Managing delivery costs is like plugging holes in a leaky bucket – miss even one expense and your profits drain away. Most food entrepreneurs only count driver wages while ignoring fuel, vehicle wear, and platform fees. Here's how to calculate every delivery expense and build it into your pricing structure.
All delivery costs at a glance
Running deliveries involves way more expenses than just putting someone on a bike. You're juggling multiple cost categories:
- Delivery driver labor costs: Hourly wage or per trip
- Fuel costs: Gasoline or electricity
- Vehicle costs: Depreciation, maintenance, insurance
- Packaging costs: Boxes, bags, insulation material
- Platform fees: Commission from Deliveroo, Uber Eats, etc.
⚠️ Watch out:
Most owners only factor in driver wages but completely miss fuel and vehicle depreciation. That oversight costs you €2-4 per trip.
Calculate costs per trip
Converting everything into per-delivery costs gives you a clean number to add onto each order. This approach keeps your math simple and your margins protected.
💡 Example calculation per trip:
Your driver completes 6 trips hourly within 3 km radius:
- Labor costs: €15/hour ÷ 6 trips = €2.50 per trip
- Fuel: €0.08/km × 6 km = €0.48 per trip
- Vehicle (depreciation): €0.12/km × 6 km = €0.72 per trip
- Packaging average: €0.80 per order
Total per trip: €4.50
Pass through platform fees
Third-party platforms like Deliveroo and Uber Eats grab 15-30% commission from your order value. You've got three ways to handle this cost:
- Method 1: Higher prices on platform (€18 instead of €15 in restaurant)
- Method 2: Charge delivery costs separately
- Method 3: Combination of both
💡 Example platform commission:
€25 order with 25% platform commission:
- Commission: €25 × 0.25 = €6.25
- You receive: €25 - €6.25 = €18.75
- Minus your delivery costs €4.50 = €14.25 net
Effective margin loss: €10.75 per order
Factor delivery costs into your food cost
There are two clean methods for building delivery expenses into your cost calculations. One of the most common blind spots in kitchen management is treating delivery orders the same as dine-in when calculating food costs.
Option 1: Fixed delivery costs per order
Take your calculated €4.50 per trip and add it to ingredient costs. That pasta dish jumps from €6.50 to €11.00 total cost price.
Option 2: Percentage of order value
Figure out what slice of your average order goes to delivery. With €4.50 costs and €22 average order, that's 20.5%.
💡 Example total cost price for delivery:
Pasta carbonara delivery via Deliveroo:
- Ingredient costs: €6.50
- Packaging: €0.80
- Delivery trip: €4.50
- Platform fee (25%): €6.25
Total costs: €18.05 on €25 sale = 72% food cost!
Set minimum order value
High delivery costs make minimum order values essential. Small orders will destroy your profitability faster than you can count.
Formula for minimum order value:
(Delivery costs + Platform fee) ÷ Desired margin
⚠️ Watch out:
Delivery naturally pushes food costs to 50-60% due to extra expenses. Don't expect the same margins as your dine-in service.
Break-even per delivery zone
Different areas mean different costs. Longer distances eat more fuel and time, so calculate what each zone needs to cover expenses.
- Zone 1 (0-2 km): €4.50 delivery costs
- Zone 2 (2-4 km): €6.50 delivery costs
- Zone 3 (4-6 km): €8.50 delivery costs
How do you calculate delivery costs? (step by step)
Calculate driver costs per hour
Add up wage, fuel, and vehicle costs. A driver typically costs €18-25 per hour all-in. Divide this by the number of trips per hour to get costs per trip.
Add platform fees and packaging
Platform commission is 15-30% of order value. Packaging costs an average of €0.60-1.20 per order. Add this to your delivery costs per trip.
Determine your minimum order value
Divide your total delivery costs by your desired margin. At €8 costs and 40% margin you need a minimum order value of €20 to break even.
✨ Pro tip
Track your driver's trip completion rate during different 2-hour windows throughout the week. Peak periods (6-8 PM) often allow 8-10 trips per hour versus 4-5 during slow times, cutting your per-delivery costs nearly in half.
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
Can I pass all delivery costs on to customers?
Absolutely, but transparency works better than sneaky price hikes. Most customers accept €2-4 delivery fees if you're upfront about the actual expenses involved.
How do I calculate fuel costs per kilometer?
Divide your fuel price per liter by consumption per 100 km. At €1.80/liter with 1:20 consumption: €1.80 ÷ 20 = €0.09 per km. Then add vehicle wear costs of €0.03-0.05/km on top.
What if my driver handles multiple orders per trip?
Split your trip costs by the number of orders delivered. Two orders per trip means €6 in costs becomes €3 per order. Just remember that multi-drop trips take longer and use more fuel.
Do I need to calculate VAT on delivery costs?
Yes, food delivery falls under 9% VAT in most cases. Your €4.50 delivery cost includes VAT, so that's €4.13 excluding VAT for your cost calculations.
How often should I recalculate my delivery costs?
Review your trips per hour and fuel prices monthly. Gas prices shift constantly, and drivers get more efficient over time. Adjust rates when costs change by 10% or more.
Should I charge different rates for peak vs off-peak deliveries?
Smart operators do exactly that. Peak hours often mean more orders per trip, which lowers your per-delivery cost. Calculate separate rates for busy periods versus slow times.
📚 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 →