Over 73% of customers abandon their delivery cart due to unexpected fees at checkout. Platform commissions make transparent pricing challenging, forcing many restaurants to bury costs in inflated menu prices or surprise charges. You can build customer trust while protecting your margins through strategic pricing models.
Why transparency pays off with delivery
Customers hate surprises at checkout. A pizza for €12 that suddenly becomes €18 because of delivery and service fees leads to negative reviews. Transparent prices from the start build trust and reduce cart abandonment.
💡 Example:
Restaurant A: Pizza €12 + €3.50 delivery + €1.50 service = €17
Restaurant B: Pizza €15.50 incl. delivery
Same final price, but B feels fairer
Calculate your actual delivery costs
For transparent pricing, you need to know what delivery really costs. This consists of several parts:
- Platform fees: 15-30% of your order value
- Packaging costs: €0.50-€2.00 per order
- Extra labor: packing, labeling, standing by
💡 Example calculation:
Order of €25 excl. VAT:
- Platform fees (20%): €5.00
- Packaging: €1.20
- Extra labor: €1.50
Total delivery costs: €7.70
Three transparent pricing models
Model 1: All-inclusive pricing
Increase your dishes by the average delivery costs and make delivery "free". This works well for orders above €20.
- Advantage: Simple, no surprises
- Disadvantage: More expensive-looking menu
Model 2: Fixed delivery costs
Charge a fixed delivery fee that covers your actual costs, regardless of order size. From tracking this across dozens of restaurants, fixed fees work better for establishments with consistent order values.
⚠️ Note:
With small orders you lose money, with large orders you earn extra. Make sure to set a minimum order value.
Model 3: Percentage-based
Charge a percentage of the order value as delivery costs. This automatically covers your platform fees.
Communicate your costs clearly
Explain what your delivery costs are for. Customers accept fair prices if they understand why.
💡 Good communication:
"Delivery fee €3.50 (packaging + platform + delivery)"
"Free delivery from €25 (costs included in dishes)"
Protect your margin with minimum orders
Small orders are unprofitable with delivery. A minimum order value of €15-20 prevents you from losing money on platform fees and packaging.
- Calculate your break-even per order
- Set minimum 20% above your break-even
- Communicate this clearly on your menu
Monitor and adjust
Keep track of how your delivery orders perform. If your margin comes under pressure, adjust your model. Better to be transparently expensive than secretly unprofitable.
How do you set up transparent delivery prices?
Calculate your actual delivery costs
Add up platform fees (15-30%), packaging costs (€0.50-2.00) and extra labor. This gives you the actual costs per order.
Choose your pricing model
Decide between all-inclusive (increase dishes), fixed delivery costs or percentage-based. Each model has pros and cons.
Set minimum order value
Calculate your break-even per order and set minimum 20% higher. This prevents unprofitable small orders.
Communicate clearly to customers
Explain what delivery costs are for and show this clearly in your app or website. Transparency builds trust.
Monitor and optimize
Check weekly how your delivery margin is performing and adjust where needed. Better to transparently adjust than secretly run at a loss.
✨ Pro tip
Test dynamic pricing for 2 weeks during peak Friday-Sunday dinner rushes by adding €1-2 to delivery fees. Higher prices during busy periods help your margin and naturally spread order volume to quieter times.
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
Do I need to calculate VAT on delivery costs?
Yes, delivery costs fall under 9% VAT just like food. Always calculate excl. VAT for your cost calculation and add VAT to the final price.
What if competitors seem cheaper by hiding costs?
Focus on your own transparency. Customers appreciate honesty and come back to restaurants that don't surprise them at checkout.
How often should I adjust my delivery prices?
Check your delivery margin monthly. If platform fees increase or packaging costs change, adjust immediately to prevent losses.
Can I use different prices per platform?
Yes, each platform has different costs. Deliveroo charges differently than Uber Eats. Adjust your prices per platform to protect your margin.
What's a good delivery margin?
Aim for 15-25% net margin on delivery orders after deducting all costs. This compensates for the lack of drink sales and tips.
Should I offer free delivery?
Only if you build the costs into your dishes or use a high minimum order value. True free delivery is unprofitable.
How do I handle delivery pricing for catering orders above €100?
Large orders can absorb delivery costs better, so consider percentage-based fees capped at €8-10. The higher volume justifies lower per-euro delivery charges while maintaining healthy 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.
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