While frozen ingredients promise simplicity, they often hide higher per-portion costs that can devastate your delivery margins. Dark kitchen operators frequently overlook that frozen products cost 20-40% more per usable portion than fresh alternatives. You're essentially paying a premium for convenience, storage life, and zero prep time.
Why frozen components affect your margin
Frozen products appear budget-friendly, but the math tells a different story. Per portion, they typically run 20-40% higher than fresh ingredients. That premium buys you convenience: zero prep time, no trim loss, extended shelf life.
💡 Example:
Fresh mushrooms vs. frozen mushrooms:
- Fresh: €4.50/kg → after trim loss €6.00/kg usable
- Frozen sliced: €7.20/kg directly usable
Difference: €1.20/kg more for frozen
The three cost items of delivery dishes
Accurate margin calculations require adding up every cost component:
- Frozen components: Calculate per portion, not per package
- Fresh additions: Sauces, garnish, fresh vegetables
- Packaging costs: Containers, lids, bags, stickers, utensils
⚠️ Watch out:
Packaging costs get overlooked constantly, yet they run €0.80 to €1.50 per order. That's 3-5% of your margin disappearing.
Include platform fees in your calculation
Delivery platforms extract 15-30% commission from your order value. These fees must factor into your margin calculations, just like labor costs and overhead expenses. A pattern we see repeatedly in restaurant financials shows operators underestimating platform impact by 8-12%.
💡 Example calculation:
Pasta bolognese delivery for €16.50 (incl. 9% VAT):
- Sales price excl. VAT: €15.14
- Platform fee (25%): €3.78
- Net receipt: €11.36
- Ingredients + packaging: €4.20
Margin: €11.36 - €4.20 = €7.16 (47% of net receipt)
Compare frozen vs. fresh components
Run comparisons for each dish between frozen and fresh ingredients. Factor prep time, trim loss, and shelf life into your decision matrix.
- Frozen advantages: No prep, no waste, consistent
- Fresh advantages: Often cheaper per kilo, better taste
- Hybrid approach: Frozen base, fresh finishing touches
💡 Hybrid example:
Chicken satay bowl:
- Frozen: chicken pieces (€2.10), rice (€0.40)
- Fresh: satay sauce (€0.60), cucumber (€0.30)
- Packaging: €1.20
Total: €4.60 per portion
Calculate minimum selling price
Delivery dishes require different calculations than dine-in restaurants. You'll need fewer staff members, but face higher platform and packaging expenses.
Formula: (Ingredients + Packaging) / Desired food cost % = Minimum net receipt
Then: Net receipt / (100% - Platform fee %) = Minimum sales price excl. VAT
⚠️ Watch out:
Your food cost can run higher with delivery (35-40%) since you need less staff. But platform fees will still eat into your margin.
How do you calculate the margin on delivery dishes? (step by step)
Calculate all ingredient costs per portion
Add up frozen components, fresh additions, and packaging costs. Convert frozen products from package to portion (for example: 1kg bag for €8.40 = €0.84 per 100g portion).
Calculate your net receipt after platform fees
Subtract the platform commission from your sales price (excl. VAT). At 25% commission on €15.14 you keep €11.36. This is your actual revenue per dish.
Calculate your margin percentage
Divide your profit (net receipt minus all costs) by your net receipt and multiply by 100. Example: €7.16 profit on €11.36 net = 63% margin.
✨ Pro tip
Calculate your frozen component costs weekly for 3 weeks to spot price fluctuations - frozen suppliers often adjust rates based on seasonal availability. Track this data to negotiate better contracts with your distributor.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Are frozen ingredients always more expensive than fresh?
Per kilo, often yes, but not always per usable portion. Frozen eliminates trim loss and reduces waste significantly. You'll need to calculate both options for accurate comparison.
Which packaging costs should I include?
Everything that goes in the delivery bag: containers, lids, bags, stickers, napkins, utensils. This typically runs €0.80 to €1.50 per order, depending on dish complexity.
Can my food cost be higher with delivery?
Yes, 35-40% food cost is normal with delivery since you need less staff. Just ensure platform fees don't consume too much of your remaining margin.
How often should I adjust my delivery prices?
Review ingredient prices monthly and total margin calculations quarterly. Platform fees change periodically too, so monitor those closely.
Can I charge different prices per platform?
Absolutely. Many restaurants set higher prices on platforms with steeper commissions to protect their margins.
Do frozen components affect food safety compliance differently?
Frozen ingredients have different HACCP requirements for thawing and temperature control. You'll need proper thawing protocols and temperature monitoring throughout prep. Some health departments require additional documentation for frozen-to-hot processes.
📚 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.
Food cost control for delivery and dark kitchens
With delivery, margins are thinner than ever. KitchenNmbrs calculates your actual food cost including packaging so you know if every order is profitable. Test it free for 14 days.
Start free trial →