How it is calculated
Revenue and variable costs
Sales are orders times average order value. Food cost is a percentage of sales; packaging is a rupee amount per order.
Channel costs
App orders pay commission plus 18 percent GST on the commission. Direct orders pay the platform plan, a flat per-order fee, and your own delivery cost per order.
Profit and break-even
Profit is sales minus all of the above minus fixed costs. Break-even divides fixed costs by the contribution each order makes after its variable and channel costs.
Frequently asked questions
What profit margin should a cloud kitchen expect?
Kitchens that run mostly on delivery apps often land in single-digit net margins once commission, GST on commission and funded discounts are counted. Moving repeat customers to a direct channel is the biggest single lever, which is why the channel split is an input here.
Why is GST added to the commission automatically?
Because the commission is a service charged to you, and 18 percent GST applies to it. It is one of the most commonly missed lines when owners estimate app costs.
What is a realistic app share for a new cloud kitchen?
New kitchens usually start at 80 to 100 percent app orders because the apps bring discovery. The share drops as the number on the packaging and the store link start bringing repeat orders directly.