US Value Menu Pricing Guide: Budget Items Without Profit Leaks

A value menu is a traffic engine. But if you price it wrong, it becomes a profit drain.

Quick Summary

• Set a margin floor for every value item
• Use smaller portions and simpler builds, not the same item cheaper
• Every value item needs an upsell path (drink, upgrade, topping)
• Track value menu profit by hour, not just by item

This guide shows how to design budget items that still protect margin.

Start With a Margin Floor

Value pricing still needs a floor. Define it before you price anything.

Margin floor = Price - Variable cost

If the floor is too small, the value menu becomes a labor subsidy.

Build Value Items That Are Structurally Cheaper

Do not discount your full-size best sellers. Instead, create items that are cheaper by design.

Examples:

• Smaller protein portions
• Fewer toppings
• Lower-cost sides
• Simpler packaging

Add a Clear Upsell Path

Value menus work when guests add something:

• Add a drink
• Upgrade the side
• Add a premium topping

Plan the upsell before you set the base price.

Pricing Formula (Simple)

Value item price = (Food + Packaging + Waste) / Target food cost %

Then check:

• Does it meet your margin floor?
• Does it have an upsell path?

If not, redesign the item.

A Quick Example

• Value sandwich cost: $1.10
• Packaging: $0.25
• Total cost: $1.35
• Target food cost: 35%

$1.35 / 0.35 = $3.86

Round to $3.99 and add a $1.50 drink upgrade with high margin.

Common Value Menu Mistakes

• Discounting popular full-size items
• Too many choices
• No upsell path
• Ignoring packaging and sauces

Do This Now

• Define your margin floor (minimum profit per value item)
• List 4-8 value items (smaller portions, simpler builds)
• Calculate the cost of each value item including packaging
• Divide item cost by 0.35 to find your menu price at 35% food cost
• Identify upsell paths for each item (drink, upgrade, topping)
• Track which value items upsell best and adjust pricing monthly

A value menu is a funnel. Keep the base profitable, and make the upgrade easy.

KitchenCost helps you track value menu items and upsell margins in one place.