Re:McDonald's and Optimal Pricing Strategies
by SoftTalker on Monday July 04, 2022 @01:07PM
(#31979350)
> Actually fast food restaurant margins on the “entree” items are extremely low.
Yes, the largest margin is in the drinks. Mostly municipal water.
The fries are in the middle. Potatoes are cheap; there's some prepraration that goes into the final product but it's still just one ingredient and pretty minimal labor in cooking and serving.
The sandwiches have the lowest margin. Multiple ingredients from different vendors, and the most labor to cook and assemble.
Yes, the largest margin is in the drinks. Mostly municipal water.
The fries are in the middle. Potatoes are cheap; there's some prepraration that goes into the final product but it's still just one ingredient and pretty minimal labor in cooking and serving.
The sandwiches have the lowest margin. Multiple ingredients from different vendors, and the most labor to cook and assemble.