Restaurant Delivery Glossary

The average total of all orders, calculated by dividing total revenue by number of orders. A key metric for measuring restaurant performance on delivery platforms.

The percentage fee charged by delivery platforms for each order processed through their service. Typically ranges from 15-30% depending on the platform and service level.

The practice of improving delivery operations to maximize revenue, reduce costs, and enhance customer satisfaction through data analysis and strategic adjustments.

A restaurant facility that operates exclusively for delivery and takeout orders, with no dine-in option. Also known as virtual kitchen, cloud kitchen, or dark kitchen.

A metric measuring the revenue generated for every dollar spent on advertising. Calculated as (Revenue from Ads / Cost of Ads). A ROAS of 4:1 means $4 revenue for every $1 spent.

Operating on multiple delivery platforms simultaneously (e.g., Uber Eats, Deliveroo, DoorDash) to maximize order volume and reduce dependency on any single platform.

The practice of strategically designing and pricing menu items to maximize profitability and customer satisfaction, often using data analysis to optimize item placement and pricing.

Times of day with highest order volume, typically lunch (11am-2pm) and dinner (5pm-9pm). Understanding peak hours helps optimize staffing, inventory, and promotional timing.

The distribution of orders across different delivery platforms. A healthy platform mix reduces risk and provides leverage in commission negotiations.

Time-limited discounts or offers designed to drive order volume during specific periods. Can be platform-sponsored or restaurant-funded.

A restaurant brand that exists only for delivery, operating from an existing kitchen. Allows restaurants to test new concepts without physical expansion.

Consolidating orders from multiple delivery platforms into a single system for efficient kitchen operations and order management.

The geographic area from which a restaurant accepts delivery orders. Optimizing radius balances order volume with food quality and delivery time.

A maximum commission rate that platforms can charge, sometimes mandated by local regulations. Several cities have implemented 15% commission caps.

Intentionally limiting order acceptance rate to match kitchen capacity, preventing over-promising and ensuring quality. Can be automated or manual.

Strategies to increase order value through upselling, cross-selling, and bundling. Includes suggested items, meal deals, and add-ons.

When restaurants manage their own delivery fleet and operations, as opposed to using third-party platforms. Offers higher margins but requires operational investment.

Using external platforms like Uber Eats, Deliveroo, or DoorDash to handle delivery logistics and customer acquisition. Trades margin for reach.

Additional revenue generated specifically from delivery that wouldn't occur through other channels. Measures true value of delivery operations.

Streamlining menu offerings to improve operational efficiency, reduce costs, and enhance quality. Particularly important for delivery-only operations.

How prominently a restaurant appears in delivery app searches and recommendations. Influenced by ratings, performance, promotions, and platform algorithms.

Total revenue expected from a customer over their entire relationship with the restaurant. Important for determining viable customer acquisition costs.

A top-performing restaurant on delivery platforms, often featured prominently and receiving preferential treatment in marketplace algorithms.

Percentage of orders delivered correctly without errors or missing items. Critical metric affecting customer satisfaction and repeat orders.

Expected time to prepare an order from acceptance to ready for pickup. Accurate prep time settings improve customer satisfaction and delivery coordination.

Discounts funded partially or fully by the delivery platform to drive order volume. Generally more cost-effective than restaurant-funded promotions.

Fee charged to customers by delivery platforms, separate from the commission charged to restaurants. Typically ranges from 10-20% of order value.

Adjusting menu prices based on demand, time of day, or other factors to optimize revenue. Common in surge pricing during peak periods.

A curated menu designed specifically for delivery, often different from dine-in offerings. Optimized for travel time, temperature retention, and profitability.

Agreement to operate exclusively on one delivery platform in exchange for better commission rates or preferential placement. Reduces flexibility but can improve economics.

Number of orders per geographic area. High density enables more efficient delivery operations and better platform economics.

When a delivery platform refunds a customer and deducts the amount from restaurant earnings, typically due to quality issues or customer complaints.