Many restaurant owners think BOGO promotions are guaranteed customer magnets—they're not. Through platforms like Thuisbezorgd or Uber Eats, you'll pay 15-30% commission on orders while only charging for half the food. Here's how to calculate if such promotions actually make financial sense.
Why BOGO promotions can destroy your margins
Buy one get one free sounds straightforward: customer pays for 1 dish, receives 2. But platforms complicate things since you'll pay commission on the full order value while charging for just half the dishes.
⚠️ Watch out:
Platforms calculate commission based on what customers order, not what you charge. With BOGO you're paying commission on 2 dishes but getting paid for 1.
The real costs hiding behind platform promotions
BOGO promotions through platforms hit you with multiple costs:
- Double food cost: You're preparing 2 dishes, charging for 1
- Commission on both items: Platform treats it like customer bought 2×
- Packaging expenses: Two containers, double the materials
- Delivery fees: Usually identical to regular orders
💡 Example:
Margherita Pizza normally €12.00 through Thuisbezorgd:
- Customer orders: 2× pizza (BOGO)
- Customer pays: €12.00
- Platform commission (25%): €6.00
- You receive: €6.00
- Your food cost: 2× €3.50 = €7.00
Loss: €1.00 per order
Break-even math for BOGO offers
Calculating profitability means finding your break-even point—the minimum price where you won't lose money. From years of working in professional kitchens, I've seen too many operators skip this crucial step.
💡 Formula:
Break-even price = (2× food cost + 2× packaging) / (1 - platform commission%)
Example with pizza: €3.50 food cost, €0.75 packaging, 25% commission:
(2× €3.50 + 2× €0.75) / 0.75 = €11.33
Your pizza must cost at least €11.33 to break even.
Scenarios where BOGO actually pays off
BOGO can work with the right conditions:
- High margin items: Food cost below 25%
- Add-on sales: Customers also buy drinks, desserts
- Repeat business: New customers who return later
- Slow periods: Quiet hours when staff costs are fixed anyway
💡 Smart BOGO:
Pasta Carbonara €16.00 (food cost €4.00, 25% of selling price):
- Break-even BOGO price: €12.00
- Current price: €16.00
- Margin remaining: €4.00 per order
This promotion could generate profit.
Better alternatives to BOGO deals
Consider these options instead of buy one get one free:
- Percentage discounts: 30% off often beats BOGO profitability
- Free sides: Low cost items with high perceived value
- Order minimums: Free dessert with €25+ orders
- Bundle deals: Main dish + drink at fixed pricing
How do you calculate the profitability of a BOGO promotion?
Calculate your total costs per order
Add up: 2× food cost + 2× packaging costs + any extra labor costs. These are your actual costs for the BOGO order.
Subtract platform commission from selling price
Multiply your selling price by (1 - commission%). At €15 and 25% commission you receive €11.25. This is your net revenue.
Compare costs with revenue
If your net revenue is higher than your total costs, the promotion is profitable. If not, you're losing money per order.
✨ Pro tip
Run a 72-hour BOGO test on your highest-margin dish (food cost under 22%) and track both immediate profit per order plus new customer acquisition. Tools like KitchenNmbrs can help you monitor the real-time impact on your margins.
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
Does the platform charge commission on both dishes with BOGO?
Yes, platforms like Thuisbezorgd calculate commission based on what's in the customer's cart, not your final charge. You'll pay commission on both dishes even though you only collect payment for one.
What food cost percentage works for BOGO promotions?
Keep food costs at 20-25% maximum for BOGO promotions through platforms. Higher percentages make it nearly impossible to cover the doubled costs while paying platform commissions.
Can I restrict BOGO promotions to slow periods?
Most platforms allow time-based promotion settings. Running BOGO during quiet hours can improve profitability since you're already paying staff and have excess kitchen capacity.
What alternatives work better than BOGO offers?
Percentage discounts of 30-40% typically outperform BOGO financially. Free low-cost sides like bread or small salads also create customer value without destroying margins.
How do I track if BOGO brings new customers?
Check your platform analytics for new versus returning customer ratios during promotions. If 70%+ are new customers and some return later, the long-term value might justify short-term losses.
Should I factor in labor costs for BOGO calculations?
During busy periods, yes—you'll need extra prep time and kitchen labor for doubled orders. But during slow periods, labor costs are already covered, making BOGO more viable.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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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