Platform commissions and packaging costs can slash your delivery profits by 40-50%, turning seemingly profitable orders into margin killers. Most kitchen operators focus solely on food costs and miss these critical expenses. The real net margin calculation reveals which orders actually drive profit.
Why net margin differs with delivery
Delivery introduces three additional cost layers that slice into profits:
- Platform commission: 15-30% of your order value
- Packaging costs: €0.50-€2.00 per order
- Payment processing fees: 2-4% of the order value
These expenses stack on top of standard food cost and overhead.
⚠️ Watch out:
Many operators calculate only food cost and discover that a €25 order delivers just €8 net after all deductions.
The formula for net margin on delivery orders
Here's the calculation:
Net margin € = Order value - Food cost - Platform commission - Packaging costs - Payment fees
Net margin % = (Net margin € / Order value) × 100
💡 Example:
Order of €30.00 via Thuisbezorgd:
- Order value: €30.00
- Food cost (30%): €9.00
- Platform commission (25%): €7.50
- Packaging: €1.20
- Payment fees (3%): €0.90
Net margin: €30.00 - €9.00 - €7.50 - €1.20 - €0.90 = €11.40
Net margin %: 38%
Platform commissions per provider
Each delivery partner structures rates differently. Standard commissions include:
- Thuisbezorgd: 12-30% (varies by volume)
- Uber Eats: 15-30% plus service fees
- Deliveroo: 20-35% across package tiers
- Direct delivery: 0% commission, but you cover delivery expenses
Always verify your current rate through the partner dashboard.
Packaging costs per order type
Packaging expenses fluctuate based on order complexity:
💡 Example packaging costs:
- Pizza (1 box): €0.35
- Salad (container + dressing): €0.85
- Hot meal (container + lid + bag): €1.20
- Family order (multiple containers + bag): €2.50
Include everything: containers, lids, bags, utensils, napkins, labels.
Calculate minimum order value
Use these costs to determine your profitable order threshold:
Minimum order value = (Fixed costs per order + Target profit) / (1 - Food cost% - Commission% - Payment%)
💡 Example:
You need €5 profit minimum per order:
- Packaging + target profit: €6.20
- Food cost: 30%
- Platform commission: 25%
- Payment fees: 3%
Minimum order value: €6.20 / (1 - 0.30 - 0.25 - 0.03) = €14.76
Result: €15 minimum order for €5 profit
Improve your net margin
Four strategies to boost net margins:
- Higher average order value: Upselling, bundle offers
- Reduced food cost: Recipe optimization, supplier negotiations
- Efficient packaging: Cost-effective options maintaining quality standards
- Platform diversification: Balance orders across lower-commission channels
⚠️ Watch out:
Subpar packaging destroys customer reviews. Balance cost savings with presentation quality.
Tracking in practice
Monitor these metrics weekly:
- Average order value by platform
- Current commission rates (they fluctuate)
- Packaging costs per order category
- Net margin percentage by platform
Most kitchen managers discover too late that their "busiest" platform actually delivers the lowest margins. Track these numbers weekly, and you'll spot which channels truly drive profitability versus those that just generate volume.
How do you calculate net margin per delivery order? (step by step)
Gather all costs per order
Note the order value, food cost of the dishes, current platform commission percentage, all packaging costs (containers, bags, cutlery) and payment fees. Check your commission percentage in the partner portal - this can change monthly.
Calculate all costs in euros
Calculate platform commission: order value × commission%. Calculate payment fees: order value × payment percentage. Add up all packaging costs (including bags, stickers, cutlery).
Subtract all costs from order value
Net margin = Order value - Food cost - Platform commission - Packaging costs - Payment fees. For percentage: divide net margin by order value and multiply by 100. A healthy net margin for delivery is between 25-40%.
✨ Pro tip
Calculate net margins across all platforms every 2 weeks during your first 90 days of delivery operations. You'll often discover one platform delivers 15-20% higher margins than others despite similar order volumes.
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 constitutes a healthy net margin for delivery orders?
Target 25-40% net margin after all deductions. Below 20% makes covering fixed expenses (rent, labor) challenging. Above 40% indicates excellent performance, typically achieved through higher order values and operational efficiency.
Should VAT be included in margin calculations?
No, calculate using VAT-exclusive amounts. Platform order values include 9% VAT, so divide by 1.09 for the base amount. Commission calculations also use VAT-exclusive figures.
How do I calculate packaging costs for complex family orders?
Sum all packaging components: multiple containers, lids, reinforced bags, extra utensils. A €60 family order might require €3-4 in packaging materials. Treat this as total order packaging cost, not per-dish allocation.
Why do commission rates vary month to month?
Platform commissions often tie to volume tiers - higher sales typically reduce percentages. Providers also adjust rates seasonally or during promotional periods, so verify current rates monthly through your dashboard.
📚 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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