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US In-House Delivery Fee Pricing Guide (2026): Mileage, Labor, Minimums

Set delivery fees and minimum order sizes that actually cover driver time, mileage, and packaging in the U.S.

Updated Feb 6, 2026
delivery feein-house deliverymenu pricingrestaurant costsusa
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In-house delivery can be profitable, but only if you price for the real cost per drop.

The biggest mistake is treating delivery as a marketing expense. It is a variable cost.

Quick Summary

  • Use the IRS mileage rate as a realistic base for vehicle cost
  • Add driver time + packaging + payment fees to find true delivery cost
  • Set distance zones and a minimum order to protect margin
  • Recalculate every quarter or when fuel and wages move

Start With Mileage (U.S. Baseline)

The IRS standard mileage rate for business use in 2026 is $0.725 per mile. Use this as a conservative baseline for vehicle cost per mile.

Mileage cost = Round-trip miles × $0.725

If a delivery is 3 miles away, your round-trip is about 6 miles:

6 × $0.725 = $4.35

Full Delivery Cost Formula

Delivery cost = (Mileage cost) + (Driver time) + (Packaging) + (Payment fees)

Example:

  • Round-trip miles: 6
  • Mileage cost: $4.35
  • Driver time: 20 minutes × $18/hr = $6.00
  • Packaging: $0.50
  • Payment fees: $0.40
Total delivery cost = $11.25

If you charge a $3 fee and skip a minimum, you lose money on every order.

Set Fees and Minimums That Work

  • Zone 1 (0-2 miles): Lower fee, lower minimum
  • Zone 2 (2-4 miles): Higher fee or higher minimum
  • Zone 3 (4-6 miles): Only deliver on peak hours or with large minimums

Rule of thumb: Cover 70–90% of delivery cost with fee + minimum. Recover the rest with menu margin.

Operations Tips That Protect Margin

  • Batch deliveries during peak windows
  • Use a delivery menu with higher-margin items
  • Remove low-ticket items from delivery menus
  • Add a small packaging line item if customers accept it

Do This Now

  • Weigh and record 3 portions of your main ingredient
  • Calculate the cost per portion using your supplier invoice
  • Set a portion standard and train your team
  • Review your current menu price against 28-35% food cost target
  • Update your pricing if food cost is above 35%
  • Schedule a monthly cost review with your team

Want This Done Automatically?

KitchenCost lets you model delivery-only pricing and fees so you never guess.

Start on the KitchenCost landing page.

Sources

Frequently Asked Questions

Is in-house delivery always cheaper than apps?

Not always. You avoid commission, but you still pay mileage, labor, insurance, and failed-delivery cost.

What if my average ticket is small?

Set a minimum order or require a bundle so the fixed delivery cost isn't larger than your margin.

Should delivery fees be the same for every distance?

No. Use distance zones so far deliveries pay a higher fee or higher minimum.

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