Delivering or having customers pick up can make the difference between profit and loss. Most entrepreneurs focus only on travel time, yet overlook the hidden expenses that eat into margins. The choice impacts your bottom line more than you realize.
The real costs of delivering yourself
Self-delivery appears economical — you're just paying for gas, right? But hidden expenses stack up quickly.
? Example: Delivering to 3 customers yourself
Route of 45 minutes, 25 km total:
- Fuel: 25 km × €0.25 = €6.25
- Car wear and tear: 25 km × €0.15 = €3.75
- Driver time: 45 min × €15/hour = €11.25
- Insurance/tax: €2.00
Total: €23.25 for 3 deliveries = €7.75 per delivery
Costs of having customers pick up
Customer pickup shifts the travel burden to them. Your costs change completely.
? Example: Customers pick up themselves
3 customers pick up themselves:
- Extra packaging (sturdier): €0.75 per order
- Time to prepare order: 5 min × €15/hour = €1.25
- Customer wait time (space occupied): €0.50
Total: €2.50 per pickup order
The break-even calculation
Now you can compare which option costs less. But pure costs don't tell the whole story.
- Order value: Delivery allows minimum order requirements
- Reach: Delivery expands your market, pickup limits it
- Service: Delivery adds convenience but costs more
- Time: Pickup saves your time, costs customer time
⚠️ Watch out:
Don't ignore the 'invisible' costs: vehicle depreciation, insurance, and losing kitchen staff during delivery runs.
Delivery makes sense when
Delivery becomes profitable as order values climb and routes get more efficient.
- High order value: €40+ orders make delivery costs proportionally smaller
- Short distances: Under 5 km keeps expenses manageable
- Multiple orders per route: 4+ stops per trip creates efficiency
- Fixed routes: Regular service to established areas
Pickup works better for
Customer pickup suits certain order types and business situations perfectly.
- Low order value: Under €25, delivery kills profitability
- Large distances: Beyond 10 km, delivery becomes expensive
- Busy periods: Peak times need all hands in the kitchen
- Limited staff: Can't spare anyone for delivery runs
From years of working in professional kitchens, I've seen restaurants fail because they didn't account for these hidden delivery costs properly.
? Example: Hybrid approach
Many entrepreneurs combine both:
- Delivery: orders above €35, within 7 km
- Pickup: orders under €35, discount of €2
- Delivery surcharge: €3.50 to cover costs
This approach covers costs while giving customers options.
Impact on your margin
Your delivery vs. pickup choice directly affects per-order profitability.
- Delivery: Smaller margin per order, potentially higher volume
- Pickup: Better margin per order, possibly limited reach
- Mixed: Balances service level with profitability
Test both approaches for a month and compare total profit, not just per-order costs. Sometimes delivery generates more total profit despite higher individual delivery expenses.
Related articles
How do you calculate the best choice? (step by step)
Calculate your delivery costs per order
Add up: fuel, car wear and tear (€0.15/km), driver time, insurance. Divide by number of orders per route for cost per delivery.
Calculate your pickup costs per order
Add up: extra packaging, time to prepare, any wait time/space. These are your costs per pickup order.
Compare with your average order value
Delivery costs of €7 on an order of €25 = 28% of your revenue. On an order of €50 = 14%. Determine your break-even point.
✨ Pro tip
Track your delivery routes for 2 weeks and calculate the average orders per trip. If you're averaging under 2.5 orders per route, switch those time slots to pickup-only to boost profitability.
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
What does delivery cost per kilometer?
From what order value does delivery make sense?
Can I pass delivery costs on to customers?
What if customers refuse pickup?
How efficient should my delivery route be?
Should I outsource delivery to third-party services?
How do I handle delivery during peak hours?
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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