Alcohol Delivery Service Running Costs: $50k/Month Baseline

Alcohol Delivery Service Running Costs

Expect substantial monthly running costs for an Alcohol Delivery Service, driven primarily by high fixed payroll and aggressive customer acquisition spending In 2026, fixed monthly overhead (rent, software, legal) is $7,700, but total monthly payroll adds another $42,917, pushing baseline operational costs over $50,000 before variable expenses You must also account for variable costs of goods sold (COGS) like payment processing (25% of revenue) and third-party delivery fees (50% of revenue) The business model shows a negative EBITDA of $667,000 in Year 1, indicating a heavy reliance on initial capital

7 Operational Expenses to Run Alcohol Delivery Service

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Payroll & Staffing	Fixed	The 2026 wage bill for 50 FTE (CEO, CTO, Engineer, 05 Marketing, 05 Ops) is $42,917 per month, representing the largest fixed expense	$42,917	$42,917
2	Office & Utilities	Fixed Overhead	Fixed general office overhead, including $3,000 for rent and $500 for utilities, totals $3,500 monthly across the forecast period	$3,500	$3,500
3	Platform Technology	G&A Technology	Essential General & Administrative (G&A) technology costs, including $800 for software licenses and $1,000 for cloud hosting, total $1,800 monthly	$1,800	$1,800
4	Regulatory & Legal	Fixed Compliance	Maintaining compliance requires a fixed monthly expense of $1,900, covering the $1,500 legal retainer and $400 for business insurance	$1,900	$1,900
5	Transaction Fees	Variable COGS	Payment processing fees are a variable Cost of Goods Sold (COGS), starting at 25% of Gross Merchandise Value (GMV) in 2026 and decreasing slightly over time	$0	$0
6	Third-Party Delivery	Variable COGS	Delivery costs are a major variable COGS expense, set at 50% of order value in 2026, which must be optimized as volume scales	$0	$0
7	Customer Acquisition	Variable Marketing	Digital advertising spend is modeled as a variable expense, consuming 70% of revenue in 2026, separate from the $250,000 total annual marketing budget	$0	$0
Total	Total	All Operating Expenses		$50,117	$50,117

What is the total monthly running cost budget required to operate in Year 1?

The immediate monthly cost floor for the Alcohol Delivery Service is defined by its baseline fixed overhead, which requires about $50,617 just to keep the lights on, even before factoring in variable costs or the eventual $667,000 EBITDA gap projected for 2026. Honestly, that fixed number is your starting line, and it's defintely the first budget line item you must fund. If you're mapping out early operational burn, remember that understanding the true cost of customer acquisition is vital; for more on measuring success, check out What Is The Most Critical Measure Of Success For Your Alcohol Delivery Service?

Monthly Fixed Cost Floor

Baseline fixed expense is $50,617 per month.
This covers core overhead, like staff salaries and platform hosting.
You need revenue exceeding this just to cover operating costs.
If partner onboarding takes 14+ days, churn risk rises for sellers.

Accounting for Future Burn

The $667,000 negative EBITDA forecast is for 2026.
This signals significant future scaling costs or margin pressure.
Variable costs must be low enough to cover the fixed base quickly.
Focus Year 1 spending on proving unit economics before scaling marketing.

Which cost categories—payroll, marketing, or variable fees—will consume the largest share of revenue?

Variable fees, specifically the 75% combined cost of delivery and processing, will consume the largest share of revenue for your Alcohol Delivery Service, even when compared to high fixed payroll; understanding this dynamic is key to figuring out What Is The Most Critical Measure Of Success For Your Alcohol Delivery Service? Honestly, that 75% figure demands immediate attention before we even look at the $42,917 monthly payroll.

Fixed Cost Pressure

Payroll sits at $42,917 per month, making it your largest fixed overhead item.
You need sufficient gross margin just to cover this fixed cost before making any profit.
If your take rate is low, this fixed cost requirement defintely puts pressure on volume targets.
Covering $42,917 monthly requires consistent, high-margin transactions every day.

Variable Cost Bleed

The 75% cost of goods sold (COGS), covering delivery and processing, is very high.
Digital advertising spend is pegged at 70%, suggesting massive customer acquisition costs (CAC).
These high variable costs severely limit the contribution margin left over to offset that fixed payroll.
You must drive down the 75% variable fee structure to create headroom.

How many months of operating expenses must we fund before reaching cash flow breakeven?

The Alcohol Delivery Service needs funding to cover 29 months of operations until reaching cash flow breakeven in May 2028, requiring a minimum cash reserve of $777,000; understanding the true margin structure is key, so review how other operators manage costs here: Is Your Alcohol Delivery Service Highly Profitable?

Runway Requirement Check

The target breakeven point is May 2028.
This demands funding 29 months of operating burn.
The calculated monthly cash burn rate is about $26,793.
You must secure enough capital to cover this entire period.

Funding Buffer Assessment

The absolute minimum cash needed to survive is $777,000.
We recommend adding a 6-month safety buffer for delays.
This pushes the total required raise to over $900,000.
Check if current capital covers this defintely necessary runway plus margin.

What are the key levers (eg, commission rate, staffing) to pull if revenue targets are missed?

If the Alcohol Delivery Service misses revenue targets, the immediate levers are cutting the 2026 planned headcount, adjusting the variable commission structure, or aggressively renegotiating the 50% delivery cost. Have You Considered The Necessary Licenses And Permits To Launch Your Alcohol Delivery Service? helps avoid operational halts that crush cash flow.

Evaluate Staffing Costs

Review the 2026 staffing plan of 50 FTE total immediately.
That plan carries a fixed monthly wage bill of $42,917.
Reducing planned hires directly cuts this fixed overhead expense.
Model the impact of delaying non-critical roles until Q3.

Adjust Variable Unit Economics

The current revenue structure is 100% commission plus a $200 fixed fee.
Renegotiate the 50% third-party delivery fee; this is a massive margin leak.
Calculate the required commission increase needed to cover shortfalls, if any.
If volume is low, reducing the fixed fee component might be necessary for new partners.

Key Takeaways

The baseline monthly operating cost for the alcohol delivery service starts above $50,000, driven overwhelmingly by a $42,917 monthly payroll commitment.
High variable expenses, including 50% delivery fees and 25% payment processing, combine with aggressive marketing to create a challenging 175% variable cost load relative to revenue.
The business requires a minimum cash buffer of $777,000 to sustain operations through the projected 29-month timeline until reaching cash flow breakeven in May 2028.
If revenue targets are missed, the primary levers for immediate cost reduction involve renegotiating the 50% third-party delivery fee or scaling back the 50-person staffing plan.

Running Cost 1 : Payroll & Staffing

Payroll Reality Check

Your 2026 payroll commitment hits $42,917 monthly for 50 full-time employees (FTE). This staff includes the CEO, CTO, engineering, marketing, and operations teams. Honestly, this wage bill is your single biggest fixed cost defintely.

Staffing Cost Inputs

This $42,917 estimate covers salaries for 50 people across key roles like leadership, tech, marketing, and operations by 2026. To calculate this, you need headcount projections multiplied by blended average salaries plus payroll taxes. This cost is fixed overhead, meaning it doesn't change with sales volume.

Headcount plan for 50 FTE by 2026.
Blended average salary per role type.
Taxes and benefits loading factor.

Controlling Wage Burn

Managing this large fixed cost requires strict hiring discipline, especially for the 5 marketing and 5 operations roles. Consider using contractors for non-core functions initially to delay full payroll commitment. Watch out for scope creep in engineering hiring.

Hire only critical roles first.
Model contractor vs. FTE fully loaded costs.
Keep overhead hiring lean until revenue hits targets.

Fixed Cost Coverage

Since payroll is your largest fixed drain, every hire must directly impact revenue generation or platform stability. If you hit break-even at 93 daily orders (as per delivery costs), ensure these 50 salaries are fully supported by that volume.

Running Cost 2 : Office & Utilities

Fixed Overhead Baseline

Fixed office overhead remains a steady $3,500 monthly, covering $3,000 rent and $500 utilities across the forecast. This is a baseline non-negotiable expense you must cover before variable costs hit. Honestly, you need sales to cover this before you even look at payroll.

Office Cost Inputs

This $3,500 represents fixed General & Administrative (G&A) overhead, which is stable regardless of order volume. It's small compared to the $42,917 monthly wage bill, but it's due on day one. Input relies on firm quotes for rent and projected utility usage.

Covers rent and utilities only.
Fixed throughout the forecast period.
Input is the signed lease amount.

Managing Space Costs

Avoid signing leases that force scale before sales targets are met. For utilities, ensure energy efficiency is prioritized in any office build-out or initial setup. If you launch remote-first, this cost drops, saving you $42,000 annually right away.

Negotiate short initial lease terms.
Model a remote-first scenario.
Watch utility spikes closely.

Fixed Cost Drag

Since this $3,500 is fixed, it directly increases your break-even requirement. Every dollar spent here must be covered by margin dollars from transaction fees and subscriptions before you see operational profit. It's a fixed hurdle.

Running Cost 3 : Platform Technology

Fixed Tech Overhead

Platform technology costs are fixed at $1,800 per month for essential General & Administrative (G&A) overhead. This covers software licenses and cloud hosting supporting your marketplace operations. This is a manageable fixed cost that doesn't scale with order volume, but it must be budgeted consistently.

Cost Inputs

These technology expenses are critical infrastructure for your marketplace. You need $800 for software licenses—think CRM or accounting tools—and $1,000 for cloud hosting, which keeps the mobile app running. This $1,800 fits within the overall fixed operating expense structure.

Software licenses: $800 monthly.
Cloud hosting: $1,000 monthly.
Total fixed tech overhead: $1,800.

Managing This Spend

Managing these fixed tech costs means avoiding feature creep in software subscriptions. If you scale rapidly, review hosting tiers annually to ensure you aren't overpaying for unused capacity. Don't let licenses balloon past what the 50 FTE staff actually use. It's defintely easy to overspend here.

Audit licenses every six months.
Negotiate hosting contracts at scale.
Watch out for unused seats.

Scalability Check

While $1,800 seems small compared to payroll ($42,917/month), tech debt accrues fast. If you choose cheap, unscalable hosting now, migration costs later will be massive. Keep this G&A spend clean and documented for investors.

Running Cost 4 : Regulatory & Legal

Compliance Fixed Cost

You need $1,900 monthly for regulatory compliance, which covers your essential legal retainer and business insurance obligations. This fixed cost is non-negotiable for operating an alcohol delivery marketplace and must be covered before you see profit.

Cost Breakdown

This $1,900 covers necessary legal oversight at $1,500 per month and business insurance at $400. Since this is a fixed overhead, it hits your bottom line regardless of sales volume. For context, this is much smaller than the $42,917 payroll expense.

Legal retainer: $1,500/month.
Business insurance: $400/month.
Total fixed compliance: $1,900.

Managing Legal Spend

You can't cut the insurance premium much without risking coverage, but the legal retainer needs scrutiny. Ask your counsel about shifting from a high monthly retainer to a project-based fee structure after launch. Defintely review scope creep quarterly to keep this predictable.

Audit retainer scope every six months.
Benchmark insurance against similar delivery platforms.
Negotiate fixed fee for standard compliance checks.

Fixed vs. Variable Pressure

Regulatory costs are fixed overhead, unlike your 70% customer acquisition spend. If your total monthly fixed costs approach $25,000 (including payroll, rent, and this $1,900), you need significant gross profit margin to cover that base before you see actual operating profit.

Running Cost 5 : Transaction Fees

Transaction Fee Impact

Payment processing fees are a variable Cost of Goods Sold (COGS) that immediately pressures your unit economics. Expect this cost to absorb 25% of your Gross Merchandise Value (GMV) starting in 2026, dipping only slightly thereafter. This high initial variable rate means achieving positive contribution margin will be tough.

Calculating Variable COGS

This expense covers the costs charged by payment processors to handle every transaction. To budget this, you must know the projected GMV for 2026. Since it’s a percentage of the total sale value, it scales perfectly with volume, unlike fixed costs like the $1,900 monthly regulatory retainer. You need to track this precisely.

Input: Projected GMV
Rate: Starting at 25%
Classification: Variable COGS

Managing Processing Rates

Early on, you won’t have the scale to negotiate rates down from 25%. Focus instead on increasing the Average Order Value (AOV) to spread fixed per-transaction fees, if any exist, over a larger base. A common mistake is underestimating how much this impacts the unit economics before volume builds up. Don't assume you'll get venture rates right away.

Negotiate after $5M GMV
Avoid hidden minimums
Prioritize high AOV

Margin Reality Check

This 25% payment processing fee stacks directly on top of the 50% third-party delivery cost, meaning 75% of your GMV is gone before you cover payroll or tech. If you don't aggressively improve your take-rate or reduce delivery costs, customer acquisition spend—currently modeled at 70% of revenue—will bankrupt you fast.

Running Cost 6 : Third-Party Delivery

Delivery Cost Shock

Third-party delivery eats half your sales price before you even cover payment processing. In 2026, this 50% variable cost dictates profitability. You must control delivery density or negotiate better rates defintely fast.

Variable COGS Input

Delivery expenses are classified as variable Cost of Goods Sold (COGS) because they scale directly with volume. This 50% rate applies to the order value in 2026. It covers driver pay and platform logistics fees. If your Average Order Value (AOV) is $50, delivery costs $25 per order.

Input: Order Value (100%)
Rate: 50% in 2026
Impact: Direct subtraction from revenue

Controlling Delivery Spend

You can’t absorb a 50% delivery cost long term; it crushes contribution margin. Focus on increasing order density within tight geographic zones to lower per-delivery cost. Also, push customers toward subscription tiers offering bundled, cheaper delivery options.

Increase order density per zip code
Negotiate volume discounts with carriers
Incentivize higher AOV orders

Margin Pressure Check

Compare this 50% delivery expense against the 25% transaction fee. Together, these two variable costs consume 75% of Gross Merchandise Value (GMV) before accounting for any marketing spend or fixed overhead. That’s a tight squeeze.

Running Cost 7 : Customer Acquisition

Variable Ad Load

Digital advertising is modeled as a 70% variable expense against revenue in 2026. This performance spend is separate from the $250,000 annual fixed marketing budget meant for broader branding. This structure means acquisition costs scale directly with sales volume, demanding intense focus on Return on Ad Spend (ROAS).

Modeling Paid Growth

This 70% variable cost represents performance marketing dollars spent to generate immediate sales. To calculate the expense in dollars, you need your projected 2026 revenue. If you project $5 million in revenue that year, expect $3.5 million to be consumed by this ad spend alone. It acts like a direct sales commission.

Inputs: Projected Revenue (2026) × 70%.
It sits outside the $250k fixed budget.
This is pure performance marketing spend.

Controlling Ad Burn

Since 70% of revenue goes to ads, efficiency is defintely key. The $250,000 fixed budget must focus on non-transactional brand building. You must aggressively manage the variable spend to ensure Customer Acquisition Cost (CAC) stays well below the customer's lifetime value (LTV). Don't let delivery fees mask poor ad performance.

Benchmark ROAS against industry standards.
Use fixed budget for awareness, variable for conversion.
Optimize for subscription sign-ups to lower blended CAC.

Unit Economics Check

Modeling acquisition at 70% of revenue is high; it leaves only 30% to cover all other costs, including transaction fees (25%) and delivery (50% of order value). If variable costs eat 75% of revenue before ads, you have zero margin left to cover this 70% spend. You need better gross margins or lower ad rates.