cost of fast food for the store?

draggoon01

Senior member
May 9, 2001
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was wondering much certain items cost to the store. if a worker or someone in the know could share?

mcdonalds:
-big mac

burger king:
-whopper

domino's or pizza hut:
-any example pizza. large supreme?


-and packet of condiment? do theses really have an effect on bottom line?

do the costs include all store bills (utilities, rent, workers) or is it just cost to buy from chain?
 

dullard

Elite Member
May 21, 2001
25,898
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While I cannot answer your questions directly, I can give some related information. I worked at Arby's for several years. Arby's buys roast beef for $60 which after cooking weighs right around 152 oz (9.5 lbs post cooking weight). Thus $60/152 = 39.5 cents per oz. Add in the cost of storage (freezer and refridgerator), cooking (oven and holding oven), waste (not all the beef can be used), and labor (for preparing the beef) the average cost is right around 50 cents per oz. Now look at the menu prices. Arby's charged 29 cents + 50 cents per oz of beef (This was 5-10 years ago, the prices may be different now):
2 oz junior was $1.29,
3 oz regular was $1.79,
5 oz giant was $2.79.
I don't know what it cost for the bun, butter for toasting, wrapper, labor, machine wear and tear, and electricity to make the sandwich, but it is probably quite close to that 29 cents. Arby's pretty much does that with all their sandwiches - they don't make a dime on them. In fact on their 5 for XXX deals they lost money on each sandwich. Where do they make their money? The pop and the fries. A pop costs 2-3 cents and they sell it for about $1.

Now most fast food joints have similar policies. They make no money on their sandwiches and then make the money on the fries and pop. So I'd expect the McDonald's and Burger King to be similar (I don't have hard numbers, but I'm pretty sure this is true for them. They probably only earn a few pennies per burger). Pizza on the other hand is different. Pizza joints don't sell enough pop and extras to survive from that alone. So the pizza is where the money is at.
 

Buz2b

Diamond Member
Jun 2, 2001
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Used to do Micky D's. Big mac is like .29-35 cents at most if I remember. Yes, the cost of condiments DOES affect the bottom line profitability in a fast food restuarant. Hell, the cost of drink cups can screw up part of the bottom line. They work on percents of percentages. Compare a bottom line of 10.7% vs 10.6% of a store that does 1.5 million per year. You do the math; it makes a difference.
Ughhh, this is bringing back bad memories. No more input from me.

BTW, pizzas are just about the cheapest things going in food service. You can make a large pizza cheaper than BK can make a whopper.
 

amdskip

Lifer
Jan 6, 2001
22,530
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Dominos pizza must be super cheap considering I can get a large 1 topping delivered for $5.32.
 

Klaudeman

Member
Jul 14, 2001
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Originally posted by: amdskip
Dominos pizza must be super cheap considering I can get a large 1 topping delivered for $5.32.

As I was a former Domino's Manager I can answer this, however the info I have is a few months old so it may differ depending on the price of food supplies now.

A 1-Topping pizza costs just under $2 for most toppings
A "Extravaganza" (which is 9 toppings) costs a tad over $3

Keep in mind that this is only for the cost of the box, label and food products needed for the pizza and doesn't cover the labor that is associated with making the pizza and delivering it to your door.

Hope this helps!
 

daclayman

Golden Member
Sep 27, 2000
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Pizza Shack rounded prices/specs:

1 Large Pan crust === .45 ($4.50/pre-mix bag)
3 oz pizza sauce ==== .03
8 oz motz cheese === .80 ($1.60/lb)
1 oz pepperoni ===== .10 ($1.60/lb)
1 oz mushroom ===== .07 ($1.15/lb)
1 oz green pepper === .05 ($.80/lb)
1 oz red onion ===== .04 ($.60/lb)
2 oz beef/pork topping .11 ($.75/lb)
large box ========= .16
----------------------------------------------
no labor included == $1.81 give or take a dime
I can't remember my per pound prices but I know cheese and pepperoni are down this year. Large box might cost 20 cents

edit: labor is tough to do per pizza; I can tell you as a pizza dude, I cost the company around $2.50 per delivery (hourly wage, delivery reimbursement, SUTA/FUTA and, last but not least, liability insurance). That's how Little Caesar's could charge so very little for their pizzas; they had NO delivery overhead to factor into their pizza pricing. My franchise adds a buck on each order as a delivery charge which goes straight to the bottom line but it looks better to the customer instead of raising pizza prices across the board and penalizing those that carryout.
 

fatbaby

Banned
May 7, 2001
6,427
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This is probably the best thread I have ever had the pleasure of reading in my tenure at AT.
 

fooshkee

Senior member
Aug 10, 2001
571
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great article...

i know this isn't a food thing... but just so you know best buy sells usb cables for around $20... and they get them for like $1.50..... sickos
 

CTrain

Diamond Member
Sep 26, 2001
4,940
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Unproudly, I'm the McDonalds guru around here.

A final Big Mac product in the box cost us $.42.
I can pretty much tell you anything about McDonalds.

In fast food it breaks down like this:

Food cost(including paper) is about 25-30%
Labor is around 25-30%
Profit after controllable(PAC) will be around 30-40%

Then you subtract stuff that you can't control like:
Rent, depreciation, franchise fee, etc...

Then lastly, (just for us) we subtract our administrative cost which gives us a profit margin of anywhere 5-7.5 %.
So for a busy McDonalds that does about 2.4 mil/yr, thats $200,000/month x 7.5 % = NET INCOME of $15,000 per month.

Not much is it ???

So did you win the bet ??
 

dman

Diamond Member
Nov 2, 1999
9,110
0
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Not a food industry person, my previous (insignificant) research leads me to believe food is only a small part of the total cost of operations. We've covered labor, and packaging/storage as factors. There's also rent/building expenses, utilities, insurances, accounting/legal stuff, licenses, etc.