FixMenu Tool

Restaurant Discount Calculator — Will This Dining Deal Actually Profit?

Check if a dining discount is actually profitable

Stress-test any discount, dining deal, or offer against your real cost structure before it goes live — and find out if it makes money or quietly drains your margin.

Free to try on your menu data. Upgrade to Pro for advanced features.

The Restaurant Challenge

Discounts and dining deals get approved on instinct. "20% off on weekdays" sounds harmless until you do the math — at 30% food cost, a 20% discount cuts your gross margin from 70% to 50%, a 28% margin reduction. Add Zomato Pro funding, an EatClub promotion, or a credit card cashback on top and many "deals" lose money on every single order. The deal feels like marketing but behaves like a slow leak.

Why This Matters

Discount profitability is the most common blind spot in Indian restaurants. Owners run BOGO, flat percentages, happy hours, and platform deals without checking if the discount survives the full deduction stack. The cost is hidden because the dish still gets sold and revenue still shows up — but the contribution to fixed costs collapses. A clear pre-launch profitability check on every offer prevents months of unprofitable promotion.

Key Features

Discount % stress-test against your real margin

BOGO and combo discount modeling

Layered discount handling (your discount + platform discount)

Net contribution per discounted order

Break-even volume — how many extra orders needed to make it work

Compare deal vs no-deal scenarios

Channel-specific deal modeling (dine-in vs Swiggy vs Zomato)

Verdict: profitable, break-even, or money-losing

How to Use

1

Enter the dish or combo being discounted

2

Add the discount type (flat %, BOGO, combo price)

3

Layer in platform funding if applicable

4

FixMenu calculates net contribution per order

5

See break-even volume — how many extra orders justify the deal

6

Approve, modify, or reject the deal before it launches

Why This Matters

  • Catch loss-making deals before they go live
  • Push back on platform promotions with hard numbers
  • Design discounts that drive volume AND profit
  • Set a maximum discount % your margin can sustain
  • Stop running "successful" promotions that actually cost you money
  • Compare two deal structures side-by-side and pick the better one

Frequently Asked Questions

It depends entirely on your gross margin. At 70% gross margin, 15-20% discount keeps you healthy. Below 60% gross margin, even a 10% discount can wipe out profit on the order. The calculator gives you the answer for your specific dish.

When to Use This Tool

Before approving a new Zomato Gold or Swiggy ONE deal

Designing a weekday happy hour or lunch combo

Evaluating a credit card or wallet partnership offer

Auditing existing promotions that "feel" too generous

Setting house rules — what max discount your team can offer on the floor

Try Dining Deal Checker on your menu — free

Run Dining Deal Checker on your real menu data. Upgrade to Pro for advanced features.

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