💰 Calculating the real profitability of each order
Commissions, packaging, labour, losses: discover the real cost of your delivered orders and identify the items that cost you more than they earn.
What you actually pay on every order
The platform commission is the most visible cost, but it represents only about half of the total cost of a delivered order. Here are all the expense items you must factor in to know your real profitability.
Platform commissions
The commission is the most visible cost, but it is only the tip of the iceberg. Uber Eats takes an average of 30% of the sale price, Deliveroo between 25 and 35% depending on the contract. On a £25 order, that is £6.25 to £8.75 going directly off the top.
Packaging
Boxes, bags, cutlery, napkins, sealing stickers. The average packaging cost per order is £1.20 to £2. For a restaurant doing 50 deliveries per day, that is £1,800 to £3,000 per month — often underestimated.
Additional labour
Preparing a delivery order takes 20 to 30% longer than a dine-in dish: checking the order, careful packaging, coordinating with the courier. This time must be factored into your calculation.
Losses and waste
Orders prepared then cancelled, preparation errors, forgotten items refunded without product return. These invisible losses represent 3 to 5% of delivery revenue.
Payment fees
Platforms charge processing fees on each payment. Add any bank fees when transferring to your account. A small percentage, but it adds up across thousands of orders.
The real cost of a £12 burger
Let's take a concrete example: your signature burger is sold at £12 on Uber Eats. Here is what it really earns you — and what you'll discover when you do the full calculation.
On a burger sold at £12, only £1.06 net profit remains. That's a margin of 8.8%. To make this burger profitable, you have two options: increase its sale price (at £14 the margin rises to £2.86) or reduce food cost without degrading quality.
But the calculation doesn't stop there. If the customer adds chips at £4.50 (food cost: £0.80, margin: £2.20) and a drink at £3 (food cost: £0.50, margin: £1.60), the total order of £19.50 generates £4.86 in profit. The burger alone isn't very profitable, but the complete order is.
How to spot the items that are costing you money
In a menu of 30 items, there are generally 5 to 8 unprofitable items for delivery. The problem is they are often among the most ordered — because their low price attracts customers. Here are the warning signs.
High food cost, low sale price
A poke bowl at £12 whose ingredients cost £5.50. After 30% commission (£3.60), packaging (£1.50) and labour (£1.20), just £0.20 margin remains. In other words, you are working almost for free.
Long preparation time
A dish that takes 15 minutes to prepare instead of 5 blocks your kitchen three times longer. If this dish has a low margin, it prevents you from preparing other more profitable orders during that time.
Frequently refunded items
Some dishes travel poorly: chips go soggy, salads wilt, sauces leak. If an item generates more than 5% refunds, it needs rethinking — or removing from your delivery offering.
Low re-order rate
If an item is only ordered once by customers and never reordered, it creates no loyalty. Prioritise items that create recurrence and satisfaction.
Strategies to improve the profitability of each order
Profitability is not just about the price of each item. It is built at the level of the complete order. Here are the most effective strategies to increase your margin without necessarily raising prices.
Full menus
Offer starter + main + dessert bundles with a 10 to 15% discount compared to individual prices. The average basket increases by 30 to 40% and your absolute margin grows even if the percentage drops slightly.
Smart upselling
Add high-margin extras: a drink at £2.50 (real cost £0.40), dessert at £4 (real cost £1), premium sauce at £1 (real cost £0.15). These small additions have a margin of 70 to 85%.
Order minimum
Set a minimum order of £15. Below this threshold, fixed costs (packaging, labour) represent too high a percentage of the sale price. Most customers add an item to reach the minimum.
Loss-leader items vs margin items
Your signature burger at £9.90 attracts customers (loss-leader). The premium chips side at £4.90 and the drink at £3.50 are your margin items. Build your catalogue around this logic.
Reducing your platform commissions
Commissions are not set in stone. Several levers exist to reduce them or offset their impact on your margins.
Volume-based negotiation
Beyond 200 monthly orders, contact your account manager to renegotiate your rate. Present your figures, growth and available alternatives. Platforms regularly grant 2 to 5 percentage-point reductions to high-performing restaurants. Prepare a comparison with competing offers to strengthen your position.
Taking advantage of promotional offers
Platforms regularly offer co-funded promotions where the commission is temporarily reduced in exchange for participation in a marketing campaign. Analyse each offer by calculating the real cost and return on investment. Some promotions are very advantageous; others are margin traps.
Developing direct ordering
Every direct order (via your own website or app) costs you 3 to 5% instead of 25 to 35%. Even if you only reach 20% direct orders, the impact on your overall profitability is considerable. Include flyers in your deliveries with a promo code for the first direct order.
The 4 metrics to track every week
You can't improve what you don't measure. Here are the four essential indicators to manage the profitability of your delivery activity. Track them every week and set progressive targets.
Food cost
25-35%The ratio between the cost of ingredients and the sale price. Above 35% for delivery, profitability is compromised after commission.
Delivery cost ratio
< 45%All delivery-related costs (commission + packaging + labour) divided by the sale price. If this ratio exceeds 45%, your net margin is insufficient.
Average basket
> £22The average amount per order. Below £22, fixed costs weigh too heavily. Work on menus and cross-selling to increase this value.
Net profit per order
> £3What actually remains after all costs. If your profit per order is less than £3, you are essentially working for the platform, not for yourself.