What is a menu price index?
A menu price index compares what a set of outlets charges for an item or a basket with a reference price that is set to 100, so 112 means 12% more expensive than the reference; Dashmote records delivery menu prices across 15M+ storefronts. Brand teams use it to see where their product is priced above or below a competitor, a platform or the in-store price, and where there is room to win.
The trusted intelligence layer for teams selling to Hospitality & Retail
The formula
Menu price index = median price of the item in the set / median price of the same item in the reference set x 100
Basket price index = sum of the basket's prices in the set / sum of the same basket's prices in the reference set x 100
The reference is whatever you compare against: a competitor's product, the same product on another app, last month's price, or the recommended in-store price. Usage varies: some teams index against an average rather than a median, some set the reference to 1.00 instead of 100. Both are fine if the report says so.
Three rules keep the index like-for-like. Compare the same pack size (a 330 ml can is never indexed against a 500 ml bottle). Use the price of the item sold on its own, because a price inside a combo cannot be separated from the meal. Keep regular prices and promotional prices in separate indices.
Worked example
Take a 500 ml iced tea, your brand, against a rival brand in one city, with prices in price units.
| Delivery app | Your brand median | Rival brand median | Index vs rival |
|---|---|---|---|
| One delivery app | 3.60 | 3.30 | 109.1 |
| A second app | 3.80 | 3.80 | 100.0 |
| A third app | 3.20 | 3.40 | 94.1 |
On the first app, your brand costs about 9% more than the rival (3.60 / 3.30 x 100). On the third it is about 6% cheaper.
Against a recommended in-store price of 2.80, the index on the second app is 3.80 / 2.80 x 100 = 135.7. That is a second question: not how your brand sits against the rival, but how much the delivery channel adds for the shopper.
Price index, price premium and inflation
These are related but not the same, and decks often swap them.
- Price index: one price as a share of a reference, with the reference at 100
- Price premium: the same comparison as a percentage difference, so an index of 109.1 is a premium of about 9%
- Consumer price index: an index over time for a fixed basket, used to measure inflation, not to compare brands
- Price elasticity: how demand changes when the price changes, which an index alone cannot tell you
How Dashmote data helps
Dashmote records the menu price of each product, with pack size and whether it sits inside a combo, per storefront and per app. Brand teams see their median price, the spread between outlets and an index against named competitors, city by city and month by month. The full set of price KPIs is on delivery price monitoring, and the wider view on food delivery insights. The on-premise side of the same outlets is in outlet intelligence.
Frequently asked questions
What does a menu price index of 110 mean?
It means the item costs 10% more than the reference. Below 100 means cheaper, exactly 100 means the same price.
Should a price index use the median or the average?
Use the median for menu prices. One outlet that lists a can at a party-pack price pulls an average up for the whole city, while the median stays put.
How do you compare prices across delivery apps?
Index each app against the same reference, for example the in-store price or a competitor's product on that app. Comparing raw prices across apps mixes in each app's typical mark-up.
Is a menu price index the same as a consumer price index?
No. A consumer price index tracks a fixed basket over time to measure inflation. A menu price index compares one item or basket with a chosen reference, at one point in time or over time.
Why is my product's index higher on delivery than in store?
Because outlets set their own delivery prices and many add a mark-up to cover platform commission. The brand recommends a price; the outlet decides the menu price.