Free delivery threshold: the order value that unlocks free delivery
Updated October 20, 2026
A free delivery threshold is the order value above which a restaurant drops or cuts its delivery fee: "free delivery on orders over $35." It nudges customers to add a side or a drink to reach the line, which raises the average order value. It only pays if the extra food earns more than the fee you give up.
In short
- Set it just above your current delivery average, so a typical customer needs one more item.
- Do the margin math: the extra items' gross profit has to beat the waived fee.
- Limit it by distance or area, so free delivery doesn't apply to your longest trips.
- On Menuthere free or reduced delivery bands start on the Lite plan, with a "add $X more" bar at checkout.
How to choose the number
- Find your delivery AOV. Look at delivery orders only, not all orders.
- Set the threshold 15–35% above it. Far enough that people add something; close enough that they will. This range is a starting point, not a rule.
- Check the margin math (below) with your own food cost.
- Review after a month. If almost nobody reaches it, lower it; if almost everybody already does, it's just a discount.
The margin math
A restaurant's delivery orders average $28. The delivery fee is $4.99. It sets free delivery above $35, and its food cost is 30%, so each extra dollar of food leaves $0.70 of gross profit.
| Customer's cart | Adds | Fee waived | Gross profit on what they add | Net effect per order |
|---|---|---|---|---|
| $28, doesn't add | $0 | No | $0 | $0 |
| $30, adds a $6 side | $6 | $4.99 | $4.20 | −$0.79 |
| $28, adds a $9 dessert | $9 | $4.99 | $6.30 | +$1.31 |
| $36, already above | $0 | $4.99 | $0 | −$4.99 |
(Illustrative.) The last row is the hidden cost: customers who would have spent $35+ anyway now get delivery free. A threshold set too low gives away fees on orders you already had. Reducing the fee (for example $1.99 above $35) instead of waiving it often balances this better.
Bands by distance
| Rule | Example |
|---|---|
| Free within a distance | Free delivery over $35 within 3 miles |
| Reduced further out | $2 off delivery over $35 beyond 3 miles |
| A higher band | Free delivery over $60 at any distance in your area |
How Menuthere handles free delivery thresholds
- Bands you set. Switch on Free delivery minimum purchase, enter the Order value to unlock (0 means any order), and choose Within a distance (with Only up to), Any distance, or In zones if you deliver by zones.
- Free or reduced. Pick Make it FREE, or Reduce by amount with how much to take off. A box reads your rule back in plain words.
- Several bands. Add more bands, such as a higher amount for a longer distance. An order that fits more than one band gets whichever leaves the least to pay.
- What counts. The total of the items in the cart, before the delivery charge. Takeout and dine-in are unaffected.
- The nudge. Checkout shows a bar such as "Add $7 more for free delivery." If your delivery charge is already zero, no bar is shown.
- On the map. Each free-delivery reach shows as a green dashed ring.
- Plan: Lite (US$17 a month). Help: free and reduced delivery.
What it doesn't do: Menuthere doesn't suggest a threshold for you or report how many orders reached it. Compare your delivery average order value in Analytics before and after.
Set a free-delivery line by distance or area, with a checkout nudge to reach it.
Related terms
- Average order value: the number to set the threshold from.
- Delivery zone: where you deliver and what each area pays.
- Upselling: suggestions that help customers reach the line.
FAQs
What is a free delivery threshold?
It is the order value above which a restaurant waives or reduces its delivery fee, such as free delivery on orders over $35. It encourages customers to add items to reach the line.
How do I choose a free delivery threshold?
Start from your average delivery order and set the threshold a little above it, so a typical customer needs one more item. Then check that the profit on the extra items is more than the delivery fee you give up.
Does free delivery lose money?
It can. You give up the fee on every order above the line, including orders that would have been that large anyway. It pays when enough customers add items whose gross profit beats the fee.
Can free delivery apply only to nearby addresses?
Yes. On Menuthere a free-delivery band can apply within a distance, at any distance, or only inside the delivery zones you choose.
Is free delivery on Menuthere's Free plan?
No. Free and reduced delivery bands start on the Lite plan. Delivery areas and delivery charges themselves are on every plan.
Sources (1)
- Menuthere help: Free and reduced delivery, updated 14 Oct 2026 (Free delivery minimum purchase; Order value to unlock, 0 = any; Within a distance / Only up to / Any distance / In zones; Make it FREE / Reduce by amount; read-back box; several bands, best applies; items total before the delivery charge; delivery only; "Add ₹120 more for free delivery" bar; no bar when the charge is zero; green dashed ring; plan Lite): https://menuthere.com/docs/delivery/free-and-reduced-delivery (accessed 20 Oct 2026)