![]() Plus, he added, when people visit a cafe for a drink, they often end up buying something to eat, as well.Īnd in the US, coffeeshops are a growing category, he said. A restaurant can see a gross profit margin of up to around 80% when selling beverages, he said - far higher than the margin for food. “The profit margin on a beverage is just humongous,” said John Gordon, founding partner of Pacific Management Consulting Group, which advises restaurants. But for restaurants, drinks - especially those kinds - are cash cows. You might think that burgers are king at McDonald’s, and drinks little more than water, sugar and flavorings. Why McDonald’s wants in on specialty coffee So to try to break into the market without messing up its regular business, McDonald’s is giving something totally new a shot. Doing that would slow down kitchens and service times, and could confuse customers. “There’s no category that has really performed better this year than specialty coffee,” said David Portalatin, senior vice president and food industry advisor at Circana, who noted that sales of specialty coffee at quick-service restaurants have risen this year compared to last.īut you can’t just plop a bunch of customizable coffee drinks onto the McDonald’s menu. McDonald’s CEO: Bigger burgers are coming
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