Most restaurants think they're profitable on delivery until they actually calculate the numbers. Every delivery order carries fixed costs - packaging, kitchen time, overhead - that don't shrink with order size. Platform commissions eat into already thin margins, making small orders a guaranteed loss.
Why a minimum order value is crucial
Delivery orders come with unavoidable fixed expenses, no matter the order size. You'll spend €2.50 on packaging, pay 25% platform commission, and dedicate 15 minutes of kitchen labor minimum. An €8 order becomes an instant money-loser.
⚠️ Note:
Packaging costs catch many operators off guard. Containers, bags, and cutlery can easily run €3-5 per order.
Calculate your fixed costs per order
Each delivery carries baseline expenses that don't budge:
- Packaging: €2.50-4.00 (containers, bags, cutlery, napkins)
- Platform commission: 20-30% of order value
- Kitchen work: minimum 10-15 minutes (even for small orders)
- Overhead: gas, electricity, dishwashing per order
? Example fixed costs:
Pizza order - baseline expenses:
- Pizza box and bag: €1.20
- Kitchen work (10 min at €18/hour): €3.00
- Overhead (gas, electricity): €0.80
Total fixed costs: €5.00 per order
Factor platform commission into your calculation
Platform fees scale with order value, which means smaller orders get hit disproportionately hard. Commission eats up a bigger chunk of your already-slim margins.
? Example commission impact:
€10.00 order with 25% commission:
- Order value: €10.00
- Platform commission: €2.50
- Fixed costs: €5.00
- Remaining margin: €2.50
That's just 25% margin - nowhere near sustainable profitability.
Calculate break-even minimum order value
Your minimum must cover fixed costs while preserving reasonable profit margins. Here's the formula:
Minimum order value = Fixed costs / (1 - Platform commission % - Desired margin %)
? Calculation example:
Your numbers:
- Fixed costs per order: €5.00
- Platform commission: 25%
- Target net margin: 15%
Math: €5.00 / (1 - 0.25 - 0.15) = €5.00 / 0.60 = €8.33
Minimum order value: €8.50 (rounded up)
Consider competition and market
Your minimum needs to make financial sense AND compete in your local market. Research competitor minimums and gauge customer expectations in your area. This is a pattern we see repeatedly in restaurant financials - operators set minimums based purely on costs, ignoring market realities.
- Pizza: typically €12-18 minimum
- Asian cuisine: usually €15-20 minimum
- Burger joints: often €10-15 minimum
- Fine dining delivery: €25+ is standard
⚠️ Note:
An excessive minimum drives customers away fast. Better to slash packaging costs than price yourself out of the market.
Implementation and monitoring
Configure your minimum through each platform's merchant portal and track how it affects order volume. Adjust based on customer response and profit margins.
Food cost tracking tools help you monitor real expenses per dish, including packaging, so you'll know exactly what each order actually costs you.
Related articles
How do you calculate your minimum order value? (step by step)
Inventory your fixed costs per order
Add up all costs that come with every order: packaging (containers, bags, cutlery), minimum kitchen work (10-15 minutes), and overhead like gas and electricity. Write down this amount - these are your unavoidable costs.
Determine your desired net margin percentage
Choose a realistic margin you want to keep after all costs. For delivery, 15-20% net margin is healthy. Too low and you earn nothing, too high and you price yourself out of the market.
Calculate using the formula: Fixed costs / (1 - Platform% - Margin%)
Divide your fixed costs by (1 minus platform commission percentage minus desired margin percentage). The result is your minimum order value. Round to a logical amount like €12.50 or €15.00.
✨ Pro tip
Test your minimum at €15.50 for 2 weeks, then measure order frequency changes. Round to clean €2.50 increments - €17.83 looks amateurish compared to €17.50.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
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Frequently asked questions
What if my calculated minimum exceeds competitor pricing?
Should VAT be included in minimum order calculations?
Can I set different minimums across platforms?
How frequently should I review my minimum order value?
What's the best way to handle customer complaints about minimums?
Should I factor delivery driver tips into my minimum calculation?
How do I handle promotional discounts with minimum order values?
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
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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