Originally posted by: KEV1N
Each refill costs a fraction of a cent. I know that's probably besides the point. But if this dude is giving discounts on keypads and stuff (let's assume that the discount is more than a dollar) then he's already paid for those refills!
I am the master of logic!
LOL......listen to you guys talk cracks me up.
If everyone thinks like you guys, every business woud fail.
I mean do you realize that business stays in business because they are profitable.
If I had a business that just sold soda......boy, I sure would be making a hugh % per dollar but then again, no one would be coming in just for the sada would they ????
A 21oz soda cost McDonalds $.14, 32oz about $.20 and 16oz about $.11(this includes the cost of the cups)
We sell the 16oz for $.99.
So even if you were to refill the 16oz x3 times, we still would be making $.63 on the dollar.
But then again, like I said we don't just sell sodas, other food costs are significant higher.
Please let me give you a rundown of how a restaurant stays in business...(as in this case, Mcdonalds).
28%- This is typically food costs, includes paper products associate with food.
28%- Labor. this is only for what are paid for people in a particular store.
11%- Supplies, services, etc...
32-33% PAC(profit after controllables). This is the profit minus the 28%, 28% and 11%.
This PAC number is what we store managers are judged by since these are expenses that we(as store managers) can control.
With this 32% PAC, we then have to subtract such things as rent, franchise fees, advertising, depreciation....
So we are end up with about 5-10% profits after operations.
At the end we also take this 5-10% profits and subtract administrative cost...(you know accoutants, our president, vice, supervisors, secretary...etc...)
Believe or not many of our restaurants lose money on slow months.
So basically, sodas are our lowest food cost which in turn help us on some of the other higher food cost.
Next time when you keep coming back to get that refill, or fill up soda with that "water cup", you are basically stealing from a business that trying to stay in business.