Variable Costs
Variable costs are costs created by each individual order, such as food cost, packaging, payment fees or marketplace commissions.
1 min readMargin & costs
Why it matters
Variable costs rise and fall with the number of orders. They differ from fixed costs, such as rent or an agreed monthly base fee, which still apply when no order arrives.
Knowing variable cost per order lets a restaurant compare ordering channels honestly. Only then can it compare the contribution margin of a marketplace order with a direct order meaningfully.
Formula
Variable cost per order = Food cost + Packaging + Payment fees + Channel-specific fees