Delivering or having customers pick up can make the difference between profit and loss. Many entrepreneurs only look at the time it takes, but forget the hidden costs. In this article, you'll learn exactly how to calculate which option brings in the most.
The real costs of delivering yourself
Delivering yourself seems cheap — you only pay for fuel. But there are more costs involved than you think.
💡 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
Having customers pick up means they come to you. This has different cost items.
💡 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 is cheaper. But there are more factors than just costs.
- Order value: With delivery you can set a minimum order value
- Reach: Delivery expands your market, but costs more
- Service: Delivery is convenient for the customer, but costs you more
- Time: Pickup requires less of your time, but the customer has to travel
⚠️ Watch out:
Don't forget the 'invisible' costs: wear and tear on your car, insurance, and the time your driver isn't in the kitchen.
When delivery makes sense
Delivery becomes more interesting as your order value increases and your route becomes more efficient.
- High order value: From €40+ orders, delivery costs become relatively small
- Short distances: Within 5 km, costs stay manageable
- Multiple orders per route: 4+ orders per trip makes it efficient
- Fixed routes: If you regularly serve the same neighborhoods
When pickup is better
Having customers pick up works better for certain order types and situations.
- Low order value: Under €25, delivery costs make it unprofitable
- Large distances: Above 10 km, delivery becomes expensive
- Busy times: If you need all staff in the kitchen
- Limited staff: If you can't spare anyone for delivery
💡 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 way you cover costs and give customers a choice.
Impact on your margin
The choice between delivery and pickup directly affects your profitability per order.
- Delivery: Lower margin per order, but possibly more orders
- Pickup: Higher margin per order, but possibly less reach
- Mixed: Optimal balance between service and profitability
Test both options for a month and compare your total profit, not just costs per order. Sometimes delivery brings more total profit despite higher costs per delivery.
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
Test both options for a month and measure your total profit, not just costs per order. Sometimes delivery brings more volume and thus more total profit, despite higher costs per delivery.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
What does delivery cost per kilometer?
Calculate approximately €0.40 per km total (fuel €0.25 + wear and tear €0.15). Plus your driver's time per hour.
From what order value does delivery make sense?
When delivery costs stay below 20% of your order value. With €7 delivery costs, you need a minimum of €35 orders to be profitable.
Can I pass delivery costs on to customers?
Yes, many customers accept a €2.50-€4.50 delivery surcharge. Make sure your costs are covered with this, otherwise you lose money on every delivery.
What if customers don't want to pick up?
Offer a choice: pickup with a discount (€2 off) or delivery with a surcharge. This way both options remain attractive for different customers.
How efficient does my delivery route need to be?
Aim for at least 3-4 orders per route. Below 3 orders, delivery usually becomes too expensive, unless the orders are very high value.
📚 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.
Selling food? Then you need KitchenNmbrs
Whether you run a restaurant, food truck, catering company, or meal kit business — you need to know what each dish costs. KitchenNmbrs gives you that insight. Start your free trial.
Start free trial →