Platforms like Deliveroo and Uber Eats take 15-30% commission on your order value. On top of that, you run discount campaigns that eat another 10-20% of your margin. The result: you're generating revenue but earning nothing. In this article, you'll learn how to factor platform fees and discounts into your prices without making your menu too expensive.
Why platforms undermine your margin
The problem isn't just the commission. It's the combination of platform fees, discount campaigns, and packaging costs that make your food cost unsustainable.
💡 Example:
You sell a pasta for €18.50 via Deliveroo:
- Order value: €18.50
- Platform fee (25%): €4.63
- Discount (15%): €2.78
- Packaging costs: €0.85
Net receipt: €10.24
From that €10.24, you still need to deduct your ingredients (€5.50), staff, and overhead. Nothing's left.
The hidden costs of discount campaigns
Many business owners think discounts only come out of their profit. But it's worse: you also lose on your fixed costs.
- Staff: Same wage costs, less income per order
- Rent: Stays the same, but you earn less per square meter
- Energy: Same preparation costs, lower revenue
⚠️ Watch out:
A 20% discount doesn't mean you make 20% less profit. Often you make no profit at all, because your fixed costs don't scale down.
Calculate your real costs per platform
For each platform, you need to calculate total costs, not just the commission.
Formula for real costs:
Total costs % = Platform fee % + Average discount % + (Packaging costs / Order value × 100)
💡 Example Uber Eats:
Average order €22.00:
- Platform fee: 28%
- Average discount: 12%
- Packaging costs: €1.20 (= 5.5%)
Total costs: 45.5%
From every €22 order, €12.00 remains. You still need to deduct your ingredients, staff, and overhead from that.
Adjust your menu per platform
The solution isn't to stop using platforms, but to price smarter. Many restaurants charge different prices per channel.
- In restaurant: Regular prices
- Own delivery: +10-15% (delivery costs)
- Platforms: +20-30% (platform fees + discounts)
This is normal and allowed. Customers understand that delivery costs extra.
Strategies to control platform costs
1. Selective discounts
Not all dishes need to be in every promotion. Exclude low-margin dishes from discounts.
2. Increase minimum order value
Higher minimum orders spread packaging costs across more revenue.
💡 Example:
Packaging costs €1.50 per order:
- At €15 minimum: 10% extra costs
- At €25 minimum: 6% extra costs
That saves 4 percentage points of margin.
3. Build your own delivery service
For restaurants with many delivery orders, your own delivery driver can be cheaper than 25-30% platform fees.
Monitor your margins per platform
Track what you actually keep after all costs for each platform.
Formula for net margin per platform:
Net margin = ((Order value - Platform fees - Discounts - Packaging - Food cost) / Order value) × 100
⚠️ Watch out:
If your net margin drops below 15%, you're not earning enough to cover your fixed costs (rent, staff, depreciation).
A system like KitchenNmbrs helps you calculate your real margin per dish and per platform, so you know which combinations are profitable.
How do you calculate the impact of platforms on your margin?
Gather all costs per platform
Note the platform fee, average discounts you give, and packaging costs per order. Add these up for the total 'platform tax' per order.
Calculate your net receipt per dish
Subtract all platform costs from your menu price. This is what you actually receive per dish sold on that platform.
Compare with your total costs
Add up food cost, a portion of your staff costs, and overhead. If this is higher than your net receipt, you're losing money on every order.
Adjust prices or stop using unprofitable platforms
Raise your prices on platforms until you keep at least 15% net margin, or stop using platforms where this isn't achievable.
✨ Pro tip
Check your three best-selling dishes per platform every month. If those are profitable, that often compensates for the loss-making dishes.
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 charge different prices per platform?
Yes, this is allowed and normal. Many restaurants charge 20-30% more via delivery platforms to cover the extra costs.
What's a realistic margin after all platform costs?
Aim for at least 15% net margin after platform fees, discounts, and packaging costs. Below that, you won't cover your fixed costs.
How often should I adjust my platform prices?
Check your average discount percentage and platform fees monthly. Adjust if you drop below 15% net margin.
Which dishes should I exclude from discount campaigns?
Exclude dishes with food cost above 30% or dishes with low absolute profit contribution (under €3-4 per portion).
When does your own delivery service make sense?
With more than 50 delivery orders per week, your own delivery driver can be cheaper than 25-30% platform commission, depending on your delivery area.
📚 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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