TikTok viral business, SpudBros, has revealed how much profit it makes on its jacket potatoes amid negative comments and "misinformation" about the pricing of its products.
The video detailed the full breakdown of costs for a cheese and beans jacket potato and the “hidden” expenses that go into running the business.
Jacob Nelson, who runs SpudBros alongside his brother Harley, said: "A lot of people always say you can make a jacket potato for a quid - which you can but it isn't a SpudBros jacket potato.
"We have hidden costs... you as the consumer only see the jacket potato being served.
"There are more than 30 hidden costs you don't see such as staff wages, rent, marketing, equipment..."
He explained that rising costs have forced the business to raise its prices, citing its annual rent in Preston as an example.
Jacob, who currently lives in Darwen, said: "We actually pay £10,000 per year in rent in Preston on the Flag Market... that has gone up in the last year, and we have had to put our jacket potatoes up 50p.
"Wages are going up, food prices are going up, everything is going up.
"[The cost of] brick and mortar is ridiculous at the moment, and it keeps going up and up...
"It is really hard for the hospitality industry at the moment.
"So if you add all of this up together, £4.46p is how much it costs us to make a jacket potato."
VAT also contributes to the costs, according to Jacob, meaning the company makes 54p in profit per spud.
"In the UK, once you hit a certain turnover you have to pay VAT, which is unfortunately passed over to you," he said.
"When you pay £6 for a jacket potato, £1 of that goes straight to the taxman.
"We sell cheese and beans at £6.
"The cost of goods, hidden costs and VAT [brings the price of the potato] to £5.46...
"That equals 54p profit before tax."
On social media, SpudBros also addressed claims that one of their potatoes costs £11.50.
A spokesperson said: "When misinformation is presented as fact, it’s important to set the record straight.
"We do not sell a cheese, beans, tram sauce and crispy onions potato for £11.50.
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"The price is £8.50 at SpudBros Express and £6 at the tram. We’ve explained many times that comparing a tram unit to a permanent shop isn’t comparing like-for-like.
"The costs involved are completely different, from business rates and rent to staffing and overheads.
"Could we keep every SpudBros location company-owned? Absolutely. But we’ve chosen to work with business owners through our franchise model because it creates opportunities in communities across the UK.
"It creates local jobs, supports British suppliers and farmers, and allows us to continue giving back wherever we can.
"One thing we’ve learned on this journey is that success will always attract criticism. That’s okay.
"We’ll stay focused on what got us here in the first place: serving great food, looking after our customers, supporting our team, and continuing to build something we’re proud of."
You can watch the full video on the SpudBros' YouTube video.
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