Picture launching your delivery concept without the headaches of rent, utilities, or equipment maintenance. Cloud kitchens offer this reality, but they completely reshape your cost structure. You'll pay an all-in rate to the provider instead of managing individual expenses, making margin calculations work differently than traditional restaurants.
What are the costs at a cloud kitchen?
Cloud kitchen providers typically charge you through a combination of fees:
- Fixed monthly costs for kitchen space (€500-1500/month)
- Percentage of revenue (15-25% of your gross revenue)
- Extra services such as storage, cleaning, utilities
💡 Example cloud kitchen costs:
Monthly revenue: €15,000
- Fixed kitchen rent: €800
- Percentage fee (20%): €3,000
- Extra services: €200
Total cloud kitchen costs: €4,000 (26.7% of revenue)
Platform fees stack on top of cloud kitchen costs
You'll also pay separate fees to delivery platforms like Deliveroo and Uber Eats:
- Platform commission: 15-30% of order value
- Delivery costs: €2-4 per order (often passed on to customer)
- Marketing fees: additional costs for visibility
⚠️ Note:
Platform fees get calculated on your selling price including VAT. Cloud kitchen fees usually apply to your net revenue. Always verify this in your contracts.
Margin calculation step by step
From years of working in professional kitchens, I've learned that cloud kitchen margins require a completely different calculation approach than traditional restaurant math:
💡 Example complete margin calculation:
Pasta Carbonara - selling price €16.50 incl. VAT
- Selling price excl. VAT: €15.14
- Ingredients + packaging: €4.50
- Platform fee (25%): €4.13
- Cloud kitchen fee (20%): €3.03
Gross margin: €15.14 - €4.50 - €4.13 - €3.03 = €3.48 (23%)
Don't forget packaging costs
Delivery concepts face extra costs that dine-in restaurants don't worry about:
- Food containers: €0.15-0.40 per container
- Carry bags: €0.05-0.15 per order
- Cutlery and napkins: €0.05-0.10 per order
- Stickers and labels: €0.02-0.05 per order
Include these costs in your ingredient calculations for accurate food cost tracking.
Break-even point shifts higher than restaurants
High variable costs from platforms and cloud kitchen fees push your break-even point upward:
💡 Break-even comparison:
Traditional restaurant: break-even often around €25-30 average bill
Cloud kitchen + delivery: break-even often around €35-45 average bill
Reason: 40-50% of your revenue goes to platform and cloud kitchen fees
Optimization tips for better margins
Smart strategies can help you improve your margins despite high fees:
- Focus on higher order values: increase minimum order values
- Efficient packaging: fewer containers per order
- Menu engineering: dishes that travel well and have high margins
- Stimulate direct orders: own website without platform fees
How do you calculate the margin? (step by step)
Calculate your net selling price
Subtract VAT from your menu price. At €16.50 incl. 9% VAT this becomes €15.14 excl. VAT. This is your starting point for all further calculations.
Add up all direct costs
Ingredients + packaging + platform fee + cloud kitchen fee. For example: €4.50 + €4.13 + €3.03 = €11.66 total direct costs per order.
Calculate your gross margin
Net selling price minus all direct costs. €15.14 - €11.66 = €3.48 gross margin (23%). This needs to cover your staff, marketing and profit.
✨ Pro tip
Review your platform-specific margins every 2 weeks and adjust pricing accordingly. Uber Eats might justify 12% higher prices than direct orders due to commission differences.
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 is a healthy margin for cloud kitchen delivery?
Due to high platform and cloud kitchen fees, 20-30% gross margin is already solid performance. This runs lower than traditional restaurants (35-45%) but you also carry fewer fixed costs.
Should I include VAT in my margin calculation?
Always calculate excluding VAT. Platform fees often get calculated on the price including VAT, but your margin gets calculated on the net selling price without VAT.
How do I prevent platform fees from eating into my margin?
Focus on higher average order values and encourage direct orders through your own website. Every direct order saves you 15-30% in platform commission.
Can I negotiate better rates with cloud kitchen providers?
Yes, especially after proving consistent volume for 3-6 months. Many providers offer tiered pricing or reduced percentage fees for higher monthly revenues.
How do seasonal fluctuations affect cloud kitchen margins?
Fixed monthly costs hit harder during slow periods since you can't reduce rent like traditional restaurants. Plan for 20-30% revenue drops in quiet months and adjust your pricing accordingly.
Should I track margins differently for lunch vs dinner orders?
Absolutely. Lunch orders typically have lower average values but higher volume, while dinner orders justify premium pricing. Track each daypart separately to optimize your menu pricing.
Are cloud kitchen costs deductible from sales tax?
Cloud kitchen fees are business costs and therefore deductible, just like rent for your own space. Do check whether your provider charges VAT on the services.
📚 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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