Delivery platforms cost you 15-30% of every order, but also bring extra revenue. Most restaurant owners can't tell if they're actually making money or losing it. Here's how to calculate what a platform subscription really costs and generates annually.
The hidden costs of delivery platforms
Platform subscriptions look straightforward: you pay commission per order. But there are additional costs eating into your margin:
- Platform commission: 15-30% of your order value
- Packaging costs: €0.50-€2.00 per order extra
- Higher food cost: due to smaller portions or more expensive ingredients
- Marketing costs: to stay visible on the platform
Calculate your real costs per order
For an accurate calculation, you must include all costs, not just the commission.
? Example:
Average order: €28.00 (incl. 9% VAT)
- Platform commission (25%): €7.00
- Packaging per order: €1.20
- Extra food cost (2% higher): €0.51
- Marketing (1% revenue): €0.28
Total extra costs: €8.99 per order
⚠️ Note:
Platform commission gets calculated on the total order value including VAT, but you calculate your margin excluding VAT. Many operators overlook this.
Calculate the impact on your annual margin
To determine if platforms are profitable, you compare the extra costs with the additional revenue you wouldn't have generated otherwise.
? Example calculation:
Restaurant with 150 delivery orders per month:
- Average order: €28.00
- Extra costs per order: €8.99
- Monthly extra costs: 150 × €8.99 = €1,349
- Annual extra costs: €1,349 × 12 = €16,188
But you also generate €28.00 × 150 × 12 = €50,400 extra revenue per year.
Determine your break-even point
Your platform subscription becomes profitable if the margin on the extra revenue exceeds the extra costs. Most kitchen managers discover this balance too late - after they've already committed to multiple platforms.
Formula: (Extra revenue × Net margin %) - Extra costs = Profit/loss
? Example calculation:
- Extra revenue per year: €50,400
- Your average net margin: 12%
- Margin on extra revenue: €50,400 × 0.12 = €6,048
- Extra platform costs: €16,188
Result: €6,048 - €16,188 = -€10,140 loss per year
When platforms are actually profitable
Platforms can turn profitable if:
- You spread fixed costs: No extra staff or rent needed
- You become more efficient: Higher revenue per hour of kitchen work
- You adjust your prices: 10-15% higher menu price for delivery
- You increase volume: Better purchasing through higher volume
⚠️ Note:
Many restaurants bump their delivery prices up by 10-15% to offset platform commission. Factor this into your calculation.
Alternative cost structure
Some platforms offer different commission models:
- High commission, no monthly costs: 25-30% per order
- Low commission, with monthly costs: €199/month + 15% commission
- Pick-up only: 10-15% commission, no delivery costs
Calculate for each model what it costs you annually based on your projected volume.
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How do you calculate the impact? (step by step)
Gather all costs per order
Add up: platform commission + packaging costs + extra food cost + marketing. Don't forget that commission is often calculated on the price including VAT.
Calculate your annual extra costs
Multiply costs per order by expected number of orders per month × 12. Be realistic about your volume.
Compare with margin on extra revenue
Calculate how much net margin you make on the extra revenue. Subtract the extra costs from that. Positive = profit, negative = loss.
✨ Pro tip
Track your exact food costs per dish for 6 weeks before signing with any platform. You'll need baseline margins to calculate if that 25% commission actually leaves you profitable.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
Our free food cost calculator does it in seconds.
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Frequently asked questions
Should I include VAT in my platform calculation?
What if I raise my delivery prices?
How do I know if my volume projections are realistic?
Are there hidden costs I'm missing?
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
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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