Delivery pizzas appear more profitable at first glance, but commission fees drastically reduce your actual margins. Most pizzeria owners focus on the higher menu prices and overlook the real costs of third-party delivery. You'll discover the true profitability gap between delivery and dine-in pizza sales.
The hidden costs of delivery pizzas
Delivery orders bring additional expenses that can destroy your profit margins. Beyond ingredient costs, you're dealing with commission fees, packaging expenses, and increased operational overhead.
- Platform fees: 15-30% of your order value goes to Thuisbezorgd or Uber Eats
- Packaging costs: €0.50-€1.50 per pizza (box, bags, stickers)
- Higher selling price: Customers accept 10-20% higher prices for delivery
? Example: Margherita pizza
In-house sales:
- Selling price: €12.50 incl. VAT
- Ingredient costs: €3.20
- Platform fees: €0
- Packaging: €0
Net revenue: €8.20 (food cost 28%)
? Example: Same pizza delivered
Delivery sales:
- Selling price: €15.00 incl. VAT
- Ingredient costs: €3.20
- Platform fees (25%): €3.75
- Packaging: €0.80
Net revenue: €7.25
Despite the €2.50 price increase, you're actually earning €0.95 less per pizza through delivery channels. That represents a 12% margin reduction!
Calculate your actual margin per channel
Accurate comparison requires including every cost component. From analyzing actual purchasing data across different restaurant types, I've seen operators consistently underestimate their true delivery expenses. Use these formulas:
In-house pizza margin:
Selling price excl. VAT - Ingredient costs = Gross margin
Delivery pizza margin:
(Selling price excl. VAT - Platform fees - Packaging costs) - Ingredient costs = Gross margin
⚠️ Note:
Always calculate with prices excl. VAT. Pizzas fall under 9% VAT. A pizza of €15.00 is €13.76 excl. VAT.
When delivery is still profitable
Delivery channels can remain worthwhile if you consider these variables:
- Volume: More orders compensate for lower margin per pizza
- Fixed costs: No extra staff, less cleaning
- Reach: Customers who wouldn't otherwise come
- Quiet moments: Extra revenue during slow periods
? Calculation example: Break-even volume
If you earn €0.95 less per delivery pizza, but your fixed costs are €500/month lower (less staff), then you break even at:
€500 ÷ €0.95 = 526 extra pizzas per month
That's 17 pizzas per day. Achievable for many pizzerias.
Optimize your delivery strategy
Armed with these insights, you can make informed decisions:
- Premium pricing: Increase your delivery prices by 15-25% to compensate for platform fees
- Minimum orders: Higher minimum order value improves your margin per order
- Cheap packaging: Every €0.10 saved on packaging is pure profit
- Own delivery: Consider this from 50+ orders per day
Related articles
How do you calculate the margin difference? (step by step)
Collect all costs per pizza
Note for both channels: ingredient costs, packaging costs, and platform fees (usually 15-30% of order value). Don't forget small items like napkins and stickers.
Calculate net revenue per channel
Subtract all direct costs from your selling price (excl. VAT). For delivery: selling price - platform fees - packaging - ingredients. For in-house: selling price - ingredients.
Compare and analyze the difference
Divide the difference by your in-house margin to get the percentage. A difference of €1 on €8 margin is 12.5% less profitability with delivery.
✨ Pro tip
Compare your delivery margins every 2 weeks by tracking the exact commission percentage on your top 5 pizza varieties. Platform fees fluctuate based on promotional periods and contract renewals.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Should I include VAT in my margin calculation?
Are platform fees always 25% of the order value?
Can delivery still be more profitable than in-house?
How often should I update this calculation?
Should I calculate different prices for different platforms?
Do I need separate food cost calculations for delivery-only menu items?
Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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