Every month, restaurants lose thousands on delivery orders they think are profitable. Platform fees, packaging costs and different pricing structures completely change your profit margins. A dual cost model reveals which dishes actually make money through each channel.
Why two cost models are essential
That pasta carbonara served in-house? It's a completely different beast when ordered through delivery platforms. Same ingredients, totally different profit story.
- Restaurant: no packaging, no platform fee, but service included
- Delivery: packaging costs, 15-30% platform fee, no service
- Price difference: delivery price often 10-20% higher than restaurant price
💡 Example pasta carbonara:
Restaurant version:
- Ingredients: €5.10
- Selling price: €18.50 incl. VAT (€16.97 excl.)
- Food cost: 30.1%
Delivery version:
- Ingredients: €5.10
- Packaging: €0.65
- Total product costs: €5.75
- Selling price: €21.50 incl. VAT (€19.72 excl.)
- Platform fee (25%): €4.93
- Net revenue: €14.79
- Food cost: 38.9%
Breaking down the cost differences
Each channel carries its own hidden expenses that'll eat into your margins if you don't account for them.
Packaging costs per dish
- Container/box: €0.15 - €0.45
- Lid: €0.05 - €0.15
- Sauce container: €0.08 - €0.12
- Cutlery set: €0.12 - €0.18
- Bag/tote: €0.08 - €0.15
Total packaging: on average €0.50 - €1.00 per order (depending on number of dishes).
Understanding platform fees
Platform fees get calculated on your total order value including VAT, before any discounts. And they're brutal.
⚠️ Note:
Platform fees vary per platform and per restaurant. Delivery platforms: 15-30%, Uber Eats: 15-35%. Check your contract for the exact percentage.
Cost calculation per channel
For each dish you'll need two separate cost calculations using different formulas. Here's something most kitchen managers discover too late: your "profitable" delivery dishes might actually be bleeding money.
Restaurant cost price (classic)
Formula:
Restaurant food cost % = (Ingredients / Selling price restaurant excl. VAT) × 100
Delivery cost price (extended)
Formula:
Delivery food cost % = ((Ingredients + Packaging) / Net revenue excl. VAT) × 100
Where:
Net revenue = Delivery selling price - Platform fee
💡 Example calculation:
Steak salad - delivery version:
- Ingredients: €8.50
- Packaging: €0.75
- Total costs: €9.25
- Delivery price: €28.00 incl. VAT
- Platform fee (25%): €7.00
- Net revenue: €21.00 incl. VAT (€19.27 excl.)
Delivery food cost: €9.25 / €19.27 × 100 = 48.0%
Way too high! This dish isn't profitable via delivery.
Adjusting your pricing strategy
When your delivery food cost shoots too high, you've got three moves:
- Raise price: compensate for platform fee and packaging
- Adjust portion: smaller portion, same price
- Remove dish: only offer in restaurant
Calculate minimum delivery price
To maintain the same margin as your restaurant version:
Minimum delivery price = ((Ingredients + Packaging) / Restaurant food cost %) / (1 - Platform fee %)
💡 Example minimum price:
Restaurant pasta: 30% food cost, €18.50
- Ingredients: €5.10
- Packaging: €0.65
- Total: €5.75
- Platform fee: 25%
Minimum delivery price: (€5.75 / 0.30) / 0.75 = €25.56 incl. VAT
Rounded: €25.95 (vs. €18.50 restaurant)
Digital tools for dual model
Manually tracking two cost prices per dish? That's a recipe for confusion and errors.
- Separate recipes: create delivery version with packaging costs
- Automatic calculation: set platform fee percentage
- Comparison: see both margins side by side
Food cost calculators like KitchenNmbrs let you create both versions per dish and immediately spot which channel delivers better profits.
How do you set up a dual cost model? (step by step)
Gather all cost items per channel
Make a list of ingredients, packaging costs per dish and your platform fee percentage. Check your contract with delivery platforms for exact fee.
Calculate net revenue for delivery
Subtract platform fee from your delivery price. This is what you actually keep per order. Always calculate food cost excluding VAT.
Compare food cost percentages
Calculate food cost for restaurant (ingredients/selling price) and delivery ((ingredients+packaging)/net revenue). The difference shows which channel is more profitable.
✨ Pro tip
Analyze your top 3 delivery dishes from last month's sales data and recalculate their true delivery costs including packaging and platform fees. You'll likely discover at least one "bestseller" that's actually costing you money.
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
Should I charge different prices for delivery?
Absolutely. Platform fees and packaging costs make delivery more expensive. Most successful restaurants charge 15-25% higher prices for delivery to maintain decent margins.
Which dishes aren't suitable for delivery?
Dishes with high packaging costs (multiple sauce containers) or naturally low margins. If your delivery food cost hits 40% or higher, you're probably losing money.
How often should I review my delivery prices?
Monthly at minimum. Platform fees can change, packaging costs fluctuate, and supplier prices shift. Always recalculate delivery prices when you adjust restaurant menu prices too.
Can I maintain the same food cost percentage across channels?
No, that's impossible. Platform fees and packaging costs will always push your delivery food cost 5-10% higher. Accept this reality or raise delivery prices accordingly.
Do I calculate VAT differently for delivery orders?
No, food for takeout and delivery carries the same 9% VAT as restaurant dining. Only alcoholic beverages get hit with 21% VAT, regardless of the channel.
Should I track labor costs differently for delivery prep?
Yes, delivery orders often require extra prep time for packaging and special instructions. Factor in an additional 2-3 minutes of labor cost per delivery order for accurate profitability tracking.
📚 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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