Central kitchen

A central kitchen prepares food in bulk, such as sauces, doughs and portioned proteins, and transfers it to a group’s branches, which finish and serve it.

Production at the central kitchen turns raw ingredients into prepared items at cost. Transfers move those items to the branches, so each branch’s food cost includes what it received from the central kitchen.

Worth knowing

• Branch recipes can use prepared items from the central kitchen as ingredients.
• Set transfer prices consistently, or the branch reports become hard to compare.
• A central kitchen supplies your own branches; a cloud kitchen sells to delivery customers.

General information, not tax or legal advice. Check the official source and speak to a registered tax agent about your own situation.