The $20 Mistake That’s Costing Restaurants Thousands in Delivery Sales
Still charging $20 for delivery? You might be scaring customers away. Discover how a simple pricing shift could 15x your profit—without lowering margins.
From the Desk of Jonathan Lim, Founder & CEO, Oddle
A colleague came to me recently and said:
“A lot of restaurants still refuse to optimise their delivery pricing. Even when we show them the data.”
I wasn’t surprised.
Some restaurants assume the worst of us:
“If I lower my delivery fee and more people order, I’m the one absorbing the cost—while Oddle earns more.”
But that’s not how this works.
And frankly, if you're still charging $20 delivery fees in 2025…
You’re not protecting your margin.
You’re delaying your own success.
Same Bundle. Same Cost. Different Outcome.
Let’s break it down. You’re selling a delivery bundle:
🍕 3 pizzas and some sides
- Food cost: $30
- Dine-in price: $100
- Delivery cost (to driver): $20
Now compare two pricing strategies:
| Option A | Option B | |
| Food Cost | $100 | $114 (includes $14 of delivery cost) |
| Delivery Fee (shown at checkout) | $20 | $6 |
| Conversion Rate | 0.3% | 3.5% |
| Profit per order | $50 | $50 |
In Option B, nothing changes except how the cost is presented.
You’re not absorbing the delivery fee. You’re just shifting it into the food price.
And yet—Option B gets over 11x more orders.
Let’s Talk Numbers (Based on 5,000 Visitors)
| Option A | Option B | |
| Orders | 0.3% x 5,000 = 15 | 3.5% x 5,000 = 175 |
| Revenue | 175 x $100 = $1,500 | 175 x $114 = $19,950 |
| Profit per Order | $50 | $114 – $30 – $20 = $50 |
| Total Profit | $750 | $8,750 |
Same bundle. Same cost. Same profit per order.
Just a better frame—and 15x more total profit.
It’s Not a Trick. It’s Psychology.
A $20 delivery fee feels like a penalty.
A $6 fee feels acceptable—even generous.
Especially when the meal looks well-priced.
Customers don’t dissect your cost structure.
They react emotionally. And if it feels unfair, they bounce.
That’s why delivery platforms “hide” fees in food prices.
They’re not being sneaky. They’re being smart.
Stop Sabotaging Your Own Sales
Every time you insist on passing the full $20 delivery fee to your customer, you lose a sale.
Not because your food isn’t good.
But because your pricing feels wrong.
Daniel Kahneman called this loss aversion:
Protecting a small margin while missing out on much bigger gains.
You're not guarding your profits.
You're stalling your growth.
We’re Not Here to Game the System
At Oddle, we’ve always believed:
Our job is to get you that first sale.
Because once they taste it, they’ll come back.
But none of that happens if you scare them away at checkout.
So please—if you're still charging $20 delivery fees—
Stop making it harder than it needs to be.
There’s a better way. And it’s already working for others.
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