Short version: a ghost kitchen done right can hit 18-25% net margins on $80k-$140k monthly revenue per stall, but only if you control three things: marketplace mix below 60%, average ticket above $32, and a direct ordering channel doing 25%+ of volume by month 9. Without those three, you're running someone else's business on your dime.
What a "ghost kitchen" actually is in 2025
Three models, often confused:
- Commissary kitchen — you rent a stall (180-400 sqft) in a shared facility (CloudKitchens, Reef Technology, Kitchen United, or an independent operator). You cook there, deliver only, no dine-in.
- Virtual brand from existing restaurant — you launch a second concept ("Crispy Bird Co.") out of your existing dining-room kitchen during off-peak hours. No new lease.
- Standalone delivery-only restaurant — you sign your own commercial lease, build it out, run delivery-only from your own 4-wall location.
The economics below focus on model 1, the commissary stall. Model 2's economics are usually great (almost no incremental cost). Model 3 is just a normal restaurant without the dining room — same rules apply.
The cost stack at a real Fort Lauderdale CloudKitchens stall in 2025
Numbers below are typical for South Florida. Adjust for your market by ±15-25%.
- Stall rent — $3,200-$4,800/mo for 240 sqft in a major-metro CloudKitchens-style facility. Includes utilities, hood, basic build-out.
- Initial build-out + equipment — $35,000-$65,000 if you bring your own gear. $0-$10,000 if you take the "turnkey" lease option (rent is then $1,000+/mo higher).
- Security deposit — typically 2 months rent
- Labor — 1 head cook ($22-$28/hr × 60 hrs/wk) + 1 line cook ($16-$20/hr × 50 hrs/wk) = $7,500-$10,000/mo
- Food cost — 28-32% of revenue for most concepts
- Marketplace commission — at 70% marketplace mix × 30% commission = 21% of revenue evaporates
- Software — POS + KDS + ordering + aggregator: $500-$900/mo bundled (Zayos + Otter + DAVO ~$650/mo)
- Insurance, packaging, marketing, admin — ~$1,500-$2,500/mo
The unit economics at three revenue levels
Failing stall — $40,000/mo revenue
- Revenue: $40,000
- Food cost (30%): $12,000
- Marketplace commission (70% mix × 30%): $8,400
- Rent: $4,000
- Labor: $8,500
- Software + insurance + packaging: $2,000
- Net before owner pay: $5,100/mo. ~13% margin.
This stall is probably losing money once you count owner labor and the amortized build-out. Most ghost kitchen stalls live here for the first 6-9 months. Many close at month 12.
Working stall — $90,000/mo revenue
- Revenue: $90,000
- Food cost (29%): $26,100
- Marketplace commission (65% mix × 30%): $17,550
- Rent: $4,200
- Labor: $11,500
- Software + insurance + packaging: $2,400
- Net before owner pay: $28,250/mo. ~31% margin.
This is the target. After owner pay and amortized build-out, real net is 18-22%.
Optimized stall — $130,000/mo revenue, 30% direct order share
- Revenue: $130,000
- Food cost (28%): $36,400
- Marketplace commission (40% mix × 30%): $15,600
- Direct processing (30% mix × 3%): $1,170
- Delivery dispatch on direct (30% × ~$7/order): $5,460
- Rent: $4,500
- Labor: $14,000 (added a cook)
- Software + insurance + packaging: $3,200
- Net before owner pay: $49,670/mo. ~38% margin.
The difference between the failing stall and the optimized stall isn't ingredient cost or rent — it's marketplace mix and average ticket. Drop marketplace mix from 70% to 40% (by building a direct channel) and add $40k/mo in revenue and you've roughly 10×'d your net.
The five risks nobody describes upfront
1. Marketplace dependency = no business
A ghost kitchen at 95% marketplace volume isn't a restaurant — it's a contractor for DoorDash and Uber Eats. When the marketplace algorithm changes (it does, every quarter), your revenue swings 25-40% with no input from you. You can't market your way out because customers don't know your brand exists; they know DoorDash. The only fix is building direct ordering early. We cover the math in the DoorDash 30% post.
2. Brand discovery cliff
A dine-in restaurant gets foot traffic for free. A ghost kitchen gets zero. You're paying $9-$15 in customer acquisition cost for every first-time customer through the marketplace. Without a 25%+ direct repeat-order rate by month 9, the CAC math never works.
3. The "turnkey" lease trap
Most ghost-kitchen operators offer a turnkey option: they put in the equipment, you pay $1,500-$2,500/mo more in rent. Looks like a great deal because you skip the $40k build-out. The reality: you've taken on a higher monthly fixed cost that compounds for 24-36 months. If you have $30k-$50k of capital and you're confident in the concept, bring your own equipment.
4. Multi-brand collapse
Operators try to run 3-5 virtual brands out of a single stall ("Burger Mike's", "Crispy Bird Co.", "Taco Lab"). It looks like leverage. It usually isn't. Kitchen complexity scales with SKU count, and a single 240-sqft stall can't actually produce 4 menus at a competitive prep speed. Two brands max, and only if they share 70%+ of ingredient stock.
5. Catering blackout
Ghost kitchens optimize for 1-2 person delivery orders. Catering needs 4-8 hour lead time, packaging the stall doesn't stock, and pickup logistics the marketplace doesn't handle. Most ghost-kitchen concepts leave $15k-$45k/mo in catering revenue on the table because they're not set up to take it. Our catering revenue playbook shows what to fix.
When ghost kitchens make sense
- You already run a brick-and-mortar restaurant and want to launch a virtual second concept from the same kitchen. Best risk-adjusted return in the category.
- You have a tight, fast-prep menu (12 items or fewer) that ships well after 25 minutes of travel.
- Your concept has a distinct enough name and brand that you can build direct demand through SMS, email, and IG within 6-9 months.
- You have $50k-$80k of working capital to survive 9 months at the failing-stall economics.
When they don't
- You're a chef with a strong dine-in concept and you think a ghost kitchen is a "cheaper version" of opening a restaurant. It isn't — it's a different business entirely.
- Your menu has 30+ items, complex prep, or items that don't travel (anything fried beyond 12 minutes, anything with crispy texture as the sell, anything with hot/cold combinations).
- Your average ticket is below $25. The marketplace commission eats too much.
- You don't have the capital or marketing skill to build a direct ordering channel inside 6 months. You'll spend year one paying DoorDash 30% with no exit ramp.
The platform we ship for ghost-kitchen operators
We built Zayos for Ghost Kitchens for this exact use case: one tablet running direct orders + Otter (all marketplace channels) + 14-provider delivery dispatch + DAVO sales tax. Customer CRM is the single biggest lever for ghost kitchens — without it, you have no path off marketplace dependency. Setup is 2-3 weeks. Pricing is $399/mo single-stall, $799/mo multi-brand.
FAQ
What revenue do I need to hit profitability?
~$65k/mo at typical cost structure, assuming 65% marketplace mix. Drop to ~$55k if you can get to 40% marketplace mix.
How long until I break even?
Best case 4-6 months. Median 9-14. Anything past 18 months without break-even, kill the concept.
Should I use the CloudKitchens or Reef brand?
Neither. Operators have generally migrated away from facility-owned virtual brands because the data ownership and brand control are weak. Run your own brand on their real estate.
Can I do this without an aggregator?
Technically yes, with 3-4 separate marketplace tablets. Practically no — staff workflow breaks above 200 orders/mo. We compared options in the Otter vs Chowly vs KitchenHub post.
The 9-month roadmap that works
If you're committed to opening a ghost kitchen stall, run this sequence:
- Month 1-2: Concept lock, menu R&D, lease signing, build-out. Spend most of your time on the menu — 12 items, prep-fast, travel-well.
- Month 3: Soft open. DoorDash + Uber Eats live. Direct site live but not promoted yet. Goal: clear kitchen workflow at $30k/mo revenue.
- Month 4-5: Marketplace optimization. Photos, listing copy, hours. Target $50k/mo. Aggregator (Otter) live.
- Month 6: Direct channel push. QR codes on every delivery bag. SMS opt-in. Target 8-12% direct order share.
- Month 7-8: Catering and family bundle launches. Higher margin products that don't compete with delivery rush hours.
- Month 9: Marketing audit. If direct share is below 18%, fix the funnel before pushing more volume. If above 22%, scale ad spend.
The three signals you should kill the concept
Sunk-cost thinking ends more ghost kitchens than market conditions. The honest kill signals:
- Month 9, revenue under $50k/mo. Demand for the concept isn't there. Another quarter won't fix it.
- Direct order share stuck under 10% at month 9. Either the brand has no pull, or your acquisition motion isn't running. Both endings are bad.
- Marketplace rating dropping below 4.4. Algorithms punish ratings. Below 4.4 you're getting de-prioritized in listings, and revenue compounds downward.
Closing a ghost kitchen at month 12 with $40k lost is a survivable mistake. Pushing through to month 24 to "save it" is how operators lose $120k+ and burn the next opportunity.
See the ghost-kitchen build of Zayos — Zayos for Ghost Kitchens · 15-min walkthrough · phone 321-666-1102.