Third-party delivery platforms can destroy your restaurant's profitability overnight if you price incorrectly. With commissions reaching 30% or more, that €10 order suddenly becomes €7 in revenue. Most operators underestimate how much they need to raise prices to maintain their margins.
Why 30% commission is so dangerous
A 30% commission means that of every €10 a customer pays, only €7 goes to you. The platform keeps €3. If your food cost is 30% and your labor cost is 35%, there's nothing left.
⚠️ Watch out:
Many entrepreneurs raise their delivery prices by 30% and think the problem is solved. But then they forget that they also pay VAT on that higher price.
The right formula for commission compensation
To compensate for a 30% commission, you need to raise your price by more than 30%. This happens because of VAT calculations and because you want your net revenue to equal your restaurant price.
Formula: New price = Restaurant price / (1 - commission%)
💡 Example:
You sell a pasta in your restaurant for €16.50.
- Desired net revenue: €16.50
- Platform commission: 30%
- Required delivery price: €16.50 / 0.70 = €23.57
After 30% commission you receive: €23.57 × 0.70 = €16.50
Practical pricing strategy for delivery
An increase of 43% (from €16.50 to €23.57) is substantial. Customers will notice immediately. That's why many restaurants use a mixed strategy:
- Delivery fee: €2.50 - €3.50 on top of your dish
- Minimum order value: €20 - €25 to cover fixed costs
- Price increase: 15-25% instead of full compensation
- Special delivery menu: cheaper dishes with lower food cost
💡 Example mixed strategy:
Pasta restaurant price: €16.50
- Delivery price dish: €19.50 (+18%)
- Delivery fee: €2.99
- Total customer pays: €22.49
- Commission 30%: €6.75
- You receive: €15.74
Difference from restaurant: €0.76 less, but more acceptable for customer
Recalculate food cost for delivery
Don't forget to factor in your packaging costs. Containers, bags, cutlery and stickers cost an average of €0.75 - €1.50 per order. This is a pattern we see repeatedly in restaurant financials - operators forget these "small" costs that add up quickly.
💡 Example food cost for delivery:
Pasta with ingredient costs €5.20:
- Ingredients: €5.20
- Packaging: €1.20
- Total product costs: €6.40
- Delivery price excl. VAT: €19.50 / 1.09 = €17.89
- Food cost: €6.40 / €17.89 = 35.8%
That's higher than restaurant (31.6%), but acceptable for delivery
Determining delivery profitability
Delivery can still be profitable even with high commissions. After all, you need less staff (no table service, less dishwashing) and lower fixed costs per order.
- Acceptable food cost for delivery: 35-40% (higher than restaurant due to packaging)
- Lower labor costs: no table service, faster throughput
- Higher revenue per m²: no limitation from number of tables
⚠️ Watch out:
Always calculate your total costs: food + packaging + commission + labor. Only if you stay below 75% of your revenue do you make money.
How do you calculate your delivery price? (step by step)
Calculate your desired net revenue
Use your restaurant price as a starting point. This is the amount you want to receive at minimum after deducting the platform commission.
Apply the compensation formula
Divide your restaurant price by (1 - commission%). At 30% commission: restaurant price / 0.70. This gives you the minimum delivery price.
Add packaging costs to your food cost
Add containers, bags and cutlery to your ingredient costs. Recalculate your food cost with the new delivery price to check if you're still profitable.
✨ Pro tip
Track your delivery margins every 2 weeks instead of monthly. Platform commission rates can change with little notice, and packaging costs fluctuate with supplier pricing.
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
Can't I just add 30% to my price?
No, that's not enough. If you charge €16.50 + 30% = €21.45, you receive €15.02 after commission. So you lose €1.48 per dish.
Why are my delivery prices so much higher than competitors?
Many restaurants price delivery unprofitably and compensate with restaurant revenue. Or they have lower food cost through cheaper ingredients.
Is a food cost of 40% for delivery too high?
For delivery, 35-40% food cost is acceptable due to lower labor costs. Check that your total costs (food + labor + commission) stay below 75%.
Do I calculate VAT on the commission?
No, you pay VAT on your full selling price. You deduct the commission from the net amount you receive.
📚 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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