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    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.

    Step 1

    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.

    Net profit impact

    +$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

    Step 2

    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.

    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 demo

    Rewards instead of discounts?

    Check whether a points program pays for itself before you launch it.

    These numbers are estimates based on what you enter and what we see across independent restaurants. They are not a guarantee of performance.

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