You've launched your ghost kitchen six weeks ago, orders are flowing in steadily, but your profit margins look nothing like the projections. Most delivery operators underestimate platform fees and packaging expenses, thinking they're in the black while actually hemorrhaging cash. Finding your exact break-even point shows you when your ghost kitchen stops burning money and starts generating real profit.
What is the break-even point for a ghost kitchen?
Break-even means your revenue exactly covers costs. You're not making profit, but you're not bleeding money either. Ghost kitchens operate differently than traditional restaurants—no server wages to worry about, but those platform fees and packaging costs really add up fast.
💡 Example break-even calculation:
Ghost kitchen with these monthly costs:
- Kitchen space rent: €2,500
- Ingredients (35% of revenue): variable
- Packaging (4% of revenue): variable
- Platform fees (22% of revenue): variable
- Labor: €3,200
- Energy and other: €800
Fixed costs: €6,500 per month
Variable costs: 61% of revenue
Break-even revenue: €6,500 / (100% - 61%) = €16,667 per month
Fixed costs of your ghost kitchen
These expenses hit your account every month, regardless of how many orders you fulfill:
- Kitchen space rent: €1,500 - €4,000 (depends on location and square footage)
- Labor: €2,500 - €5,000 (your salary plus any staff)
- Insurance: €150 - €400
- Energy: €300 - €800
- Internet and phone: €50 - €150
- Accountant and administration: €100 - €300
Add up these fixed costs. This number represents your monthly survival threshold before you can even think about profit.
Variable costs per order
These expenses scale with each sale:
💡 Example variable costs:
Order of €25 (incl. VAT):
- Ingredients (35%): €8.75
- Packaging: €1.00
- Delivery platform commission (22%): €5.50
- Payment fees (3%): €0.75
Total variable costs: €16.00 (64% of order)
Margin per order: €9.00
⚠️ Note:
Platform fees change constantly: Deliveroo charges 18-25%, Uber Eats demands 15-30%. Check your specific contracts for exact percentages.
The break-even formula
This is the math that determines your survival:
Break-even revenue = Fixed costs / (100% - Variable costs %)
With variable costs at 60% of revenue, you've got 40% left to cover fixed costs. So €6,000 in fixed costs divided by 40% equals €15,000 monthly break-even revenue.
How many orders do you need?
Divide break-even revenue by average order value:
💡 Example orders per day:
Break-even revenue: €16,667 per month
Average order value: €22
Required orders: €16,667 / €22 = 758 per month
That's 25 orders per day (at 30 working days)
Profitability timeline
After managing kitchen operations for nearly a decade, I've learned that once revenue crosses break-even, every additional order generates pure margin:
- At 40% margin: every €100 extra revenue = €40 profit
- At 35% margin: every €100 extra revenue = €35 profit
Target break-even for at least 3-6 months in your first year to build sustainable growth momentum.
⚠️ Note:
Account for seasonal variations. December revenue can jump 40% above February levels. Calculate break-even for your slowest months.
Tracking your numbers
Monitor these metrics weekly:
- Daily order volume
- Average order value
- Total revenue vs. break-even point
- Food cost percentage (target below 35%)
- Platform fees as percentage of sales
Food cost calculators automatically track these margins, giving you real-time visibility into profitability progress.
How do you calculate the break-even point of your ghost kitchen?
Calculate your total fixed costs per month
Add up all costs you pay regardless of your revenue: rent, labor, insurance, energy, internet. These are your fixed costs that come back every month.
Determine your variable costs as a percentage
Calculate what percentage of each order goes to ingredients, packaging, platform fees and payment fees. Add these percentages together for your total variable costs.
Calculate your break-even revenue
Divide your fixed costs by (100% minus your variable costs percentage). The result is the monthly revenue you need to break even.
Convert to number of orders per day
Divide your break-even revenue by your average order value. This tells you how many orders you need per month and per day to become profitable.
✨ Pro tip
Recalculate your break-even point every 8 weeks during year one, especially after the first 6 months. Platform fee changes and ingredient price inflation can shift your target by 20% without warning.
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
What's a realistic break-even timeline for ghost kitchens?
Most ghost kitchens hit break-even within 6-12 months. The first quarter focuses on building your customer base, then revenue typically accelerates. Location and concept execution heavily influence this timeline.
Should VAT be included in break-even calculations?
Always calculate excluding VAT. Your €20,000 including VAT becomes €18,349 excluding VAT (at 9% rate). That's your actual revenue available to cover costs.
How do I handle multiple platform fee structures?
Weight your platform fees by order volume percentage. If 60% of orders come through Deliveroo at 22% commission and 40% through Uber Eats at 18%, your blended rate is 20.4%. Recalculate monthly as order distribution shifts.
What if my food costs keep exceeding 35%?
Check your portion control first—many operators unknowingly serve oversized portions. Then renegotiate supplier contracts or find alternative ingredients that maintain quality but reduce costs.
How much cushion should I maintain above break-even?
Aim for 20% margin above break-even to handle unexpected expenses and reinvestment needs. This buffer provides breathing room for equipment repairs, marketing campaigns, or menu development costs.
Can I use the same break-even formula for multi-brand ghost kitchens?
Calculate each brand separately first, then combine the numbers. Different cuisines have vastly different food costs and order values, so a blended calculation often masks which brands are actually profitable.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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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