Considering those $1 sodas are about .05 to .10 in food and material costs (if my math is right, that's 900-1800 percent profit margin), I find it hard to believe any fast food place really is hurting so bad that they need to bump the cost on their dollar menus. They're just taking advantage of convenient timing, as groceries and everywhere else is jacking up costs.

A 32 ounce soft drink including cup straw and lid is closer to 40 cents.

 

A very basic look at the food industry would say you want food cost at around 27 to 32 percent and then with the remaining money is used to pay labor, advertising, franchise fees, facility costs and so on and so on. Selling these drinks with a food cost of 40% only serves to help the store be competitive, when all other cost are factored in they probably profit around a penny for every dollar on these drinks.

Anyone know when Sweet Tea is going away?

A 32 ounce soft drink including cup straw and lid is closer to 40 cents.

 

A very basic look at the food industry would say you want food cost at around 27 to 32 percent and then with the remaining money is used to pay labor, advertising, franchise fees, facility costs and so on and so on. Selling these drinks with a food cost of 40% only serves to help the store be competitive, when all other cost are factored in they probably profit around a penny for every dollar on these drinks.

 

That's a pretty steep increase from my days working in the restaurant business, and doesn't jive with what my buddy tells me he pays v. profit margin. The question is this: Is that cost increase in materials? I can see the plastic straw and lid going up commensurate with petroleum increases, but not necessarily the cup. And definitely not the soda syrup.

Here's something that has bothered me for a while. It used to be that the McDonald's signs told how many burgers had been sold - e.g. "over 90 billion sold".

 

Now the sign just says "billions and billions sold".

 

Inquiring minds want to know - what's the number these days?

That's a pretty steep increase from my days working in the restaurant business, and doesn't jive with what my buddy tells me he pays v. profit margin. The question is this: Is that cost increase in materials? I can see the plastic straw and lid going up commensurate with petroleum increases, but not necessarily the cup. And definitely not the soda syrup.

I ran a place as late as last May, the actual cost of goods of a 32 ounce soft drink (paper cup, lid, syrup, water and straw) was exactly 0.427 dollars per my last product cost spread sheet. A case of Coca-cola syrup rose 5 dollars about 10% in the last year.

I talked about this in my Wendy's thread... things are getting ugly on the fast food front as a whole.

^ Which makes it a good time for me to forego fast food as part of my larger diet/exercise plan.

I believe the charging of extra condiments is because people keep asking for so much..It's a crazy amount sometimes...They want like 8 packets of syrup or 5 BBQ sauces. I mean it cost money, especially when most of those are ended up wasted.

^

 

I only use 1 BBQ Sauce with 10 nuggets.

^

 

I only use 1 BBQ Sauce with 10 nuggets.

2, Hot Mustards.

^

 

 

Never had that

^ Never had that

I like fries with the Hot Mustard sauce, also.

I like fries with the Hot Mustard sauce, also.

 

I'm gonna get McDonald's tommorow and try it!

 

 

 

BTW Post # 6000 for MCDONALD'S!

 

:dancingpa:dancingpa:dancingpa

It's the suits' fault

Even at Taco Bell on campus they have a huge bin full of taco sauces but I grab either 8 or 9 mild sauces...3 per each gordita and 2 or 3 for my soft taco..I try and limit wasting condiments..