C
Chowfly
Back to BlogOperations

The Complete Guide to Delivery Packaging: How to Reduce Costs and Improve Quality

Packaging costs can eat 3-5% of delivery revenue. Here's how to choose the right packaging, reduce costs, and keep food quality high.

EW
Emily Wong
Content Strategist
October 12, 2024
10 min read

The Packaging Problem


Delivery packaging is expensive. Really expensive.


The average restaurant spends $0.75-1.50 per order on packaging. For 500 orders/month, that's $375-750 disappearing into containers, bags, and utensils.


But cheap packaging can hurt food quality, leading to refunds and bad reviews.


Here's how to find the sweet spot: quality packaging that doesn't break the bank.


Understanding Packaging Costs


What You're Paying For

  • Containers: $0.25-0.60 per order
  • Bags: $0.10-0.25 per order
  • Utensils/napkins: $0.10-0.20 per order
  • Sauces/condiments: $0.15-0.30 per order
  • Tamper-evident seals: $0.05-0.10 per order

    • Total: $0.65-1.45 per order


    For a restaurant doing 500 orders/month, that's $325-725/month. Over a year, that's $3,900-8,700.


    Choosing the Right Containers


    For Hot Food

    Best options:

  • Aluminum containers: Great for heat retention, recyclable, $0.15-0.30 each
  • Compostable clamshells: Eco-friendly, good insulation, $0.20-0.40 each
  • Insulated bags: For multiple items, reusable, $0.10-0.20 per use

    • Avoid:

  • Thin plastic containers (food gets cold)
  • Paper containers for wet foods (they leak)
  • Styrofoam (banned in many areas, poor PR)

    • For Cold Food

    Best options:

  • Plastic clamshells: Clear, stackable, $0.12-0.25 each
  • Compostable containers: Eco-friendly option, $0.18-0.35 each
  • Salad containers: With separate dressing cups, $0.20-0.40 each

    • For Soups/Liquids

    Best options:

  • Leak-proof containers: With secure lids, $0.25-0.50 each
  • Separate soup containers: For combo meals, $0.20-0.40 each

    • Cost Reduction Strategies


    1. Buy in Bulk

    Ordering 10,000+ units at once can save 20-30%. Work with suppliers to set up bulk orders.


    2. Use Multi-Purpose Containers

    Instead of different containers for different items, use one size that works for most items. Reduces inventory and simplifies ordering.


    3. Eliminate Unnecessary Packaging

    Do you really need:

  • Individual sauce containers for every order? (Include only when requested)
  • Extra napkins? (One per order is usually enough)
  • Multiple bags? (One sturdy bag works)

    • 4. Negotiate with Suppliers

    If you're spending $500+/month on packaging, negotiate:

  • Volume discounts
  • Better payment terms
  • Free shipping on large orders

    • 5. Consider Reusable Options

    For regular customers, offer reusable containers with a deposit. Reduces waste and costs.


    Quality Considerations


    Heat Retention

    Food that arrives cold = refunds. Invest in:

  • Insulated containers for hot items
  • Proper sealing to prevent heat loss
  • Separate containers for hot and cold items

    • Leak Prevention

    Leaking containers = bad reviews. Use:

  • Leak-proof containers for liquids
  • Secure lids (snap-on or screw-on)
  • Separate containers for sauces

    • Presentation

    Packaging is part of the brand experience. Consider:

  • Branded containers (increases perceived value)
  • Clear containers (customers see what they're getting)
  • Professional appearance (builds trust)

    • Platform-Specific Requirements


    DoorDash

  • No specific requirements
  • But quality packaging = better reviews = more orders

    • UberEats

  • Recommends leak-proof containers
  • Prefers eco-friendly options (better for ratings)

    • Grubhub

  • No specific requirements
  • Quality packaging affects customer satisfaction scores

    • The ROI of Better Packaging


    Let's say you upgrade packaging:

  • Cost increase: $0.20 per order
  • Refund reduction: 2% (from 5% to 3%)
  • Average order: $30
  • Savings from fewer refunds: $0.60 per order
  • Net benefit: $0.40 per order

    • For 500 orders/month, that's $200/month in savings. The packaging upgrade pays for itself.


    Sustainable Packaging Options


    Compostable Options

  • Cost: 20-40% more than plastic
  • Benefit: Better for environment, appeals to eco-conscious customers
  • ROI: Can justify higher prices, reduces negative reviews

    • Recyclable Options

  • Cost: Similar to standard packaging
  • Benefit: Better environmental impact
  • ROI: Positive brand perception

    • Implementation Checklist


  • Audit current packaging costs (track for 1 week)
  • Identify quality issues (review refund reasons)
  • Research suppliers (get quotes from 3+ vendors)
  • Test new packaging (try on 50 orders)
  • Measure results (refunds, reviews, costs)
  • Scale what works (roll out to all orders)

    • The Bottom Line


    Good packaging doesn't have to be expensive. The key is:

  • Buy smart (bulk, negotiate)
  • Eliminate waste (only include what's needed)
  • Focus on quality (prevent refunds)
  • Consider sustainability (brand value)

    • The right packaging strategy can reduce costs by 20-30% while improving food quality and customer satisfaction.


    Start by tracking your packaging costs this week. You might be surprised by what you find.

    Tags

    packagingoperationscost reductionquality control

    Share this article

    EW

    Emily Wong

    Content Strategist

    Emily Wong leads restaurant success at Chowfly, helping hundreds of restaurants optimize their delivery operations and recover lost profits.

    Want more insights?

    Browse our complete library of restaurant optimization guides.

    View All Articles