Delivery apps are a volume lever, not a margin guarantee. Most UK operators lose money because they price delivery with dine-in logic.
This guide gives you a practical pricing model for Just Eat, Deliveroo, and Uber Eats.
Quick Summary
- Build a delivery-only price list
- Cost packaging and extras per item
- Treat commission as a cost, not a fee you can ignore
- Use VAT guidance before setting price targets
The Delivery Pricing Formula (UK)
Delivery menu price = (Item cost + Packaging + Platform fees + Waste buffer) ÷ Target marginIf you price delivery items the same as dine-in, your margin shrinks fast.
Why UK Delivery Pricing Breaks
- Commission varies by platform and plan
- Packaging is a hidden COGS line
- Remake risk is higher (missed items, cold food, refunds)
- Discounts stack (platform promos + your promos)
A Simple Margin-Protecting Example
Assume one chicken bowl order:
- Ingredients: £2.40
- Packaging (container + bag): £0.35
- Platform fees + payment costs: £2.10
- Waste / remake buffer: £0.25
Total cost: £5.10
Target margin: 65% gross
Price = £5.10 ÷ (1 - 0.65) = £14.57Round to £14.50 or £14.90 and keep your delivery menu ladder consistent.
VAT Reality Check (Eat-In vs Takeaway)
VAT rules differ by eat-in vs takeaway and hot vs cold items. Before you price, confirm the VAT treatment for your delivery menu using HMRC guidance.
Source: HMRC VAT Notice 709/1: Catering, takeaway food
UK Cost Pressure Signal
ONS reported restaurants and hotels inflation at 3.8% year-on-year in October 2025. If your delivery prices have not moved in months, your margins likely have.
Source: ONS Consumer price inflation, UK: October 2025
Platform Notes (Keep It Practical)
- Platforms offer different fee structures and promotions. Treat every plan as a unique cost model.
- If a platform offers a limited-time discount on commission, use it to test price points but do not lock in low margins.
- Keep delivery recipes separate from dine-in to avoid portion drift and packaging omissions.
Quick Delivery Menu Checklist
- Re-cost top 10 delivery items monthly
- Add packaging to every recipe
- Separate delivery vs dine-in menu ladders
- Track refunds and remake rates as real costs
- Reprice immediately after supplier shocks
Do This Now
- Check your delivery app contract—what is the exact commission rate?
- Build a separate delivery menu with higher prices than dine-in
- Add packaging costs (containers, bags, cutlery) to every recipe
- Calculate your net margin after commission and packaging
- Set a monthly reprice reminder to catch cost swings early
Platform Resources
Related Guides
If you want delivery prices that update as supplier costs change, KitchenCost recalculates recipes and margins automatically.