A minimum order amount shields your margins from delivery costs that devour profits. Most delivery restaurants hemorrhage money on small orders since platform fees and packaging expenses outweigh earnings. Here's exactly how to calculate a minimum order threshold that safeguards your delivery profitability.
Why a minimum order amount is crucial
Delivery platforms charge 15-30% commission on your order value. Small orders get completely decimated by these fees. An order of €12 with 25% platform fees nets you just €9 - while packaging costs and prep time remain identical to larger orders.
⚠️ Note:
Without a minimum order threshold, you're bleeding money on every small order. Many operators discover this brutal reality months later - their delivery revenue climbs while profit plummets.
Calculate your break-even point per order
Your break-even point marks where you stop losing money. Below that threshold, you're subsidizing customers. Above it, you actually profit. Delivery orders require accounting for:
- Platform fees: 15-30% of order value
- Packaging costs: €1.50-€3.50 per order
- Food cost: 28-35% of order value
- Fixed costs per order: preparation, energy, dishwashing
💡 Example:
Order of €15.00 via Thuisbezorgd:
- Platform fees (25%): €3.75
- Packaging costs: €2.00
- Food cost (30%): €4.50
- Fixed costs: €1.50
Total costs: €11.75
Profit: €15.00 - €11.75 = €3.25
Formula for minimum order amount
Use this calculation to determine your break-even threshold:
Minimum order amount = (Packaging costs + Fixed costs) / (1 - Platform fees% - Food cost%)
💡 Example calculation:
Your data:
- Packaging costs: €2.50
- Fixed costs per order: €2.00
- Platform fees: 25%
- Food cost: 32%
Calculation: (€2.50 + €2.00) / (1 - 0.25 - 0.32) = €4.50 / 0.43 = €10.47
Minimum order amount: €10.50
Calculate packaging costs per order
Total up every packaging material you use:
- Boxes and containers: €0.15-€0.45 per piece
- Plastic bags: €0.05-€0.15 per bag
- Cutlery and napkins: €0.10-€0.25 per set
- Stickers and labels: €0.02-€0.08 per order
💡 Example packaging costs:
Average order with 2 main courses:
- 2 aluminum containers: €0.60
- 1 plastic bag: €0.10
- Cutlery set: €0.15
- Sticker and napkin: €0.05
- Extra sauce containers: €0.20
Total: €1.10 per order
Platform fees vary by provider
Each delivery service demands different commissions. Based on real restaurant P&L data, these ranges reflect actual costs including hidden fees:
- Thuisbezorgd: 12-25% (depending on contract)
- Uber Eats: 15-30% (plus additional charges)
- Deliveroo: 20-35% (including marketing fees)
⚠️ Note:
Platform fees shift regularly. Scrutinize your monthly invoices to track what you're actually paying. Marketing fees and additional services can push total costs to 35%.
Test different minimum amounts
Start conservatively and track results closely. Set it too high and you'll scare customers off. Too low and you're still losing money. Follow this testing framework:
- Week 1-2: Implement your calculated minimum
- Week 3-4: Track order volume and average order value
- Week 5: Adjust based on performance data
Most delivery restaurants find €15-€20 minimums work effectively. Customers accept these thresholds when they understand it maintains quality and service standards.
How do you calculate your minimum order amount? (step by step)
Calculate your packaging costs per order
Add up all boxes, bags, cutlery and labels you use on average per order. Note the cost per item and multiply by the quantity. This gives you the fixed packaging costs per order.
Check your actual platform fees percentage
Look at your latest invoice from Thuisbezorgd, Uber Eats or Deliveroo. Watch out for marketing fees and extra costs - this can add up to 35% of your order value. Use this percentage in your calculation.
Apply the formula and test the result
Use the formula: (Packaging costs + €2 fixed costs) / (1 - Platform fees% - Food cost%). Round to a nice amount like €15 or €20. Monitor for two weeks and adjust based on orders and profit.
✨ Pro tip
Track your order patterns for 2 weeks before setting minimums. If 75% of orders already exceed your calculated threshold, implementation won't disrupt customers but will eliminate those unprofitable small orders.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
What if customers stay away because of my minimum order amount?
A temporary dip is normal and expected. Customers who leave were likely unprofitable anyway. Focus your energy on retaining customers who meet the minimum - they're driving actual profit.
Should I use different minimum amounts per platform?
Absolutely, that's often the smartest approach. If Uber Eats costs 30% and Thuisbezorgd costs 20%, different minimums make financial sense. Just keep the gap reasonable to avoid customer confusion.
How often should I adjust my minimum order amount?
Review every quarter to catch platform fee changes. For major shifts in packaging or food costs, adjust immediately. Avoid frequent tweaks though - they confuse customers and hurt trust.
Can I replace the minimum order amount with delivery fees?
Delivery fees operate differently than minimums. Customers pay extra, but you retain less due to VAT on delivery charges. Minimum order amounts typically prove more effective for protecting margins.
📚 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.
Food cost control for delivery and dark kitchens
With delivery, margins are thinner than ever. KitchenNmbrs calculates your actual food cost including packaging so you know if every order is profitable. Test it free for 14 days.
Start free trial →