Nearly 40% of delivery orders fall below €15, yet these small orders often lose restaurants money after platform fees and packaging costs. Many restaurant owners struggle with this balance - they want every customer but can't afford to operate at a loss. The key is calculating exactly where your break-even point sits.
Why consider a minimum order value?
Delivery brings costs that dine-in customers don't create. Platform fees from Deliveroo or Uber Eats can hit 30% of your order value. Add packaging costs and sometimes delivery fees on top.
💡 Example:
Order of €12.00:
- Platform fee (25%): €3.00
- Packaging: €0.75
- Net revenue: €8.25
At 35% food cost, you're left with €5.36 for staff, rent and profit. That's barely enough to cover overhead.
Calculate your break-even point
Finding the right minimum starts with knowing where you break even. You'll need these numbers:
- Your average food cost percentage
- The platform fee percentage
- Average packaging costs per order
- Your target margin per order
💡 Example calculation:
Say you need at least €8.00 per order to stay profitable:
- Food cost: 32%
- Platform fee: 25%
- Packaging: €1.00 per order
- Target margin: €8.00
Minimum order value: (€8.00 + €1.00) / (1 - 0.32 - 0.25) = €20.93
Factors that influence your decision
Your optimal minimum depends on more than just costs. Consider these variables too:
- Competition: What do nearby restaurants charge?
- Order frequency: Higher minimum means fewer orders but better margins
- Customer demographics: Families order differently than solo diners
- Timing: Lunch orders typically run smaller than dinner
One of the most common blind spots in kitchen management is ignoring how delivery timing affects order patterns. Peak dinner hours can support higher minimums while lunch periods often need flexibility.
⚠️ Watch out:
Setting your minimum too high drives customers to competitors. Test different amounts and monitor your conversion rates closely.
Alternatives to fixed minimums
If a strict minimum pushes customers away, try these approaches instead:
- Small order fee: €2.50 surcharge for orders under €20
- Time-based minimums: Lower thresholds during slow periods
- Bundle promotions: Encourage larger orders with combo deals
- Bonus items: Free appetizer for orders above €25
💡 Example strategy:
Pizzeria Romano uses a €15 minimum during peak hours (5pm-10pm) and drops to €12 for lunch. This captures daytime orders while protecting dinner profitability.
Track and optimize your results
Testing reveals which minimum works for your specific situation. Monitor these metrics weekly:
- Daily order volume
- Average order value
- Total delivery revenue
- Profit margin per order
Food cost calculators help you track dish-level profitability and model how different minimums affect your bottom line.
How do you determine your minimum order value? (step by step)
Calculate your total costs per order
Add up: food cost percentage, platform fee, packaging costs and desired margin. This gives you the basis for your calculation.
Use the formula for minimum order value
Minimum order value = (Fixed costs + Desired margin) / (1 - Food cost% - Platform fee%). Round to a logical amount like €15 or €20.
Test and monitor your results
Try the amount for 2 weeks and measure the effect on number of orders and total revenue. Adjust if needed.
✨ Pro tip
Test your minimum by analyzing 30 days of order data at €15, then gradually increase to €18 over the next month. Track order volume drops - if you lose more than 15% of orders but average order value increases by 25%, you're ahead.
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
Can I set different minimum order values for each delivery platform?
Absolutely, and you should consider it. Platform fees vary significantly - Uber Eats might charge 28% while Deliveroo takes 22%. Your minimum should reflect these different cost structures. Most platforms allow you to set your own delivery policies.
What if my minimum order value is higher than my competitors?
Focus on value rather than competing solely on convenience. Offer superior food quality, faster delivery times, or better packaging. You can also use promotional strategies like "free dessert on orders over €20" to justify higher minimums while adding perceived value.
Should I calculate my minimum based on gross or net prices?
Always calculate using net prices (excluding VAT). Your costs and margins are based on net amounts, even though customers see VAT-inclusive prices. This prevents underestimating your true minimum needs by 19-21% depending on your VAT rate.
📚 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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