Quick Answer
A well-run UK dark kitchen generates £13,000-20,000/month revenue with a net profit margin of 8-15% (£1,000-3,000/month). The main margin squeeze is platform commissions (25-35% of revenue). Breakeven typically requires ~30-35 orders per day. Most dark kitchens reach profitability within 4-8 months. Multi-brand operations running 2-3 virtual brands from one kitchen can push revenue to £25,000-40,000/month.
Monthly P&L: Single-Brand Dark Kitchen
Based on a regional UK city (£1,800/month rent), single brand, 750 orders/month, operating 6 days per week with 2 staff plus the owner.
Revenue
Cost of Goods Sold
Platform Commissions
Operating Expenses
Total Revenue
£15,450
Total Costs
£14,183
Net Profit
£1,267
8.2% margin
Profitability Timeline
Dark kitchen profitability improves significantly over time as platform rankings build, waste reduces, and direct orders grow.
| Stage | Orders/Month | Revenue | Net Margin | Notes |
|---|---|---|---|---|
| Months 1-3 | 400-500/month | £7,000-9,000 | -5% to 5% | Building reviews, running promotions. Most dark kitchens lose money or break even. |
| Months 4-6 | 550-700/month | £10,000-13,000 | 5-10% | Platform rankings improve. Starting to optimise menu and reduce waste. |
| Months 7-12 | 700-900/month | £13,000-17,000 | 8-15% | Established brand. Negotiated lower commissions. Direct orders growing. |
| Year 2+ | 900-1,200/month | £17,000-25,000 | 12-20% | Multiple brands possible. Direct orders 15-25% of revenue. Strong margins. |
Breakeven Analysis
How many orders you need per day to cover fixed costs and start making profit.
Fixed monthly costs
£4,680
Rent + labour + utilities + insurance + software
Avg contribution per order
£4.80
Revenue minus food cost, packaging, and commission
Breakeven orders/month
~975
£4,680 ÷ £4.80 = 975 orders
Breakeven orders/day
~33
Based on 30-day month
Breakeven revenue/month
~£12,200
At avg £12.50 net revenue per order
Location Matters
London: Rent £2,500-4,500/month, higher order values (£22-28 avg), breakeven ~35-45 orders/day. Regional cities: Rent £800-1,500/month, lower order values (£16-22 avg), breakeven ~25-30 orders/day. Lower rent cities reach profitability significantly faster.
5 Things That Kill Dark Kitchen Margins
These are the most common reasons dark kitchens underperform on profitability.
Over-reliance on a single platform
One platform change can cut revenue 30-50% overnight
Fix: Diversify across all 3 platforms plus direct orders. Target 15%+ from direct.
Not adjusting prices for delivery
Losing 25-35% of revenue to commission on dine-in prices
Fix: Delivery price = dine-in price ÷ (1 - commission rate). Increase 40-50%.
Food waste above 5%
Every 1% of waste costs ~£150/month on £15k revenue
Fix: Batch prep based on order forecasts. Use cross-menu ingredients.
Ignoring direct order channel
Missing 100% margin orders. Lifetime customer value stays with platforms.
Fix: Build your own ordering site. Include flyers in every delivery bag.
Underestimating labour costs
Owner working 70-hour weeks is not "free" labour
Fix: Factor owner time at £15-20/hour minimum in your P&L.
Related Guides
Written by
James Mitchell
Ghost Kitchen Operations Director & Industry Expert
Frequently Asked Questions
How much money can you make with a dark kitchen?
A single-brand UK dark kitchen typically generates £10,000-20,000/month in revenue once established (after 6+ months). Net profit margins range from 8-15% for a well-run operation, meaning £1,000-3,000/month net profit. Multi-brand operations running 2-3 virtual brands from one kitchen can reach £25,000-40,000/month revenue with 12-20% margins (£3,000-8,000 profit). Location, cuisine type, and platform performance significantly impact results.
What is the average profit margin for a dark kitchen UK?
The average net profit margin for a UK dark kitchen is 8-15% once established. This breaks down as: Revenue 100%, food costs 28-32%, platform commissions 18-24% (blended across platforms), rent 10-15%, labour 15-20%, other costs 5-8%. The 25-35% platform commission is the biggest margin squeeze. Dark kitchens that build a direct ordering channel (15-25% of orders) can push net margins to 15-20% by avoiding commission on those orders.
How many orders does a dark kitchen need to break even?
A typical UK dark kitchen with £4,500-5,000 monthly fixed costs needs approximately 900-1,000 orders per month to break even, or about 30-35 orders per day. This assumes an average order value of £18-22 and blended commission rate of 25%. Breakeven is usually reached within 3-6 months. Lower-rent locations (regional cities at £800-1,200/month vs London at £2,000-4,500) significantly reduce the breakeven threshold.
Are dark kitchens more profitable than restaurants?
Dark kitchens have lower startup costs (£6,000-35,000 vs £50,000-250,000 for restaurants) and lower fixed overhead (no front-of-house, no prime location). However, the 25-35% platform commission effectively replaces restaurant costs like waitstaff and dining room rent. Net margins are similar (8-15% vs 5-15% for restaurants), but dark kitchens reach profitability faster due to lower fixed costs and no fit-out. The key advantage is lower risk, not higher margins.
How long does it take for a dark kitchen to become profitable?
Most UK dark kitchens become profitable within 4-8 months. Months 1-3 are typically breakeven or loss-making while building platform reviews and visibility. By month 6, well-run operations should achieve 5-10% net margins. A realistic timeline: Month 1-2: 15-20 orders/day, Month 3-4: 20-25 orders/day (breakeven zone), Month 5-6: 25-30+ orders/day (profitable). Key accelerators: launching on all 3 platforms simultaneously, running initial promotions, and responding to all reviews.
What are the biggest costs for a dark kitchen?
The three biggest costs for a UK dark kitchen are: 1) Platform commissions (18-24% of revenue) — the single largest expense, unavoidable unless you build direct ordering. 2) Food ingredients (28-32% of revenue) — manage through portion control, waste reduction, and supplier negotiation. 3) Labour (15-20% of revenue) — often underestimated; includes owner time. Rent (10-15%) and packaging (4-6%) are the next largest. Together, these five categories account for 85-95% of total costs.
Can you run multiple brands from one dark kitchen?
Yes, multi-brand operations are one of the biggest advantages of dark kitchens. You can run 2-4 virtual brands from a single kitchen, each with its own menu, branding, and platform listings. This maximises kitchen utilisation and revenue without additional rent. Common strategy: a main brand plus 1-2 specialist brands (e.g., a burger brand + a wing brand + a wrap brand). Shared ingredients across brands reduces waste. Multi-brand operations can reach £25,000-40,000/month from one kitchen.
How do I increase dark kitchen profit margins?
Top margin-improvement strategies: 1) Build direct ordering (eliminates 25-35% commission). 2) Menu engineering — promote high-margin items, remove low-sellers. 3) Negotiate platform commissions (leverage volume data after 500+ orders/month). 4) Reduce food waste below 3% with demand forecasting. 5) Add virtual brands to increase orders without additional rent. 6) Optimise packaging costs (buy in bulk, standardise sizes). 7) Use dynamic pricing during peak hours. 8) Cross-use ingredients across menu items and brands.