Food Cost
Net Revenue = Order Value × (1 − Commission %) Net Margin = Net Revenue − Food Cost − Packaging Cost Net Margin % = Net Margin / Order Value × 100 Example: €30 order on Glovo (30% commission) Net Revenue = €30.00 × 0.70 = €21.00 Food Cost = €30.00 × 0.32 = €9.60 Packaging = €1.50 Net Margin = €21.00 − €9.60 − €1.50 = €9.90 Net Margin % = €9.90 / €30.00 = 33% (before rent, staff, utilities)
Commission rates in Italy typically range from 20% to 35% of the order value. As of 2025–2026: Deliveroo 25–32%, Glovo 28–35%, Just Eat 13–23% (varies by contract tier), Uber Eats 20–30%. Rates vary by contract type, order volume and whether the restaurant uses the platform's own delivery drivers.
Net Revenue = Order Value − Platform Commission − Payment Processing Fee. If a customer pays €25 and the platform charges 30% commission plus a 0.5% payment fee, the restaurant receives €25 × (1 − 0.305) = €17.37 before any ingredient cost.
Delivery is unprofitable when: Net Revenue − Variable Cost (food + packaging) − Allocated Fixed Costs < 0. With a 30% commission and 32% food cost, you have only 38% of the order value left for staff, packaging, rent and profit. Small tickets (under €12–15) are almost always loss-making after commission.
Yes — many Italian restaurateurs set delivery prices 10–20% higher than dine-in to offset platform commissions. Platforms typically do not prevent this, and customers accept a premium for convenience. Always check your contract terms and local competition before adjusting prices.
Beyond platform commission: (1) Packaging — boxes, bags, cutlery (€0.50–2.00 per order), (2) Extra kitchen labor for packaging, (3) Potential reduction in dine-in capacity if kitchen is diverted, (4) Marketing fees for promoted listings. Total hidden costs can add 5–10% on top of the headline commission.
A common rule of thumb: minimum order value = Fixed Order Cost / (1 − Commission % − Food Cost %). With €2 packaging, 30% commission and 30% food cost, the break-even order value is €2 / (1 − 0.30 − 0.30) = €5 just to cover packaging — you need a much higher ticket to contribute to overheads.