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Fountain drinks

count $.01 per ounce and I include 1 refill for dining room. for carryout/delivery, $.01 per ounce plus cup and lid.
 
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here is the equation,
5 gal bib = 640 oz
i pay $51 per pepsi = $…08 per oz
it takes 2 oz of syrup for every 10 oz of finished soda(not including ice)
so 20 oz of soda takes 4 oz syrup @ .08 =.32
remember the c.o. that is used,not sure how to figure that
plus cost of water(minimal)
id say i go thru about 25-30 gals on 1 tank of c.o.
 
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SMITH:
here is the equation,
5 gal bib = 640 oz
i pay $51 per pepsi = $…08 per oz
it takes 2 oz of syrup for every 10 oz of finished soda(not including ice)
so 20 oz of soda takes 4 oz syrup @ .08 =.32
remember the c.o. that is used,not sure how to figure that
plus cost of water(minimal)
id say i go thru about 25-30 gals on 1 tank of c.o.
Click to expand...
So that looks like 1.6 cents per ounce of product plus the CO2.

With a 20 oz drink, that is like 10-12 oz of product considering the displacement of the ice. Coke rep many years ago told us they formulate for 1/3 ice but most folks seem to use 2/3 or a whole cup of ice. I figure with 2/3 to full ice you are looking at 6 oz? And a refill or two on top? So maybe 20 oz total or 32 cents per person?

Given enough months, I am sure someone could average their drink sales and their BIB purchases to see what their per unit cost is… anyone?
 
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We will only have a 20 oz for most likely $1.49. And no carryout cups so that we can avoid that ongoing problem of diners wanting one to go. We will have bottled drinks for delivery and will offer them for sale.
 
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Charles if the small cost of a refill and a carry out cup will kill your business model you need to re-think things…How many folks would want a drink to go?..I bet the % is quite small… But say it 1 in 5…And say it costs you 40 cents for the cup, lid and and soda (I think that is high)…So on average it costs you an extra 8 cents per customer…That is not enough to worry about…And you can also turn the carry out cup into a marketing piece…Use a stadium cup and put a coupon on it that is good for a refill with a carry out pizza…Also you can use stadium cups for deliveries…Sure they are a little extra work but your cup will stay in the house for months and maybe even years and continue to advertise your business…An empty coke bottle does nothing for you…The cost with cup, lid and fountain soda should be about the same…
 
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I never said it would kill our business model. But it is a judgment call on whether we could better spend that money elsewhere. We have to differentiate ourselves from our competitors while controlling costs. I think the cumulative effect of “not worrying” about 40 cents here and there is what leads to out of control costs (not to mention the carrying costs of having to order so many cups at a time in order to get decent pricing).

We have considered stadium cups for delivery but the added labor, difficulty of transport, and tendency to go flat has us concerned. But we are still thinking about it. People do keep the stadium cups so it is a good marketing idea.

Don’t get me wrong, it is still on the table. Mainly because our controlling motto is "Make everything special’ and bottled drinks are definitely not special. We just have to be sure that it is money well spent.[/i]
 
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I used to get so aggrevated when people would ask for to go cups. We have a lunch special and it comes with a free soda. Customers would get several refills and then want one to go. It truly almost sent me over the edge I would get soooooo ticked. They would ask for one when we were slammed out of minds. They would tie up the line at the register…then all the people behind them would want one too. It literally drove me insane.

But then the ahhhh haaaaa moment. If it drives me insane it drives my competitor’s insane. At times the looks I gave these seekers was not very pleasant and surley they could tell I was annoyed. Hmmmmmm duhhhhhhh so my competitor’s would probably do the same…

Ahhh what can I do that my competitor’s don’t…care about the customer. We had a meeting and literally make to go cups for most of regulars before they get to the register (with a fresh soda so they don’t take watered down as we tell them) Before they ask. Most of the time I will ask new customer’s if they want one to go. What do I care really? If I go under for giving away soda then it just isn’t meant to be.

I mentally am in a much better place than the truly annoyed state I was in. My customer’s love it so why not!

Kris
 
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Each gallon of BIB yields 800 ounces of product.

So a 5 gal bib yields 4000 ounces of product.

or

250 - 16 oz sodas
200 - 20 oz sodas
125 - 32 oz sodas

We pay 52.30 for a 5 gal bib

or

.21 160z product
.26 20oz product
.42 32 oz product

give or take some for the ice.

The cup cost for a foam cup and lid is around

16 - .06
 
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I always enjoy and learn from your posts, Kris. No firm decision has been made and we will give it further thought.

Heck, we have decided on a lunch buffet despite the lower margins. Why? Because that is what lunch folks want, but more importantly, every dollar they spend with us is one less dollar my competitors enjoy. It looks like food cost will be high but labor will be much lower. As long as we make at least a little margin that will go to fixed costs, we are good with it. Plus, I know we can do a much better job.
 
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