Low-ticket promo orders looked good in volume, weak in payout”
That pattern usually means contribution math was skipped.
Checklist
- Promo contribution formula completed before launch
- Minimum order threshold enabled
- Exclusion list for weak-margin SKUs set
- 7-14 day stop rules defined
- Incremental contribution reviewed weekly
Related Guides
- US Profitable Minimum Order Amount Calculator (2026)
- US Pickup-First Pricing Playbook (2026)
- US Delivery App Pricing Guide
- US Menu Price Increase Playbook (2026)
Sources (checked on 2026-02-14)
- NFIB press release (Jan 2026 survey, published Feb 11, 2026)
- BLS CPI (Jan 2026 release, published Feb 13, 2026)
- National Restaurant Association press release (Feb 12, 2026)
- DoorDash Merchant Products
- Reddit - r/restaurantowners: Doordash, if they can absorb prices then why don’t they?
- Reddit - r/restaurantowners: End of the month!