Should Your Restaurant Launch on Food Delivery Aggregators? The Answer Could be Yes.

Recently I've spoken with a number of restaurant operators who are running successful dine-in businesses and after some calculations have ultimately chosen not to list on food aggregators, like Talabat, Deliveroo, Noon etc in UAE.

Their reasoning is straightforward - when they calculate the commission and marketing costs, (ie discounting and offers) of aggregators and look at their current menu - the margin per item from 3rd party delivery is so low that it doesn't make sense to invest time in activating the channel.

In isolation this does look correct. You might enjoy a 5-10% margin in dine-in, which quickly drops to 1-3% when you model the cost of food delivery platforms.

But is this always correct?

In this post I'll show why looking only at margin per item isn't the most complete way of thinking about whether to launch on food delivery platforms.

In addition, I'll also talk about some overlooked aspects about food delivery platforms that many don't think about, and don't take advantage of.

Costs, margins and your restaurant

Many restaurants think about 3rd party delivery platforms in terms of cost. How much will it cost to operate on Talabat? What is the Deliveroo commission? Is there a monthly fee? Do I need to consistently run 30%+ discounts in order to generate revenue? And if so how will that impact my margin?

Food delivery platforms are therefore often thought of as a cost center by those involved in business strategy and planning.

Indeed, it's well known that the fixed costs are high for businesses running on food delivery apps. Commission costs will often be 30% or close to it, and marketing costs associated with competing effectively in any given cuisine type are no joke.

If you calculate the margin on an existing chicken burger menu item for example - with food cost, 30% commission, and 30% in discounts it can often look like the margin you come away with is so small that it doesn't make sense.

But is this really true? After all, there are hundreds, probably thousands, of restaurants thriving on food delivery apps like Talabat, Deliveroo, Noon and Jahez.

Here's why thinking about food delivery apps as a cost centre is not always the best approach, and why when you execute the right strategy - delivery apps can be a great way to build new revenue streams and increase profit.

In summary: you have a lot more control than you think, and if you understand the channel you can make it perform.

Volume changes the game

If you look only at item level margin you are missing that volume might make up for the loss in margin.

Something I've seen quite often is restaurants not correctly modelling the potential increase in orders and revenue they can receive.

They'll look at their current weekly order volume and maybe assume delivery apps will add 10-20% more orders.

In reality, successful restaurants on delivery platforms often see 200-400% increases in total order volume. This happens because delivery apps tap into completely different customer behavior, reach and scale.

Your dine-in customers might visit once a week or once a month. But delivery customers order much more frequently - sometimes multiple times per week from the same restaurant if they love it. You're not just reaching more customers, you're reaching customers who order more often.

If you are doing a 3% margin on delivery apps but you are also doing 400+ incremental new orders a week, it's often the case that this very large increase in volume will end up adding significant profit at the end of every month.

The key word here is "incremental." These aren't customers switching from dine-in to delivery - these are genuinely new orders that wouldn't exist without the platform. And when you multiply small margins by large volume, the numbers can be surprisingly strong.

Aggregators doesn't equal spending more. It means visibility for you restaurant.

With delivery apps volume is never guaranteed. You must have an excellent product, understand user psychology and execute the right marketing strategy, but a lot of restaurants leave money on the table because they assume volume will be much lower than it ends up being.

You have pricing control

The biggest mistake restaurants make when evaluating delivery apps is using their existing dine-in prices to calculate potential margins. They see terrible numbers and conclude delivery isn't viable.

But food cost is fixed - pricing is not.

Delivery apps give you complete control over your menu pricing. You can set different prices on each platform, adjust them quickly based on performance, and optimize for profitability rather than accepting whatever margin your current pricing gives you.

The key insight is that delivery customers already expect to pay more than dine-in prices. They're paying for convenience, speed, and the ability to eat restaurant-quality food at home.

This customer expectation gives you pricing flexibility to make the platform economics work in your favour.

Many restaurants don't realize they have this control. They think platform commissions are "money taken from them" when actually commission is a customer acquisition cost that you can manage through intelligent pricing strategies.

Custom pricing per aggregator can cover the costs and maintain healthy margins. Different platforms have different commission structures and reach - you can price accordingly on each one.

If the acquisition costs don't add up on a particular aggregator then you can focus of platforms that do.

If you understand the channel you can drive profit

Many restaurants treat delivery apps like a passive sales channel - they upload their menu, set some prices, and wait for orders to come in. This is not how to run a successful food delivery business.

The restaurants that do well on delivery platforms understand something important: these apps are not static, constant environments. Performance can be optimised and not all restaurants are equal.

Delivery platforms have their own version of "location" - algorithm ranking and visibility. They have their own version of "signage" - your photos, descriptions, and ratings. They have their own version of "service" - preparation times, order accuracy, and customer satisfaction scores.

What I've observed is that restaurants often underestimate how much control they have over their performance on these platforms. They think success is mostly about having good food and competitive prices. But there's much more to it.

Platform algorithms consider factors like order acceptance rate, preparation time, customer ratings, and order completion rate. Restaurants that understand and optimise these metrics get better visibility and more orders.

Marketing on these platforms is also more complex than just running discounts. Successful restaurants understand sponsored placements, featured listings, and how to time promotions for maximum impact. They know when their target customers are browsing and how to structure offers that attract new customers while maintaining profitability.

The best example is offers and discounting. With properly optimised campaigns and execution many restaurants reduce the overall costs associated with discounting and drive significantly more profit compared to rolling out a standing set it and forget it offer campaign.

Delivery app performance isn't just about your food quality. It's about understanding the digital environment and continuously working to improve your position within it.

The restaurants that treat delivery apps as an ongoing optimisation challenge rather than a set-and-forget operation are well placed to pull trigger and launch on delivery apps.

This is exactly where Revly helps restaurants.

Case Study: Dolan Cafeteria

‍

Dolan Cafeteria is a restaurant in International City that saw massive increases in overall business metrics after working with Revly to execute a growth strategy on Talabat, Noon and Careem.

Key results with Revly

• ‍‍‍Achieved 158% increase in overall delivery app revenue in June and July compared to April and May.‍
• ‍Orders grew by 131% across two branches, mainly focused on International City. ‍
• ‍New customer growth increased 86%, increasing their customer base and driving longer term loyalty.‍
• ‍Average basket size increased 12% after menu optimisations.

Conclusion

Most restaurant owners approach delivery apps by asking 'How much will this cost me?' The better question is 'How much am I leaving on the table by not being there?'

When hundreds of potential customers are browsing delivery apps in your area every day, the cost of not participating might be higher than the cost of joining. These aren't customers who would otherwise walk into your restaurant - they're customers who will order from whoever shows up on their screen.

If your hesitation is based on margin calculations using your current dine-in pricing, you're not seeing the full picture. You have pricing control, volume potential, and optimisation opportunities that can change the economics significantly.

The cost of testing one platform for a few months is relatively small. The cost of missing out on a revenue channel that could transform your business is much larger.