“It is just extra ranch” sounds harmless until you multiply it by 500 orders.
Add-ons are where many operators lose margin quietly. Guests do not see it. Teams do not log it. P&L sees it at month end.
Quick Summary
- Price add-ons from variable cost, not instinct
- Separate dine-in and delivery add-on math
- Keep one free threshold and one paid rule to reduce pushback
- Audit top 10 modifiers weekly
Why This Matters in 2026
The January 2026 CPI release still shows food-away-from-home pressure at +4.0% YoY. At the same time, platform fee stacks remain material on third-party delivery channels.
If your base menu is tightly priced, “free extras” often come directly out of contribution margin.
The Add-On Formula
addonPriceFloor = (foodCost + packagingCost + laborCost + channelVariableCost)
/ (1 - targetMargin)For delivery channels, include platform impact in channelVariableCost.
Quick Example: Extra Avocado Scoop
Assumptions:
- Avocado cost: $0.58
- Portion cup/lid: $0.07
- Labor (20 sec at loaded rate): $0.06
- Delivery channel variable effect: $0.14
- Target margin: 30%
addonPriceFloor = (0.58 + 0.07 + 0.06 + 0.14) / 0.70
= 0.85 / 0.70
= $1.21Rounded menu price: $1.25 or $1.50 depending on brand positioning.
Build 3 Modifier Tiers
-
Low-cost tier ($0.50-$1.00)
- extra sauce, small garnish upgrades
-
Mid-cost tier ($1.25-$2.00)
- avocado, premium cheese, side swaps
-
Protein tier ($2.50+)
- extra chicken, steak, shrimp
Tiers reduce staff confusion and speed ordering.
The Guest-Trust Rule
Customers usually accept paid extras when the policy is clear. Pushback rises when rules feel random.
Use one simple policy at POS and online:
- first basic sauce: included
- premium or additional portions: paid
A consistent rule beats constant exceptions.
10-Minute Weekly Add-On Audit
- Export top 10 modifiers by order count
- Recheck current unit costs
- Compare add-on price to floor price
- Adjust only items below floor or with demand surge
- Re-train staff script for updated modifiers
Most operators only need this once a week.
Common Mistakes
- Never updating modifier costs after supplier changes
- Charging same add-on price across all channels
- Letting teams comp add-ons without tracking
- Pricing from competitors without checking own cost stack
Copying competitor add-ons can copy competitor losses.
Related Guides
- US Ingredient Cost Calculator Guide (2026)
- US Delivery App Pricing Guide
- Uber Eats Merchant Fees & Commission Rates (2026)
- DoorDash Fees Breakdown (2025-2026)
- Prime Cost Guide
KitchenCost helps you attach real cost floors to modifiers so add-ons grow margin instead of leaking it.
Try KitchenCost.