Different delivery zones can make or break your profit margins. A pizza delivered downtown might cost €7 in fuel and labor, while the same pizza to outer neighborhoods costs €12. You can't afford to eat these costs.
Why location-specific cost prices matter
Delivering to the city center costs you €2.50 in fuel and 15 minutes. Delivering to an outer neighborhood costs €4.20 and 25 minutes. If you charge the same delivery costs everywhere, you're subsidizing the outer neighborhood with your city center orders.
💡 Example:
You deliver from your central kitchen to 3 zones:
- Zone A (downtown): €2.50 fuel + €4.50 labor = €7.00
- Zone B (north neighborhood): €3.20 fuel + €6.00 labor = €9.20
- Zone C (outer area): €4.20 fuel + €7.50 labor = €11.70
Difference between nearby and far: €4.70 per delivery
Calculate your delivery costs per zone
Start by measuring actual costs per delivery area. These are the components:
- Fuel costs: Number of kilometers × fuel consumption × price per liter
- Labor costs: Travel time × delivery driver hourly wage (including social contributions)
- Vehicle costs: Depreciation, maintenance, insurance per kilometer
- Packaging costs: Special insulation for longer trips
⚠️ Important:
Always include return trip costs. A 5 km delivery is 10 km of driving (there and back).
Adjust cost price per delivery location
Your base cost price stays the same, but your delivery costs vary per zone. Here's how you calculate the total cost price:
Total cost price = Food cost + Packaging + Delivery costs zone
💡 Example calculation:
Margherita pizza delivery:
- Food cost pizza: €3.20
- Packaging: €0.60
- Delivery zone A: €7.00
- Delivery zone C: €11.70
Cost price zone A: €3.20 + €0.60 + €7.00 = €10.80
Cost price zone C: €3.20 + €0.60 + €11.70 = €15.50
Minimum selling prices per zone
With different cost prices, you get different minimum selling prices. From years of working in professional kitchens, I've seen restaurants fail because they ignored this simple math. With a desired margin of 65%:
Minimum price = Cost price / (1 - Desired margin %)
- Zone A: €10.80 / 0.35 = €30.86 (excl. VAT)
- Zone C: €15.50 / 0.35 = €44.29 (excl. VAT)
That's a difference of €13.43 for the same dish.
Practical implementation
You have three options to implement this:
- Different prices per zone: Zone A €16.50, Zone C €23.50
- Different delivery costs: Same menu price, but Zone C pays €5 extra delivery fee
- Minimum order per zone: Zone C has higher minimum order value
💡 Many delivery restaurants choose option 2:
Same menu, but different delivery costs. This keeps your menu clear and the delivery costs cover your extra expenses.
Track it in your system
A food cost calculator can create different cost price profiles per delivery zone. This way you immediately see your margin per area and can optimize profitability per location.
How do you calculate delivery costs per zone?
Measure distances and travel times
Drive all delivery areas and measure the average distance and travel time from your kitchen. Also note the return trip - that counts toward your costs too.
Calculate costs per zone
Add up fuel, labor, and vehicle costs per delivery area. Use the formula: (km × €0.19 fuel) + (travel time × hourly wage) + packaging costs.
Determine pricing strategy
Choose between different menu prices per zone, different delivery costs, or higher minimum order values for distant zones. Test what works best for your customers.
✨ Pro tip
Batch 3-4 orders per zone during peak hours and deliver them in one trip. This cuts your per-order delivery cost by 60-75% in distant zones.
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 charge different delivery costs per location legally?
Yes, you can. As long as you communicate the costs transparently before customers order. Most platforms like Thuisbezorgd support zone-based delivery costs.
How often should I recalculate my delivery costs?
Check this monthly, especially if fuel prices change significantly. Also recalculate whenever you add new delivery areas or your labor costs change.
What if customers complain about higher delivery costs for distant areas?
Explain that distant deliveries require more time and fuel. Offer alternatives like pickup with a discount or free delivery with a higher minimum order.
Do I need to add VAT to delivery costs?
Yes, delivery costs fall under the same VAT as your food: 9%. Include this in your total selling price including VAT.
How do I prevent losing money on distant deliveries?
Set a minimum order value that covers your total costs, or limit your delivery area to zones where you can still deliver profitably.
Should I factor in driver tips when calculating zone costs?
If you guarantee tips or pay tip supplements to drivers for distant zones, include these in your labor costs. This ensures you don't underestimate true delivery expenses.
📚 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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