The Scaling Truth
Scale multiplies what you already have - whether that's profit or losses. If you make £2 profit per order, scaling 10x gives you £20 profit minus massive scaling costs. If you're losing money, scaling loses money faster. Fix your unit economics (50%+ gross margin, 15%+ net) before scaling.
7 Signs You're Ready to Scale
Consistent profitability for 6+ months
Not just revenue - actual profit after all costs. One good month isn't a pattern.
Turning away customers regularly
You're at capacity and losing revenue you could capture with more resources.
Documented, repeatable processes
You can't scale chaos. Systems must work without your constant involvement.
Strong unit economics
Your profit per order must be healthy enough to survive scaling costs.
Waiting list or unfulfilled demand
Real evidence people want more of what you offer.
Cash reserves or funding available
Scaling requires investment before the return. You need runway.
You've fixed the bottlenecks
Know exactly what's limiting you and have a plan to solve it.
Signs You're NOT Ready
Scaling Options (Lowest Risk First)
Always exhaust lower-risk options before jumping to higher-risk ones:
| Option | Additional Cost | Risk Level | Description |
|---|---|---|---|
| More kitchen hours | £200-500/month extra | Low | Increase production time in your current space before moving. |
| Hire part-time help | £500-1,000/month | Low-Medium | Add prep cook or weekend help to increase capacity. |
| Second shift/kitchen | £1,000-2,500/month | Medium | Add evening shift or second kitchen location. |
| Larger dedicated space | £2,000-5,000/month | High | Move from shared to dedicated kitchen. Big fixed cost increase. |
| Multiple locations | £5,000-15,000/month | Very High | Only after proving model works repeatedly. |
Before You Scale Checklist
Financial Health
Demand Evidence
Operations Ready
Team Ready
Written by
James Mitchell
Ghost Kitchen Operations Director & Industry Expert
Frequently Asked Questions
How do I know if I'm ready to scale my food business?
You're ready when you have: 6+ months of consistent profitability (not just revenue), documented processes that work without you, strong unit economics (50%+ gross margin), cash reserves for 3-6 months, and clear evidence of unmet demand (turning away orders, waitlists). If you're scaling to "find" profitability, you're not ready - scale multiplies what you have, whether that's profit or losses.
What's the biggest mistake when scaling a food business?
Scaling before unit economics are solid. If you make £2 profit per order, scaling to 10x orders means £20 profit - minus the massive costs of scaling (more staff, bigger kitchen, more equipment). Many businesses scale into losses. Fix your margins first: get to 50%+ gross margin and 15%+ net margin before scaling.
Should I scale by adding kitchen hours or hiring staff?
Start with kitchen hours - it's lowest risk and fastest to reverse if demand drops. Go from 20 to 30 hours before going to 40. Once you're maxing out hours and still turning away orders, hire part-time help. Full-time staff and bigger kitchens come after you've proven demand at each level.
How much cash do I need before scaling?
3-6 months of operating expenses as a reserve, plus the investment cost for scaling. If your monthly costs are £3,000, you need £9,000-18,000 in reserve before scaling. The investment (equipment, deposits, training) is on top. Don't scale on a shoestring - one bad month can sink you.
What are the signs I'm scaling too fast?
Warning signs: cash flow always tight, quality complaints increasing, customer churn rising, you're working more hours than before, staff turnover is high, margins are shrinking despite more revenue. If scaling is making things worse, pause and stabilise before continuing.
How do I scale without killing my margins?
Key principles: (1) Scale revenue before scaling costs - use existing capacity fully first, (2) Automate and systematise before adding people, (3) Negotiate volume discounts with suppliers, (4) Consider raising prices as you grow (demand allows it), (5) Track cost per order religiously and stop if it's increasing.
When should I move from a shared kitchen to my own space?
When you're using 30+ hours/week consistently (the math favours monthly rental), you need 24/7 access for production flexibility, you're storing significant inventory, and you've been profitable for 12+ months. A dedicated space is a major fixed cost increase - don't rush it.
How do I document processes before scaling?
Write down every repeated task: recipes with exact measurements, prep procedures, cleaning schedules, order fulfilment steps, customer service scripts. Test by having someone else follow the documentation - if they can produce the same result without asking questions, it's documented well. FileText is even better for physical tasks.