A popular burger joint discovered their €18 delivery meals were actually losing €1.20 each after platform fees and packaging. Most restaurant owners forget these hidden costs eat into profits. Here's how to calculate your real delivery margins correctly.
All costs of a delivery meal
Delivery meals carry different expenses than dine-in orders. You're handling:
- Ingredient costs (food cost)
- Packaging costs (containers, bags, cutlery)
- Platform fees (Deliveroo, Uber Eats)
- Delivery costs (if you deliver yourself)
💡 Example:
Pasta carbonara via Deliveroo for €16.50:
- Ingredients: €4.20
- Packaging: €0.85
- Platform fee (25%): €4.13
- Delivery: €2.50
Total costs: €11.68 on €16.50 = margin of €4.82 (29%)
Calculate platform fees correctly
Platform fees take a percentage of your selling price. This changes per platform and your contract terms:
- Deliveroo: 15-30% (average 25%)
- Uber Eats: 15-30% (average 25%)
- Just Eat: 20-35% (average 28%)
⚠️ Watch out:
Platform fees get calculated on the total order value, including delivery costs. This makes them pricier than they appear.
Don't forget packaging costs
Packaging expenses add up faster than you'd expect. From tracking this across dozens of restaurants, I've seen packaging costs range from €0.60 to €1.50 per order. Add up everything you use:
- Main container (€0.25-0.50)
- Sauce containers (€0.10-0.15 each)
- Cutlery (€0.15)
- Napkin (€0.05)
- Bag/box (€0.20)
- Stickers/tape (€0.05)
💡 Example packaging costs:
Pasta dish fully packaged:
- Pasta container: €0.35
- Sauce container: €0.12
- Parmesan container: €0.10
- Cutlery + napkin: €0.20
- Bag: €0.20
Total: €0.97 per order
The formula for delivery margin
For accurate margin calculations, use this formula:
Margin % = ((Selling price - Ingredients - Packaging - Platform fee - Delivery) / Selling price) × 100
💡 Complete calculation:
Burger menu €18.50 via Uber Eats:
- Selling price: €18.50
- Ingredients: €5.40
- Packaging: €1.10
- Platform fee (27%): €4.99
- Delivery: €2.75
Margin: €18.50 - €5.40 - €1.10 - €4.99 - €2.75 = €4.26
Margin %: (€4.26 / €18.50) × 100 = 23%
Profitable delivery thresholds
A healthy delivery margin sits between 20-30%. Below 15% means you're losing money. Above 35% usually prices you out of the market.
⚠️ Watch out:
Most restaurants see lower delivery margins than in-house dining. This is normal due to additional costs. Compensate with volume and operational efficiency.
Tips for better margins
- Raise your prices: Delivery customers often accept 10-20% higher prices
- Minimum order value: Spread fixed costs across more items
- Efficient packaging: Find cheaper alternatives without sacrificing quality
- Negotiate platform fees: Higher volume can secure lower percentages
How do you calculate the margin on a delivery meal? (step by step)
Gather all costs per meal
Add up: ingredient costs, packaging costs (container, cutlery, bag), and calculate the platform fee percentage on your selling price. Don't forget delivery costs if you deliver yourself.
Calculate the platform fee
Multiply your selling price by the platform percentage. At €18.50 and 25% fee: €18.50 × 0.25 = €4.63. This is deducted directly from your revenue.
Subtract all costs from selling price
Formula: Selling price - Ingredients - Packaging - Platform fee - Delivery = Margin in euros. Divide this by selling price and × 100 for margin percentage.
✨ Pro tip
Track your top 3 delivery dishes over the next 2 weeks and calculate their true margins including all fees. If any fall below 18%, increase prices by €1.50-2.50 immediately.
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 my margin calculation?
No, always calculate excluding VAT. Delivered food carries 9% VAT. If your menu price is €18.50, calculate with €18.50 / 1.09 = €16.97 excluding VAT.
Are platform fees deductible from VAT?
Yes, platform fees count as business expenses and are deductible. You still pay VAT on your full selling price, including the portion that goes to the platform.
What's a realistic margin for delivery orders?
20-30% is healthy for delivery. Below 15% means you're losing money. Above 35% often prices you out of the market. This runs lower than restaurant margins due to extra costs.
Can I charge different prices per platform?
Absolutely. Many restaurants charge 10-20% more for delivery than takeaway to cover extra costs. Delivery customers typically accept this premium.
How do I calculate packaging costs per meal?
Add up all packaging components: main container (€0.30), sauce containers (€0.12), cutlery (€0.15), bag (€0.20), etc. Average runs €0.80-1.20 per order depending on dish complexity.
Do delivery fees from customers affect my margin calculation?
Customer delivery fees go directly to the platform or driver, not to you. Don't include them in your revenue calculations - only count what you actually receive.
How often should I recalculate my delivery margins?
Review margins monthly, especially after ingredient price changes or platform fee adjustments. Packaging costs can fluctuate with supplier changes too.
📚 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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