Platform fees are eating into your delivery profits with commissions reaching 30% on some orders. Your own app eliminates these fees entirely, but calculating true margins requires factoring in development, marketing, and operational costs. The math works differently than platform delivery.
The difference with platform delivery
Your own app eliminates 15-30% commission fees to delivery platforms. That's immediate savings on every order. But you'll have different costs that need factoring into your calculations.
💡 Example comparison:
Margherita pizza sold for €12.00:
- Via Deliveroo: €12.00 - 25% commission = €9.00 net
- Via your own app: €12.00 - €0 commission = €12.00 net
Difference: €3.00 more per pizza!
Costs of your own delivery channel
Running your own app isn't free. You'll need to account for these expenses in margin calculations:
- App development and maintenance: €200-800 per month
- Payment processing: 1-3% of order value
- Marketing and promotion: budget to drive app downloads
- Delivery costs: your own couriers or external service
⚠️ Watch out:
Customers need to discover and download your app. That requires marketing investment and time to build your user base.
Margin calculation for your own app
The formula for calculating net margin with direct ordering:
Net margin = Selling price - Food cost - Packaging - Delivery - App costs - Payment processing
💡 Example calculation:
Pizza for €15.00 (incl. 9% VAT):
- Selling price excl. VAT: €13.76
- Food cost: €4.50 (33%)
- Packaging: €0.75
- Delivery: €2.50
- App costs per order: €0.50
- Payment processing (2%): €0.28
Net margin: €13.76 - €8.53 = €5.23 (38%)
Calculate your break-even point
Determining profitability means calculating your break-even volume. This depends on fixed app costs and margin difference per order.
💡 Break-even example:
App costs €400/month, margin difference €3.00 per order:
- Break-even: €400 ÷ €3.00 = 134 orders per month
- That's approximately 4-5 orders per day
From 135 orders per month you earn more than via platforms
Include packaging costs
Direct delivery still requires packaging investment. From years of working in professional kitchens, I've seen restaurants underestimate these costs initially. Quality packaging becomes more critical since you're building your brand directly.
- Basic packaging: €0.50-1.50 per order
- Premium packaging: €1.50-3.00 per order
- Cooling/keeping warm: €0.50-1.00 extra
Organize your delivery
Three delivery options exist, each with different cost structures:
- Your own couriers: €8-12 per hour + bike/scooter costs
- Freelance couriers: €2-4 per delivery
- External delivery service: €3-6 per delivery
⚠️ Watch out:
Your own couriers create fixed costs (even during slow periods), freelancers you pay per delivery only.
Marketing budget for your app
Customers won't discover your app organically. Budget 10-20% of app revenue for marketing and customer acquisition.
- Social media ads: €100-500 per month
- Flyers and local promotion: €50-200 per month
- Loyalty program: discounts for app users
How do you calculate your app's margin? (step by step)
Gather all costs per order
Add up: food cost + packaging + delivery + app costs per order + payment processing. App costs per order = monthly app costs ÷ number of orders per month.
Calculate your net revenue
Subtract all costs from your selling price (excl. VAT). This is your net margin per order. Always calculate excluding VAT for a fair comparison.
Compare with platform commission
Calculate how much you'd keep via Deliveroo or Uber Eats (minus 15-30% commission). The difference shows you how much you save per order.
Determine your break-even point
Divide your fixed monthly app costs by the difference in margin per order. This gives you the number of orders you need to be profitable.
✨ Pro tip
Track your app order costs weekly for the first 3 months to spot patterns. Many restaurants find their cost per order drops by 40% once they hit 150 monthly orders due to fixed cost spreading.
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
Is your own app always more profitable than platforms?
Only with sufficient volume. You need at least 100-200 orders monthly to break even on fixed costs. Below that threshold, platforms often cost less overall.
Which app costs should I include in my calculation?
Include app development, monthly hosting, maintenance, payment processing (1-3%), and marketing for downloads. Don't forget to factor in your time investment as well.
How do I calculate app costs per order?
Divide total monthly app expenses by that month's order count. With €400 app costs and 200 orders, that's €2.00 per order to factor into margins.
Should I include VAT in my margin calculation?
No, always calculate excluding VAT since you'll pay it regardless. With €15.00 including VAT, calculate using €13.76 as your base.
What if I use both my own app and platforms?
Calculate margins separately for each channel. Steer customers toward your app using discounts or loyalty programs since those orders generate higher profits.
How do I track which orders came from my app versus walk-ins?
Use unique order codes or integrate your POS system with your app. This helps you accurately calculate per-channel costs and profitability.
What's the minimum order value needed to make app delivery profitable?
Typically €12-15 minimum works for most restaurants. Lower orders don't cover fixed delivery and app costs, especially during the first 6 months of building volume.
📚 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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