Delivery Zones and Minimum Order: How to Set Them Up
Your own delivery only makes money if you know how far you drive, what you charge and from which order value it makes sense. Delivery zones and the minimum order for delivery are the two settings that decide this. Here is how to choose them with a calculation, not by eye.
In short
- Split your area into 2 to 4 zones, each with its own delivery fee, minimum order and free delivery threshold.
- Work out the real cost of one delivery: courier time, fuel and wear, packaging. The article has an example.
- The minimum order must cover what the fee does not cover, plus a small profit.
- The free delivery threshold is always above the minimum order in the same zone.
- Say clearly on your website where you deliver, so there are no refused orders at the last step.
What a delivery zone is
A zone is the part of town you are willing to deliver to under certain conditions. Most often it is defined by distance from the venue, because distance best reflects courier time and cost. One zone for the whole town is the simplest solution, but rarely the most profitable.
The reason is simple: a delivery over 1 km and a delivery over 6 km do not cost the same, yet the guest pays one fee. If you split the area into rings, nearby guests pay less and distant ones cover more of the trip. Both sides get a fair price.
Start with fewer zones than you feel like. Two or three are enough for most venues: near, middle and far. Give them simple names guests understand, and do not move the borders every week. Regulars remember the price and expect it to stay the same.
Decide where you stop, too. A zone where the courier loses 50 minutes per order is not delivery, it is a loss. The outer ring should be one where the food still arrives warm and in reasonable time.
Radius, postcodes or zones on the map
There are three main ways to draw your area. Each has weak spots, so choose by town and venue. Menuto supports a list of postcodes, one overall radius, and zones as rings on the map, each with its own price.
| - | Postcodes | Single radius | Rings on the map |
|---|---|---|---|
| How you set it | A list of codes, for example 1000, 1404, 1407 | One number in kilometres | Several radii with a name and price |
| Different fee by distance | No | No | Yes |
| Own minimum order per zone | No | No | Yes |
| Best for | Districts with clear borders, towns with rivers or motorways | A small venue with one fixed area | A venue that delivers over different distances |
| Weak spot | A code can include more distant streets | Distance is a straight line, not by road | Also a straight line; needs the venue address on the map |
| Districts | The closest to a "district" | No | Not as a separate option; approximate with a radius |
One warning: radius and rings are measured in a straight line. If a river, railway or motorway lies between you and the guest, the road may be twice as long. In that case combine judgement: use rings, but check orders from the "hard" directions and reduce the radius.
What one delivery really costs
Before you set a fee, work out what one trip costs. The three main costs are courier time, fuel and vehicle wear, and packaging. The fee you charge the guest does not have to cover everything, but you must know how much stays with you.
Below is a worked example. The numbers are illustrative and chosen for clarity: the courier hour is €9.00 fully loaded, a kilometre is €0.10 for fuel and wear, packaging is €0.60. Replace them with your own.
The example leaves out waiting at the door, failed deliveries and returned orders. If you often lose a few minutes at an address, add them to courier time. Nor do we count the kitchen: preparation stays in the cost of ingredients and the cook labour, not in the delivery cost.
| - | Zone 1 (up to 2 km) | Zone 2 (2–4 km) | Zone 3 (4–6 km) |
|---|---|---|---|
| Round trip | 4 km | 8 km | 12 km |
| Courier time | 15 min | 25 min | 35 min |
| Courier (€0.15 per minute) | €2.25 | €3.75 | €5.25 |
| Fuel and wear (€0.10 per km) | €0.40 | €0.80 | €1.20 |
| Packaging | €0.60 | €0.60 | €0.60 |
| Total delivery cost | €3.25 | €5.15 | €7.05 |
| Fee paid by the guest | €1.00 | €2.00 | €3.00 |
| Left for you to cover | €2.25 | €3.15 | €4.05 |
How to set the minimum order
The minimum order protects you from delivering one cola for €4.00. The idea is simple: revenue from the food must cover what the fee leaves uncovered and still leave a small profit. That is why the minimum order differs in each zone.
You need two numbers: how much of the order value remains after the cost of ingredients (60% in the example) and what profit you want from one delivery (€5.00 in the example). The formula is minimum order = (uncovered cost + desired profit) / share that remains.
- #01
Zone 1
(€2.25 + €5.00) / 0.60 = €12.08. Round to €12.00.
- #02
Zone 2
(€3.15 + €5.00) / 0.60 = €13.58. Round to €14.00.
- #03
Zone 3
(€4.05 + €5.00) / 0.60 = €15.08. Round to €16.00.
- #04
Sanity check
Is this amount realistic for your menu? If guests rarely reach it, add a side dish, a drink or a dessert.
The free delivery threshold
Free delivery above a set amount is the easiest way to raise the average order. A guest with €19.00 in the basket often adds something to avoid the fee. Menuto also shows a hint of how much is left until delivery is free.
There is one rule: the free delivery threshold must be above the minimum order in the same zone. If it is below, the guest never sees it, because they cannot order less than the minimum. The zone editor in Menuto shows a warning when you set such a combination.
Check also that free delivery pays. In the zone 2 example with a €25.00 threshold and 60% remaining, €15.00 is left, of which €5.15 goes to the delivery and €9.85 remains. If the threshold is lower, what remains shrinks fast.
Benefits of a threshold
- A higher average order: guests add items to avoid the fee.
- Easy to explain: "free from €25".
- Can differ for every zone.
What to watch
- In a distant zone free delivery easily becomes a loss.
- A threshold below the minimum order is pointless.
- Do not change it often, or regulars get confused.
Delivery hours
Delivery cost is not the same all day. At peak hours the courier waits longer, orders pile up and delivery times grow. So think about hours, not only distance.
A practical approach is to start with a short delivery window and widen it when you see demand. It is better to do lunch and dinner well than to promise all day and arrive late.
The example is illustrative: hours depend on your venue and town. Track real delivery times for a week or two, then adjust the settings.
- Lunch
First peak
Short orders from offices. Often a smaller amount, so the minimum order matters.
- Afternoon
Quiet period
Time to prepare, and room for distant zones without delays.
- Evening
Second peak
The biggest orders. Limit distant zones here if couriers cannot keep up.
- Late
Optional
Only if you have staff and demand. Late delivery costs more.
How to tell your guests
The most expensive mistake is a guest who finds out at the worst moment: after choosing the dishes, they learn you do not deliver to their address. Show the rules early and clearly.
In Menuto the guest enters an address and the system checks the zone: it shows which zone, how many kilometres away and what the fee is. If the address is outside the area, a clear message says only pickup is possible. Use the same approach on your website and Google profile.
On the site and menuBefore choosing
Write "We deliver up to 6 km", the fees by zone and the minimum order where people see them.
In the basketWhile choosing
Show how much is left to the minimum order and to free delivery.
At the addressAt the address
The check tells the guest which zone they are in and the price before paying.
In your Google profileOutside
Add a link to ordering and the delivery area. See how to set up the profile.
Setup step by step
If you already use Menuto, zones are set in the ordering settings. First switch on "Own delivery": while it is off, delivery is not offered anywhere. More on running your own orders in the article on online ordering without commission.
- #01
Switch on own delivery
Only then can guests choose delivery.
- #02
Choose the zone type
No restriction, postcodes, radius or zones on the map.
- #03
Place the venue on the map
Without an address on the map, radius and rings do not work.
- #04
Set each ring
Name, radius in km, fee, minimum order and free delivery threshold.
- #05
Test with real addresses
Check one close, one distant and one outside the area.
Checklist
- You worked out the delivery cost in each zone.
- The minimum order covers the uncovered cost plus the desired profit.
- The free delivery threshold is above the minimum order.
- You checked addresses from the "hard" directions: river, motorway, railway.
- Delivery hours match real capacity.
- The rules are written on the website and visible in the basket.
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Frequently asked questions
How do I set a delivery zone?
Start with distance from the venue and split it into 2 to 4 rings. For each, work out the delivery cost and set a fee, a minimum order and a free delivery threshold.
What should the minimum order for delivery be?
Large enough to cover what is left of the delivery cost and still leave a profit. The formula is (uncovered cost + desired profit) / share that remains of the order value. The article has an example.
Can free delivery be below the minimum order?
Technically yes, but it is pointless: the guest cannot order below the minimum, so they never see free delivery. Set the threshold above the minimum order.
Is a radius or postcodes better?
Radius and rings are more flexible and allow a different price by distance. Postcodes are clearer when borders follow districts or barriers such as a river.
How many zones are enough?
Most venues start with 2 to 3. More zones make it harder to explain to guests without a big difference in profit.
What does the guest see outside the zone?
In Menuto they get a clear message that the address is outside the delivery area and only pickup is possible, if you offer it.