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.
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.
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Frequently asked questions
How many orders do I need at minimum to make a profit?
That depends entirely on your costs and margin per order. Divide your fixed monthly costs by your net margin per order. For most virtual brands this falls between 30-100 orders per month, but I've seen it range much wider.
Can I use the same staff for both brands?
Yes, as long as the dishes aren't overly complex and your team can juggle both concepts. But be ready for more intense peak hours. Start with a limited menu to test how they handle it.
What if my second brand takes customers away from my main brand?
This cannibalization problem is real and reduces your actual profit significantly. Monitor both brands closely for the first 3 months. If the combined profit from both brands is still higher than your original single brand, you're good to go.
What packaging costs should I include in my calculations?
Count everything - containers, lids, bags, stickers, napkins, and cutlery if needed. This typically runs €0.50-€2.00 per order depending on your concept and order size. Don't forget branded stickers for the new brand.
How do I handle different dietary requirements between brands?
Cross-contamination becomes a major issue with multiple brands serving different cuisines. You'll need separate prep areas or strict timing for allergen-free dishes. Factor in extra cleaning time and possibly specialized equipment costs.
Should I launch during peak or slow season?
Launch during your slower months so you can test operations without overwhelming your kitchen. You'll have more time to work out the kinks and train staff before your busy season hits and everything gets chaotic.
📚 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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