Setting up a profitable delivery operation with low order values has become increasingly challenging over the past three years. Many entrepreneurs assume delivery automatically generates money, but platform fees of 15-30% and packaging costs quickly erode your margins. You need a fundamentally different approach than traditional restaurants to make small orders work.
Why low order values are problematic
With an average order value of €18 and a platform fee of 25%, you've already lost €4.50 before you've even started cooking. Add packaging costs of €1.50 to that, and you have €12 left for ingredients, labor, and profit.
⚠️ Note:
Platform fees are calculated on the total order value including VAT, but you calculate your margin excluding VAT. This makes the difference even bigger.
Calculate your actual costs per order
For a profitable delivery operation, you need to account for all costs that don't exist in traditional restaurants:
- Platform fee: 15-30% of order value
- Packaging costs: €0.80-2.50 per order
- Payment processing: 2-3% of order value
- Delivery costs: if you deliver yourself
💡 Example:
Order of €18.00 (incl. 9% VAT):
- Platform fee (25%): €4.50
- Packaging costs: €1.20
- Payment processing (2.5%): €0.45
- Order value excl. VAT: €16.51
Net receipt: €10.36
Optimize your menu for low orders
Not every dish works for delivery with low order values. Focus on dishes with:
- Low food cost: maximum 25% (lower than restaurant)
- Minimal packaging needed: one container instead of multiple
- No garnish: every extra component costs money
- Good shelf life: still tastes good after 20 minutes
💡 Example successful dishes:
- Pasta carbonara: food cost 22%, one container
- Burger with fries: food cost 24%, two containers
- Poke bowl: food cost 26%, one container
- Pizza: food cost 20%, own box
Increase your average order value
It's easier to increase your average order than to lower all costs. And here's one of the most common blind spots in kitchen management: operators focus too much on cutting food costs instead of driving order values up.
- Minimum order value: €22-25 (otherwise delivery costs)
- Combo deals: main course + drink + dessert
- Upselling in app: "add for €3 extra"
- Family deals: 2-4 person packages
Alternative delivery models
Consider these options to lower platform fees:
- Own delivery service: for regular customers in small radius
- Pickup discount: 10-15% discount for pickup
- Direct orders: own website/app without platform
- Lunch subscriptions: regular customers, prepaid
💡 Example break-even:
For profitability at €18 orders you need:
- Food cost: maximum 22% = €3.60
- Labor: maximum 20% = €3.30
- Other costs: 10% = €1.65
- Platform + packaging: €6.15
Profit: €3.30 (18%)
Operational efficiency
With low margins, every minute counts:
- Prep-friendly menu: lots prepared ahead, little à la minute
- Batch cooking: large quantities at once
- Simple packaging: standard containers, no fancy presentation
- Streamlined kitchen: only equipment you really need
How do you calculate the profitability of your delivery operation?
Determine your actual costs per order
Add up platform fee, packaging costs, payment processing costs, and any delivery costs. These are your direct delivery costs per order that you need to deduct from your order value.
Calculate your net receipt
Subtract all delivery costs from your order value excl. VAT. This amount needs to cover your food cost, labor, overhead costs and profit.
Set your maximum food cost
For delivery your food cost needs to be lower than in your restaurant. Aim for maximum 25% of your net receipt to leave room for labor and profit.
Test and optimize
Monitor your actual figures per week. Adjust your menu, prices, or minimum order value if you're not hitting your profit target.
✨ Pro tip
Launch with exactly 6 dishes that each cost under €4 in ingredients and test for 30 days before expanding. More options kill profitability on small orders.
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?
Yes, many successful delivery operations charge 10-15% more for delivery to compensate for platform fees. Customers usually accept this because they value the convenience. Just be transparent about it.
What packaging costs should I budget for?
Budget €0.80-1.50 for simple dishes like pasta or rice bowls. More complex orders with multiple containers, sauces, and utensils will cost €1.50-2.50. Don't forget bags and branded stickers in your calculations.
How do I know if my menu items are delivery-profitable?
Calculate backwards from your target profit margin. With €18 orders and 25% platform fees, you need dishes with maximum 22% food cost to stay profitable. Test each item for 2 weeks before deciding.
📚 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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