When choosing an ordering platform, the pricing model you select will have a bigger impact on your profitability than almost any other decision. The difference between commission-based and flat-rate pricing can amount to thousands of dollars per month.
How Commission-Based Restaurant Ordering Works
Commission-based platforms charge a percentage of every order processed through their system, typically ranging from 3% to 10% of the order total. This is on top of standard payment processing fees (which you would pay regardless).
The appeal is obvious: low or zero upfront costs. You only pay when you make money. But the math changes quickly as your order volume grows.
Real-World Commission Costs
Let's model a typical cafe doing 80 orders per day at an average of $18 per order through QR ordering:
- Monthly revenue through platform: 80 x $18 x 30 = $43,200
- At 5% commission: $2,160/month in platform fees
- At 8% commission: $3,456/month in platform fees
- Annual cost at 5%: $25,920
That's a significant chunk of margin, specially in an industry where net profit margins typically sit between 3-9%.
How Flat-Rate Pricing Works for Venues
Flat-rate platforms charge a fixed monthly subscription per location, regardless of how many orders you process. Whether you do 10 orders or 10,000, your platform cost stays the same.
Typical flat-rate pricing ranges from $99-189/month per location. Using the same example above:
- Monthly platform cost: $139 (fixed)
- Annual cost: $1,668
- Annual savings vs 5% commission: $24,252
We offer transparent, commission-free flat-rate pricing designed to scale with your business.
Detailed Scenario Modeling: Low vs Medium vs High-Volume Venues
To help you calculate the exact crossover point where flat-rate pricing becomes more profitable, we can break down three common venue profiles:
1. The Startup / Low-Volume Food Truck
- Daily QR Orders: 15
- Average Order Value: $15
- Monthly Platform Revenue: $6,750
- Cost at 5% Commission: $337.50 / month
- Cost at Flat-Rate ($139): $139.00 / month
- Crossover Verdict: Even at just 15 orders a day, a flat-rate subscription saves the venue $198.50 per month ($2,382 annually).
2. The Busy Neighborhood Cafe (Medium-Volume)
- Daily QR Orders: 65
- Average Order Value: $22
- Monthly Platform Revenue: $42,900
- Cost at 5% Commission: $2,145.00 / month
- Cost at Flat-Rate ($139): $139.00 / month
- Crossover Verdict: The cafe saves $2,006 per month ($24,072 annually) by avoiding commission models.
3. The Large Pub / Beer Garden (High-Volume)
- Daily QR Orders: 220
- Average Order Value: $35
- Monthly Platform Revenue: $231,000
- Cost at 5% Commission: $11,550.00 / month
- Cost at Flat-Rate ($139): $139.00 / month
- Crossover Verdict: For high-volume venues, commission-based models represent a massive drain on cash flow, extracting $11,411 in pure profit every month that could have been reinvested in staff, ingredients, or facilities.
The Alignment Problem
Commission-based pricing creates a misaligned incentive. The platform benefits when your prices go up and when customers order more but so do you, and you are paying a tax on that growth. As your venue succeeds, the platform takes a larger absolute cut.
Flat-rate pricing aligns incentives differently: the platform succeeds when you stay subscribed, which means they are incentivised to make the product genuinely useful, not to extract maximum revenue from each transaction.
When Commission Pricing Might Make Sense
Commission-based pricing can work for venues in the very early stages, those testing QR ordering with low volume where a fixed monthly cost feels risky. If you are processing fewer than 200 orders per month through the platform, the commission model might cost less.
But the moment your QR ordering gains traction (which it will), flat-rate pricing becomes dramatically more cost-effective.
What About Payment Processing Fees?
It's important to separate platform fees from payment processing fees. Every digital payment incurs a processing fee from the payment provider (Stripe, Square, etc.), typically 1.6% + 30c per transaction. These fees exist regardless of your ordering platform and should not be confused with platform commissions.
The best platforms route payments directly to your merchant account, meaning you have full visibility and control over processing fees.
Frequently Asked Questions about Commission-Free Platforms
Do commission-free platforms have hidden transactions fees?
No, true flat-rate platforms only charge the advertised monthly subscription. The only other fees you pay are the standard card processing fees directly to your payment gateway (like Square or Stripe), which are identical to the fees you pay when a customer taps their physical card at the counter.
Can I pass the card processing fees on to the customer?
Yes. Most flat-rate platforms allow you to configure automated surcharging. This means you can pass the 1.6% or equivalent card processing fee directly to the guest at checkout, rendering your digital transaction costs virtually zero.
What happens if my sales volume drops during a slow month?
With a subscription model, your fee remains fixed. While a commission model drops during slow months, the amount you save during busy weeks far outweighs the minor cost of a fixed subscription during winter or off-peak periods.
