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)? - eviltoast

I’m guessing it drives more profits

  • damnthefilibuster@lemmy.world
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    2 months ago

    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.earthOP
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      2 months ago

      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

      • damnthefilibuster@lemmy.world
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        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…

      • GorgeousDumpsterFire@lemmy.world
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        2 months ago

        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.earthOP
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      2 months ago

      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
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        2 months ago

        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.