Cloud kitchens: how to see profit by brand

The problem with one set of numbers

A cloud kitchen often runs several virtual brands from the same kitchen, staff and supplier accounts, all sold through the same delivery apps. A single profit and loss tells you whether the kitchen makes money, but not which brand is carrying the others.

Set up the books by brand

• Separate revenue by brand, using each brand's store ID on every delivery platform
• Separate platform commission and marketing spend by brand, since both are charged per store
• Tag direct food costs by brand where ingredients are brand-specific
• Keep shared costs, such as rent, staff, utilities and packaging, in a shared pool

Allocate shared costs sensibly

Shared costs can be allocated by a simple basis, such as share of orders or share of revenue. The aim is a consistent, explainable view, not perfect precision. Review the basis once a year.

What to look at each month

• Revenue and order count by brand
• Commission and promotions as a percentage of each brand's sales
• Food cost percentage by brand
• Contribution after direct costs, before shared costs
• Profit after allocated shared costs

Tax note

Brands run inside one company are one taxable person for VAT and Corporate Tax; the brand split is for management decisions. If brands sit in separate companies, each company has its own VAT and Corporate Tax position, and related-party charges between them need to be at arm's length.