Author Topic: wtf, soda prices when eating out  (Read 11793 times)

xyzzy

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wtf, soda prices when eating out
« on: March 03, 2016, 09:15:54 AM »
I guess its just a major profit area, but $2.50 or $3 for a soda is kinda a rip. Plus its bad for you. I have opted out of this for a while now and just go for the water. I'm just thankful that others don't seem to care that much and they are helping maintain the profit margins for the restaurants instead of me.

slappy

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Re: wtf, soda prices when eating out
« Reply #1 on: March 03, 2016, 09:22:56 AM »
Free refills ;)

Mr. Green

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Re: wtf, soda prices when eating out
« Reply #2 on: March 03, 2016, 09:31:23 AM »
Free refills ;)
lol. I figure the carbonated water and syrup costs pennies per glass. I'm sure it's a major profit item.

nereo

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Re: wtf, soda prices when eating out
« Reply #3 on: March 03, 2016, 09:33:10 AM »
I guess its just a major profit area, but $2.50 or $3 for a soda is kinda a rip. Plus its bad for you. I have opted out of this for a while now and just go for the water. I'm just thankful that others don't seem to care that much and they are helping maintain the profit margins for the restaurants instead of me.

There may be a healthy profit margin on soda, but there's typically an even better one on beer, especially when sodas are offered with 'bottomless refills'.  For a $2.50 soda the establishment might see about $2.25 in profit.  If the customer drinks three sodas that might be closer to $1.75 (plus there's extra dishes to wash, time to fill, etc).
A mass-market beer on tap typically go for about $6 at most mid-range places, but the cost per pint is closer to $1.25/pint, yielding a profit of about $4.75/beer (minus costs for serving).  In other words, they make 2x the profit when you order a beer compared to a soda. If you decide to drink two beers instead of two sodas the profit difference really kicks in.

Regardless, as a consumer what matters is how much enjoyment you get out of each.  Ordering based on profit margin is a bit silly.  If you really want a chicken sandwich but know thesteak  sandwich at the same price costs the restaurant more, what logic is there in ordering the steak sandwich?
Ultimately, drink water - your body and your wallet will thank you.

Altons Bobs

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Re: wtf, soda prices when eating out
« Reply #4 on: March 03, 2016, 09:51:46 AM »
I always only get water at restaurants unless a drink is included and there's no way to exclude it.  Beverages probably have the highest profit margin for eating places. I'm glad other people are buying them, someone's gotta keep the economy going! ;-)

Vanguards and Lentils

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Re: wtf, soda prices when eating out
« Reply #5 on: March 03, 2016, 09:54:11 AM »
One of my favorite feelings is when I'm eating out with a group, and the waiter asks what we'd like to have to drink, and I get to start a chain of "Just water"s

nereo

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Re: wtf, soda prices when eating out
« Reply #6 on: March 03, 2016, 09:55:49 AM »
One of my favorite feelings is when I'm eating out with a group, and the waiter asks what we'd like to have to drink, and I get to start a chain of "Just water"s
I don't understand - why does this make you feel good?  Because you are helping a group save money?

Vanguards and Lentils

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Re: wtf, soda prices when eating out
« Reply #7 on: March 03, 2016, 09:57:18 AM »
I don't understand - why does this make you feel good?  Because you are helping a group save money?

Yep! I like to think I'm creating positive peer pressure.

saijoe

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Re: wtf, soda prices when eating out
« Reply #8 on: March 03, 2016, 10:02:46 AM »
Haven't had a soda since 2014...  It was a resolution that I just kept going with. 

Northwestie

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Re: wtf, soda prices when eating out
« Reply #9 on: March 03, 2016, 10:12:30 AM »
One of my undergraduate profs working on a number of physiology studies fed rats a regular diet, of among other things, coke, which managed to dissolve their teeth.

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Re: wtf, soda prices when eating out
« Reply #10 on: March 05, 2016, 02:04:07 AM »
I stopped ordering sodas at restaurants in 2014 due to this.  The only I order anything other than water is for breakfast, in which coffee is a must for.  Coffee is even in the $2 - $4 range here now at most facilities.  My wife still gets a sweet tea every time we go out for dinner and continues to complain about $3 tea (she is slowly getting there).

Taran Wanderer

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Re: wtf, soda prices when eating out
« Reply #11 on: March 05, 2016, 02:17:08 AM »
I made it a week into the new year and then realized I hadn't had a soda yet.  So I made it a resolution, and I have stuck with it.  I lost a few pounds, and I've enjoyed the cost savings, too. Whenever I want a soda, I just think about eating a plastic bag full of sugar. That's basically what a soda is.  That visual turns off the want every time...

use2betrix

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Re: wtf, soda prices when eating out
« Reply #12 on: March 05, 2016, 05:20:33 AM »
You should be more disgusted by what's in soda than the actual price. If someone isn't drinking it due to the price then they have bigger problems.

RobFIRE

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Re: wtf, soda prices when eating out
« Reply #13 on: March 05, 2016, 06:38:48 AM »
In terms of basic ingredients cost versus sticker price standard restaurants are 5x to 10x on food and drinks, so I'm not sure drinks are specifically more expensive than food (on average). Obviously restaurants have lots of other costs, though with that markup I don't tend to eat out on my own money that often.

SMCx3

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Re: wtf, soda prices when eating out
« Reply #14 on: March 05, 2016, 07:02:48 AM »
I am in sales and spend majority of my time on the road visiting with customers.  At most gas stations I would get a soda when filling up, grab a soda at lunch, even have a soda in the morning.  In Novemebr of 2015 I gave up all soda.  The savings in my pocket book is one thing, but I can not believe how much better I feel after trading my carbonated beverage for water. 

If you are a heavy drinker of soda,  I will also tell you how hard it is to quit drinking this crap.  Stay strong for one week and you will kick the habit.  A cup of coffee or a glass of tea will also help kill some of the initial cravings.

I was averaging at least two sodas a day, so I know at a minimum I am saving $25-$30 a month.

Mongoose

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Re: wtf, soda prices when eating out
« Reply #15 on: March 05, 2016, 07:18:00 AM »
My friend who worked for awhile as an assistant restaurant manager said their highest markup was on soda. I think she said it might cost 5 or 10 cents. She knew the exact percentage and it was insane. The number of refills that would be required to cut it down significantly was equally obscene.

I'm fortunate. Never could stand the stuff.

mjs111

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Re: wtf, soda prices when eating out
« Reply #16 on: March 05, 2016, 10:38:55 AM »
In addition to being very high margin, beer and soda orders are also virtually labor-free for a restaurant: pour and serve, and helps offset the razor thin margins on food.

A couple going into a restaurant and ordering just wine, coffee, and dessert is a real profit maker and time saver for a restaurant.

Mike

kudy

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Re: wtf, soda prices when eating out
« Reply #17 on: March 05, 2016, 10:43:10 AM »
Sometimes with happy hour pricing, a beer or well cocktail is cheaper than a soda; I'd rather get the beer :)

gardenarian

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Re: wtf, soda prices when eating out
« Reply #18 on: March 05, 2016, 02:21:23 PM »
Everything served in restaurants has a huge profit margin.
Why eat out at all when you can make more healthful food at home for a fraction of the cost?

marty998

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Re: wtf, soda prices when eating out
« Reply #19 on: March 05, 2016, 03:30:41 PM »
Everything served in restaurants has a huge profit margin.

You're forgetting...

Salaries and wages for cooks, dishwashers, wait staff
Rent/mortgage on premises
Fit-out, fixtures, fittings and depreciation
Electricity (commercial fridges and ovens are not exactly cheap on power)
Water
Insurance
Local business rates, fees, and regulation costs to governments
Repairs and maintenance
Cleaning costs
IT systems
Purchases of plates, cups, serviettes etc
Advertising
Accountant's fees

You need to sell a fuck-tonne load of soda to pay for all this.

mjs111

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Re: wtf, soda prices when eating out
« Reply #20 on: March 05, 2016, 03:40:12 PM »
Everything served in restaurants has a huge profit margin.
Why eat out at all when you can make more healthful food at home for a fraction of the cost?

This is a common misconception among many people, which is one reason so many try getting into the restaurant business (and fail).  Yes, it's much higher priced than at home but it's not very high margin, due to all the various costs another poster nicely laid out.

Mike

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Re: wtf, soda prices when eating out
« Reply #21 on: March 06, 2016, 05:59:46 PM »
I do not even order soda when someone else is buying. Only water here or an occasional beer.

One annoying thing that is prevalent here in SoCal is for restaurant coupons that require the purchase of two beverages. These usually say "buy one dinner, get one free" etc... but if you read the fine print it always says, "with purchase of two beverages". They would be smart to add "or with purchase of an appetizer". At least then I would be more inclined. 

Vilgan

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Re: wtf, soda prices when eating out
« Reply #22 on: March 06, 2016, 06:16:57 PM »
Yeah, when I was a kid working at Subway I believe the margins were .08 cost per soda, cost to consumer 1.09. Chips/cookies had similar margins. It was hilariously effective because people would be excited about the cheap footlongs but then spend a lot of money on side things with huge margins. After labor/food, margins on the sandwiches themselves were pretty negligible so drinks and chips was where it was at.

clarkfan1979

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Re: wtf, soda prices when eating out
« Reply #23 on: March 07, 2016, 12:39:42 AM »
I guess its just a major profit area, but $2.50 or $3 for a soda is kinda a rip. Plus its bad for you. I have opted out of this for a while now and just go for the water. I'm just thankful that others don't seem to care that much and they are helping maintain the profit margins for the restaurants instead of me.

There may be a healthy profit margin on soda, but there's typically an even better one on beer, especially when sodas are offered with 'bottomless refills'.  For a $2.50 soda the establishment might see about $2.25 in profit.  If the customer drinks three sodas that might be closer to $1.75 (plus there's extra dishes to wash, time to fill, etc).
A mass-market beer on tap typically go for about $6 at most mid-range places, but the cost per pint is closer to $1.25/pint, yielding a profit of about $4.75/beer (minus costs for serving).  In other words, they make 2x the profit when you order a beer compared to a soda. If you decide to drink two beers instead of two sodas the profit difference really kicks in.

Regardless, as a consumer what matters is how much enjoyment you get out of each.  Ordering based on profit margin is a bit silly.  If you really want a chicken sandwich but know thesteak  sandwich at the same price costs the restaurant more, what logic is there in ordering the steak sandwich?
Ultimately, drink water - your body and your wallet will thank you.

There is a liquor license to consider for beers. However, a keg of domestic beer is going to be $75 and you get about 125 beers per keg. This is going to be 60 cents a pint, just for the beer. This does not include buying glasses. A bottle beer is going to cost the restaurant closer to $1.00-$1.25, but they do not need to buy the glasses or pay to have them washed.

I tend to order stuff at restaurants that I would not make at home.

mjs111

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Re: wtf, soda prices when eating out
« Reply #24 on: March 07, 2016, 07:39:31 AM »
Nice breakdown here of the basic costs of a $2 fountain soda for a restaurant and a quick estimate on the breakeven point if you order endless refills:

Based on a foodservice.com post (popular industry forum), the cost breaks down something like this [1]:

    $0.12 for soda
    $0.07 for the cup
    $0.01 for the lid
    $0.015 for the straw

Other searches seem to verify the soda cost at around 10-13 cents per cup–but this also assumes you're putting a normal amount of ice in the cup.

So, you buy a $2 soda. We'll take 8.5 cents off the top for the cup, lid and straw. That leaves $1.915 in soda you have to drink. Divide that by 12 cents and you're looking at roughly 16 (20 oz) sodas and the restaurant breaks even. Beyond 16, and they're losing money.

Of course, this doesn't take into account electricity for the machine, water cost, water filtration system, or the labor time required to change out syrup/CO2. So, even at 16, they're probably in the red.

source:
https://www.quora.com/How-much-would-I-need-to-drink-for-a-restaurant-to-lose-money-on-a-2-fountain-soda


Even if you're punitive and say the breakeven point is 8 sodas after factoring in overhead, likely very few guests get close to that number, and of course you can re-work the math if you were charged over $2.00 for a soda.


Mike


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Re: wtf, soda prices when eating out
« Reply #25 on: March 07, 2016, 07:57:36 AM »
Just water for me. I'll admit that I love soda, but I never drink it unless it's free. Only major exception to this is when eating out at a fast food joint (which I do maybe once or twice a month). A shitty burger and oversalted fries just aren't the same without bubbly sugarwater to wash them down.

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Re: wtf, soda prices when eating out
« Reply #26 on: March 07, 2016, 08:08:29 AM »
I love my soda but have cut back dramatically. Used to be 2-3 a day. Now it is more like 2-3 a week. Next goal is the same amount per month.

We tried a restaurant one time here in town that ended up charging me $1.79 for tap water. A argued with the owner and she stuck to her guns. I told everyone about that. Bet I cost her more than the $2 tap water made her. ;)

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Re: wtf, soda prices when eating out
« Reply #27 on: March 07, 2016, 08:31:16 AM »
I've got a friend that owns convenience stores.
He says selling gas is a pain in the rear, but you have to have it to get folks in the store to buy soda pops, cigarettes, beer, junk food, ice, etc.
Said they are content to make a nickle or dime on a gallon of gas.  The real margins are in the items listed above, and fountain pops are about the best margin item they sell.

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Re: wtf, soda prices when eating out
« Reply #28 on: March 07, 2016, 08:50:12 AM »
Next time at a restaurant order a diet water and see how long it takes your waitress/water to figure it out! always a good laugh! I always order water. Soda is just bad for ya!

nereo

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Re: wtf, soda prices when eating out
« Reply #29 on: March 07, 2016, 10:55:38 AM »
I'm still unclear why people choose what they are going to order based on how much profit it gives the business.

On the increasingly rare occasions when we do go out, we order what we want to eat based on the price to us, not whether the restaurant will make 10˘ or $10 on the transaction.

Vanguards and Lentils

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Re: wtf, soda prices when eating out
« Reply #30 on: March 07, 2016, 11:10:45 AM »
I'm still unclear why people choose what they are going to order based on how much profit it gives the business.

On the increasingly rare occasions when we do go out, we order what we want to eat based on the price to us, not whether the restaurant will make 10˘ or $10 on the transaction.

The "price to [me]" of soda is actually what makes me not order it- it just so happens that it's a huge markup from the restaurant too. When I don't order soda, what's motivating me is knowing that I could buy 2 or 3 bottles of soda at my grocery store for the same price. The other high-margin items might be this way too; ice cream and ready-made desserts from the grocery store come to mind.

fattest_foot

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Re: wtf, soda prices when eating out
« Reply #31 on: March 07, 2016, 11:30:42 AM »
I'm still unclear why people choose what they are going to order based on how much profit it gives the business.

On the increasingly rare occasions when we do go out, we order what we want to eat based on the price to us, not whether the restaurant will make 10˘ or $10 on the transaction.

The "price to [me]" of soda is actually what makes me not order it- it just so happens that it's a huge markup from the restaurant too. When I don't order soda, what's motivating me is knowing that I could buy 2 or 3 bottles of soda at my grocery store for the same price. The other high-margin items might be this way too; ice cream and ready-made desserts from the grocery store come to mind.

This is the logic I use for steak. I never buy a steak at a restaurant because it's going to be a minimum of 2x (and typically 3x or higher) the cost I'd spend to buy it myself. And steak is one of those things I can cook significantly better (to my liking) and faster than a restaurant.

I basically only go to restaurants for food that I can't or don't want to make myself.

gliderpilot567

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Re: wtf, soda prices when eating out
« Reply #32 on: March 07, 2016, 01:54:58 PM »
Ice water. If you ask nicely they will usually throw in a free slice or two of lemon or lime, which I find more than makes up for the soda craving and is especially nice if the tap water in your area tastes nasty.

Usually if I'm dining out (which is rare) I'll order ice water plus whatever dish has the highest protein-to-dollar ratio. Chicken is among the cheapest dishes, but you get better protein bang for your buck.

Otherwise I find most places so ridiculously overpriced, for average to mediocre food, that I'll rarely dine out in the first place.

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Re: wtf, soda prices when eating out
« Reply #33 on: March 07, 2016, 02:29:14 PM »
This is the logic I use for steak. I never buy a steak at a restaurant because it's going to be a minimum of 2x (and typically 3x or higher) the cost I'd spend to buy it myself. And steak is one of those things I can cook significantly better (to my liking) and faster than a restaurant.

I basically only go to restaurants for food that I can't or don't want to make myself.

This is why we rarely go out to eat at all.  I'm really lucky that my husband is an exceptional cook. And that when he's gone I'm too lazy to bother going out when a bowl of cereal will do just fine. (There is no take-out on my drive home from work, so I have to go out of my way for that too.)

Any food I want my husband can make for a fraction of the cost. There is no reason to pay the restaurant mark up.


I actually stopped drinking soda at home it got so expensive to buy at the grocery store. At restaurants ended like a decade ago.

Tawcan

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Re: wtf, soda prices when eating out
« Reply #34 on: March 07, 2016, 04:50:47 PM »
Don't drink pop at home so ordering pop/soda when eating out is never really something that we do. Ice water will do just fine. :)

pdxmonkey

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Re: wtf, soda prices when eating out
« Reply #35 on: March 07, 2016, 09:03:56 PM »
I guess its just a major profit area, but $2.50 or $3 for a soda is kinda a rip. Plus its bad for you. I have opted out of this for a while now and just go for the water. I'm just thankful that others don't seem to care that much and they are helping maintain the profit margins for the restaurants instead of me.

There may be a healthy profit margin on soda, but there's typically an even better one on beer, especially when sodas are offered with 'bottomless refills'.  For a $2.50 soda the establishment might see about $2.25 in profit.  If the customer drinks three sodas that might be closer to $1.75 (plus there's extra dishes to wash, time to fill, etc).
A mass-market beer on tap typically go for about $6 at most mid-range places, but the cost per pint is closer to $1.25/pint, yielding a profit of about $4.75/beer (minus costs for serving).  In other words, they make 2x the profit when you order a beer compared to a soda. If you decide to drink two beers instead of two sodas the profit difference really kicks in.

Regardless, as a consumer what matters is how much enjoyment you get out of each.  Ordering based on profit margin is a bit silly.  If you really want a chicken sandwich but know thesteak  sandwich at the same price costs the restaurant more, what logic is there in ordering the steak sandwich?
Ultimately, drink water - your body and your wallet will thank you.

Mass market beer $6?!?! Where is that? Here in the PNW a microbrew is$4-$6. Some places have micro brews @$3/pint during happy hour. PBR has gone up to $2.50 at the bar nearest my house. I think Budweiser is about $3. Minimum wage is nearly the highest in the country in OR/WA and I can't imagine real estate/commercial rent is that much lower here. Someone is making a massive profit at $6.
« Last Edit: March 07, 2016, 09:08:22 PM by pdxmonkey »

jubilantjill

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Re: wtf, soda prices when eating out
« Reply #36 on: March 08, 2016, 04:02:30 AM »
I live in Spain. The lack of markup at restaurants here is perplexing. If I order water, or sparkling water I pay 1.30. Beer, house wine, and soda, all the same. Can't really get tap water so I've modified my  US strategy of just getting water. Now it's almost always beer or wine. But then I feel guilty having an indulgence while forcing my daughter to get water so we usually let her get juice- which is 2 euros. Seems the mark-up is on water and juice.

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Re: wtf, soda prices when eating out
« Reply #37 on: March 08, 2016, 08:39:33 AM »
I bartended for a while and did inventory and ordered liquor/refills for the soda machine. I second everyone else who says that the soda syrup itself is cheap, and while there are other things that go into it (ice, CO2 canisters, hoses, soda guns, soda fountains) it ends up being a huge money maker for a restaurant.

Restaurants need high margin products like that to offset the cost of things like dairy that they often make no profit on or even lose money. As a consumer/human being though...don't drink it. It's poisonous crap!

 

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