A pizzeria owner recently told me he was paying 32% commission to a delivery platform, leaving him with just €6 profit on a €25 order. It's a brutal choice: lose customers by leaving the platform or watch your margins disappear. Here's how to tackle this dilemma systematically.
First, calculate your actual margin
Before making any decisions, figure out what you're actually keeping per order. Most owners only see the commission but miss other hidden costs that eat into profits.
💡 Example calculation:
Order of €25.00 (incl. 9% VAT):
- Sales price excl. VAT: €22.94
- Platform commission (30%): €6.88
- Food cost (32%): €7.34
- Packaging costs: €1.50
Net remaining: €7.22 (31% of revenue)
That €7.22 has to cover wages, rent, utilities and still leave you something. For most kitchens, it doesn't add up.
Three strategic options
You've got three main paths forward, each with trade-offs:
Option 1: Bump up platform prices
Jack up your delivery prices by 15-25% to offset the commission hit. The downside? You'll be pricier than competitors. But you'll maintain your margins.
💡 Example price increase:
Pasta carbonara in restaurant: €18.50
- On delivery platform: €22.50
- Increase: €4.00 (22%)
- Compensates for 30% commission
Option 2: Accept thinner margins
Keep prices identical and live with smaller profits on delivery orders. Think of it as customer acquisition - people discover your food and might become dine-in regulars later.
Option 3: Ditch the platform entirely
If commissions are killing your bottom line, walk away. Pour that energy into your own delivery service, takeout orders, or filling more seats in-house.
⚠️ Watch out:
Crunch the numbers on lost revenue before quitting. Sometimes skinny margins beat zero income.
Running your own delivery operation
Your own delivery sounds appealing, but it comes with real expenses:
- Delivery driver: €15-20 per hour
- Gas and vehicle maintenance: €0.30 per km
- Insurance and paperwork
- Website and ordering platform
Do the math - is your own delivery cheaper than platform fees? Most restaurants hit break-even around 15-20 daily orders. One of the most common blind spots in kitchen management is underestimating these operational costs.
Hybrid approach
Smart operators blend platforms with direct channels:
- Stay on platforms for visibility and new customer acquisition
- Push direct orders through your website
- Reward direct ordering with perks (discounts, free appetizers)
- Build an email list for direct marketing
💡 Example hybrid approach:
Pizzeria with 60% platform, 40% own delivery:
- Platform orders: lower margin but more volume
- Own orders: higher margin, loyal customers
- Average margin: acceptable level
Analyzing delivery profitability
Tools like KitchenNmbrs let you calculate exact dish costs including packaging and model different commission scenarios. You can instantly see how platform fees impact each menu item's profitability.
How do you analyze the impact of platform commission? (step by step)
Calculate your actual costs per order
Add up: food cost + packaging costs + platform commission. Calculate using sales price excluding VAT. This gives you the actual costs.
Determine your minimum margin per order
How much needs to be left over to cover staff, rent and profit? For most businesses this is at least 25-30% of revenue.
Run three scenarios
Scenario 1: raise prices. Scenario 2: accept lower margin. Scenario 3: stop using platform. Calculate the impact on revenue and profit.
✨ Pro tip
Track what percentage of platform customers convert to dine-in within 90 days. If it's above 15%, treat delivery as expensive marketing rather than a profit center.
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 I negotiate commission rates with delivery platforms?
Small operators have virtually no bargaining power with major platforms. Chain restaurants sometimes secure better rates, but single locations typically pay standard fees. Your leverage is minimal.
What commission percentage is still profitable?
Most restaurants can work with 20-25% commissions, but anything above 30% becomes brutal. It depends heavily on your food costs and overhead structure.
How do I drive customers to order directly instead?
Offer concrete incentives like 10% off direct orders, free sides, or priority delivery times. Make your phone number and website prominent on all packaging and receipts.
📚 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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