Instead of having customers donate a dollar and giving them a coupon book "worth" $30, why doesn't KFC just donate those $30 themselves (or even half)?
I'm guessing it drives more profits
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I'm guessing it drives more profits
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.
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
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…
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.
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.
yeah the box of Pepsi costs $105, couldn't tell you what cups cost