Every €10 drop in average order value can cost you thousands per month in lost profits. Your delivery orders falling from €35 to €25 means you're earning less per order while platform fees, packaging, and prep costs remain unchanged. Here's how to calculate exactly what this decline costs your business.
Why declining order value hurts so much
Delivery comes with fixed costs per order that don't scale down with smaller orders. Platform fees, packaging costs, and preparation time stay largely the same whether someone orders €25 or €35 worth of food.
⚠️ Note:
Platform fees scale with order value, but packaging, prep labor, and delivery costs remain constant per order regardless of size.
Calculate your fixed costs per order
Before comparing margins, you need to understand what each order costs beyond ingredients:
- Platform fee: 15-30% of order value (typically 20%)
- Packaging: €1.50-€3.00 per order
- Preparation time: Labor cost for cooking and packing
- Overhead: Portion of rent, utilities, insurance
💡 Example fixed costs per order:
- Platform fee: 20% of order value
- Packaging: €2.00
- Preparation time: €3.50 (15 min at €14/hour)
- Overhead: €1.50
Total fixed: €7.00 + 20% of order value
Impact calculation: €35 vs €25 orders
Now let's crunch the numbers. We'll use a 30% food cost, which is standard for delivery operations.
💡 Calculation €35 order:
- Order value: €35.00 (incl. 9% VAT)
- Excl. VAT: €32.11
- Platform fee (20%): €7.00
- Food cost (30%): €9.63
- Fixed costs: €7.00
Margin: €32.11 - €7.00 - €9.63 - €7.00 = €8.48 (26.4%)
💡 Calculation €25 order:
- Order value: €25.00 (incl. 9% VAT)
- Excl. VAT: €22.94
- Platform fee (20%): €5.00
- Food cost (30%): €6.88
- Fixed costs: €7.00
Margin: €22.94 - €5.00 - €6.88 - €7.00 = €4.06 (17.7%)
The real cost in euros
Each order now generates €4.42 less margin (€8.48 - €4.06). That's nearly a 9 percentage point drop in profitability. This is the kind of thing you only learn after closing your first month at a loss — small order value changes compound into serious financial pain.
At 100 orders weekly, you're looking at:
- Weekly loss: €442 in margin
- Monthly loss: €1,768 in margin
- Annual loss: €21,216 in margin
⚠️ Note:
This assumes customers order the same dishes at both price points. If smaller orders also mean cheaper menu items, your margin hit could be even worse.
Fighting back against order value decline
Several tactics can help protect your margins:
- Minimum order value: Set thresholds at €30-€35
- Delivery fees: Charge extra for orders below your target
- Strategic upselling: Suggest profitable add-ons for smaller orders
- Bundle promotions: Make larger orders more attractive
- Food cost optimization: Reduce ingredient costs where possible
Track your numbers weekly
Monitor average order value every week, not monthly. A €3-4 drop might seem minor, but it compounds into thousands in lost annual profit.
Food cost calculators like tools such as KitchenNmbrs help you track profitability per dish and identify which menu combinations drive the highest delivery revenue.
How do you calculate margin impact with declining order value?
Determine your fixed costs per order
Add up: platform fee percentage, packaging costs (€1.50-€3.00), preparation time in euros and overhead per order. These costs are the same regardless of order size.
Calculate margin for both scenarios
Take order value excl. VAT, subtract platform fee, food cost and fixed costs. Do this for both the old and new average order value.
Calculate impact on annual basis
Multiply the difference per order by your number of orders per week × 52. This gives you the total annual impact of the declining order value.
✨ Pro tip
Track your margin impact over the next 4 weeks by comparing €35 vs €25 orders using your actual platform fees and labor costs. You'll likely find the real difference is even larger than €4.42 per order.
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 include VAT in margin calculations?
Always calculate margins excluding VAT for accurate comparisons. Platform fees get charged on VAT-inclusive prices, but your true profitability should be measured without tax.
What's a typical average order value for delivery?
Varies by cuisine type, but generally €25-€40. Pizza places often see €20-€30, while full-service restaurants average €30-€50.
How can I boost my average order value?
Try minimum order requirements, delivery fees below certain thresholds, strategic upselling of add-ons, and bundle deals. Menu engineering helps too — promote your most profitable dishes prominently.
Are platform fees always 20%?
No, they range from 15-30% depending on the platform, your order volume, and any negotiated rates. Check your actual invoices for your specific percentage.
Should I charge customers for delivery?
That's a strategic decision. Delivery fees can help you hit minimum order values but might deter price-sensitive customers. Test different approaches to see what works for your market.
How do I calculate labor costs per order accurately?
Time how long it takes to prepare and pack an average order, then multiply by your kitchen staff's hourly wage including benefits. Most restaurants find 10-20 minutes per order is typical.
📚 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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