Your delivery orders are booming, but you're not sure if they're actually making money. Most restaurant owners forget hidden costs like platform fees, packaging expenses and extra labor. Here's exactly how to calculate what delivery brings in each month.
Why delivery profit margins often disappoint
At first glance, delivery looks attractive. More revenue without extra tables. But reality often hits differently:
- Platform fees of 15-30% per order
- Packaging costs you don't pass on
- Higher food cost due to smaller portions in containers
- Extra labor for packing and preparation
⚠️ Note:
Delivery revenue isn't pure profit. Deduct all costs before calculating the profit margin.
Collect all delivery costs from last month
For an accurate calculation you need these figures:
- Total delivery revenue: What customers paid (incl. VAT)
- Platform fees: Commission to Deliveroo, Uber Eats, etc.
- Packaging costs: Containers, bags, cutlery, napkins
- Ingredient costs: Food cost of all delivered dishes
- Extra labor: Time for packing and preparation
💡 Example costs March:
Restaurant with 400 delivery orders:
- Delivery revenue: €12,000
- Platform fees (22%): €2,640
- Packaging costs: €320
- Ingredient costs: €3,600
- Extra labor: €800
Total costs: €7,360
Calculate your net delivery result
Now you can calculate what delivery actually brings in:
Net delivery result = Delivery revenue - All costs
💡 Example calculation:
€12,000 revenue - €7,360 costs = €4,640 net
Profit margin: €4,640 / €12,000 × 100 = 38.7%
Compare with restaurant profit margin
A healthy restaurant often has a net margin of 8-15%. With delivery you can achieve higher margins because:
- No table service and dishwashing
- No tables and chairs needed
- Lower rent per square meter of kitchen
But watch out for hidden costs. If your profit margin's below 20%, you're probably not earning enough. From tracking this across dozens of restaurants, I've seen that successful delivery operations typically maintain margins above 25%.
⚠️ Note:
Calculate with revenue excl. VAT for a fair comparison. Delivery revenue of €12,000 incl. VAT is €11,009 excl. VAT.
Improvement points for higher profit margin
If your profit margin disappoints, look at these points:
- Increase minimum order values: Higher average order
- Pass on packaging costs: €0.50 surcharge per order
- Optimize menu: Focus on dishes that travel well
- Platform mix: Test different delivery platforms
💡 Example improvement:
By increasing minimum order from €15 to €20:
- Average order: from €30 to €35
- Same costs, 17% more revenue
- Profit margin rises from 38.7% to 45.3%
Set up monthly monitoring
Track these KPIs monthly:
- Number of orders
- Average order value
- Platform fee percentage
- Packaging costs per order
- Net profit margin percentage
With a system like KitchenNmbrs you can automatically calculate food cost per dish, also for delivery menus. This way you immediately see which dishes generate the most profit with delivery.
How do you calculate delivery profit margin? (step by step)
Collect all revenue and cost figures
Note the total delivery revenue from last month and all costs: platform fees, packaging, ingredients and extra labor time. Check your bank statements and invoices for exact amounts.
Calculate total costs
Add up all costs: platform commission + packaging costs + food cost + extra labor. Don't forget hidden costs like extra energy for keeping food warm.
Calculate net profit margin
Deduct all costs from revenue and divide by revenue: (Revenue - Costs) / Revenue × 100. A healthy delivery profit margin is between 25-40%.
✨ Pro tip
Track your delivery profit margins weekly for the first 8 weeks after implementing changes. Small adjustments in packaging costs or minimum orders can shift your monthly profit by €500-1,200.
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 profit margin is normal for delivery activities?
A healthy delivery profit margin runs between 25-40%. Below 20% you're not earning enough, above 40% you're doing excellent. This is higher than dine-in because you have no table service and furniture costs.
Should I include VAT in my profit margin calculation?
Calculate the profit margin both incl. and excl. VAT for a complete picture. For comparison with other activities you typically use excl. VAT, because VAT flows through to the tax authority.
How often should I check my delivery profit margin?
Check your delivery profit margin monthly. Platform fees and costs change regularly. If there are major deviations (more than 5 percentage points) investigate the cause immediately.
What costs do entrepreneurs often forget with delivery?
Often forgotten: packaging costs (€0.30-0.80 per order), extra labor time for packing, higher food cost due to different portion sizes and energy costs for keeping dishes warm.
Is the profit margin the same for all delivery platforms?
No, each platform has different commissions and terms. Deliveroo typically charges 18-25%, Uber Eats 20-30%. Test different platforms and compare the net profit margin per platform.
How do I calculate labor costs for delivery preparation?
Track the extra time spent packing orders versus regular kitchen prep. Multiply by your hourly kitchen wage rate. Most restaurants find this adds €1.50-3.00 per delivery order.
Should I factor in equipment depreciation for delivery packaging?
Yes, include costs for heat lamps, insulated bags, and packaging storage equipment. Spread these costs over 24-36 months and add roughly €0.15-0.25 per order to your calculations.
📚 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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