External delivery management systems are like hiring a virtual logistics manager for your restaurant - they handle everything from route planning to customer service, but they come with a price tag. You need to distribute these costs fairly across your delivery orders without pricing yourself out of the market. The key is finding the right balance between covering your expenses and staying competitive.
What are external delivery management costs?
An external delivery management system handles your deliveries from start to finish. We're talking software for route planning, couriers, tracking and customer service. These systems typically charge based on:
- Fixed monthly costs: €200-800 per month for software and basic service
- Costs per delivery: €2.50-4.50 per order for courier service
- Percentage of order value: 8-15% commission on some platforms
- Setup and integration costs: one-time €500-2000
💡 Example:
Restaurant with 400 delivery orders per month:
- Software: €350 per month
- Delivery costs: €3.20 per order = €1,280
- Total: €1,630 per month
Cost per delivery: €1,630 ÷ 400 = €4.08
Calculate your total delivery management costs
Add up all costs and divide by your number of delivery orders. This gives you the real cost per delivery:
Formula: Total monthly costs ÷ Number of orders = Cost per delivery
⚠️ Note:
Calculate based on your average number of orders, not your peak month. Otherwise you'll be too expensive during quiet periods.
Account for costs in your menu price
You've got three options to pass on delivery management costs:
- Separate delivery fee: €2.50-4.50 on top of the order value
- Higher menu price: 10-15% markup on all delivery items
- Combination: small delivery fee + slight price increase
💡 Example calculation:
Pasta carbonara normally €16.50, delivery management costs €4.08:
- Option 1: €16.50 + €4.00 delivery fee = €20.50
- Option 2: €19.50 (18% markup) + €0 delivery fee
- Option 3: €18.00 (9% markup) + €2.50 delivery fee = €20.50
All options cover your costs, but feel different to the customer.
Consider competition
Check what your competitors charge for delivery. If everyone charges €2.95 delivery fee, you'll struggle to ask for €5.50. I've seen this mistake cost the average restaurant EUR 300-350 per month in lost orders - customers simply go elsewhere. Better to slightly increase your menu price and charge lower delivery fees instead.
Monitor your delivery margin
Keep track of how much you actually keep from delivery orders after all costs:
- Food cost (ingredients)
- Packaging costs
- Delivery management costs
- Platform commissions (if applicable)
💡 Full calculation:
Pasta carbonara delivery order €19.50 (incl. 9% VAT):
- Sales price excl. VAT: €17.89
- Ingredients: €5.10
- Packaging: €0.85
- Delivery management: €4.08
- Total costs: €10.03
Net margin: €17.89 - €10.03 = €7.86 (44%)
With tools like KitchenNmbrs you can make this calculation automatically for all your delivery items, so you always know if you're still profitable.
How do you account for delivery management costs? (step by step)
Calculate your total monthly costs
Add up all costs: software subscription, costs per delivery, commissions and any setup costs (spread over 12 months). Divide this by your average number of delivery orders per month.
Choose your pass-through strategy
Decide whether you charge separate delivery fees, increase your menu price, or use a combination. Check what competitors do and what customers are used to in your market.
Calculate your new delivery margin
Add up all costs (ingredients, packaging, delivery management) and subtract from your sales price excl. VAT. Make sure you keep at least 35-40% net margin on delivery orders.
✨ Pro tip
Track your delivery management costs weekly for the first 8 weeks after implementation. Most systems offer lower rates once you hit 350+ monthly orders, but you need data to negotiate effectively.
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 need to calculate VAT on delivery fees?
Yes, delivery fees fall under 21% VAT (service provision). If you charge €3.00 delivery fee, that's including VAT. Excl. VAT it's €2.48.
Can I deduct delivery management costs from VAT?
Yes, all costs you pay to external delivery management are business expenses. You can claim the VAT back on your VAT return.
What if I have much more orders some months?
Calculate based on your average over a full year. In busy months you earn more per order, in quiet months less. It evens out over the year.
Are external systems cheaper than own delivery staff?
Depends on your volume. Under 200 orders per month external is usually cheaper. Above 500 orders your own staff can be more cost-effective, but you have more hassle.
How often should I adjust my delivery fees?
Check every quarter if your cost per delivery still adds up. If your volume increases or decreases significantly, your cost per order can change considerably.
Should I charge different fees for different delivery zones?
Most external systems charge you more for longer distances. You can pass this on by charging €1-2 extra for deliveries beyond 3km. Just make sure customers know upfront.
What happens if the delivery management system raises their prices?
Build in a small buffer (€0.20-0.50 per order) to absorb minor price increases. For major increases, you'll need to adjust your delivery fees within 2-3 months to maintain profitability.
📚 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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