Find out if your discount actually pays off.
A 20% off promo feels like marketing, but most redemptions come from regulars who were going to order anyway. This calculator separates new business from give-aways and tells you how many extra orders you need to break even.
Your promo, in numbers
Estimates are fine. The math holds food cost per order fixed, so the discount comes straight out of gross profit.
Canadian takeout averages $38–$55 per order; full-service takeout is often higher.
Food cost ≈ 35.0% of every order
Restaurant gross margin usually lands between 60% and 75% on food. 100% minus this is your food cost.
$9.00 off each order
10–15% barely dents margin. 20–25% is a strong offer. Anything above 30% needs real new customers to pay off.
How many discounted orders you expect over the promo period.
125 existing orders · 125 genuinely new
The honest number here is usually high — most redemptions come from regulars who were going to order anyway. 50–70% is typical for a broad discount.
+$1,406
This promo adds gross profit even after paying for every discount.
Break-even new orders: 56
Works while cannibalization stays under 69.2%
Net profit = new orders × discounted margin − existing orders × discount
Where the money goes
Discounts handed out
$2,250
250 orders × $9.00
Profit per discounted order
$20.25
56.3% margin, down from 65.0%
Profit from new orders
$2,531
125 incremental orders
Profit given to regulars
−$1,125
125 orders you already had
Profit vs. how many redemptions were already yours
The curve shows net gross-profit change as more of your redemptions turn out to be existing customers. Where it crosses zero is the point the promo stops paying.
What makes a promo work
At a 20% discount you need 56 brand new orders just to replace the profit you gave your regulars. Target the offer at lapsed or first-time customers and the same discount becomes a growth lever instead of a cost.
The safer alternative
Discounts that add value instead of cutting price — free delivery above a minimum, a bundled side, or reward points — protect margin while still moving behaviour. Compare the two with the rewards ROI calculator.
More free tools
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What one customer is worth, and what you can spend to get one.
What delivery-app commission costs you every year.
The conversion rate your ads need to pay for themselves.
How much volume can you lose after raising prices and still break even?
Orders per month needed to cover your fixed costs.
Where distance turns a delivery order into a loss.
Whether your rewards program earns back what it gives away.
Food plus labour against the 60% benchmark.
Watch word-of-mouth spread through households — and where it stalls.
Work backwards from the profit you want to the orders and crew it needs.
Run promos that target the right customers
See how MenuLogic segments lapsed, new and VIP customers so your next discount goes to people who would not have ordered anyway.
Book a free demoThese numbers are estimates based on what you enter and what we see across independent restaurants. They are not a guarantee of performance.
