Commissary Kitchens: Markups

Commissary markups allow you to pass additional costs from your commissary to the restaurants ordering from it.

For example, your commissary may want to recover labor, rent, delivery, or other overhead costs in addition to the cost of the products and recipes being transferred. With Commissary Markups, you can create rules that automatically add those charges to each commissary order.

Coming soon: Commissary markups currently apply at the overall order level. We're also working on recipe- and product-level markups so you'll be able to build additional costs directly into the prices of individual commissary items.

Markup rules are set on your Commissary Vendor and automatically apply when a restaurant places a new order with that commissary.

You can add:

• Percentage markups, such as 25% for commissary labor

• Flat-dollar markups, such as $100 for rent or overhead

• Multiple markups to the same order

If you have multiple percentage markups, each percentage is calculated from the original order subtotal rather than from a running total.

For example, if a $100 order has both a 20% Labor markup and a 10% Overhead markup, the markups would be $20 and $10.

Each markup must also be assigned to an accounting Category. This determines where the markup is recorded in MarginEdge reporting and accounting.

A note about Categories: We generally recommend selecting a Category that represents the expense you are recovering, such as Labor or an overhead Category. Crediting a food Category is allowed, but it can reduce or even create negative COGS in that Category.

Markup rules must be configured from the Commissary location.

1. Go to Vendors > Vendors and select your Commissary Vendor.

2. Click Edit Vendor.

3. Scroll to Ordering Configuration.

4. Find Invoice Markups and choose to manage your markup rules.

5. For each markup, enter:

   • The Category the markup should credit

   • Whether the markup is a percentage or flat-dollar amount

   • The markup amount

6. Click Save.

The markup rules you configure apply to new orders placed with that Commissary Vendor.

If you have more than one Commissary Vendor, configure markup rules separately for each one.

At this time, the same markup rules apply to all restaurants ordering from a particular Commissary Vendor.
 

When a restaurant places an order from the commissary, any applicable markups are shown below the items on the order.

The restaurant can see the order subtotal, each markup charge, and the final order total before submitting the order.

The markup amounts are also included in the order confirmation.

Yes.

When an order reaches the Commissary, users processing the order can review the markup amounts before fulfilling it. They can adjust an existing markup or add another markup if needed.

The final markup amounts on the order are used when the order is shipped and closed.

Changes made to your default markup rules do not recalculate markups on orders that were already placed. The updated rules apply to new orders going forward.

Once the commissary order is closed, the markup becomes part of the final invoice total.

The original commissary items continue to reflect their transferred costs. Invoice-level markups are recorded separately against the accounting Categories selected in your markup rules.

For example, if a commissary transfers $500 of food and adds a $125 markup assigned to Commissary Labor:

• The receiving restaurant is charged a total of $625.

• The $125 is recorded against the selected Labor Category.

• The commissary receives a $125 credit to that Category.

Markup amounts are reflected in MarginEdge reporting and are included when the commissary transfer is 
exported to accounting.

No.

The current Commissary Markups feature is designed to pass costs such as labor and overhead from the commissary to receiving restaurants. Markup amounts credit the Category selected on the markup rule.

Commissary orders and markups are not currently recorded as sales revenue at the commissary.

MarginEdge Admins, Restaurant Admins, and Franchisee Admins with access to the Commissary location can manage Commissary Markup rules.

We're working on recipe- and product-level Commissary Markups.

Today, invoice-level markups add a separate charge to the overall order. Recipe- and product-level markups will allow commissaries to build additional costs into the price of specific items instead.

For example, a commissary could eventually apply a 30% labor markup to a labor-intensive pastry while applying a smaller markup to a simple syrup.