How much are you actually making from that hotel delivery partnership? Most restaurants underestimate the hidden costs that eat into their margins. Hotel partnerships stack commissions, upgraded packaging, and payment delays that completely change your profit picture.
What makes hotel partnership delivery different?
Regular delivery hits you with platform fees (15-30%) and basic packaging. But hotel partnerships? They pile on extra layers that most kitchen managers discover too late:
- Hotel commission: 10-25% of order value
- Special packaging: Hotels demand higher-quality presentation
- Delivery conditions: Fixed time slots, limited menus
- Minimum orders: Usually higher than regular delivery
⚠️ Note:
Always calculate with the price excluding VAT (9%) for food cost calculations. The price the hotel charges guests includes VAT.
The complete cost formula for hotel partnerships
You need every cost layer for accurate margin calculation:
Net revenue = Gross order value - Hotel commission - Platform fee - Packaging costs
Margin % = ((Net revenue - Ingredient costs) / Net revenue) × 100
💡 Example: Pasta menu for hotel
Hotel sells your pasta for €22.00 incl. VAT to their guest:
- Gross order value: €22.00 / 1.09 = €20.18 excl. VAT
- Hotel commission (15%): €3.03
- Platform fee (none, direct contract): €0
- Packaging costs: €1.20
- Pasta ingredient costs: €6.50
Net revenue: €20.18 - €3.03 - €1.20 = €15.95
Margin: ((€15.95 - €6.50) / €15.95) × 100 = 59.2%
Packaging costs for hotel partnerships
Hotels expect presentation standards way above regular delivery. And that costs more:
- Standard delivery container: €0.35 - €0.50
- Hotel-grade packaging: €0.80 - €1.50
- Cutlery and napkins: €0.15 - €0.25
- Branded bags/stickers: €0.10 - €0.20
Add up all packaging costs and deduct from your net revenue.
💡 Example: Packaging costs breakdown
For a salad menu at hotel:
- Cardboard salad bowl: €0.85
- Lid with logo: €0.25
- Wooden fork: €0.15
- Napkin: €0.05
- Branded bag: €0.15
Total packaging: €1.45
Minimum margins for profitability
Hotel partnerships mean less overhead (no service staff, less dishwashing) but higher packaging and commission costs. Target these margins:
- Minimum for break-even: 45-50%
- Healthy margin: 55-65%
- Excellent margin: 65%+
⚠️ Note:
Below 45% margin? You're losing money. Hotels pay slower than delivery platforms, making cash flow even tighter.
Negotiating commissions
Hotel commissions aren't set in stone. Volume gives you bargaining power:
- Volume: More orders = possible lower commission
- Exclusivity: Being the sole supplier often means lower commission
- Season: Busy periods give more negotiating room
- Menu integration: Full menu often gets lower commission than select items
💡 Example: Volume commission calculation
Hotel offers volume discount:
- 0-50 orders/month: 20% commission
- 51-100 orders/month: 17% commission
- 100+ orders/month: 15% commission
At 80 orders of €20 average: 80 × €20 × 0.17 = €272 commission vs. €320 at 20%
Savings: €48/month = €576/year
Digital tools for margin control
Hotel partnership delivery demands tight margin tracking per order and per month. Manual calculations eat time and create errors.
A system like KitchenNmbrs automatically calculates net revenue by setting all commissions and packaging costs per partner. You'll instantly see which hotel partnerships actually make money.
How do you calculate the margin on hotel partnership delivery?
Gather all cost components
Note the gross order value (excl. VAT), hotel commission percentage, any platform fee, packaging costs per order, and ingredient costs of the dish. Ask the hotel for their exact commission structure and any volume discounts.
Calculate your net revenue
Deduct all costs from the gross order value (excl. VAT): hotel commission, platform fee, and packaging costs. This amount is what you actually keep before ingredient costs come off.
Calculate your margin percentage
Use the formula: ((Net revenue - Ingredient costs) / Net revenue) × 100. Aim for at least 45% margin for break-even, 55-65% for healthy profit.
✨ Pro tip
Track your hotel partnership margins weekly for the first 8 weeks - commission rates, packaging costs, and payment delays often differ from initial agreements. Adjust pricing immediately if margins drop below 50%.
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
What is a normal commission for hotel partnerships?
Hotel commissions typically range between 10-25% of order value. Small hotels often charge 15-20%, while larger hotel chains can charge 10-15% due to their volume.
Do I need to charge VAT to the hotel?
No, you calculate with prices excluding VAT. The hotel sells to their guests including VAT and handles VAT themselves. You invoice the hotel excluding VAT.
Can I use the same menus as regular delivery?
Often yes, but hotels sometimes demand changes in packaging or presentation. Some dishes are less suitable for hotel room service due to longer delivery times.
How often do hotels pay their invoices?
Usually 30-60 days, longer than regular delivery platforms. Account for this cash flow impact in your pricing and ensure sufficient working capital.
What if my margin falls below 45%?
Then you're likely losing money. Increase your prices, negotiate lower commissions, or choose dishes with lower ingredient costs. It's better to stop unprofitable partnerships.
Should I offer breakfast items to hotel partners?
Breakfast can be profitable since hotels often mark up 200-300% on room service breakfast. But factor in early morning prep costs and staff scheduling when calculating your true margins.
📚 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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