73% of restaurants struggle with delivery profitability due to platform fees and packaging costs. You're facing a critical choice: raise prices or cut menu items. Most owners guess, but smart operators let their margins decide.
Comparing the two strategies
You've got two paths when delivery margins squeeze your profits:
- Option A: Raise prices on your delivery menu
- Option B: Shrink your menu to only your most profitable dishes
Each approach carries different trade-offs. Your current numbers and market position determine the winner.
Calculate your current delivery margin per dish
Smart decisions require real profitability data for each delivery item.
💡 Example calculation:
Pasta carbonara - delivery price €18.50 (incl. 9% VAT)
- Sale price excl. VAT: €16.97
- Platform fee (25%): €4.24
- Ingredient costs: €5.10
- Packaging costs: €0.80
- Net revenue: €6.83
Margin: €6.83 / €16.97 = 40.2%
Run this calculation for every delivery dish. You'll create a clear ranking from champions to money-losers.
Scenario A: Raise prices
Price bumps succeed when you've built a strong market position and offer distinctive dishes.
💡 Example price increase:
Pasta carbonara from €18.50 to €20.50
- New net revenue: €8.50
- New margin: 45.2%
- Extra profit per portion: €1.67
At 100 portions/month: €167 extra profit
Benefits of price increases:
- Immediate profit boost per order
- Keep menu variety intact
- Minimal operational changes needed
Risks:
- Volume drops from sticker shock
- Platform rankings suffer against cheaper competitors
- Customers migrate to budget alternatives
Scenario B: Shrink your menu
A focused menu featuring only top performers often outperforms blanket price increases.
💡 Example shrinking:
From 20 to 12 dishes - only margin >35%
- Average margin before: 28.5%
- Average margin after: 38.2%
- Difference: +9.7 percentage points
At €15,000 delivery revenue/month: €1,455 extra profit
Benefits of menu reduction:
- Higher average margin per order
- Streamlined kitchen operations
- Reduced inventory and waste
- Faster preparation times
Risks:
- Fewer options disappoint customers
- Lower average order values possible
- Customers seeking specific items will bounce
⚠️ Note:
Platform fees destroy margins fast. A dish with 30% food cost becomes unprofitable after 20-30% platform fees hit your revenue.
The decision matrix
Use these benchmarks to choose your path:
Go with price increases if:
- Your reviews shine (4.5+ stars consistently)
- Your dishes are signature/unique offerings
- Competitors price similarly high
- Your customers aren't price-sensitive
Choose menu reduction if:
- Margin gaps are huge between dishes
- Kitchen complexity slows service
- Ingredient variety creates waste
- You're fighting price wars
Test your strategy small
After managing kitchen operations for nearly a decade, I've learned to pilot both approaches before committing:
- Week 1-2: Bump 3-5 dishes by €1-2
- Week 3-4: Temporarily drop 5 worst performers
- Track: Order volume, total revenue, margins, customer feedback
The strategy delivering higher total profit wins your commitment.
Tools for delivery strategy
Food cost calculators show real margins per dish, factoring in platform fees and packaging costs. This data transforms gut decisions into profit-driven choices.
Test which approach fits your situation and get automated delivery margin analysis.
How do you choose between price increase and shrinking?
Calculate real margin per delivery dish
For each dish add up: ingredient costs + packaging costs + platform fee (20-30%). Subtract this from your sale price excl. VAT. This is your real margin per dish for delivery.
Rank dishes by profitability
Make a list of all your delivery dishes, sorted by margin percentage. Dishes under 35% margin are often unprofitable for delivery due to extra costs.
Calculate impact of both scenarios
Scenario A: raise prices of top dishes by €1-2 and calculate new margin. Scenario B: remove bottom 30% of dishes and calculate new average margin. Compare total profit impact.
Test your chosen strategy for 2-4 weeks
Implement your chosen strategy and measure daily: number of orders, average order value, total revenue and margin. If results disappoint, you can quickly revert.
✨ Pro tip
Run both strategies as 2-week tests on different dish segments. If your margin spread exceeds 12 percentage points between top and bottom performers, menu shrinking typically delivers faster profit gains than price increases.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
How much can I raise delivery prices without losing customers?
Test €1-2 increases per dish initially. Strong performers with high ratings and unique appeal can handle bigger jumps. Monitor volume changes after 2 weeks to gauge customer response.
Which dishes should I cut from my delivery menu first?
Target items below 35% margin after platform and packaging costs. Also eliminate complex dishes requiring long prep times. These drain profits and slow your kitchen.
What if my kitchen team resists menu changes?
Show them the profit numbers per dish and explain how higher margins mean better job security. Start with temporary changes to prove the concept works before making permanent cuts.
📚 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.
Make better decisions with real numbers
Should you change your menu? Raise prices? Test a new concept? KitchenNmbrs simulates scenarios with your own data. Try it free for 14 days.
Start free trial →