Why do so many restaurants lose money on every delivery order despite higher revenue? Most charge their normal prices while absorbing platform fees, packaging costs, and extended prep time. Calculate the right surcharge to protect your margins and stay profitable.
What is a delivery surcharge?
A delivery surcharge is the extra amount you add to your restaurant prices for delivery orders. It covers additional costs: platform fees, packaging, extended preparation time, and sometimes extra staffing.
Skip the surcharge and you'll lose money on every order, even as revenue appears to climb.
The extra costs of delivery
Before calculating a surcharge, identify your actual extra costs:
- Platform fee: 15-30% of your order value (Deliveroo, Uber Eats)
- Packaging costs: €0.50-€2.00 per order
- Credit card fees: 2-3% of order value
- Extra preparation time: more staff or extended working hours
💡 Example:
Order of €40 via Deliveroo:
- Platform fee (25%): €10.00
- Packaging: €1.50
- Credit card fee (2.5%): €1.00
Total extra costs: €12.50
Calculate your break-even surcharge
Your break-even surcharge prevents losses on each order. The formula is straightforward:
Surcharge = (Platform fee % + CC fee %) × Order value + Fixed costs per order
💡 Example calculation:
Restaurant order value: €35
- Platform fee: 25%
- Credit card fee: 2.5%
- Packaging: €1.50
Surcharge = (25% + 2.5%) × €35 + €1.50 = €9.63 + €1.50 = €11.13
Surcharge with profit margin
Breaking even isn't enough. You want delivery profits too. Add extra margin on top of your surcharge:
- Conservative: Break-even + 10-15%
- Standard: Break-even + 20-25%
- Premium positioning: Break-even + 30-40%
💡 Example with profit margin:
Break-even surcharge: €11.13
Desired margin: 20%
Total surcharge: €11.13 × 1.20 = €13.36
Surcharge per dish vs. per order
You can structure your surcharge two ways:
- Per dish: Each menu item costs X% more
- Per order: Fixed delivery fee added to order total
Per dish works easier with most systems but can inflate small orders. Per order feels fairer but requires more complex setup. After managing kitchen operations for nearly a decade, I've seen both approaches work depending on your average order size.
⚠️ Note:
Platform fees change regularly and vary by platform. Review your actual costs monthly and adjust surcharges accordingly.
Communicate your surcharge to customers
Transparency builds trust. Customers accept surcharges if they understand the reasoning:
- Clearly label "delivery prices"
- Add "includes packaging and delivery"
- Compare with nearby competitors
Tools for delivery cost tracking
Food cost calculators can set different prices for dine-in and delivery. This helps track actual margins per sales channel and shows if your delivery surcharge covers costs.
How do you calculate your delivery surcharge? (step by step)
Gather all delivery costs
Note your platform fee percentage, credit card costs and fixed costs per order (packaging, extra time). Check this with each platform you're on.
Calculate break-even surcharge
Use the formula: (Platform fee % + CC fee %) × Order value + Fixed costs. This is the minimum to avoid making a loss.
Add profit margin
Add 20-30% to your break-even surcharge for profit. Test different percentages and look at your conversion and competition.
✨ Pro tip
Check your surcharge effectiveness every 3 weeks by comparing actual delivery costs against your pricing structure. Aim for at least 12% profit margin after covering all platform fees and packaging expenses.
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
How much surcharge do other restaurants charge?
Standard ranges from 15-30% above restaurant prices, varying by cuisine type and location. Check your direct competitors on the platforms to stay competitive.
Can I charge different surcharges per platform?
Absolutely, since each platform charges different fees. Uber Eats might cost 28%, Deliveroo 22%. Adjust your surcharge for each platform to optimize margins.
What if customers find my surcharge too high?
Test lower surcharges and track conversion rates. Sometimes slightly lower margins with higher volume generates more profit than high surcharges with fewer orders.
Do I need to calculate VAT on my surcharge?
Yes, your complete selling price (including surcharge) falls under 9% VAT for food. Always calculate food cost based on VAT-excluded prices.
Should I use percentage-based or fixed-fee surcharges?
Percentage-based scales with order size but can make small orders expensive. Fixed fees work better for consistent order values but may undercharge large orders.
How do I handle surcharges for combo deals or promotions?
Calculate surcharges on the discounted price, not original menu prices. Otherwise you'll overcharge customers and potentially lose orders to competitors.
What's the minimum order value that makes delivery profitable?
Most restaurants need €15-25 minimum orders to cover fixed delivery costs. Below this threshold, even with surcharges, you're likely losing money per transaction.
📚 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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