How to Plan Delivery Minimums

A delivery minimum should protect the economics of the journey without forcing customers into an unsuitable basket. It is one control among several: delivery fee, zone, menu, time slot and capacity may be more appropriate than one high threshold.

Step 1: calculate contribution before delivery

For representative baskets, calculate selling price less food cost, packaging, discounts, payment charges and channel-specific fees. Use item-level contribution where menu margins vary substantially.

Step 2: calculate the delivery burden

• driver paid time, mileage or provider charge;
• employer costs where applicable;
• dispatch and support work;
• failed-delivery and redelivery allowance;
• outer-zone return time;
• peak or weather variation;
• promotional delivery subsidy.

Step 3: model several basket types

Basket	Why it matters
Low-value, high-margin	May support delivery better than the headline value suggests
High-value, low-margin	Can pass the minimum while producing weak contribution
Complex preparation	Uses scarce kitchen capacity during peaks
Promotion-led	May combine discount and delivery subsidy
Outer-zone	Creates longer journey and lower driver availability

Step 4: compare alternative controls

Test whether a clear delivery fee, narrower zone, selected delivery times or menu restriction gives a better customer and operational outcome. “Free delivery over £X” should be modelled as a promotion, not treated as costless.

Step 5: make the rule transparent

Show the minimum before the customer builds an unavailable journey where possible. Display the remaining amount clearly and avoid manipulative pressure to add unsuitable products. Show mandatory charges in the total price before purchase commitment.

Step 6: pilot and measure

Review conversion, basket contribution, delivery cost, zone mix, complaints and abandoned baskets. Compare with the previous rule over a representative period. Keep a rollback value if the change damages reliable demand without improving contribution.

Common mistakes

• copying a competitor’s minimum;
• using average order value instead of contribution;
• ignoring driver waiting and return time;
• subsidising both discount and delivery unintentionally;
• setting one threshold for every zone and daypart;
• raising the minimum without fixing poor order density.

Run sensitivity checks

Do not rely on one food-cost percentage or one average journey. Recalculate the proposed minimum with higher driver cost, lower basket margin, a failed delivery and a peak surcharge. If a small change turns the order into a loss, the model needs a zone, fee or availability control rather than a fragile threshold.

Consider customer behaviour without manipulating it

A minimum can encourage customers to add useful items, but it can also create waste or abandonment. Present suitable additions normally and let the customer choose. Do not disguise the threshold, add products automatically or claim a saving that depends on spending more than intended.

Keep a decision record

Record the assumptions used for food margin, driver cost, journey and failure allowance, together with the date and owner. When costs or menus change, update the model rather than leaving the customer rule disconnected from the operation.

Practical next step: model ten common baskets in the inner and outer zones, then compare a higher minimum with a clear fee or narrower availability.

Official UK price-transparency reference

• Competition and Markets Authority: Providing clear and accurate information about prices

Guidance checked: 24 July 2026. Mandatory delivery and service charges should be presented clearly before the customer commits to the purchase.

Related guides

• Delivery Management — the main guide for the wider topic.
• Delivery Zones and Minimums — the broader guide that frames this implementation.
• How to Manage Multiple Delivery Zones — a closely related operational control to review alongside this page.
• Delivery Pricing Models — a closely related operational control to review alongside this page.