A ghost kitchen in Amsterdam discovered they needed 423 orders monthly just to cover rent and utilities – before making a single euro profit. Platform fees and hidden costs catch most delivery-only operators off guard. Here's how to calculate your true break-even point for delivery operations.
What are your fixed costs for delivery?
Break-even calculations start with mapping every monthly fixed expense. Delivery kitchens face different cost structures than traditional restaurants.
- Kitchen space rent
- Gas, water, electricity
- Insurance
- Phone and internet
- Equipment depreciation
- Accountant and administration
- Marketing costs (Google Ads, social media)
? Example fixed costs dark kitchen:
- Kitchen rent: €2,800
- Energy: €450
- Insurance: €180
- Internet/phone: €85
- Depreciation: €320
- Administration: €150
- Marketing: €400
Total: €4,385 per month
Calculate your average margin per order
Platform commissions slash your actual profit margins. Most kitchen managers discover too late that their real margin sits 40-50% below what they initially calculated.
Formula: Net margin = Order value - Food cost - Platform fees - Packaging costs
? Example calculation per order:
Average order value: €28.50
- Food cost (30%): €8.55
- Platform fees (25%): €7.13
- Packaging costs: €1.20
Net margin: €28.50 - €8.55 - €7.13 - €1.20 = €11.62
⚠️ Note:
Platform fees range from 15-30% based on your contract terms and promotional participation. Always verify your exact percentage through monthly platform statements.
The break-even formula for delivery
Once you've got accurate fixed costs and per-order margins, the math becomes straightforward.
Break-even orders per month = Total fixed costs ÷ Net margin per order
? Example break-even calculation:
Fixed costs: €4,385 per month
Net margin per order: €11.62
Break-even: €4,385 ÷ €11.62 = 377 orders per month
That equals roughly 13 orders daily (based on 30-day months).
Include variable costs
Higher order volumes trigger additional variable expenses that can't be ignored. These costs scale directly with your sales volume.
- Part-time help on peak days
- Extra energy with more production
- More packaging materials
- Higher ingredient purchases
Build in a 10-15% safety buffer above your calculated break-even point. This accounts for variable cost increases as order volume grows.
⚠️ Note:
Break-even isn't your profit target. Plan for 20-30% more orders than break-even to maintain healthy profit margins.
Seasonal fluctuations and reality
Delivery demand swings dramatically between peak periods (weekends, rainy days) and slow stretches (summer holidays, January). Calculate separate break-even points for your weakest months.
Most ghost kitchens see 30-40% revenue variation between their strongest and weakest performing months. Structure your financial planning around these seasonal patterns.
How do you calculate your break-even point? (step by step)
Make a list of all your fixed monthly costs
Write down rent, energy, insurance, internet, depreciation and fixed marketing costs. Add everything up for your total fixed costs per month.
Calculate your real margin per order
Subtract from your average order value: food cost, platform fees (15-30%) and packaging costs. This is your net margin per order.
Divide fixed costs by margin per order
Use the formula: Fixed costs ÷ Net margin = Break-even orders per month. Add 20-30% to this for profit and unexpected costs.
✨ Pro tip
Track your daily order count against your monthly break-even target of 377 orders – you'll need exactly 12.6 orders per day to stay on track. Tools like KitchenNmbrs automatically calculate real-time margins including all delivery costs.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Should I include labor costs in my break-even calculation?
How do I determine my actual platform commission rates?
What's the best approach for calculating break-even across multiple platforms?
How frequently should I recalculate my break-even point?
What steps should I take if I'm not hitting break-even targets?
Do packaging costs significantly impact my break-even calculations?
Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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