this post was submitted on 16 Sep 2024
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No Stupid Questions

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I'm guessing it drives more profits

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[–] damnthefilibuster@lemmy.world 15 points 2 months ago (2 children)

The profit margin on Coca Cola for a store like KFC is basically 100%.

Also, do you use all of the coupons? If you do, you can end up spending 2-3x of the coupon value easily if you are careful not to buy anything else.

[–] strawberry@kbin.earth 4 points 2 months ago (2 children)

hm actually profits on drinks aren't as good as I was expecting. if I'm seeing correctly, a 5 gallon box of Pepsi syrup costs $105

if I do my math correcy that comes to $3.5/gallon (1 part syrup, 5 parts water)

we sell that (best price) $8.38/gallon and worst price ~$20/gallon

so yeah actually for the medium drinks that's a crazy profit margin of what like 85%? add to that the fact that there's ice, so you're not actually getting the cup full, I wouldn't be surprised with a margin of like 95%

that's why I give those for free half the time lol

can't really find anything else, not sure how to read these charts

[–] GorgeousDumpsterFire@lemmy.world 1 points 2 months ago (1 children)

When I used to work fast food, my manager told me that the most expensive component of a soft drink is the ice. Syrup & (filtered) water are pennies, but ice requires electricity to maintain and it's a little more expensive than you'd think.

[–] strawberry@kbin.earth 1 points 2 months ago

that's funny but I wouldn't be surprised

[–] damnthefilibuster@lemmy.world 1 points 2 months ago

Someone explained a long time ago to me how it’s 95-99% profit due to exactly what numbers you described. It’s pretty messed up…

[–] strawberry@kbin.earth 2 points 2 months ago (1 children)

definetly true. I need to look at the next truck order, I'm curious what they're paying for this stuff. see what sorts of margins they've got.

[–] bdonvr@thelemmy.club 2 points 2 months ago (1 children)

A five gallon BiB of coke syrup is like $100 (maybe less if you purchase at volume like KFC's parent company surely does.

That can make ~120 large size drinks.

That's 83¢ per drink in syrup.

A quick look seems like I could get 1000 Styrofoam cups and lids for $120ish (straws are so cheap as to not even need to be included, 0.006¢ per drink) so about 12¢ per drink.

So about 95¢ in supplies, plus maintenance for the machines, CO2, cleaning labor costs... Around $1-$1.10?

But even that sounds high I bet companies like YUM inc get most of these supplies way cheaper than I was looking on restaurant supply sites by buying in huge bulk amounts.

[–] strawberry@kbin.earth 1 points 2 months ago

yeah the box of Pepsi costs $105, couldn't tell you what cups cost