New Delhi, April 1 -- Wow! Momo Foods Pvt. Ltd, the Tiger Global-backed quick-service restaurant chain, is turning packaged foods into a major revenue driver. The 800-outlet chain eyes Rs.850 crore in revenue for FY26, driven by the FMCG business, a pivot which is sending the firm into everything from frozen momos and cup noodles to frozen coconut and kulfi.

However, the shift comes as delivery costs and heavy discounts squeeze margins at its brick-and-mortar stores. The 14-16% margins on delivery eroded due to high commissions, discounting, deals and marketing compared to pre-covid times.

Though digital orders hit 40% of sales, the firm is targeting higher-margin retail and exports to West Asia to boost profits and offset rising delive...