soda costs breakdown

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bassrocker4u2
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2006/02/08 08:10:29 (permalink)

soda costs breakdown

have any of you actually sat down and did a break down on cost of a glass of soda? i think it sill alarm you. i did yesterday, and thought it best to post my results for all to see and compare....

5 gallon bib coke cost 50.00 ( this part will vary slightly)
5 gallons = 640ounces = 7.8c/ounce syrup

22 ounce glass of soda(my serving size) contains appr 15 oz liquid.
according to the brix cup.....5/1 ratio means 3 oz syrup, 12 oz co2
so.......... 3 oz syrup = .23c
ice, co2 = .02
lid/cup/straw = .05 ( i broke down each cost)
----
totalcost for glass of soda = .30
(average)add one refill..........23
---
.53
53 divided by 125(price charged)% ==== 42.4% food cost!!!

think twice before allowing employees to have free soda!

ok...now lets break down iced tea........

96 tea bags cost 22.75
.24 per bag
4 bags per batch = .25c( yeilds 2.5 gallon)
10 lb sugar = 4.29(sams)
2 cups = one pound, 4 cups in one batch= .43x2=.86c
.86
+.96
-----
1.82 cost per 2.5 gallon batch

(one glass) tea .08
lid/strw/cup/ice .06
-----
.14
refill .08
------
.24c 19.2% food cost

thats it.....
i hope this helps some of you.....
#1

48 Replies Related Threads

    renfrew
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    RE: soda costs breakdown 2006/02/08 09:53:57 (permalink)
    hmm, my first instinct is to comment on the amount of time you have, but thats why you are a food professional and I am not.

    Still as a professional food consumer, I cant help but have visions of restaurant owners looking for ways to save some nickels in the back, while their emplyoees deal with a lot more in terms of time, money, and sanity in the front of the house.

    Bottom line, let them have their damn soda if they want. They produce a lot more for you than soda does.

    I dont order soda in a restaurant for a number of reasons, not least of which I would prefer to have some booze or wine. Whats the breakdown for you on that one? Not being snide, just curious how the costs breakdown for a mixed drink.
    #2
    dreamzpainter
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    RE: soda costs breakdown 2006/02/08 10:10:58 (permalink)
    Im hoping those 4 teabags are monster size!
    #3
    nvb
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    RE: soda costs breakdown 2006/02/08 10:52:46 (permalink)
    One tea bag per gallon is what I use.
    #4
    The Travelin Man
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    RE: soda costs breakdown 2006/02/08 12:14:29 (permalink)
    quote:
    Originally posted by Slick

    One tea bag per gallon is what I use.


    I am guessing that with that amount of sugar, one might need stronger tea!

    Also, are you using those oversized (family-sized) tea bags? That would seem to make more sense to me, no?
    #5
    nvb
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    RE: soda costs breakdown 2006/02/08 14:22:41 (permalink)
    quote:
    Originally posted by stevekoe

    quote:
    Originally posted by Slick

    One tea bag per gallon is what I use.


    I am guessing that with that amount of sugar, one might need stronger tea!

    Also, are you using those oversized (family-sized) tea bags? That would seem to make more sense to me, no?


    Yes, I use the larger size (1 oz. bag) and when I sweeten the gallon I use two cups of sugar. I hate tea that I can see through and so do my customers.
    #6
    morningglory
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    RE: soda costs breakdown 2006/02/08 22:11:19 (permalink)
    quote:
    Originally posted by dreamzpainter

    Im hoping those 4 teabags are monster size!


    I should probably refrain from commenting here, because I am not a restaurant professional, HOWEVER, from one who loves her (unsweetened tea) and drinks a lot of it, I can say this: I use those large tea bags (look like 3 in. by 3 in., maybe larger) sold at Costco.

    I used to fuss with sun tea, or brew it on the stove. No more. I take one of those bags, throw it in a gallon of water, put it in the fridge, and a few hours later it is clear, and refreshing iced tea, or which I always get many compliments, and questions as to how I "brew" such great tea.

    I am a northern gal, from NJ originally, so I may use some artificial sweetener, but not much, but always fresh lemons from my trees, or mint, which are available all year long, out here in CA. YUMMM DELICIOUS and very refreshing, inexpensive, and lots of anti-oxidents.

    Needless to say, I rarely buy "soda" in a restaurant. I burns me up to pay so much for really nothing, empty calories, and no food value. And, I would never pay $ 1.75 for iced tea, which I can make for pennies a glass.

    Now, a decent glass of wine, from one of our wonderful wine producing areas......well, that is another story!
    #7
    Jimeats
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    RE: soda costs breakdown 2006/02/09 06:27:04 (permalink)
    I look at it this way, you can save a couple of pennies if you can use unwrapped straws and if there is a family dinning maybe they can share it, just a thought. Also you could consider charging extra for ice other people do. Let me know if Lincoln screams. Jim
    #8
    bassrocker4u2
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    RE: soda costs breakdown 2006/02/09 08:17:52 (permalink)
    my point was that a glass of soda, cost more to make than most people realize(including professionals....[the intended readers]).
    the tea bag in question is industrial size.....one ounce/one gallon
    like slick, i use 4 ounce to make 2.5-3.0 gallon and two cups(one pound) of sugar per gallon. we also offer un-sweet tea, but i refuse to buy lemons at their inflated price. if i only had a tree, like
    morningglory....
    the point of the thread was intended to those who understand the relationship of food cost variables to the actual profitablilty of the establishment. or... 'the bottom line'
    most people dont understand that something as simple as a penny per serving, can mean the difference between taking home a pay check, and borrowing from the bank!
    i was hoping that some other professionals would post comparison numbers. one major difference i have learned so far, is the huge price variation charged for the bib. i think some of us are getting gouged pretty bad. a collegue informed me yesterday that they pay 33.95 for the same bib i pay 49.95 for.
    that makes a monsterous difference in food cost for soda!
    other factors would be the cup lid strw price.
    anybody with numbers?
    #9
    V960
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    RE: soda costs breakdown 2006/02/09 09:42:58 (permalink)
    Excellent piece. My profs from Babcock would be pround of your presentation. Wonderful, thank you.
    #10
    nvb
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    RE: soda costs breakdown 2006/02/09 10:37:59 (permalink)
    I just went through my costs on Coke, the brand.
    63.80 BIB (went up the first of the year from 57.30)
    19.00 Co2
    Wrapped Jumbo Straw .02
    Slotted lid .01
    16 oz styro cup .015

    To make myself clear on my earlier predicted cost of .05 per cup; That was before the BIB price went up and that was the tech explaining with a glass of ice in the cup. So, my statement was made with conditions I didn't explain.

    #11
    nvb
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    RE: soda costs breakdown 2006/02/09 10:43:47 (permalink)
    quote:
    Originally posted by pdxyyz


    The joys of working with the soda industry monopoly. Yes you can buy Coke or Pepsi, but you have to buy it from the local bottler at their price. And switching to the other brand can hurt your business.


    I can buy mine from Sam's Club or my food supplier at a cheaper price, but they won't service my mixer. If I pay the higher price from Coke they will service it free of charge. A service charge from Coke will krinkle your panties.
    #12
    dogmeat
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    RE: soda costs breakdown 2006/02/09 11:24:05 (permalink)
    Nice job bassrocker4u2 (good name also)on breaking out the numbers, I try to do that once a year or so on every menu item. Sonjaab is pointing out the "realized cost" of these products in what their price point actually is going out the door.

    After looking at my last coke order ( don't forget the $16 CO2 cylinders to drive the machines with a $75 cylinder deposit,we keep 5) it appears that I am paying about the same as Sam's sells the bib for.
    Coke delivers every other week and i think our minimum is $250 or $300. They did install our machines and we get billed monthly for that, but the purchases usually offset the charge and I am not forced into going to Sam's.

    We use glassware but most of our customers at lunch take a cup with them. I'm sure that with breakage and "washing" the cost of the glassware is greater than the cup/cover/straw.

    We brew tea twice a day and brew Colombian coffee every 20 minutes or so when we are busy.

    Renfrew, if you have thirty or so employees a shift, the numbers can grow quickly. For example, if we use the .53 drink figure with thirty employees we have a "conservative" figure of almost $16 cost per night! That figure just wiped out $48 worth of RETAIL business assuming that everything went out portioned and was not returned! I am the person in charge of the business that "employs" these people and knowledge of these figures will ensure their continued employment.

    I have an invoice in front of me for produce - 200 count limes were $58 !!! If it gets any worse than this I'll be tying spyderwire around lime wedges and dunking them into drinks, temporarily!


    Pennies are what you used to pay for gas.



    #13
    renfrew
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    RE: soda costs breakdown 2006/02/09 11:30:06 (permalink)
    Yes I should have known better than to respond on this topic. It seems cheap to me the consumer. I understand your reasons, I just feel that with the abuse that most servers have to bear, the free soda should be a non-issue. Thats my opinion.

    I would be interested in seeing a cost breakdown of alcoholic beverages, such as mixed drinks. Anyone on here ever do that?
    #14
    dogmeat
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    RE: soda costs breakdown 2006/02/09 13:06:27 (permalink)
    What exactly are the abuses these servers endure and who is abusing them?

    #15
    tmiles
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    RE: soda costs breakdown 2006/02/09 15:26:37 (permalink)
    An owner that I know switched to 2L plastic bottles years ago to protest a price increase. He stocks up when they are 59 or 69 Cents each. It has been some time since we talked about it so I don't know if he still does it.
    #16
    Burgerman1
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    RE: soda costs breakdown 2006/02/09 15:52:31 (permalink)
    bassrocker...i've either read your post wrong but those figures don't seem to be correct.

    5-gallon yield of sweetned ice tea will cost $1.93 using,

    5-gallon tea bag (.82)
    Sugar (1.06)
    Water (.05)

    A 16oz Cup will have .02 tea, .03 cup, .01 straw, .02 lemon for an .08 total cost. With a retail of $1.12 that is a 92.7% markup.

    A 32oz Cup wil lhave a total cost of .14 and a retail of $1.69 and a markup of 92.4%

    Howard

    #17
    V960
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    RE: soda costs breakdown 2006/02/09 17:27:44 (permalink)
    Having spent my time at a B school and learned a proper respect for costing and business plans, these are items needed today. I however follow my father's teachings in running a business.

    Pay people very well w/ huge incentives on the end, full insurance, great respect on the job, let them make mistakes, and profit sharing. They don't fit in? They're gone faster than the Nova Lox at a buffet. It has made all his and my companies successful.

    Price things on the high end but keep their quality in the same place. Never apoligize for your success...flaunt it. No one wants to do business w/ an unsuccessful bussinessman.

    When he was still kicking one of the customers made a somewhat joking comment about his car (he had a sign in front of his parking spot "The OWNER parks here, not you") being too nice for a restaurant owner. Dad just looked at him (Dad was 6'4", a ex-Navy Commander, Aviator and decorated WWII vet), smiled and quietly told him he appreciated his business but needed more of it as his Jag needed new tires. The guy just would'nt let it drop. He kept ragging Dad about the Jag. It ended w/ Dad asking the guy to come back the next weekend (the front end was getting packed and this guy was snockered) for a free drink or two. My Mom knew something was wrong when Dad was smiling but NOT laughing. The guy got his revenge but not in the way he hoped. Dad bought a Carolina blue (MB called it something else but it WAS Carolina blue) Mercedes 6.9 the next day. God that car was beautiful and FAST!!!! About 275 hp in a two door Benz.

    Next weekend...

    "What happened to the Jag?"

    "British crap and the ash tray was full, my boy likes German stuff so we gave them a try (I was a busboy at the time)" Wish we hadn't sold that car but everything is for sale around here just not on sale.

    Dad could tell you to the penny the variable and fixed costs on each item we sold. He worked w/ the chef to offer the freshest and cheapest items available. We served organ meats and chicken in a white table cloth joint when no one else did so. He charged premium prices no matter how cheap he got the materials. His biggest cut to someone was "He buys his suits off the rack".

    Regarding the on going thread about water...my Dad would repeat WC Field's comment about water, even though each diner got a small glass of it, if that was their only beverage choice. Different time and different economy...he's been gone for over thirty years. Not a day goes by I don't miss Himself.
    #18
    bassrocker4u2
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    RE: soda costs breakdown 2006/02/10 08:09:32 (permalink)
    awesome imput from everyone! thanks for the comparisons. burgerman, great price on your tea!
    i buy the cups and lids from sams. soda, i buy from us food. they bring it to me for 5 bucks less than sams. co2, $21.50 and i have to travel 10 miles to get it.
    i like the idea of someone breaking down mixed drinks.....
    as far as lemons.....we should all 86 'em! then all of us plant our own lemon tree in the back..... sad part is the poor farmer gets almost nothing for his lemons...
    more soda imput., all my soda equipment is mine, not coke. that free me up to buy whereever whenever i want, but like yousaid about service...well, lets just say i learned how to troubleshoot and repair real fast! one day, soda was spraying everywhere(right in the middle of dinner rush!). without precious knowledge of what to do, i cut off everything! pump, co2, fountain. of course syrup kept spraying until all the lines were empty. i found schematic (on line), and a company that sells parts. ended up that the head valve had a pin hole(common). the moral of the story is... if your soda is spraying everywhere, you dont have to cut off everything.... simply look at the back top of the soda head(fountain type with lever)
    there are two flat white plastic pieces. they are the control valves for the co2 and the syrup. shut them off. then you can pop up the pin, and pull the head off. this works great for cleaning, too. if your lever is sticking, wont shut off when you let go, take off the head and run under warm water.
    or just call coke...heehee

    v960.......love the story!!!
    #19
    bassrocker4u2
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    RE: soda costs breakdown 2006/02/11 07:24:01 (permalink)
    thanks for the vodka breakdown. i always wondered about bar prices.
    as for the soda being post or premix? the key is in the formula i used.. when i called syrup a bib. thats short for bag in box. only post mix can do that...
    peace..
    #20
    Burgerman1
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    RE: soda costs breakdown 2006/02/11 19:54:08 (permalink)
    Bassrocker...you have an error in your soda calculations.

    When you say a 5:1 mixture, you have 2.5 ounces per 15 ounces of liquid, not 3. There are 6 parts not 5, therefore 15 divided by 6 = 2.5, or 2.5 ounces of syrup to 12.5 ounces of water.

    Therefore your cost for syrup is .195 for a 22 ounce cup.

    I also believe that you are far to cheap, a 22oz drink with refills should be at least a $1.59 to $1.79. Check your competition.

    HB
    #21
    bassrocker4u2
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    RE: soda costs breakdown 2006/02/12 08:05:22 (permalink)
    thanks, burgerman, for pointing out the error in my math. i must be getting old, to miss such an easy one...
    with your new numbers, food cost changed ot 40.0 for soda. better, but still too high. maybe we should all make our own brand....
    our price is low, yes. that will be on the next menu change. we recently changed our side dishes, bumped up a quarter. that generated alot of extra soda pop money...lol
    sonjaab, thanks, i didnt realize cannisters wre still in use, today. brings back horrific memories....changing them out, pooring the dredges into the next one... getting all sticky....while folks waited impatiently....
    if i had it all to do over again, i would sell cans or plastic bottles(most preferred by customers)
    #22
    V960
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    RE: soda costs breakdown 2006/02/12 08:39:45 (permalink)
    I was joking w/ a guy who owns and runs two VERY small hamburger and hot dog shops in piedmont NC. No tables, one of the places has no counters, and no fountain drinks. This guy runs places that are simplicity in stone.

    Cheeseburgers, hot dogs, bagged chips (vendor does the stocking and only profit is to be seen) and a cooler full of sodas. He has bottled water but if you just want water he hands you a cup and points to the water cooler.

    Huge assortment (100 plus) of hot sauces for the dogs is his only bow to nice nice. His business formula reduces his worry, increases his profits to awesome levels, he works less (lunch hours only) and has made more money than God.

    He puts covered straws, cups, napkins, lighting and basically everything in his fixed cost column. His variables are only in what is physically handed to a customer. A bit strange but w/ his limited offerings it works.

    #23
    garryd451
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    RE: soda costs breakdown 2006/02/12 10:09:33 (permalink)
    My sons ages 13 and 17 drink alot of soda at home and anywhere else they can get it, as long as it is in cans or bottles, they swear that places that sell soda from despensers water it down!

    And alot of their friends think this way too, at least in my area, establishments are loosing alot of business by not selling soda in cans or bottles.
    #24
    V960
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    RE: soda costs breakdown 2006/02/12 11:47:31 (permalink)
    I "cured" my daughters of soda consumption by taking a large iron nail and putting it in the soda bottle. Twelve hours later it was GONE. Phosphoric acid is pretty nasty stuff.
    #25
    Xfireguy
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    RE: soda costs breakdown 2006/02/13 08:51:36 (permalink)
    I can't believe you actually said think twice about allowing your employees free soda!! You must be one of those bosses that has a high turnover rate and says "i don't know why my employees are so horrible, I'm a great boss" If you can't afford to take care of your employees by giving them some freebies for their hard work you shouldn't own a business. Just my opinion..take care of your employees and they will take care of you.
    #26
    dogmeat
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    RE: soda costs breakdown 2006/02/13 09:13:37 (permalink)
    Great information everyone, got out a (choke) bill and checked out the juice situation. For a 2.5 Gal cranberry for the guns, $56.00 !!!
    Shots are one thing but how about a 16 oz vodka/cranberry/lime? We use minis (5oz) pineapple/apple/grapefruit/ fresh o.j.(Florida o.j. in gallons)and bloody mary mix in 750's.

    My current coke 5 gal prices were discounted(?) to $58.43 and the smaller 2.5 gal (rootbeer/lemonade/ginger ale) were $30.06.

    On another note it looks like we paid $10.68 per $1000 for liquor liability insurance. Our main general liability insurance was around
    $8 per thousand for restaurants that have table service with alcohol sales at less than 30% of volume.

    We have our machines turned up for a stronger flavor so we are probably using more syrup but it's what people like.

    Great website bassrocker4u2 and what a great stuffed potato!! I'm going to have to give that one a try. Are all of your fries smoked and are you cutting them by hand or a machine? I'm headed to Savanhah in a couple of weeks to see some friends, I'll be headed to Coffee Bluff BBQ! Byron


    #27
    renfrew
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    RE: soda costs breakdown 2006/02/13 15:00:56 (permalink)
    Thanks for the costing of a mixed drink. I imagine squeezing fresh citrus juices increases the price too.

    As for beer, a lot of brewerys I have frequented seem to deliberately let the beer spill over. Is there a reason for that?
    #28
    Jimeats
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    RE: soda costs breakdown 2006/02/14 07:39:06 (permalink)
    Look you people have to understand that you are in the food SERVICE industry. The coustomer that comes thru that door of yours is your bread and butter! You might want to take a page from V960s father's business savy and consider the overall large picture. I can understand the need to control your food costs but when you start to scumbadee on your product or portions it will end up costing you in the long run. There are items on the menu that bring huge returns on your dollar and others not as much but in the end it all comes out to your overall food cost, thats the bottom line you should be looking at. Chow Jim
    #29
    V960
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    RE: soda costs breakdown 2006/02/14 08:31:06 (permalink)
    Renfrew,
    You spill the beer because it looks good. The customer likes it and wants to come back or order more. Short fill a beer mug and the beer can be half the price the place next door but the guy next door will get the business. The Europeans solved this problem in two ways, the beer is good and they make the glasses w/ line to show a full fill.

    Chow Jim,
    At least one person got the point. This business requires cost and portion control but if taken too far the quality or more importantly the perception by the customer of the delivered product suffers. A poor experience (food, service, cigarette smoke or even a dirty fork) in a restaurant is long remembered but an extra 20% in cost is forgotten by the next morning.

    Today is the WORST day for restaurants. Idiots who eat out a few times a year will stiff the wait staff, complain about short fills, pee on the rest room floor (I guess as a protest, never figured this one out but it happened every 14 Feb) and in general make you have a few after hours.

    I will make my wonderful garlic shrimp in a cream sauce over pasta w/ roasted garlic butter bread tonight. I wouldn't even consider bothering my friends who own restaurants tonight. We will hear the stories of the jerks and jerkeets who visited their places for the first time tonight and demanded to be treated like the royal family.

    #30
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