Why dishes that look profitable lose money on delivery apps
A ₹200 dish with ₹60 of ingredients looks like a 70% margin. On a delivery app, 25% commission takes ₹50, 18% GST on that commission takes another ₹9, a 10% discount you fund is ₹20, the payment gateway is about ₹4 and packaging ₹12. That leaves about ₹45, or 22%, before rent and salaries. Cheap dishes suffer most because packaging and fixed fees don't shrink with the price.
How the menu matrix works
Menu engineering puts every dish on two scales: how many people order it, and how much each one earns. Stars sell well and earn well, so keep them on top. Workhorses sell well but earn little: raise the price slightly or trim the portion cost. Puzzles earn well but few people order them: give them better photos and a better spot. Dogs do neither: remove them or rework them.
How much commission do Swiggy and Zomato take?
Usually 18% to 30% of the food value, depending on your city, contract and whether you take their delivery. GST at 18% is charged on top of the commission. Check the payout statement in your partner app for your exact numbers.
What food cost percentage should a cloud kitchen aim for?
Most delivery kitchens aim for ingredients at 28–35% of the menu price. Above 40% it is very hard to make money after commission and packaging.
Should I keep separate prices on the app and in my restaurant?
Many restaurants charge 10–20% more on delivery apps to cover commission. Check your platform contract: some programmes require price parity.