Delivery costs take a bite out of Wow! Momo's bottom line

DESPITE CLOCKING STRONG revenue growth in the last financial year, quick service restaurant (QSR) chain Wow! Momo is struggling to narrow its losses, as a growing share of revenue from food delivery, now at 45%, continues to squeeze its margins.

- AYANTI BERA

DESPITE CLOCKING STRONG revenue growth in the last financial year, quick service restaurant (QSR) chain Wow! Momo is struggling to narrow its losses, as a growing share of revenue from food delivery, now at 45%, continues to squeeze its margins. The company's losses have remained largely around ₹114 crore since FY23, while revenue has risen nearly 50% between FY23 and FY25.

High commissions to food delivery platform, promotional spends and added operational costs tied to delivery are pressuring profitability even as the company aggressively expands its store footprint and product offerings.