Making the switch from external delivery platforms to in-house delivery can boost your profit margins dramatically. But platforms charging 15-30% commission tell only half the story. Your own delivery operation carries costs that many restaurant owners underestimate.
The costs of external delivery platforms
External platforms like Thuisbezorgd or Uber Eats take commission from your entire order value. This commission sits between 15% and 30%, depending on your contract and which services you use.
💡 Example platform costs:
Order of €25.00 with 25% commission:
- Gross revenue: €25.00
- Platform commission: €6.25
- Net revenue: €18.75
You lose 25% of your revenue to commission.
The costs of in-house delivery
In-house delivery appears cheaper at first glance. But it comes with hidden costs that catch many operators off guard.
Direct costs per delivery:
- Delivery driver salary (€12-15 per hour)
- Fuel or electric bike costs
- Delivery driver insurance
- Vehicle/bike wear and tear
- Packaging materials (often pricier than platform versions)
Fixed costs per month:
- Extra staff for coordination
- Phone line for orders
- Online ordering system
- Marketing to reach customers
⚠️ Heads up:
Include all costs, even the hidden ones. A driver earning €15 per hour costs you roughly €18-20 per hour with employer contributions.
Calculating costs per delivery
To figure out your real margin, you'll need to calculate the costs per delivery. This depends on how many orders your driver can handle per hour.
💡 Example in-house delivery:
Driver completes 3 orders per hour:
- Labor costs: €20 per hour / 3 orders = €6.67 per order
- Fuel/wear and tear: €1.50 per order
- Packaging: €1.20 per order
- Other costs: €1.00 per order
Total costs: €10.37 per delivery
Comparing platform vs in-house delivery
Now you can make a proper comparison between platform and in-house delivery. From analyzing actual purchasing data across different restaurant types, the break-even point often sits higher than most entrepreneurs expect.
Comparison formula:
Platform: Order value × commission% = cost per order
In-house delivery: Fixed costs per order (as calculated above)
💡 Comparison at €25 average order value:
Platform (25% commission): €6.25 per order
In-house delivery: €10.37 per order
In this case, the platform is cheaper!
Finding your break-even point for profitability
In-house delivery becomes more profitable with higher average order values or lower delivery costs. You can calculate your exact break-even point.
Break-even formula:
Minimum order value = In-house delivery costs / Platform commission%
💡 Break-even calculation:
In-house delivery costs €10.37 per order
Platform commission: 25%
Break-even: €10.37 / 0.25 = €41.48
For orders above €41.48, you earn more with in-house delivery.
Additional factors in the calculation
Beyond direct costs, other factors affect your margin:
- Customer retention: In-house delivery gives you direct customer data
- Service quality: You control the delivery experience completely
- Flexibility: You can respond faster to issues
- Marketing: You need to acquire customers yourself (extra costs)
⚠️ Heads up:
Don't forget marketing costs. Platforms bring you customers, with in-house delivery you need to invest in customer acquisition yourself.
Consider a hybrid model
Many restaurants choose a hybrid approach: keep platforms for reach, but encourage direct orders with discounts.
You can guide customers from the platform to your own channel by:
- Offering 5-10% discount on direct orders
- Loyalty program for direct customers
- Better service with in-house delivery
- Exclusive dishes only available through your own channel
How do you calculate the margin impact of in-house delivery?
Calculate your current platform costs
Add up all costs you currently pay to delivery platforms. Take your average order value × commission percentage × number of orders per month. Don't forget any additional service fees.
Calculate in-house delivery costs per order
Add up labor costs, fuel, packaging, and other costs per delivery. Divide your driver's total hourly costs by the number of orders they can complete per hour.
Determine your break-even point
Divide your in-house delivery costs by the platform's commission percentage. This gives you the minimum order value where in-house delivery becomes more profitable.
Include fixed costs
Add up monthly fixed costs (phone line, ordering system, marketing) and divide by your expected number of orders. Add this to your costs per delivery.
Test with a pilot period
Start small with in-house delivery in a limited area. Measure your actual costs and compare with your calculation. Adjust your model based on real data.
✨ Pro tip
Track your actual delivery costs for the first 8 weeks and add 15% buffer for unexpected expenses. Most restaurants underestimate coordination time and customer acquisition costs initially.
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
At what order value does in-house delivery make sense?
This depends on your delivery costs and platform commission. Often the break-even point sits between €35-50 per order. Calculate this for your specific situation using the formula above.
Can I combine platforms and in-house delivery?
Yes, many restaurants do this successfully. Keep platforms for reach, but encourage direct orders with 5-10% discounts. This way you get benefits from both approaches.
What hidden costs do I often forget?
Employer contributions on salaries, insurance, marketing costs to acquire customers, and time spent on coordination. These can add 30-50% on top of your direct delivery costs.
What if my average order value is too low?
Try to increase your average order value with bundles, minimum order amounts, or free delivery above a certain amount. Otherwise, the platform remains more profitable for your business.
📚 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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