Third-party delivery services eat into your profits faster than you think. You're paying for the convenience, but hidden costs pile up quickly. Most restaurant owners calculate margins wrong and discover they're barely breaking even.
The complete cost breakdown for outsourced delivery
Outsourced delivery hits your bottom line from multiple angles. Each cost item chips away at what you'd normally keep:
- Food cost: The ingredients of the dish
- Packaging costs: Containers, bags, cutlery, napkins
- Delivery costs: What you pay the external delivery partner
- Platform costs: If you sell via Deliveroo or Uber Eats
⚠️ Heads up:
Packaging costs sneak up on you. They can hit €1.50-€2.50 per order and crush your margins before you notice.
Calculate your real margin per order
Here's the formula that shows your true profitability:
Net margin = Order value - Food cost - Packaging - Delivery costs - Platform fee
💡 Example:
Pasta carbonara order via Deliveroo:
- Order value: €18.50
- Food cost: €5.10
- Packaging: €1.80
- Delivery costs external party: €4.50
- Deliveroo platform fee (25%): €4.63
Net margin: €18.50 - €5.10 - €1.80 - €4.50 - €4.63 = €2.47
That's only 13.4% net margin!
Breaking down packaging expenses
Packaging costs add up faster than most owners realize. Here's what you're actually spending:
- Main packaging: €0.45-€0.85 per container
- Side dishes: €0.25-€0.45 per extra container
- Sauces: €0.15-€0.25 per pot
- Cutlery and napkins: €0.20-€0.35 per set
- Bag and stickers: €0.15-€0.25 per order
💡 Example packaging costs:
Pasta with salad and dressing:
- Pasta container: €0.65
- Salad container: €0.35
- Dressing pot: €0.20
- Cutlery set: €0.25
- Bag: €0.20
Total packaging: €1.65
External delivery partner pricing
Third-party couriers charge per trip. Standard rates vary by service level:
- Local delivery services: €3.50-€5.50 per trip
- Freelance couriers: €4.00-€6.00 per trip
- Specialized services: €5.00-€7.50 per trip
But watch out for hidden extras:
- Evening and weekend surcharges
- Waiting time at pickup
- Long distances (outside certain zones)
Determining delivery profitability thresholds
Your combined costs (food + packaging + delivery + platform) shouldn't exceed 70% of order value. Based on real restaurant P&L data, this threshold keeps most establishments viable.
💡 Breakeven calculation:
At €20 average order value:
- Maximum total costs: €14.00 (70%)
- Food cost (30%): €6.00
- Packaging: €1.50
- Delivery + platform: max €6.50
Remaining: €6.00 for fixed costs and profit (30%)
Strategies to boost delivery margins
If margins are too thin, try these approaches:
- Raise minimum order value: Higher orders spread out fixed delivery costs
- Pass delivery costs to customers: Let customers pay (part of) the delivery fee
- Delivery menu: Special dishes with higher margins for delivery
- Own delivery: In the long run, this can be cheaper
⚠️ Heads up:
Don't push delivery prices too high. Customers compare options instantly and switch to competitors without warning.
Tracking and monitoring systems
Monitor these metrics consistently:
- Actual delivery costs per month
- Average packaging costs per order
- Number of orders per day/week
- Net margin per order type
Tools like KitchenNmbrs let you track food cost and packaging expenses per dish, so you'll spot which delivery orders actually make money.
How do you calculate your margin with outsourced delivery? (step by step)
Gather all cost items
Note per order: food cost, packaging costs, delivery costs from external party, and any platform fees. Don't forget small items like napkins and stickers.
Calculate total costs
Add up all costs: food cost + packaging + delivery + platform fee. This is your total cost per order.
Subtract from order value
Order value minus total costs = net margin. Make sure this is at least 30% of your order value, otherwise you're losing money.
✨ Pro tip
Track your delivery margins for exactly 30 days, then negotiate new rates with your top-volume courier. Most operators save 15-20% just by asking after proving consistent order volume.
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 margin calculation?
Always calculate excluding VAT. An order value of €20.00 incl. VAT is €18.35 excl. VAT. Calculate your margin on that amount.
What if the external delivery partner becomes too expensive?
Calculate the breakeven point: at how many orders per day does your own delivery become cheaper? Often that's around 15-20 orders per day.
How do I prevent packaging costs from spiraling?
Buy packaging in larger quantities for better prices. Consider reusable packaging with deposit for regular customers.
Can I pass delivery costs on to customers?
Yes, but keep it competitive. Many customers accept €1.50-€2.50 delivery costs, especially with higher order values.
What's a realistic net margin for delivery?
With all the extra costs, a net margin of 25-35% for delivery is already good. That's lower than in-restaurant dining, but you don't have wait staff costs.
Do platform fees vary by order size?
Most platforms charge a percentage, so larger orders mean higher absolute fees. However, your margin percentage often improves with bigger orders since fixed costs get diluted.
Should I negotiate delivery rates with external partners?
Absolutely, especially if you're doing 50+ orders weekly. Many local couriers will reduce rates for guaranteed volume or exclusive partnerships.
📚 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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