Delivery platforms don't just charge commission, they also ask for contributions to marketing and promotions. These costs can add up to 5-10% extra on top of your platform fee, but are often forgotten in margin calculations. In this article, you'll learn how to correctly account for all delivery platform costs in your pricing.
All delivery platform costs at a glance
Besides the familiar commission, platforms often charge extra costs that further squeeze your margin:
- Base commission: 15-30% of your order value
- Marketing fee: 1-3% for general platform promotion
- Sponsored placement: €0.50-€2.00 per order for higher ranking
- Promotion contribution: 50-100% of any discount you offer
- Service fee: Fixed costs per order (€0.30-€1.00)
⚠️ Watch out:
Platforms often highlight only the base commission prominently. The extra costs are hidden in your monthly invoice.
Calculate your actual platform percentage
To know your real costs, you need to add up all platform-related costs and divide by your total platform revenue.
💡 Example calculation:
Monthly revenue via Deliveroo: €8,000
- Base commission (25%): €2,000
- Marketing fee (2%): €160
- Sponsored ads: €300
- Promotion contributions: €240
- Service fees: €180
Total costs: €2,880 = 36% of revenue
Account for all costs in your menu price
You need to increase your menu price to cover all platform costs, not just the visible commission.
Formula for break-even price:
Delivery price = Restaurant price / (1 - Total platform %)
💡 Practical example:
Your pasta costs €16.00 in the restaurant. Your total platform costs are 36%.
Required delivery price: €16.00 / (1 - 0.36) = €16.00 / 0.64 = €25.00
You need to charge €25.00 to keep the same profit as €16.00 in the restaurant.
Use promotions strategically
Platforms push you to offer discounts, but remember that you often pay 50-100% of that discount yourself.
- 20% discount: Platform pays €2, you pay €2 on a €20 dish
- Free delivery: You pay the full delivery cost (€2-€4)
- Buy-one-get-one: You provide the second dish for free
⚠️ Watch out:
Factor promotions into your average platform costs. A month with many promotions can push your percentage to 40-45%.
Monthly check routine
Check your actual platform costs every month and adjust your prices if needed:
- Download your platform invoice
- Add up all costs (not just commission)
- Divide by your platform revenue for actual percentage
- Compare with previous month: big increase?
- Adjust menu price if costs rise structurally
💡 Benchmark:
Total platform costs between 30-40% are normal. Above 45% it becomes difficult to stay profitable without significant price increases.
KitchenNmbrs for delivery margin control
With KitchenNmbrs you can set separate prices for delivery and restaurant. You see your margin per platform directly and can quickly calculate what promotions cost you.
The app also helps you include packaging costs in your cost price, so you get a complete picture of your delivery profitability.
How do you calculate your actual delivery margin? (step by step)
Collect all platform costs from last month
Download your invoice and add up: base commission, marketing fees, sponsored ads, promotion contributions and service fees. Don't miss any cost item.
Calculate your actual platform percentage
Divide your total platform costs by your platform revenue and multiply by 100. This is your real cost percentage, usually 5-15% higher than the base commission.
Adjust your delivery prices for break-even
Use the formula: Delivery price = Restaurant price / (1 - Platform%). Round to a logical price and test for a month whether your margin improves.
✨ Pro tip
Check your ranking on platforms weekly. If you drop, your marketing costs often rise because you need to pay more for sponsored placements to stay visible.
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
Do I have to pay VAT on platform commissions?
No, platform commissions are costs and you don't pay VAT on them. You do pay 9% VAT on your total delivery revenue to the tax authority.
Can I refuse marketing costs from platforms?
Usually not. Marketing fees are often a mandatory part of the platform contract. You can choose not to participate in extra promotions though.
How often do platform rates change?
Platforms adjust rates 1-2 times per year. Check your invoice monthly to spot increases quickly and adjust your prices accordingly.
Are sponsored ads mandatory?
No, but without paid promotion you often end up at the bottom of search results. Budget for this consciously and include the costs in your prices.
What if my total platform costs exceed 40%?
Then delivery often becomes unprofitable. Consider price increases, fewer promotions, or focus more on direct orders through your own channels.
Should I charge different prices per platform?
You can, but customers compare platforms. Better to use one delivery price that covers your average platform costs, optionally with platform-specific promotions.
📚 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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