Comment by KellyCriterion
9 hours ago
Small fries at McD had been lately around 2,99 EUR, that was very expensive given that the "small fries" are actually really small :-D
9 hours ago
Small fries at McD had been lately around 2,99 EUR, that was very expensive given that the "small fries" are actually really small :-D
They’ve been driving people to use their app for years now. The menu prices isn’t what one pays if they use the app, since it has a constant stream of coupons and discounts that bring the list price down.
Pretty much a standard 20% off, sometimes 25% as a deal depending on amount spent. BOGO value menu McDouble / McChickens. Points that add up to actually free food. Items not on the menu in store. It's robbery if you don't use their app now.
In the US, a rule of thumb for restaurant economics is that only about 25-35% of an item's price is the cost of ingredients, when you average over all menu items (of course some items better margins than others). The rest goes into labor, fixed costs, etc. It varies a bit by region and by market segment (e.g. fast food vs fast casual vs fine dining), but not by too much.
For McDonald's fries it's certainly much less than 25%. These are a high margin item, I wouldn't be surprised if ingredients costs is only 5% of that €2.99
Of course! That is why I qualified it as "averaged over all menu items". The expectation is that higher-margin items are purchased in a volume that balances out lower-margin items.
Also sodas/fountain drinks are famously high-margin. Depending on the size, as much as a third of the COGS comes from the disposable cup.
Japan: McFry S Size ¥ 200~ (1.09 EUR) M Size ¥ 330~ (1.80 EUR) L Size ¥ 380~ (2.07 EUR) * Prices may differ at selected restaurants and for delivery.
Most of it is probably labor, marketing & franchise fees, rent, utilities, and equipment depreciation. Raw ingredients are likely 5-10%.