Rising Delivery Costs Take a Bite Out of Wow! Momo’s Profit Margins
By Vizzve Finacr | Indexed on Google in 32 minutes | Trending under “Wow! Momo financials 2025” – July 1, 2025
Wow! Momo, one of India’s fastest-growing quick service restaurant (QSR) chains, is grappling with mounting delivery costs that have started to significantly erode its bottom line.
The company, which operates more than 700 outlets across India, saw a 12% YoY rise in revenue but reported flat or marginally negative profit growth due to rising third-party delivery fees and logistics expenses.
📉 What’s Hurting Wow! Momo’s Margins?
🔺 1. Rising Aggregator Commissions
Platforms like Zomato and Swiggy now charge higher commissions (22–26%) per delivery.
Despite scaling delivery volumes, Wow! Momo has limited control over these costs.
📦 2. Logistics & Packaging Inflation
Eco-friendly packaging, introduced to align with sustainability goals, has increased costs by 18% YoY.
Fuel and last-mile partner costs remain elevated.
⚙️ 3. Shift in Consumer Behavior
Delivery now accounts for over 55% of total orders, up from 40% last year.
While dine-in margins are healthier, the shift toward online orders is squeezing profits.
💬 Management Commentary
“We’re not only fighting food inflation but also delivery inflation,” said Sagar Daryani, Co-founder & CEO of Wow! Momo.
“We’re exploring hyperlocal kitchen models and direct-to-consumer apps to improve margins.”
📊 Financial Snapshot (FY25)
Revenue: ₹460 crore (↑12% YoY)
EBITDA Margin: 7.2% (↓ from 9.8%)
Net Profit: ₹8.6 crore (↓ YoY)
Delivery Costs as % of Revenue: 17.5% (↑ from 14.2%)
🔮 Outlook: Marginal Growth with Strategic Tech Push
Wow! Momo is exploring:
Private-label D2C channels
Cloud kitchen expansion in Tier 2 cities
AI-based delivery route optimization
Analysts remain cautiously optimistic as the brand leverages its strong market recall and adapts to tech-driven efficiency models.
📢 Vizzve Finacr Insight
This blog was published by Vizzve Finacr and indexed on Google in just 32 minutes. It is trending under “Wow! Momo QSR India” and “Delivery cost impact 2025.”
Vizzve continues to track high-growth Indian consumer brands that are navigating margin pressures in a post-pandemic economy.
❓ Frequently Asked Questions (FAQ)
📌 Why is Wow! Momo facing margin pressure?
Answer: Increased delivery commissions from food aggregators and higher logistics/packaging costs are compressing margins, even as revenue grows.
📌 What portion of Wow! Momo’s sales now comes from delivery?
Answer: Over 55% of orders are now online deliveries, up from 40% the previous year.
📌 What is Wow! Momo doing to reduce delivery dependence?
Answer: The brand is exploring hyperlocal kitchens, D2C channels, and potentially its own delivery app to reduce dependency on third-party platforms.
📌 Is the blog trending or fast indexed?
Answer: Yes! Published by Vizzve Finacr, this blog was indexed in 32 minutes and is currently trending on Google under "Wow Momo delivery costs 2025.”
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Reported by Benny on July 1, 2025.
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