Delivery platforms seem like a blessing: more reach, more customers, more revenue. But behind the scenes they're quietly eating your profits with commissions, discounts ...
Delivery platforms seem like a blessing: more reach, more customers, more revenue. But behind the scenes they're quietly eating your profits with commissions, discounts and extra costs that often catch you off guard. Many restaurants earn less despite more orders.
The hidden costs of delivery platforms
Delivery platforms present themselves as partners, but you're actually a supplier paying for access to their customers. And that access costs way more than you think.
💡 Example: An average delivery order
Order: €35.00 (incl. 9% VAT)
- Platform commission (25%): €8.75
- Restaurant delivery costs: €2.50
- New customer discount (20%): €7.00
- Payment fees: €0.35
Net receipt: €16.40 instead of €35.00
Why you earn less than you think
The problem isn't just commission. It's all the extra costs that pile on top:
- Commissions: 20-30% of your revenue disappears to the platform
- Discount campaigns: Those "free" promotions? You're footing the bill
- Delivery costs: Even when they deliver, you often contribute
- Payment fees: Extra charges for online transactions
- Marketing fees: Want visibility? That'll cost you extra
⚠️ Watch out:
Many restaurants bump up their platform prices to cover costs. But then they're pricier than competitors, leading to fewer orders.
The food cost trap
Because of the reduced net receipt, your food cost percentage shoots up beyond what you'd expect. A dish that normally runs 30% food cost can hit 50% or higher on delivery platforms. This is one of the most common blind spots in kitchen management - operators see more orders coming in but don't realize their margins are getting crushed.
💡 Example: Food cost calculation
Pasta carbonara - ingredient costs: €8.50
In restaurant:
- Selling price: €25.00 excl. VAT
- Food cost: €8.50 / €25.00 = 34%
Via delivery platform:
- Net receipt: €16.40
- Actual food cost: €8.50 / €16.40 = 52%
Why restaurants still use them
Despite brutal costs, many restaurants stick with delivery platforms. The reasons make sense:
- Reach: Access to customers you'd never find otherwise
- Convenience: No need to build your own delivery operation
- Volume: More orders, even with thinner margins
- Competition: If competitors are there, you're losing sales
The real impact on an annual basis
Platform costs add up fast. A restaurant generating €100,000 in platform revenue often keeps just €60,000-70,000 after all fees.
💡 Example: Annual impact
Restaurant with €200,000 in delivery revenue per year:
- Commissions (25%): €50,000
- Discounts and campaigns: €20,000
- Extra delivery and payment costs: €8,000
Total costs: €78,000 per year
Alternatives that actually work
You don't have to be completely dependent on delivery platforms. Many restaurants successfully build their own delivery channels:
- Own website: Direct orders with zero commission
- Phone orders: Personal connection with regular customers
- Loyalty program: Reward direct orders generously
- Social media: Reach customers without middlemen
⚠️ Watch out:
Building your own channels takes time and effort. But long-term, you'll earn significantly more than being platform-dependent.
How tools help you see the real picture
Food cost calculators immediately show what delivery platforms actually cost you. You can run different scenarios and see which channels deliver real profitability. This way you make informed choices about where to invest your energy and marketing budget.
How do you calculate the real costs of delivery platforms?
Gather all costs
Add up: commission, discounts, delivery costs, payment fees and marketing fees. Don't forget any cost item the platform charges you.
Calculate your net receipt
Subtract all costs from your gross revenue. This is what you actually keep per order after all platform costs.
Calculate your actual food cost
Divide your ingredient costs by the net receipt instead of the gross selling price. This shows your real profitability per dish.
✨ Pro tip
Track your net profit per platform order over a 30-day period - most restaurants discover they're making 40-60% less than they thought once all fees stack up.
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
Should I stop using delivery platforms?
Not necessarily. But calculate what they truly cost you and find a healthy balance between platform orders and direct sales.
Can I raise my prices on platforms?
Yes, but watch that you don't become too expensive compared to competitors. Test different price points and monitor your order volume.
How do I build my own delivery channels?
Start with your own website, promote phone orders and reward customers who order directly with discounts or loyalty points.
Why are the commissions so high?
Platforms invest heavily in marketing, technology and delivery staff. But as a restaurant you ultimately pay for their growth and profitability.
Can I negotiate commissions?
With large volumes sometimes, but smaller restaurants have little negotiating power. Focus instead on building your own channels.
How often should I analyze platform profitability per dish?
Monthly at minimum, weekly if you're running promotions. Some high-volume items might look profitable but actually lose money after all platform fees are factored in.
📚 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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