The real cost of marketplace commissions

Third-party marketplaces feel free because you don't write a cheque — the fee just disappears out of each order. That's exactly what makes it dangerous. A 15–30% commission is not a one-time cost you can amortize; it's a permanent tax on your best channel.

Run the numbers on a single week

Say you do $8,000 a week in online orders at a 25% commission. That's $2,000 a week — over $100,000 a year — leaving the business. On a restaurant running a 10% net margin, you would need to sell an extra $20,000 a week just to net what that commission took.

Now compare a flat platform fee. At a fixed monthly price, that same $8,000 week costs you the same whether you do $8,000 or $80,000 — the marginal cost of the next order is zero.

Where the money actually goes

• Commission model: your revenue scales, and so does the cut. Growth is taxed.
• Flat model: you pay for the software, not the sales. Growth is yours.

The catch worth knowing

Marketplaces bring discovery — new customers who'd never have found you. That has real value for a brand-new spot. But for the regulars who already know your name and search for you, paying a commission to take their order is paying a toll on a road you built.

The move most operators land on: use marketplaces for discovery if you like, and drive your repeat business to a site you own, where the order costs you nothing per transaction. That single shift — moving even half your online volume off commission — is often worth more than any menu-price increase you'd dare to make.