Reference

Check what delivery costs

Compare delivery charges with the cost of serving comparable orders. Review delivery, picking and handling separately. A fee change alone cannot show how much delivery cost the business recovered.

Reported by the companies

Collins Foods operates KFC restaurants in Australia. It reported lower delivery fees alongside changes to app offers and digital sales mix. Its FY26 presentation also discussed how delivery affected restaurant margin.

Domino’s Pizza Enterprises described different pickup and delivery economics in its Australian promotion framework. Its example compared a blanket Saturday offer with a more selective carry-out offer.

Costco increased US and Canadian membership fees. Its filing attributes part of membership income growth to the change. Membership is a different charge from an order-level delivery fee.

What we infer

Compare delivered orders with comparable collections. For delivered orders, show freight charged, waived charges and the delivery cost. Show picking and handling separately. Test whether the order contribution covers the services it uses.

What remains open

These disclosures do not provide matched fee and delivery-cost records. They cannot establish recovery per order or whether a different charge would improve contribution. Costco’s fee change does not establish a delivery-cost mechanism.

Work through the decision

Sources

Responsibility and method

Responsible author: Andrew Wilson. Publisher: onestepright.

Substantive update: . Selected Collins Foods, Domino’s and Costco disclosures separate charges, service costs and gaps in the public record.