Sales are up. Why isn't profit?

It's one of the most common stories in restaurants that sell through delivery apps. Orders are up. The kitchen is busier than ever. And at the end of the month, there's less left over than there used to be.

Nothing is wrong with the food or the team. The problem is that growth isn't spread evenly. Some sales are worth far more to you than others, and most reports don't show which.

Where the extra sales go

• Each delivery platform takes its own cut, on its own terms. A sale on one app can leave you noticeably less than the same sale on another, or in your dining room.
• Discounts and promotions you fund, and fees per order, come out of every order, even when the headline commission looks reasonable.
• Packaging, card fees and delivery supplies grow with every delivery order, while your rent and salaries stay the same.
• If your growth comes mostly from the channels that leave you least, sales climb while profit stands still, or falls.

How to spot it early

Look at what each channel leaves you, not what it sells. For every channel, every branch and every brand, compare last month with the month before:

• Net sales: what customers paid, after discounts and refunds, without VAT.
• What's left after the platform's commission, fees and VAT on fees.
• What's left after the costs that grow with orders, such as packaging and card fees.

When sales rise in one channel and what it leaves you doesn't, that's the channel to work on first.

Three moves that turn sales growth into profit growth

• Push the channels that leave you most. Your own ordering, dine-in and takeaway usually carry no platform cut. A small shift in mix can matter more than a big jump in orders.
• Price each channel for what it costs you. If a platform takes more, it's normal for your prices there to be different. Set them from your own numbers, not by feel.
• Check every promotion against what it left you, not what it sold. A promotion that doubles orders can still lose money once the cost of the discount and the platform fees are counted.