Platform fees of 15-30% and packaging costs can destroy your delivery profits. Most restaurants lose €3-5 per order without proper pricing adjustments. Calculate your break-even point and discover if a separate delivery menu makes financial sense for your operation.
Why consider a separate delivery menu?
Delivery operations carry fundamentally different cost structures than dine-in service. Platform commissions, packaging expenses, and eliminated table service create a completely different profit equation that demands strategic pricing.
💡 Example:
Restaurant pasta carbonara:
- Restaurant price: €16.50 (incl. 9% VAT)
- Ingredients: €4.80
- Food cost: 32.5% (€4.80 / €15.14)
Delivery pasta carbonara:
- Platform fee: 25% = €4.13
- Packaging: €0.85
- Total extra costs: €4.98
You lose €4.98 per order if you use the same price!
The hidden costs of delivery
Platform commissions represent just the tip of the iceberg. After managing kitchen operations for nearly a decade, I've seen restaurants overlook these additional expenses that silently erode margins:
- Platform commission: 15-30% of your order value
- Packaging costs: €0.50-€2.00 per order
- Cutlery and napkins: €0.15-€0.30 per order
- Stickers and labels: €0.05-€0.10 per order
- Extra prep time: packing takes staff time
⚠️ Note:
Platform fees get calculated on your selling price including VAT. On a €20 order, at 25% commission you'll pay €5, not €4.13.
Break-even calculation for delivery prices
Maintaining profitability with delivery requires strategic price adjustments. Here's your formula:
New selling price = (Ingredients + Packaging) / (1 - Platform% - Desired margin%)
💡 Calculation example:
Calculate delivery price for pasta carbonara:
- Ingredients: €4.80
- Packaging: €0.85
- Platform fee: 25%
- Desired margin: 35%
Calculation: (€4.80 + €0.85) / (1 - 0.25 - 0.35) = €5.65 / 0.40 = €14.13 excl. VAT
Delivery price: €15.40 incl. VAT (vs. €16.50 restaurant)
ROI of a separate delivery menu
Calculate exactly how much additional profit a dedicated menu generates:
- Scenario 1: Same prices as restaurant = loss per order
- Scenario 2: Adjusted prices = maintain margin
- Menu costs: design, photography, platform setup
💡 ROI example:
100 delivery orders per month:
- Loss without adjusted prices: €4.98 × 100 = €498/month
- Costs for separate menu: €1,500 one-time
- Payback period: €1,500 / €498 = 3 months
After 3 months you earn €498 extra per month
Practical implementation
A successful delivery menu demands strategic choices:
- Select delivery-friendly dishes: dishes that travel well
- Limit your offering: less choice, more efficiency
- Bundle strategically: menus and combo deals increase order value
- Test gradually: start with your most popular dishes
⚠️ Note:
Monitor your delivery margin weekly. Platform fees and packaging costs can shift, requiring immediate price adjustments.
Situations where a separate menu doesn't pay off
Sometimes, maintaining one menu makes more financial sense:
- Fewer than 30 delivery orders per month
- You can raise restaurant prices without losing customers
- Platform fees stay under 15%
- You lack time to maintain dual menus
How do you calculate if a separate delivery menu is worthwhile?
Calculate your current loss per delivery order
Add up all extra costs: platform fee (15-30%), packaging (€0.50-2.00), cutlery (€0.15-0.30). Multiply by your average order value to calculate the loss per order.
Determine your new delivery prices
Use the formula: (Ingredients + Packaging) / (1 - Platform% - Desired margin%). Calculate what each dish needs to cost to stay profitable with delivery.
Calculate the payback period
Multiply your loss per order by your monthly number of delivery orders. Divide the one-time costs of a new menu by this monthly amount to get your payback period.
✨ Pro tip
Track your top 8 delivery dishes for exactly 6 weeks, calculating true profitability including all hidden costs. You'll discover which items actually generate profit versus those that just look busy on paper.
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
Can't I just raise my restaurant prices instead of creating a separate menu?
You could, but then your dine-in guests subsidize delivery costs they don't use. A separate menu prevents alienating restaurant customers with inflated prices while maintaining delivery profitability.
How often should I adjust my delivery prices?
Review monthly whether platform fees and packaging costs remain accurate. Adjust immediately if your margin drops below 30% due to cost changes.
Do I need to calculate VAT differently for delivery?
No, food delivery uses the same 9% VAT rate as restaurant dining. Only alcoholic beverages carry 21% VAT regardless of service method.
What if customers think my delivery prices are too high?
Communicate that delivery includes additional service costs like packaging and logistics. Offer combo deals to reduce perceived per-item costs while increasing order values.
Can I charge different prices on different platforms?
Absolutely. If platform A charges 20% commission while platform B takes 30%, set different prices accordingly. Just ensure your cost calculations match each platform's fee structure.
Should I remove low-margin items from my delivery menu entirely?
Yes, items with food costs above 40% rarely work profitably on delivery platforms. Focus your delivery menu on dishes with ingredient costs under 35% to maintain healthy margins after fees.
How do I handle seasonal price fluctuations in ingredients for delivery pricing?
Build a 3-5% buffer into your delivery prices during ingredient cost calculations. This cushion absorbs minor seasonal variations without requiring constant menu repricing.
📚 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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