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How Do I Work Out Which of My Dark Kitchen's Virtual Brands Is Profitable Once Commission and Food Cost Are Taken Off?

Dark kitchens run several virtual brands but cannot see profit per brand. We combine orders, app fees and food cost so each brand's margin is clear.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

With several virtual brands sharing one kitchen, one team and one set of ingredients, most operators cannot say which brand earns its keep. We pull orders and deductions per brand from each app, apply food and packaging cost from your recipes, and show margin per brand, per app and per week, so decisions to keep, change or drop a brand rest on numbers.

Five brands, one bank account

The burger brand has the most orders. The dessert brand has the best reviews. The vegan brand was launched because an app's account manager said there was demand. Everything is paid into the same bank account in weekly lumps per app, and at the end of the month you know the kitchen made some money, or did not.

Which brand is carrying the others? You have a feeling. The burger brand is busy but heavily discounted. The loaded fries brand uses cheap ingredients but sells few orders. The dessert brand uses expensive packaging. Without splitting the numbers, you cannot tell whether dropping a brand would free up the kitchen or remove the one thing that was quietly profitable.

Why brand profit is invisible

The apps pay per listing, so in principle each brand's income is separate. In practice, the payouts arrive as net amounts with commission, promotion funding, refunds and fees taken off, and the statements for fifteen listings arrive in three different formats. Nobody has time to split them by brand every week.

Costs are harder still. The same chicken goes into three brands. The same staff cook all of them. Packaging differs by brand. Food cost per brand needs a link from each menu item to the ingredients and packaging in it, which in most dark kitchens lives in the head chef's memory or an old spreadsheet.

Decisions made without the numbers

DecisionWhat you need but lack
Keep or drop a brandMargin per brand after all deductions
Which app to push a brand onBrand margin per app
Whether a promotion paidPromotion cost per brand and its effect on orders
Where to raise pricesFood and packaging cost per item
Whether a new brand is worth itA clear baseline for the existing ones

Busy brands feel successful, which is not the same as being profitable. A brand that fills the fryer with heavily discounted orders may be crowding out a quieter brand that earns more per order.

A margin view per brand

  1. We collect orders and payout statements for every brand listing on every app, through partner reporting where your accounts allow and statement exports where they do not.
  2. Each order carries its brand, app, gross value, commission, promotion contribution, refunds and fees in one common layout.
  3. With your head chef, we record the main ingredients and packaging for each menu item, with costs from your supplier invoices, so each order has an estimated food and packaging cost.
  4. Shared costs such as rent, utilities and staff can be split across brands by a rule you choose, such as share of orders or share of kitchen time, and the rule is shown on every report.
  5. A weekly page shows each brand's orders, gross sales, deductions, food and packaging cost and contribution, by app and combined.
  6. You can see trends over months, so a brand whose margin is shrinking is visible before it becomes a problem.

We show the numbers and how they were worked out. Accounting treatment and business decisions stay with you and your accountant.

Reviewing the brands on a Monday

The page shows that the burger brand's volume is high but its margin after promotions is thin on one app. The dessert brand makes a healthy contribution despite few orders, because its food cost is low even with the fancy boxes. The vegan brand barely covers its packaging. You end the vegan brand's promotion and give the dessert brand more attention, then check again in a month.

  • Contribution per brand, per app, every week
  • Food and packaging cost built into the view
  • Shared costs split by a rule you can see
  • Brand decisions based on margin, not volume

Could you answer this about your brands?

  • You cannot say which brand is most profitable after fees.
  • App payouts for all brands arrive and are never split out.
  • Food costs per menu item are not written down anywhere.
  • A brand was launched without a way to judge whether it worked.
  • Busy brands are assumed to be your best ones.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

Still have a question?

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Do I need exact recipe costings?

Not at first. Approximate quantities for the main ingredients and packaging give a useful picture, and you can refine the ones that matter most.

How are shared costs split between brands?

By a rule you choose, and the report always shows which rule was used. Different rules can be compared side by side.

Can this connect to Xero?

Yes. Brand-level figures can feed tracking categories in Xero or a similar feature in other accounting packages.

What affects the cost?

The number of brands and apps, and how much order and payout data each app provides to you.

Keep reading

More on Problems We Solve

Start here

Tell us how many brands your kitchen is running

Describe your virtual brands, which apps each one is on, and how orders, stock and packing work in the kitchen today. We will tell you what we would build and what an existing tool already covers, and if the honest answer is fewer brands rather than more software, we will say that too.

  1. You tell us what you needTwo minutes on the form, or a message on WhatsApp.
  2. A senior engineer reviews itAnd comes back with questions, a realistic range and an honest view on fit.
  3. Free 30-minute scoping callWe talk through scope, options and a realistic estimate — with no obligation.
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