73% of ghost kitchens operating multiple virtual brands report 15-40% higher monthly revenue compared to single-brand operations. But the math isn't always straightforward. You'll face extra packaging costs, marketing expenses, and potentially new recipes that can eat into those gains.
What are the extra costs of a second virtual brand?
Running a virtual brand from your existing kitchen sounds simple, but the cost structure changes completely. Here's what you're looking at for additional expenses:
- Packaging: Different containers, stickers, bags (€0.50-€2.00 per order)
- Marketing: Photography, social media, platform promotion (€200-€800/month)
- Platform commission: Deliveroo/Uber Eats takes 15-30% of each order
- Menu development: Time for new recipes and cost price calculation
? Example:
You run an Italian restaurant and start virtual brand "Asian Fusion" from the same kitchen:
- Extra packaging per order: €1.20
- Marketing per month: €400
- Average order value: €28.00
- Platform commission (25%): €7.00 per order
Extra costs per order: €8.20
Calculate your break-even point
Your second brand needs to generate enough extra revenue to cover all those additional costs. And I mean all of them. Here's the formula that actually works:
Break-even orders per month = Fixed monthly costs / (Average order value - Variable costs per order)
? Example calculation:
Asian Fusion brand with these figures:
- Fixed costs per month: €400 (marketing)
- Average order value: €28.00
- Food cost: €8.40 (30%)
- Packaging: €1.20
- Platform commission: €7.00
Variable costs per order: €8.40 + €1.20 + €7.00 = €16.60
Break-even: €400 / (€28.00 - €16.60) = 35 orders per month
Check your kitchen capacity
Before you start dreaming about profits, make sure your kitchen can actually handle the extra volume. I've seen too many operations crash because they didn't think this through:
- Peak hours: Can you handle 20% more orders during the busiest times?
- Inventory: Do you have space for ingredients from both brands?
- Staff: Can the same team prepare both concepts without losing their minds?
- Equipment: No conflicts between dishes (e.g. fryer for both brands)?
⚠️ Note:
If your second brand steals orders from your main brand (cannibalization), you'll earn way less than your calculation shows. This mistake costs the average restaurant EUR 200-400 per month in lost profits. Monitor this like a hawk during your first few months.
Calculate your potential profit
Once you hit your break-even point, here's how to figure out what you're actually making:
Net profit = (Number of orders × Margin per order) - Fixed monthly costs
? Profit calculation:
Asian Fusion does 80 orders per month (more than break-even of 35):
- Margin per order: €28.00 - €16.60 = €11.40
- Revenue 80 orders: €2,240
- Variable costs: €1,328
- Fixed costs: €400
Net profit: €512 per month
Test period of 3 months
Start with a test period to see if your calculations hold up in the real world. Track these numbers weekly - and I mean religiously:
- Number of orders per week - is this growing towards your break-even?
- Average order value - does your estimate match reality?
- Actual food cost - any surprises in ingredient prices?
- Cannibalization - is your main brand declining because of the new brand?
After 3 months you'll have solid data to decide if this brand is worth continuing or if you should pull the plug.
Related articles
How do you calculate profitability? (step by step)
Inventory all extra costs
Make a list of packaging costs per order, monthly marketing costs, and platform commissions. Also factor in any extra ingredients that your main brand doesn't use.
Calculate your break-even point
Divide your fixed monthly costs by your margin per order (order value minus variable costs). This gives you the minimum number of orders you need to break even.
Estimate realistic order numbers
Look at similar brands on delivery platforms in your area. Start conservatively with 50-75% of what you think you can achieve, and calculate whether that exceeds your break-even.
Test for 3 months and monitor weekly
Launch the virtual brand and track your actual figures weekly. Adjust your calculation based on real data and decide after 3 months whether to continue.
✨ Pro tip
Track your main brand's exact order volume for 4 weeks before launching your second brand, then compare weekly performance. If your main brand drops more than 12% while the second brand grows, you're probably cannibalizing rather than expanding your market.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
Our free food cost calculator does it in seconds.
Was this article helpful?
Frequently asked questions
How many orders do I need at minimum to make a profit?
Can I use the same staff for both brands?
What if my second brand takes customers away from my main brand?
What packaging costs should I include in my calculations?
How do I handle different dietary requirements between brands?
Should I launch during peak or slow season?
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.
More in this category
Related questions
Explore more topics
Food cost control for delivery and dark kitchens
With delivery, margins are thinner than ever. KitchenNmbrs calculates your actual food cost including packaging so you know if every order is profitable. Test it free for 14 days.
Start free trial →