Cap total discounting at 10–12% of order value. Use first-order offers to win trials, combos to raise average order value, and loyalty offers to keep repeat customers — never run deep flat discounts for more than a few weeks.
The 6 discount types, ranked
1. Combo offers (best)
"Biryani + raita + gulab jamun at ₹349" lifts order value 20–30% while costing you 10–15% in food cost. Combos feel like a deal but protect margin.
2. First-order discount
20–30% off capped at ₹100–120. Its only job is trial — measure how many first-order customers order again within 30 days.
3. Free delivery threshold
"Free delivery above ₹399" pushes customers to add one more item. Cheaper than a percentage discount and lifts AOV.
4. Loyalty / repeat offers
"5th order 25% off" via WhatsApp keeps your best customers without subsidising one-time buyers. See our customer retention guide.
5. BOGO (buy one get one)
Works only on high-margin items (desserts, beverages, fries). On biryanis and mains it destroys contribution margin.
6. Flat percentage off (risky)
"Flat 50% off" fills orders with bargain hunters who never return at full price. Use for a launch week at most.
The discount maths you must do
On a ₹400 order with 25% aggregator commission, you keep ₹300 before food cost. A 20% discount cuts that to ₹220 — below food cost for many dishes. Always compute contribution per order after discount, not just order count.
Rules that keep discounts profitable
- Cap every offer (₹100–120 max) so big orders don't bleed you.
- Time-limit offers — 2 to 4 weeks, then change the mechanic.
- Discount slow days (Mon–Wed lunch), not your busiest slots.
- Track repeat rate of discounted customers; kill offers that attract one-timers.
Also read: menu pricing strategy for cloud kitchens and how to increase cloud kitchen orders.
Run a cloud kitchen? Get listed.
Add your FSSAI-verified cloud kitchen to Cloud Kitchen Adda and reach customers searching in your city.
Add your kitchen