Re:The Coffeeshop Fallacy
by postsantum on Saturday March 11, 2023 @10:54AM
(#35109333)
>how McDonald's in the US can charge $1 if they also have to pay a living wage.
They probably sell coffee at loss to upsell them on burgers
You can't lose money making and selling coffee. Coffe literally costs $0.05-$0.2 to make.
1$ is probably at cost. And everything else have extremely good margins. Probably outside the cheapest items on menu. And those are there to build brand loyalty.
Re:The Coffeeshop Fallacy
by reducesuffering on Saturday March 11, 2023 @12:10PM
(#35110308)
No way. My home coffee is 14 oz. for $5 and lasts like 25 cups. That's $0.20 a cup. At McDonald's scale, their filter cost is 0 and I'm sure their coffee bean price is half of that, at $0.10 a cup. They're also really automated. If you've ever seen how automatic their soft drinks get poured in the drive-thru, it's like a factory.
Tangentially, I'm also curious how McDonald's in the US can charge $1 if they also have to pay a living wage. Does their size mean they get cheaper materials from suppliers and can drive costs down or that they make up that loss by selling some of their other products? I've never gotten coffee from McDonald's in my country, but I'm _pretty_ sure it's not that cheap.
Even _more_ tangentially, I noticed a popular local chain driving their prices higher and higher to ridiculous amounts. It's not even great coffee--it's like Starbucks in my country (Starbucks apparently didn't get a good footing here because this other chain is just so established). Their usually mediocre coffee costs more than one at a boutique high-end roastery! I suspect it's because they're pushing people to instead sign up for their monthly subscription, that lets you get a coffee every 2 hours. I've begrudgingly signed up, because I like using their cafes as a work space and this way I do not feel guilty about sitting around there all day. When I want legit good coffee, I still go to a good place and get one. As annoyed as I was to see how much they charge for a mediocre cappuccino, I've got to hand it to them on the interesting monetization shift.