Your delivery radius directly impacts both order volume and profit per delivery. Most dark kitchens expand too far, letting delivery costs devour their margins. Here's exactly how to calculate your optimal radius while protecting profit.
Why delivery radius is crucial for your margin
Every extra kilometer costs real money. Fuel burns, vehicles wear down, drivers need wages — these expenses stack up fast. But your radius also controls customer reach.
The sweet spot: maximum reach without bleeding profit.
Calculate your delivery costs per kilometer
You can't set smart boundaries without knowing your true per-kilometer costs.
💡 Example delivery costs:
- Fuel: €0.08 per km
- Scooter wear and tear: €0.12 per km
- Delivery driver wage: €15/hour (average 6 km/hour = €2.50 per km)
- Insurance + maintenance: €0.05 per km
Total: €2.75 per kilometer
So a 3 km delivery (one way) costs €8.25 in delivery expenses alone.
Determine your minimum order value
Your minimum order must cover delivery costs and preserve decent margins.
💡 Minimum order value calculation:
With 32% food costs and targeting 15% net profit:
- Delivery costs 3 km: €8.25
- Other costs (rent, energy, etc.): 25% of revenue
- Desired net profit: 15%
Formula: Delivery costs / (1 - Food cost% - Other costs% - Desired profit%)
€8.25 / (1 - 0.32 - 0.25 - 0.15) = €8.25 / 0.28 = €29.46
For that 3 km delivery, you need minimum €29.46 revenue to stay profitable.
Calculate your maximum delivery radius
Now you can determine how far you can stretch without losing money. One of the most common blind spots in kitchen management is underestimating these radius calculations — operators often guess instead of calculating.
Formula for maximum radius:
Max radius = (Average order value × Profit margin%) / Cost per km
💡 Practical example:
Average order €35.00, allocating €8.75 for delivery costs (25% of €35):
Maximum radius: €8.75 / €2.75 per km = 3.2 km
You can deliver maximum 3.2 km without losing money.
Optimize your radius by time of day
Your delivery radius shouldn't stay fixed. During rush periods, you can afford to be pickier.
- Peak hours (18:00-21:00): Tighter radius, higher minimums
- Slow periods: Expand radius to drive volume
- Weekends: Usually higher average orders allow broader reach
⚠️ Note:
Always include return costs. That 3 km delivery becomes 6 km total driving, unless you're batching multiple orders per trip.
Include platform fees in your calculation
Delivering through Thuisbezorgd or Uber Eats adds extra costs.
- Platform commission: 15-30% of order value
- Delivery costs: Usually platform-covered but built into commission
- Marketing fees: Additional visibility costs
Factor these percentages into your margin calculations. With 25% platform fees, you've lost €8.75 from a €35 order before delivery even starts.
Factor in seasons and weather
Your optimal radius shifts with conditions:
- Bad weather: Higher demand but increased delivery costs
- Summer: Reduced fuel costs, potentially lower demand
- Holidays: Bigger average orders enable wider radius
💡 Smart radius strategy:
Build three delivery zones:
- Zone 1 (0-2 km): Always deliver, low minimum
- Zone 2 (2-4 km): Peak hours only or €30 minimum
- Zone 3 (4-6 km): Orders above €45 only
Tools for delivery optimization
Food cost calculators help you determine precise costs per dish, so you know exactly what minimum orders you need for each distance. These tools let you quickly model different scenarios and their profit impact.
You'll see immediately which dishes deliver the highest margins and can optimize your menu accordingly.
How do you calculate your optimal delivery radius? (step by step)
Calculate your total delivery costs per kilometer
Add up: fuel, vehicle wear and tear, delivery driver wage per km, insurance and maintenance. Don't forget that delivery is there and back, so multiply by 2.
Determine your desired profit margin per order
Subtract from your average order value: food cost, other costs and desired net profit. The remainder is available for delivery costs.
Calculate your maximum radius
Divide the available amount for delivery costs by your cost per kilometer. This gives you the maximum distance where you're still profitable.
Create different zones with minimum order values
Create 2-3 zones with different minimum order values. Nearby you can accept smaller orders, further away you need higher amounts.
Test and optimize monthly
Monitor your actual costs and average orders. Adjust your radius based on seasons, busy periods and changing costs.
✨ Pro tip
Track your actual delivery times and costs for 30 days, then compare against your calculated radius. Most operators find their real costs run 15-20% higher than estimates.
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 platform fees in my delivery cost calculation?
Absolutely. Platform fees of 15-30% eat into your available margin before you even start calculating delivery costs. Always factor these percentages into your profit calculations.
Can I use different radiuses at different times?
Yes, and you should. Tighten your radius during peak hours when demand is high. Expand during slow periods to capture more volume and keep drivers busy.
How often should I recalculate my delivery radius?
Review monthly at minimum. Fuel prices change, wages increase, and your average order values shift. Quarterly deep dives work well for most operations.
What if my competitor delivers further than I do?
Focus on your own profitability, not competitor moves. A profitable 3km radius beats a money-losing 5km radius every time. Let them subsidize unprofitable deliveries.
Should I factor return costs into my calculation?
Always, unless you're batching multiple orders per trip. Most single deliveries require round-trip driving, doubling your actual distance costs.
How do I calculate costs for electric delivery vehicles?
Include electricity (€0.03-0.05/km), vehicle depreciation, insurance, and driver wages. Total usually runs €2.20-2.60 per km, slightly lower than petrol scooters but still significant.
📚 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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