Have you ever ordered a drink in a restaurant or fast food place- a Coke, tea, coffee- a normal non-alcoholic beverage- only to realize it cost as much as your meal?
Soda is one area restaurants make quite the profit margin. It literally costs pennies on the dollar, a serving may cost someplace like McDonald’s, with their magical tasting tasty toxin, .05-.20 per serving. They sell each size of drink right now for $1. If you were to get a drink from “Micky D’s,” why not go for the large? (Unless you’re concerned about health, then you’re talking calories and chemicals.)
I found this photo on Sell Tech
This example highlights the cost versus profit of a drink in a restaurant.
There is a place my friends an I frequent in my town. The best Mexican food. Better than any chain, and they are so popular they have not one but four restaurants in my town and surrounding areas. The parking lot is always packed, always a wait at all of their locations whether it be lunch or dinner. I love everything about this place- except the drink prices. A coke…a coke without rum added…is $2.50. That is the cost of a 12-pack of Coke on sale at Kroger.
To avoid all this markup, I order water. It’s just my way of saving some money when I’m eating at a restaurant I’ve also stopped buying drinks out in general. Coke and Pepsi Co. are such profitable companies because their product is marked up hundreds of percent. They seemed to have found their niche, good for them.
Just an FYI: the NYSE closed yesterday with Coke (KO) 42.34 and Pepsi (PEP) 82.63.