Most delivery kitchen owners think 5 extra minutes per order won't hurt their bottom line. That's wrong - those minutes add up to thousands in hidden labor costs that silently destroy your margins. Here's exactly how much those 5 minutes cost and what to do about it.
Calculate your current labor costs per minute
Before you can figure out what extra prep time costs, you need to know your per-minute labor rate. This depends on your staff costs and how many people you've got working.
💡 Example calculation:
Dark kitchen with 2 cooks during delivery peak:
- Hourly wage including employer contributions: €18 per cook
- Total labor costs: 2 × €18 = €36 per hour
- Per minute: €36 ÷ 60 = €0.60
Cost per minute: €0.60
The formula is: Labor costs per minute = (Number of people × Hourly wage) ÷ 60
Impact of 5 minutes extra preparation time
Now you can see what those 5 extra minutes per order actually cost. These costs sit on top of your food costs and must be covered somewhere in your pricing.
💡 Example impact:
With €0.60 per minute labor costs:
- 5 minutes extra = 5 × €0.60 = €3.00 per order
- At 100 orders per day: €300 extra costs
- Per month (26 working days): €7,800
- Per year: €93,600 extra labor costs
Impact: €3.00 per order
⚠️ Heads up:
These costs don't appear in your food cost calculations, but they'll kill your margins. Many delivery kitchens watch profits vanish without understanding why.
Compensation in your selling price
To protect your margins, you need to push these extra labor costs through to your menu prices. You can add the impact to your cost calculations or bump up your selling prices directly.
- Raise your selling price by at least €3.00 per order
- Or accept thinner margins on all dishes
- Or find ways to cut prep time back down
💡 Practical example:
Current situation vs. new situation:
- Was: €15.00 selling price, €5.00 food cost, 10 min preparation
- Now: €15.00 selling price, €5.00 food cost, 15 min preparation
- Extra costs: €3.00 labor
- New total cost price: €8.00 (€5.00 + €3.00)
- New margin: €7.00 instead of €10.00 (30% less!)
This is one of the most common blind spots in kitchen management - operators track food costs religiously but miss how prep time creep destroys profitability.
Alternatives to price increases
If you can't raise prices due to competition or platform limits, there are other ways to limit the damage:
- Improve efficiency: Better mise-en-place, smarter workflow organization
- Menu adjustments: Cut complex dishes with long prep times
- Batch cooking: Prep more during slow periods
- Minimum order value: Increase it to spread labor costs
⚠️ Heads up:
Platform fees of 15-30% make price increases extra painful. That €3.00 price bump only nets you €2.10-€2.55 after platform cuts.
Monitoring and adjustment
Track your average prep time and labor costs weekly. Small efficiency changes create massive impact on annual results with high-volume delivery operations.
A system like a food cost calculator can help you maintain recipes and prep times centrally, so you'll quickly spot which dishes eat too much time and hurt your cost structure.
How do you calculate the cost impact? (step by step)
Calculate your labor costs per minute
Count the number of people in the kitchen during delivery peak. Multiply by their hourly wage including employer contributions and divide by 60 for costs per minute.
Calculate the impact per order
Multiply 5 minutes of extra preparation time by your labor costs per minute. This amount must be compensated in your selling price or accepted as a margin reduction.
Determine your compensation strategy
Choose between increasing selling price, improving efficiency, or adjusting your menu. Calculate what each option means for your monthly result at your order volume.
✨ Pro tip
Track prep times during your busiest 2-hour dinner rush specifically. Peak hours always run slower due to kitchen congestion and order volume - use these realistic times for calculations, not your fastest off-peak numbers.
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 only include direct labor costs?
No, use the full hourly wage including employer contributions like social premiums and vacation pay. This gives you the real cost picture, not just base wages.
What if my preparation time varies per dish?
Calculate the impact per individual dish then. A complex entrée that takes 10 minutes longer costs way more than a simple side with 2 extra minutes.
Can I deduct these costs from platform fees?
No, platform fees are a percentage of your selling price, not your costs. Higher labor costs must be covered by raising prices or boosting efficiency.
⚠️ EU Regulation 1169/2011 — Allergen Information — https://eur-lex.europa.eu/eli/reg/2011/1169/oj
The allergen information on this page is based on EU Regulation 1169/2011. Recipes and ingredients may vary by supplier. Always verify current allergen information with your supplier and communicate this correctly to your guests. KitchenNmbrs is not liable for allergic reactions.
In the UK, the FSA enforces allergen regulations under the Food Information Regulations 2014.
📚 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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