Menu Pricing Strategies for Food Trucks: Value-Based, Cost-Plus, and Competitive

For the psychology of how customers see prices, see our Menu Pricing Guide; for the math of cost and margin, see Menu Costing and Catering Menu Pricing. This article is about strategies: how you decide what number to put on the board.

Three Core Strategies

Tactics That Work for Food Trucks

Anchor pricing: Put a higher-priced item (e.g. combo or premium option) next to your standard items so the standard looks reasonable. Bundling: Offer a meal deal (sandwich + side + drink) at a price that feels like a discount but improves margin. Round numbers vs. charm: Some trucks use round numbers ($10, $15); others use just-under ($9.99). Test what fits your brand. Combine strategy with menu engineering so your best margin items get the right placement and promotion.

When to Use Which Strategy

Your concept and market should drive the primary strategy. Value-based fits unique concepts, events, and premium positioning—customers pay for the experience. Cost-plus fits high-volume, commodity-style menus where you need to protect margin and have good cost data. Competitive pricing fits crowded markets where you need to be in the ballpark; differentiate with quality, speed, or service so you're not only competing on price. Many trucks blend: cost-plus as a floor, value-based for specials or events, and competitive as a sanity check.

Step-by-Step: Setting Prices for a New Season

A repeatable process keeps your prices aligned with costs and competition without constant guesswork.

1. Calculate food and labor cost per item using our Menu Costing Tool and Menu Costing Guide.
2. Choose a primary strategy (value-based, cost-plus, or competitive) based on your concept and market.
3. Set target food cost % or contribution margin (e.g. 25–30% food cost for mains, lower for drinks).
4. Apply tactics: anchor pricing, bundling, and round vs charm pricing where they fit your brand.
5. Compare to local competitors and adjust so you're in the right ballpark without leaving money on the table.
6. Review with menu engineering: promote high-margin stars and consider dropping or repricing dogs.

Common Pricing Mistakes

• Underpricing to beat the competition — Erodes margin and trains customers to expect cheap prices. Use cost-plus as a floor and competitive as a check, not a target.
• Not costing add-ons and modifiers — Extra cheese, bacon, or sauce add up. Use the Menu Costing Tool for every modifier so you know true cost and can price add-ons to protect margin.
• Ignoring drinks and sides — Often your best margin. Promote them on the board and train staff to suggest them. See our article on high-margin food items.
• Setting prices once and never revisiting — Ingredient and labor costs change. Review at least quarterly and adjust so margin stays healthy.