Unit Economics
Also called: per-unit economics
What is Unit Economics?
Unit economics is the profit and loss of one unit — a single order, cover, subscription or customer — with all the costs that unit genuinely triggers. It answers whether growth makes the business better or merely bigger.
Why Unit Economics matters
Businesses with negative unit economics get worse as they grow. A delivery order that loses money after commission, packaging and discount loses more money at ten times the volume.
Unit Economics formula
Contribution per order = Order value − Direct cost − Commission − Packaging − Payment charges
A negative result means each additional order deepens the loss.
How Unit Economics works in practice
Take an average order value, deduct direct cost, commission, packaging, payment charges and the promotional discount, and see what is left. Do it separately per channel, because dine-in and aggregator orders are entirely different businesses.
Worked example
A ₹400 online order with ₹140 food cost, ₹90 commission, ₹25 packaging and a ₹40 discount contributes ₹105 before fixed costs.
Frequently asked questions
Include the acquisition cost attributable to that order if you are measuring a new customer rather than a repeat one.