Most delivery kitchens think their margins stay constant throughout the day - they don't. Your 7 PM dinner rush operates on completely different economics than your 3 PM lull. Labor costs per order can swing by €2-3 between peak and off-peak periods.
Why margin differs by time of day
Your delivery kitchen doesn't run on one rate. During peak hours (18:00-21:00) you need more staff, but you also get more orders. During off-peak hours you work with fewer people, but also less revenue. This directly affects your margin per order.
💡 Example peak hour vs off-peak hour:
Peak hour (19:00): 25 orders per hour, 3 chefs
- Labor per order: €90/hour ÷ 25 = €3.60
- Platform fee: 25% of €18 = €4.50
- Packaging: €0.80
Off-peak hour (15:00): 8 orders per hour, 1 chef
- Labor per order: €30/hour ÷ 8 = €3.75
- Platform fee: 25% of €18 = €4.50
- Packaging: €0.80
Calculate your total costs per order
For an accurate margin calculation, you need to include all variable costs. These shift by time of day:
- Food cost: Stays the same (ingredients always cost the same)
- Platform fee: Stays the same (percentage of order value)
- Packaging costs: Stay the same per order
- Labor costs: Vary per hour (more/fewer orders per person)
- Energy costs: Vary (more equipment running during peak hours)
Here's a mistake that costs the average restaurant EUR 200-400 per month: they calculate labor costs using their daily average instead of hourly reality. Your 2 PM skeleton crew can't handle the same order volume as your 8 PM full team - but most operators price like they can.
⚠️ Note:
Always calculate with order value excluding VAT. Platform fees are calculated on the price including VAT, but for your margin you calculate excluding VAT.
Formula for margin by time of day
The basic formula stays the same, but labor costs per order change:
Margin % = ((Order value excl. VAT - Total costs) ÷ Order value excl. VAT) × 100
Where total costs consist of:
- Food cost (fixed per dish)
- Platform fee (fixed percentage)
- Packaging (fixed per order)
- Labor (variable per hour)
💡 Calculation example:
Order: €22.00 incl. VAT → €20.18 excl. VAT
Peak hour costs:
- Food cost: €6.50
- Platform fee: €5.50 (25% of €22)
- Packaging: €0.80
- Labor: €3.60
- Total: €16.40
Peak hour margin: (€20.18 - €16.40) ÷ €20.18 = 18.7%
Off-peak hour costs:
- Food cost: €6.50
- Platform fee: €5.50
- Packaging: €0.80
- Labor: €3.75
- Total: €16.55
Off-peak hour margin: (€20.18 - €16.55) ÷ €20.18 = 18.0%
Calculate labor costs per order
This is the variable factor. Add up all labor costs per hour and divide by the number of orders:
Labor costs per order = Total wage costs per hour ÷ Number of orders per hour
Don't forget to include:
- Gross salary + employer contributions (approximately 30% extra)
- All present staff members (kitchen + fulfillment)
- Average number of orders per hour for that time period
Optimization by time of day
With these figures, you can make targeted decisions:
- Off-peak hours: Consider higher minimum order value or delivery fees
- Peak hours: Focus on efficiency and throughput speed
- Mid-peak hours: Experiment with promotions to increase volume
💡 Practical tip:
Measure your orders per hour for 2 weeks. Then you'll have reliable averages for each period. Tools like KitchenNmbrs can automatically make these calculations once you enter your labor costs.
How do you calculate margin by time of day? (step by step)
Gather data by time of day
Measure for 1-2 weeks how many orders you receive per hour, broken down into off-peak, mid-peak, and peak hours. Also count how much staff you deploy and what the total wage costs per hour are.
Calculate labor costs per order
Divide your total wage costs per hour by the average number of orders in that hour. Don't forget employer contributions (calculate with +30% on gross salary). This gives you the variable labor costs per order.
Add up all costs and calculate margin
Combine food cost, platform fee, packaging, and labor costs per order. Subtract this from your order value excl. VAT and divide by order value excl. VAT to get your margin percentage.
✨ Pro tip
Track your margin difference between 2-4 PM and 7-9 PM for exactly 14 days - you'll often find a 3-5% swing that justifies dynamic pricing. Most operators discover their afternoon margins are actually higher despite lower volume.
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 delivery costs in my margin calculation?
Only if you receive them. If the delivery service gets the delivery fees, don't include them in your order value. Then only calculate with the value of the food.
How often should I recalculate my margin by time of day?
At least once a month, or if you change your staffing levels. Platform fees can also change, so regularly check if your percentages are still accurate.
What if I'm making a loss per order during off-peak hours?
Consider a higher minimum order value for off-peak hours, or raise your prices during quiet times. Some kitchens deliberately close during very quiet periods.
Can I charge different prices for peak and off-peak hours?
Yes, many platforms support time-based pricing. You can make off-peak hours more expensive or price peak hours more attractively to spread the rush.
📚 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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