Running your own delivery is like playing chef and logistics manager at the same time - you control more variables, but you're juggling more costs. Most restaurant owners underestimate delivery expenses and overestimate their profits. Here's how to calculate what you actually earn on self-delivered meals.
All cost items for own delivery
Self-delivery introduces expenses that platform delivery doesn't have. You must factor in every single one:
- Food cost: ingredients of the dish
- Packaging costs: containers, bags, stickers, cutlery
- Delivery costs: fuel, wear and tear, insurance
- Delivery driver labor: hourly wage or per delivery
- Phone/website: costs for taking orders
⚠️ Heads up:
Most entrepreneurs only count food and packaging costs, but skip delivery expenses. That oversight can slash your margin by 15-25%.
Step 1: Calculate your food cost per dish
This remains identical to regular sales. Sum up every ingredient that goes into the dish.
💡 Example:
Pasta carbonara:
- Pasta: €0.45
- Bacon: €1.20
- Egg: €0.30
- Cheese: €0.85
- Cream: €0.40
Food cost: €3.20
Step 2: Add packaging costs
Every order requires packaging. Calculate the per-dish expense.
💡 Example packaging costs:
- Aluminum container: €0.35
- Lid: €0.15
- Plastic bag: €0.08
- Stickers/labels: €0.05
Packaging per dish: €0.63
Step 3: Calculate delivery costs per order
This is where it gets tricky. You need to determine what one delivery actually costs, including driver wages.
Formula for delivery costs per trip:
(Driver hourly wage + Fuel + Wear and tear) / Number of trips per hour
💡 Example calculation:
Driver earns €12/hour, completes 3 trips per hour:
- Wage per trip: €12 / 3 = €4.00
- Fuel per trip: €1.50
- Wear and tear/insurance: €0.75
Delivery costs per trip: €6.25
Step 4: Calculate total cost price
Combine all expenses to determine your actual cost price:
Total cost price = Food cost + Packaging + Delivery costs
💡 Example total:
- Food cost: €3.20
- Packaging: €0.63
- Delivery: €6.25
Total cost price: €10.08
Step 5: Calculate your margin
Now you can determine what you truly earn per dish.
Margin % = ((Selling price excl. VAT - Total cost price) / Selling price excl. VAT) × 100
💡 Example margin:
Selling price: €18.50 incl. VAT = €16.97 excl. VAT
- Selling price excl. VAT: €16.97
- Total cost price: €10.08
- Profit: €16.97 - €10.08 = €6.89
Margin: (€6.89 / €16.97) × 100 = 40.6%
Profitability threshold for own delivery
A healthy margin for self-delivery falls between 35-50%. Based on real restaurant P&L data, anything below 35% typically results in losses once you account for all operational costs.
⚠️ Heads up:
Don't overlook fixed costs like rent, insurance, and administrative expenses. Your margin must cover these too.
Digital tools for delivery cost tracking
Food cost calculators can record all your expense categories and automate calculations. You can input packaging costs as ingredients and incorporate delivery expenses into your cost price calculations. This gives you instant visibility into whether a dish remains profitable for delivery.
How do you calculate the margin on own delivery? (step by step)
Calculate food cost + packaging costs
Add up all ingredients of the dish, plus the costs of containers, bags, and stickers. These are your direct product costs per dish.
Calculate delivery costs per trip
Divide your delivery driver's hourly wage by the number of trips per hour, and add fuel and wear and tear. This gives you delivery costs per order.
Calculate total cost price and margin
Add food cost, packaging, and delivery for your total cost price. Subtract this from your selling price (excl. VAT) to calculate your profit and margin.
✨ Pro tip
Calculate your delivery zone profitability by tracking average order values within a 3-kilometer radius over 30 days. Orders under €25 in distant zones often lose money even with delivery fees.
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 calculate delivery costs per dish or per order?
Per order makes more sense logically, but if you want dish-level margins, divide delivery costs by the number of items in each order. This gives you a more accurate per-dish profitability picture.
How do I calculate wear and tear and insurance for the delivery vehicle?
Budget roughly €0.30-0.50 per kilometer for wear, maintenance, and insurance. At an average of 5 km per trip, that's €1.50-2.50 per delivery.
Is 40% margin good for own delivery?
Yes, 40% is a solid margin for self-delivery. This allows you to cover fixed costs and generate profit. Below 35% becomes financially risky.
What's the break-even point for hiring a dedicated delivery driver?
You need at least 15-20 orders per shift to justify a dedicated driver at €12/hour. Below that, owner-operated delivery or part-time drivers work better financially.
How do I price delivery fees to customers?
Charge at least €2-4 extra for delivery to cover your costs, otherwise you'll earn less than takeout or dine-in. Don't absorb delivery costs into menu prices unless you raise them significantly.
Should I track delivery costs differently for peak vs off-peak hours?
Absolutely. During peak hours, drivers complete more trips per hour, reducing per-delivery costs. Track these separately to optimize your pricing and driver scheduling.
How often should I recalculate my delivery costs?
Review monthly at minimum. Fuel prices fluctuate, and as drivers become more efficient with routes, your per-trip costs decrease.
📚 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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