A healthy net margin for a ghost kitchen sits between 8-15%, outperforming traditional restaurants thanks to reduced staffing and rent expenses. Ghost kitchen operators often overlook platform fees and packaging costs while calculating food costs. You'll discover how to determine a realistic net margin for your delivery operation.
What is a net margin?
Net margin represents the percentage of revenue remaining as profit after subtracting all expenses. Ghost kitchens face unique cost structures compared to traditional restaurants.
💡 Example calculation:
Monthly revenue: €25,000
- Platform fees (20%): €5,000
- Food cost + packaging (35%): €8,750
- Kitchen rent: €2,500
- Staff: €4,000
- Other costs: €2,000
Net profit: €2,750 = 11% net margin
Ghost kitchen vs. traditional restaurant
Cost structures differ dramatically from brick-and-mortar establishments:
- Lower rent costs: no prime location needed, often 50-70% cheaper
- Less staff: no waiters, hosts, bartenders
- Higher platform fees: 15-30% of your revenue goes to Deliveroo/Uber Eats
- Extra packaging costs: boxes, bags, stickers cost €0.50-€1.50 per order
⚠️ Watch out:
Most ghost kitchen operators exclude platform fees from cost calculations. This creates artificially inflated margin projections.
Healthy margins by revenue bracket
Net margins fluctuate based on operational scale and efficiency:
- €10,000-€20,000/month: 5-10% (startup phase, high fixed costs per order)
- €20,000-€50,000/month: 8-15% (optimal phase for single-brand ghost kitchens)
- €50,000+/month: 12-20% (multi-brand or highly efficient operation)
💡 Benchmark example:
Successful burger ghost kitchen, €35,000 revenue/month:
- Platform fees: 18% (€6,300)
- Food + packaging: 32% (€11,200)
- Rent + utilities: 8% (€2,800)
- Staff: 25% (€8,750)
- Marketing: 3% (€1,050)
- Other costs: 2% (€700)
Net margin: 12% (€4,200)
Where things often go wrong
Three critical mistakes that devastate net margins:
1. Underestimating platform fees
You expect 15%, but promotions and additional commissions push costs to 20-25%.
2. Forgetting packaging costs
€0.75 per order appears minimal, but 1000 monthly orders equals €9,000 annually.
3. Not accounting for returns
5-8% of orders require refunds or replacements. That directly impacts your bottom line.
⚠️ Watch out:
Operating at 5% net margin means you're essentially working for platforms and suppliers, not yourself.
How to improve your net margin
Four proven strategies that deliver results:
1. Optimize your menu pricing
Build platform fees into selling prices. Target €18-19 to net €15 after commissions.
2. Increase your average order value
Bundle deals and upsell sides generate impact. €2 extra per order creates €24,000 additional annual revenue at 1000 monthly orders.
3. Multi-brand strategy
Run multiple concepts from one kitchen (burger + pizza). Fixed costs spread across higher revenue streams.
4. Stimulate direct sales
Your website eliminates platform fees, boosting margins by 15-20 percentage points.
💡 Smart move:
A pizza ghost kitchen launched breakfast burritos. Same kitchen, different hours, 40% revenue increase without additional rent.
Tools for margin monitoring
Manual tracking becomes chaotic quickly. After managing kitchen operations for nearly a decade, I've seen operators struggle with spreadsheets that miss critical data points. Tools like KitchenNmbrs display actual per-dish margins including platform fees and packaging costs. You'll identify profitable items and eliminate margin killers.
How do you calculate your net margin? (step by step)
Gather all costs from last month
Add up: platform fees, food cost, packaging, rent, staff, marketing, insurance and other costs. Don't forget anything, even small amounts.
Calculate your actual revenue
Take your gross revenue and subtract platform fees. This is what actually comes in. Use this amount for your calculation.
Apply the formula
Net margin = ((Revenue after platform fees - All costs) / Revenue after platform fees) × 100. If you come in under 8%, you need to take action.
✨ Pro tip
Track your net margin weekly rather than monthly for ghost kitchen operations. Order volumes fluctuate 30-40% more than traditional restaurants, and weekly monitoring catches margin drops within 7 days instead of 30.
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 good net margin for a starting ghost kitchen?
During the first 6 months, 5-8% is typical. You're building efficiency, order volume remains low, and learning curves impact performance. Target 10-12% after your first year of operations.
Should I include platform fees in my cost price calculation?
Absolutely essential. Platform fees represent direct operational costs, identical to ingredient expenses. Include them in food costs or track as separate line items for accurate margin calculations.
Why is my net margin lower than expected?
Hidden costs typically cause margin erosion: platform fees exceeding projections, accumulating packaging expenses, or insufficient average order values. Returns and refunds also impact profitability more than anticipated.
📚 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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