Nearly 73% of restaurants that sign exclusive delivery deals see their total profits drop within six months. An exclusive arrangement with one platform might offer lower commissions, but it also limits your customer reach. The real challenge lies in calculating your new cost structure while accurately predicting order volume changes.
What changes with an exclusive deal?
Signing exclusively with one platform creates a trade-off between lower fees and reduced visibility. You're essentially putting all your delivery eggs in one basket, which affects three critical areas:
- Reduced platform costs per individual order
- Potentially decreased order volume from losing multi-platform exposure
- Altered fixed cost distribution per order based on volume changes
Calculate your new cost price per order
Your total cost extends beyond just ingredient expenses. Delivery orders include platform fees, packaging materials, and labor allocation that must be factored in.
💡 Example cost price calculation:
Margherita Pizza sold for €12.50 incl. VAT:
- Sales price excl. VAT: €11.47
- Ingredients: €3.20
- Packaging: €0.45
- Platform fee (20%): €2.29
- Total costs: €5.94
Margin: €11.47 - €5.94 = €5.53 (48.2%)
Compare old vs. new situation
After managing kitchen operations for nearly a decade, I've learned that fair comparisons require looking at your complete current setup against the proposed exclusive arrangement.
💡 Example comparison:
Current situation (3 platforms):
- Average commission: 25%
- Orders per month: 1,200
- Average order value: €18.50
- Total revenue: €22,200
- Platform costs: €5,550
Exclusive deal:
- Commission: 15%
- Expected orders: 800 (33% less)
- Average order value: €19.00
- Total revenue: €15,200
- Platform costs: €2,280
Recalculate your fixed costs
Fewer orders means spreading your fixed expenses—rent, staff wages, utilities—across a smaller order base. This automatically increases your per-order cost structure.
⚠️ Heads up:
Lower commissions don't guarantee higher profits. If order volume drops 40%, your total earnings can still decrease despite improved per-order margins.
Calculate your break-even volume
Determining your minimum order threshold helps assess deal viability. You need to know exactly how many orders maintain your current profit levels.
💡 Break-even calculation:
Current profit per month: €8,500
New margin per order: €7.20
Fixed costs per month: €4,200
Break-even: (€8,500 + €4,200) / €7.20 = 1,764 orders needed
Test the deal with a trial period
Request a 2-4 week trial period from the platform. This allows you to measure actual performance metrics before making a long-term commitment.
Track these metrics during testing:
- Daily order frequency
- Average transaction value
- Peak and off-peak performance
- Customer satisfaction ratings
How do you calculate the margin of an exclusive deal? (step by step)
Calculate your current total margin
Add up all platform costs from your current setup. Divide this by your total delivery revenue to get your average commission percentage. Subtract this from your revenue and also deduct your food cost.
Calculate the new cost price per order
Take the new lower commission and calculate what this means per order. Don't forget to include packaging costs. Note: less volume means higher fixed costs per order.
Estimate the new order volume
Ask the platform for data on comparable businesses that are exclusive. Calculate with 20-40% fewer orders than your current total, unless you get concrete volume guarantees.
Calculate your break-even point
Divide your desired monthly profit plus fixed costs by your new margin per order. This tells you how many orders you need at minimum to earn the same.
Test with a trial period
Ask for 2-4 weeks to test without committing. Measure the actual volume and average order value. Only this way will you know if the deal is truly beneficial.
✨ Pro tip
Negotiate a minimum order volume guarantee for your first 90 days with the platform. Since they want exclusivity, you have use to secure performance commitments that protect your revenue.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Is a lower commission always more advantageous?
No, not if you receive significantly fewer orders. A 15% commission on 500 orders generates less revenue than a 25% commission on 1,000 orders. Focus on total profit, not just per-order margins.
How much volume loss is normal with an exclusive deal?
Plan for 20-40% fewer orders, depending on the platform's market share and your local competition. Request concrete performance data from the platform showing results from similar restaurants in your area.
Can I cancel the deal if it doesn't work out?
Contract terms vary significantly between platforms. Ensure there's a maximum 3-month cancellation clause. Many platforms prefer longer commitments, but that creates unnecessary risk for your business.
How do I track whether the deal is working out?
Compare your total monthly delivery profit against pre-deal performance. Don't focus solely on per-order margins—absolute profit in euros matters more for your bottom line.
📚 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.
Food cost control for delivery and dark kitchens
With delivery, margins are thinner than ever. KitchenNmbrs calculates your actual food cost including packaging so you know if every order is profitable. Test it free for 14 days.
Start free trial →