Calculating delivery profitability is like peeling an onion - each layer reveals hidden costs that make you cry. Many restaurant owners see rising revenue numbers and assume they're winning. But platform commissions, packaging expenses, and extra labor often devour those profits faster than customers devour your food.
Collect all delivery revenue from the quarter
Start by gathering your total delivery income across all 3 months. Include every platform: Thuisbezorgd, Uber Eats, plus your own delivery system. Work with amounts excluding VAT - divide by 1.09 for 9% VAT calculations.
💡 Example:
Quarter 1 delivery revenue:
- Thuisbezorgd: €28,000 incl. VAT = €25,688 excl. VAT
- Uber Eats: €15,000 incl. VAT = €13,761 excl. VAT
- Own delivery: €8,000 incl. VAT = €7,339 excl. VAT
Total delivery revenue: €46,788 excl. VAT
Calculate all platform fees and commissions
Platforms grab their slice through commissions ranging from 15-30% per order. Hunt down your monthly statements for precise percentages - they're not shy about taking their cut.
⚠️ Note:
Platform fees get calculated on VAT-inclusive prices, but deduct them from your VAT-exclusive revenue for accurate comparisons.
Use this formula: Platform fees = (Revenue incl. VAT × Commission%) / 1.09
💡 Example platform fees:
- Thuisbezorgd: €28,000 × 22% / 1.09 = €5,651
- Uber Eats: €15,000 × 25% / 1.09 = €3,440
- Own delivery: €0 (no commission)
Total platform fees: €9,091
Add up all packaging costs
Packaging represents a sneaky expense that adds up quickly. Tally boxes, bags, utensils, napkins, branded stickers, and sealing tape. Calculate the per-order cost, then multiply by your total order count.
Typical packaging runs €0.80 - €1.50 per order, depending on your restaurant concept and quality standards.
💡 Example packaging costs:
1,200 delivery orders in the quarter × €1.20 average per order
Total packaging costs: €1,440
Calculate food cost for delivery dishes
Your delivery menu might differ from dine-in options, so calculate ingredient costs specifically for delivery orders. Apply the standard formula: (Ingredient costs / Sales price excl. VAT) × 100
Delivery food costs typically run 30-35% since you need fewer servers but face higher packaging expenses. From analyzing actual purchasing data across different restaurant types, delivery-focused operations often accept slightly higher food cost percentages to maintain competitive pricing.
💡 Example food cost calculation:
Average food cost delivery menu: 32%
€46,788 revenue × 32% = €14,972 ingredient costs
Add labor and other costs
Delivery demands dedicated labor: kitchen prep, careful packaging, order coordination. Budget roughly 25-30% of revenue for delivery-related labor expenses.
- Kitchen staff for order preparation
- Packaging and proper labeling time
- Order management and coordination
- Your own delivery drivers (when applicable)
💡 Example labor costs:
€46,788 revenue × 28% = €13,101 labor costs
Calculate total profitability
Subtract every expense from your quarterly revenue for the bottom line. Here's your formula: Profit = Revenue - Platform fees - Packaging - Food cost - Labor - Other costs
💡 Example total calculation:
- Revenue excl. VAT: €46,788
- Platform fees: -€9,091
- Packaging costs: -€1,440
- Food cost: -€14,972
- Labor costs: -€13,101
- Other costs (utilities, fuel): -€1,400
Delivery profit quarter: €6,784
Profit margin: 14.5%
⚠️ Note:
Profit margins below 10% in delivery mean you're likely losing money after unexpected costs. Consider price increases or switching to more cost-effective packaging solutions.
Compare with restaurant profitability
Measure your delivery profits against regular dine-in revenue. Delivery often shows lower margins due to platform fees, but it can offset slower periods and expand your customer reach.
Tools like a food cost calculator help you automatically track ingredient costs per dish, making it easier to calculate delivery profitability without manually counting every ingredient.
How do you calculate delivery profitability? (step by step)
Collect all delivery revenue excl. VAT
Add up revenue from all platforms over 3 months. Divide amounts by 1.09 to convert from incl. to excl. VAT.
Calculate total platform fees
Check your statements for commission percentages per platform. Calculate: (Revenue incl. VAT × Commission%) divided by 1.09.
Add up packaging and ingredient costs
Calculate €0.80-€1.50 packaging costs per order. Calculate food cost as percentage of revenue (usually 30-35% for delivery).
Add labor costs
Estimate 25-30% of revenue for labor (kitchen, packaging, coordination). If you have your own delivery driver, include those hours too.
Deduct all costs from revenue
Final formula: Revenue - Platform fees - Packaging - Food cost - Labor - Other costs = Delivery profit quarter.
✨ Pro tip
Track your top 8 delivery items separately over the next 90 days - if those dishes show food costs above 35%, you're bleeding money on your most popular orders. Fix these profit-killers before adjusting your broader delivery strategy.
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
Which platform fees should I include in the calculation?
Include all platform-charged fees: order commissions (15-30%), promotional costs, payment processing fees, and delivery charges. Your monthly platform statements break down these exact amounts per service.
How do I calculate packaging costs if I have different dishes?
Create a weighted average per order based on your menu mix. Weigh complete packages for different dish types, then calculate based on actual order frequency. Most concepts fall between €0.80-€1.50 per order.
Should I calculate own delivery differently than platform delivery?
Absolutely - own delivery eliminates platform commissions but adds driver wages, fuel costs, vehicle insurance, and maintenance. Calculate these expenses per delivery to get accurate comparisons.
What profit margin should I expect from delivery activities?
Realistic delivery margins range from 10-15% after all expenses. Below 10% means you're likely losing money once hidden costs appear. Above 15% indicates strong delivery performance.
How frequently should I recalculate delivery profitability?
Quarterly calculations work well for spotting trends and seasonal changes. Platform fee structures and packaging costs shift regularly, so monitor every 3 months to ensure continued profitability.
Can I partially automate these profitability calculations?
Yes, food cost tracking can be automated with restaurant management software. You'll still need to manually input platform fees and packaging expenses, but profit calculations become much faster with automated ingredient costing.
📚 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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