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phildixon phildixon
 

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M$1.00  Funded By Mahalo ? |  May 03, 2009 01:25 AM

How much does it cost McDonald's for a 32 oz soda?

I got into a discussion with a friend about this. I contended that McDonald's loses money on their drinks because they have free refills. He thought that that soda was so cheap for McDonald's that they still make a high profit margin off their sodas even with the free refills. Who is right?
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yagelski yagelski
 
 May 03, 2009 02:42 AM
"The typical margin on fountain beverages is about 85 percent, notes John Drinkard, marketing director for Villa Enterprises, a Morrison, N.J.-based, multiconcept operator or franchisor of more than 300 quick-service restaurants..."

I would venture to guess that the volume purchasing power of McDonalds would result in their margin being even better; likely 90 percent or more.

Menu prices can vary by region, city and restaurant. If you assume that a 32 oz soft drink is priced at $1.59, that would place McDonalds' cost at approximately $0.15 or less.
http://www.nerland.officewebsiteonline.com/work/samples/MCD-Cup.jpg
Source(s):
http://findarticles.com/p/articles/mi_m3190/is_28_42/ai_n27948320/



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spideybolt spideybolt
 
May 03, 2009 01:39 AM
The cost for a 32 oz soda cannot be calculated to a penny but if you figure that the soda is bought in large amount they save money instead of buying the soda in small bottles. Also the fact that they may not fill it fully or put alot of ice in the cup can effect the cost slightly so my best guess when you total every little thing out may be around .20 to .50 somewhere in that range

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bunnyphuph... bunnyphuph...
 
May 03, 2009 02:28 AM
You're right spidey, but I really don't think the cost is any more than 20 cents. I had a friend who managed a Starbucks and he said that the basic cup of coffee at $2+ dollars only cost them 40 cents. (makes you wonder...)

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