Common mistakes to avoid with cloud kitchens in the UK

With food delivery in the UK transformed by Deliveroo, Uber Eats and Just Eat, and the rising costs of running a restaurant or pub, the concept of a cloud kitchen seems like a no-brainer. Also known as a dark or ghost kitchen, it’s a place to prepare food without the expense of a physical dining space, selling meals exclusively through online ordering platforms or through a business’ own app or website.

However, for many they’re far from a guarantee of success, and getting it wrong could be a costly error that could fatally impact your profit and loss. There are common mistakes that can undermine this otherwise streamlined model. Before diving in, it’s crucial to understand how to avoid these pitfalls, so if you’re thinking of launching a cloud kitchen in the UK, here are the most common slip-ups to watch out for.

1) Don’t underestimate the impact of rising costs

It’s easy to underestimate just how tight margins can be when running a cloud kitchen, especially given the financial pressures facing the wider hospitality industry. The October 2024 Budget brought rises in National Insurance contributions and the National Living Wage that have left pubs, bars and restaurants struggling. More are closing down every week and a third of hospitality businesses are now running at a loss. For operators already working with slim delivery margins, these changes represent a significant extra burden. 

On top of staffing and tax obligations, soaring energy bills continue to bite. A kitchen running ovens, fryers and refrigeration units all day is particularly exposed. For anyone setting up a cloud kitchen, failing to properly account for these costs in your financial plan is one of the fastest ways to run into trouble. Careful forecasting, smart energy management and realistic menu pricing are essential to staying afloat in this new economic reality.

2) Branding can make or break

A lot of new operators also misjudge the importance of branding. Because you don’t have a physical restaurant, your brand has to work extra hard online. A plain name, low-quality food photos or a generic logo won’t stand out in a crowded marketplace and will not be pushed up by the app’s search function. 

Invest in good visuals, tell a clear brand story, and make sure your food photography looks appealing. Customers eat with their eyes first, especially on delivery platforms, and that means good ratings that boost your profile.

Key to this is knowing your market. A common mistake businesses make is assuming their customers using an app want the same thing that’s sold in their pub or restaurant.

Do your market research, get to know what customers want and adjust your food options accordingly so they not only fill the customer need, but also fit your online brand.

3) Don’t rely too much on one delivery app

Another common misstep is relying too heavily on a single delivery platform like Deliveroo or Uber Eats. These apps are vital for reaching customers quickly, but depending solely on them puts your business at serious risk. It might feel easier to start with Deliveroo alone, for example, but if that platform changes its fees or your listing drops in visibility, your income can take a big hit. Spreading your presence across multiple platforms gives you more stability, and building your own website or app for direct orders is a smart long-term move.

Commission fees can also slice into narrow margins, and platforms occasionally change their algorithms, or worse, delist brands. In 2023, Uber Eats removed around 8,000 virtual restaurant brands for duplication, poor performance or menu repetition. Without alternatives like your own website, multiple platform listings, or strong customer retention strategies in place, your kitchen is vulnerable to sudden shifts in visibility and revenue.

4) Follow the rules to the letter

Licencing and compliance are vital. In the UK, you must register with your local authority at least 28 days before opening and meet food safety and hygiene standards. It’s not the most exciting part of the process, but failing to get this right can lead to fines or even closure. Plus, a strong hygiene rating helps win customer trust when they’re scrolling through options on a delivery app.

Allergen labelling and environmental packaging rules are often missed, leading to penalties or bad publicity. Since March 2025, UK law mandates that businesses, including cloud kitchens, must separate food waste from general waste for collection rather than mixing the two. Non-compliance can result in fines starting from around £300.

5) Don’t ignore the data

One of the biggest missed opportunities is failing to use data. Delivery platforms and POS systems give you plenty of insights into what sells, when customers order, and how your delivery times compare. Ignoring these numbers means you’re flying blind. Tracking your data lets you tweak menus, adjust staffing and target promotions more effectively.

There is a lot of detailed data at your fingertips. Things like repeat order rates, peak ordering hours, customer demographics and trending dishes can all be tracked. Delivery platforms and POS systems deliver powerful analytics that can guide smarter decisions, from tweaking menus based on popularity to scheduling staff around rush-hour peaks. A recent example comes from Maki & Ramen, a UK-based chain. They leveraged Deliveroo’s analytics tools and support to identify operational inefficiencies such as high rider wait times and used insights to speed up delivery turnaround. Their account manager helped turn data into action, reducing wait times and fine-tuning operations without hiking prices, even amid rising costs.

6) Plan carefully for success

Setting up a cloud kitchen in the UK can be hugely rewarding if you get it right. By avoiding common mistakes like miscalculating costs, neglecting branding, relying on one platform or misunderstanding how to stay legally compliant, you’ll be in a much stronger position to succeed. The most successful cloud kitchens treat themselves less like restaurants and more like smart, data-driven businesses. Stay flexible, keep learning and focus on giving customers the best possible experience, and your kitchen has every chance of thriving in the busy world of food delivery.