A well-run cloud kitchen often keeps about 10 to 15% of sales as net profit. Rent is low, but platform commission, packaging and ads take a share a dine-in restaurant never pays. Those three decide whether a cloud kitchen makes money.
Where the money goes
| Cost | Usual share of sales | Example, out of 100 |
|---|---|---|
| Food | 28 to 32% | 30 |
| Platform commission and fees | 15 to 30% | 22 |
| Staff | 15 to 20% | 17 |
| Packaging | 3 to 6% | 5 |
| Rent | 3 to 8% | 5 |
| Ads and offers on the platforms | 3 to 8% | 5 |
| Electricity and gas | 3 to 5% | 4 |
| Other | 1 to 3% | 2 |
| Net profit | 10 to 15% when run well | 10 |
Rough guides only. Commission depends on the platform, the city and the plan; offers you fund also lower the order on which you are paid.
How it differs from a dine-in restaurant
- Lower rent and fewer staff, because there is no dining room and no service team.
- Higher selling costs: commission, ads and packaging can together take a third of sales.
- Less control of the guest: the platform owns the customer and the reviews.
Six ways to raise a cloud kitchen margin
- Read every payout statement line by line. Check commission, fees and adjustments against your agreement each week.
- Price the delivery menu for delivery. Include commission and packaging in the price of each dish.
- Tie ads to orders. Stop any ad or offer that does not bring orders that leave money after commission.
- Build a menu that travels. Dishes that hold heat and texture get better ratings and fewer refunds.
- Run more than one brand from one kitchen. Shared ingredients and staff spread the fixed costs.
- Grow direct orders. Every order that comes direct saves the platform commission.
Try it on your own numbers: Delivery commission calculator, free and with no sign-up.
See it every day, not every month
Peasily reads each platform's payout statement line by line, checks commission and fees against your agreement, and shows what each platform really leaves you, outlet by outlet and brand by brand.
Screens from the Peasily demo brand.
Questions
Is a cloud kitchen profitable?
It can be. Well-run cloud kitchens often keep about 10 to 15% of sales, but high commission, ads and packaging can wipe that out if prices are not set for delivery.
What is the biggest cost in a cloud kitchen?
Usually food, followed closely by platform commission and fees.
How can a cloud kitchen reduce platform commission?
Negotiate the plan, limit offers you fund, and grow direct orders through your own website or phone line.
See your own numbers in Peasily
We'll walk you through it with your real menu and outlets.