Running a tiffin service can be fulfilling, but if your pricing isn’t right, you could be working hard and still losing money. Many tiffin entrepreneurs undercharge in the early days to attract customers, only to realize later that they’re operating at a loss. In this post, we’ll break down how to price your tiffin service profitably while accounting for real-world challenges, hidden costs, and proper unit economics.
1. Start with Your Core Costs
Before deciding on your pricing model, you need to have a clear understanding of your core costs:
- Ingredients & packaging (per meal)
- Labor costs (including cooking, packing, and delivery)
- Fuel/transportation (if you’re handling delivery in-house)
- Software or subscription costs (order management, tracking, billing)
- Utilities (gas, electricity, water)
Once you know what it costs to make and deliver a single meal, you can begin building a pricing structure that covers these expenses and still leaves room for profit.
2. Don’t Ignore the Hidden Costs
Many tiffin businesses fail to price profitably because they overlook hidden costs:
- Commercial kitchen rent: As you grow, you may need to shift from a home kitchen to a licensed commercial kitchen, which can be expensive.
- Hiring delivery drivers: Whether part-time or full-time, drivers increase your monthly outlay with salaries, reimbursements, or third-party charges.
- Packaging upgrades: As customer expectations rise, better containers, branding, and utensils can increase per-meal costs.
- Seasonal dips or food price fluctuations: Build in a buffer to handle sudden cost spikes.
Also, since tiffin plans are usually paid for upfront, it can feel like you’re generating strong cash flow. But in reality, that money must stretch across the whole service duration. Misjudging this can create a false sense of profitability. Always break it down by cost-per-meal, not just total revenue collected.
3. Understand Unit Economics
Each tiffin plan should be priced after calculating:
- Cost per meal = (Total monthly operational costs) / (Total number of meals)
- Break-even point = When total revenue equals total costs
- Profit margin = Revenue per meal – Cost per meal
Let’s take a real-world example. Say you’re offering a 20-meal plan for $220 (which is typical in North America):
- Revenue per meal = $220 / 20 = $11
- If your cost per meal (including all expenses) is $8,
- Profit per meal = $11 – $8 = $3
- Monthly profit per customer = 20 meals × $3 = $60
This gives you a clear picture of what you’re actually making—helping you assess sustainability and scale effectively.
Use spreadsheets or software like Tiffy to calculate these numbers regularly and refine your pricing.
4. Structure Plans by Meal Count, Not Date Range
Avoid pricing plans by calendar dates (e.g., March 1 to March 31). Instead, structure them by meal count:
- 20-meal plan: Monday to Friday for 4 weeks
- 24-meal plan: Monday to Saturday for 4 weeks
- Custom plans: Based on preferred days of the week (e.g., Mon/Wed/Fri only)
This helps customers clearly understand what they’re getting and simplifies pause/resume logic. It also makes it easier to manage deliveries, measure consumption, and ensure billing aligns with service.
5. Include a Healthy Profit Margin
Once you have the meal cost calculated, add a 15-30% margin depending on your volume, demand, and market.
For example:
- Cost per meal = $8
- Margin = 25%
- Final price = $10 (but may vary by packaging, delivery zones, etc.)
Don’t be afraid to charge for value—especially if you provide customization, packaging, on-time delivery, or add-ons like salads, drinks, or Saturday meals.
Final Thoughts
How to price your tiffin service isn’t a one-time task—it’s a dynamic part of your business strategy. As you grow, reevaluate your costs, tweak your plans, and never lose sight of your unit economics. A profitable tiffin business doesn’t just run—it scales, sustains, and supports your livelihood for the long term.
Need help calculating your meal plan profitability or automating your billing? Try Tiffy and see how we simplify your entire workflow.