Virtual restaurants operate exclusively through delivery platforms, eliminating the need for physical dining spaces or walk-in customers. These digital-only concepts run through services like Thuisbezorgd and Uber Eats. Their profitability calculations differ significantly from traditional restaurants due to unique cost structures.
What exactly is a virtual restaurant?
A virtual restaurant eliminates traditional dining elements entirely. No seats, service staff, or physical location for guest dining. These concepts exist purely on delivery platforms, often operating from ghost kitchens or shared commercial spaces.
? Example:
"Tokyo Bowls" appears exclusively on Thuisbezorgd. It operates from "De Brasserie's" kitchen but maintains its own Asian menu identity.
Customers see Tokyo Bowls as independent, though both concepts share the same cooking space.
The cost structure of a virtual restaurant
Virtual restaurants reshape traditional cost models completely. Some expenses vanish while others emerge:
Costs that disappear:
- Service staff (waiters and hosts unnecessary)
- Dishwashing for plates and glassware
- Table settings and dining decor
- Front-of-house operations
Costs that are added:
- Platform fees: 15-30% of each order's value
- Packaging costs: €0.50-€2.00 per delivery
- Delivery expenses: if handling your own logistics
- Platform advertising: sponsored listing fees
⚠️ Note:
Platform commissions become your largest expense. A €20 order generates €3-€6 in platform fees - exceeding traditional service labor costs.
Calculating profitability: the formula
Virtual restaurant profit calculations require adjusted formulas. Platform fees must be treated as primary cost items:
Net revenue = Gross revenue - Platform fees - VAT
Profit = Net revenue - Food cost - Packaging costs - Labor cost - Other costs
? Example calculation:
Order: Pad Thai priced at €18.50 (including 9% VAT)
- Gross revenue: €18.50
- Platform commission (25%): €4.63
- VAT portion (9%): €1.53
- Net revenue: €12.34
Per-order expenses:
- Raw ingredients: €4.20
- Packaging materials: €0.80
- Labor (15 minutes at €20/hour): €5.00
Final profit: €12.34 - €10.00 = €2.34 per order
Food cost percentage for virtual restaurants
Food cost percentages calculate against net revenue after platform deductions. This creates higher apparent food costs compared to traditional restaurants - but that's expected.
Food cost % = (Ingredient costs / Net revenue) × 100
Using our example: (€4.20 / €12.34) × 100 = 34%
? Virtual restaurant benchmarks:
- Food cost: 30-40% (elevated due to platform fees)
- Total variable costs: 65-75%
- Net profit margin: 8-15%
Calculating break-even point
Break-even calculations shift for virtual concepts. You'll have reduced fixed costs but elevated per-order variables.
Break-even orders per day = Fixed costs per day / Profit per order
? Example break-even:
Daily fixed expenses: €150 (kitchen space, staff, marketing)
Average profit per order: €3.50
Break-even point: €150 / €3.50 = 43 daily orders
Optimization tips for more profit
Virtual restaurants offer specific profit enhancement opportunities:
- Raise minimum order thresholds: Platform fees impact smaller orders more severely
- Create bundle packages: Drive average order values through combo deals
- Streamline packaging: Reduce costs while maintaining food quality
- Engineer your menu: Prioritize high-margin, low-cost dishes
⚠️ Note:
Avoid simply raising prices to offset platform fees. Customers compare you directly against platform competitors. Focus on operational efficiency and larger order values instead. This is a pattern we see repeatedly in restaurant financials - price increases alone rarely solve margin problems.
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How do you calculate the profitability of your virtual restaurant?
Calculate your net revenue per order
Subtract platform fees and VAT from each order. This is your actual revenue. On a €20 order with 25% platform fee, €15 remains, minus €1.65 VAT = €13.35 net revenue.
Add up all costs per order
Calculate what each order costs: ingredients, packaging, labor (time × hourly wage), and a portion of your fixed costs. Don't forget to include the time for order picking and packing.
Calculate profit per order and break-even
Subtract all costs from your net revenue. This is your profit per order. Divide your daily fixed costs by this profit to know how many orders you need at minimum.
✨ Pro tip
Track your profit margins across different dayparts over a 30-day period. Virtual restaurants often see 40% higher profitability during weekday lunch hours due to lower platform competition and faster kitchen turnover times.
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Frequently asked questions
Why is my food cost percentage higher for delivery than in my restaurant?
Should I include packaging costs in my food cost?
How do I increase my average order value?
Can I run multiple virtual restaurants from one kitchen?
When is a virtual restaurant more profitable than a traditional restaurant?
How do platform commission rates affect my pricing strategy?
What's the ideal kitchen setup for running multiple virtual brands?
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.
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