Ever wondered why your delivery kitchen isn't turning a profit despite steady orders? Platform fees, packaging costs, and no table service completely change your cost structure compared to traditional restaurants. Here's your step-by-step breakdown of calculating exactly how many orders you need to break even.
What makes delivery different?
Delivery concepts operate with a fundamentally different cost structure than traditional restaurants. You'll save on front-of-house staff and prime location rent, but you're hit with platform fees and packaging costs that don't exist in dine-in operations. These differences completely reshape your break-even math.
? Example cost structure dark kitchen:
Monthly fixed costs:
- Kitchen rent: €2,500
- Staff (chef + assistant): €6,000
- Energy, insurance: €800
- Other costs: €700
Total fixed costs: €10,000 per month
Identifying fixed costs
Fixed costs remain constant regardless of your sales volume. For delivery operations, you're looking at:
- Kitchen space rent - typically cheaper than restaurant locations
- Staff wages - fewer servers, more kitchen-focused roles
- Insurance and permits
- Utilities - energy and gas
- Technology costs - phone, internet, software subscriptions
You'll skip the usual restaurant expenses like dining room setup, table service equipment, or extensive dishwashing operations.
Variable costs per order
Variable costs scale directly with each order. And here's where delivery gets tricky:
? Example variable costs per €20 order:
- Ingredients (30% food cost): €5.50
- Platform fee (25%): €5.00
- Packaging: €0.80
- Delivery costs (if you deliver yourself): €2.50
Total variable costs: €13.80 per order
- Ingredient costs - based on your average food cost percentage
- Platform fees - Deliveroo, Uber Eats typically charge 15-30% of order value
- Packaging materials - containers, bags, cutlery, napkins
- Delivery expenses - if you're running your own delivery team
- Payment processing - card transaction fees
⚠️ Attention:
Platform fees get calculated on order values including VAT, while you calculate food costs excluding VAT. This discrepancy can throw off your calculations if you're not careful.
Break-even formula for delivery
Your break-even calculation follows this formula:
Break-even orders = Monthly fixed costs / (Average order value - Variable costs per order)
? Example calculation:
Given:
- Fixed costs: €10,000 per month
- Average order value: €22.00
- Variable costs per order: €13.80
Break-even = €10,000 / (€22.00 - €13.80) = €10,000 / €8.20 = 1,220 orders per month
That's approximately 40 orders per day over 30 working days.
Reality check: is this achievable?
1,220 orders monthly sounds intimidating until you break it down:
- Daily target: 40 orders (across 30 operating days)
- Hourly rate: 4-5 orders (assuming 10-hour operations)
- Per platform: 20 orders (split between 2 platforms)
For established dark kitchens in urban areas, these numbers are achievable. But smaller markets? That's where things get challenging. It's the kind of thing you only learn after closing your first month at a loss - market size matters more than you think.
Lowering your break-even
Three levers to reduce your required order volume:
- Boost average order value - implement minimum orders, create meal bundles
- Cut fixed costs - negotiate cheaper rent, optimize staffing
- Reduce variable costs - improve food cost management, source cheaper packaging
? Impact of €2 higher average order:
From €22 to €24 average order value:
- Margin per order: €24 - €13.80 = €10.20
- Break-even: €10,000 / €10.20 = 980 orders
- Difference: 240 fewer orders per month!
Platform fees in your calculation
Platform fees represent your largest variable cost component. Always factor them into your break-even analysis:
- Deliveroo: 13-15% plus €0.30 per order
- Uber Eats: 15-30% depending on your agreement
- Direct orders: only payment processing (~3%)
Building your own ordering system dramatically reduces your break-even since you eliminate platform commissions entirely.
Related articles
How do you calculate break-even for delivery? (step by step)
Gather all fixed costs per month
Add up: rent, staff, insurance, energy, software. These are costs you always have, even if you sell nothing. For dark kitchens often €8,000-€15,000 per month.
Calculate variable costs per average order
Add up: ingredients, platform fee, packaging, delivery, payment costs. Use your actual average order value and food cost percentage. Attention: platform fee on amount including VAT!
Apply the break-even formula
Break-even orders = Fixed costs / (Average order value - Variable costs per order). The result is the minimum number of orders you need per month to break even.
✨ Pro tip
Track your actual break-even against projections every 2 weeks during your first 90 days of operation. Real order patterns often differ from estimates, and early adjustments can save thousands in losses.
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
Should I include VAT in my break-even calculation?
How often should I recalculate my break-even?
What if I sell on multiple platforms?
Is 40 orders per day realistic for a new dark kitchen?
How can I increase my average order value?
What's the biggest mistake in delivery break-even calculations?
Should I factor in marketing costs for customer acquisition?
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
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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