Start with the formula, not the competitor
Selling price = raw material cost ÷ target food cost %
If a chicken biryani costs Rs 78 in raw material and you target 30% food cost, your base price is Rs 260. Anything below that means you are funding the customer's meal.
Then add the delivery layer
On aggregators you lose 22-25% commission plus discount share. So set two price lists:
- Direct price (WhatsApp / your site): base price.
- Aggregator price: base price + 15-25%.
This is not overcharging — it is the only way the same dish yields the same profit on both channels. It also gives your direct channel a real, honest advantage to advertise.
Psychological price points that work in India
- Prices ending in 9 (Rs 249, Rs 349) still outperform round numbers on delivery apps.
- Keep at least three items under the platform's popular "under Rs 200" filter.
- Anchor with one premium item (family pack, feast box) so mid-priced items look reasonable.
Combos: the fastest margin win
A biryani at Rs 260 plus raita and gulab jamun sold as a Rs 319 combo adds Rs 59 revenue on Rs 22 extra raw cost. Average order value rises, packaging and delivery cost stay flat. Every kitchen should have three combos: single, couple, family.
Menu engineering: cut before you add
Sort every item into four boxes each quarter:
- Stars — high margin, high volume → feature and photo them.
- Workhorses — low margin, high volume → raise price Rs 10-20 or reduce portion cost.
- Puzzles — high margin, low volume → rename, reposition or bundle.
- Dogs — low margin, low volume → delete.
When and how to raise prices
Raise 5-8% on selected items, never everything at once, and never during a discount campaign. Change prices on a Tuesday, not a weekend, and watch order counts for 14 days. Customers notice the item they buy every week — leave your single bestseller alone and move everything around it.
Check your numbers
Use the cost calculator to see how price changes affect break-even, and read cloud kitchen profit margin for the full P&L view.
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