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Cloud kitchens

Which brand in your cloud kitchen actually makes money?

· 2 min read

Running several brands from one kitchen is a smart way to get more from the same staff and space. But it makes one question hard to answer: which of those brands is actually worth it?

Why it is hard to see

  • All brands share the same kitchen, staff and rent, so those costs are rarely split by brand.
  • Each brand can have its own deal on the same platform: a different rate, different fees, different promotions.
  • Platform reports often mix brands together, or show each brand's sales without its costs.
  • A brand with the most orders can still leave you the least, once its platform cut and promotions are counted.

How to compare brands fairly

  • Start with each brand's net sales, on each platform.
  • Take off what each platform takes for that brand: its own commission, fees and funded discounts.
  • Take off the costs that grow with that brand's orders, such as packaging.
  • Compare what is left, brand by brand and month by month. That is the money each brand brings in to pay for the shared kitchen.

What to do with it

  • Give your promotion budget to the brands that leave you most per order.
  • Renegotiate, or reprice, the brand whose platform deal costs the most.
  • Question a brand that keeps growing in orders but not in what it leaves you. Its menu, prices or platform terms may need to change.

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