Tuesday, November 17, 2009

How much does it cost a retailer to produce one medium sized fountain drink?

I'm a student. My student card allows me to receive a free medium fountain drink from Subway. But whenever I go in my uniform coming from school for lunch, the cats at the restaurant say "We can't give you the drink free without your student card." (which I've lost) They're like "I know people who just dress up in uniform to get a free drink. How much does it really cost? How much are they losing if I was lying? PENNIES?

How much does it cost a retailer to produce one medium sized fountain drink?
You got it, just pennies. Something along the line of .20 - .30 per drink (depends on brand, product, area, etc.)





Fountain drinks are called post mix, they utilize a syrup in a tank (plactic containers today) and mixed with carbonized water (carbonized tap water on site).





Syrup makes hundreds of drinks and water plus the CO2 and the cup. Cup is fixed cost and water is whatever the cost is from municipality.





Neat part is have you ever compared fountain drinks flavour (same drink) at different places? You may have noticed it is a little different with some tasting better. That's because they can change the mix ratio of syrup to water. Some make it weak to get more out of each syrup batch and make more money for less flavour.
Reply:For Subway and those with the fountain style machine, they pay for the cups that is it, typically. The syrup is basically free for them, they usually only pay for the cups, which is why many places if you ask for a cup for water, they give you a different type of cup as a cup missing means stolen/lost profit.





How much.. yes you are talking cents, a drink that costs 1.25 probably costs the restaurant about 25 cents. Soda is a huge profit maker for them if they use the fountain style, not cans or bottles, where the profit is much lower.
Reply:Fountain drinks are a high profit item, I would say that the container costs more than the drink. Why else would most places offer a bottomless drink for one price.
Reply:I am not sure what the current rate is, but 13 years ago when I owned a restaurant, it cost me 7 cents to make a medium fountain drink, which I sold for 79 cents. If I factored in the cup and straw. my total cost was about 13 cents. A fountain holds a pouch of soda syrup, and blends with seltzer water as it dispenses. The only real cost is for the syrup. The machines itself, and the seltzer water are provided by the soda companies.
Reply:Probably cost less than 5 cents, the cup would cost the most.
Reply:If they are dealing in large volumes with a post-mix machine then its about 10c to maybe 20c for the drink. The cost can be a bit higher for the really large drinks if you dont add lots of ice.
Reply:Why don't you get a new card and stop criticizing minimum wage workers for not breaking the rules for you?
Reply:yea usually pennies. the cup, straw and lid are usually the most expensive. the restaurant i worked at i believe came to about 8 cents a serving.

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