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If I'm Coca-Cola or Pepsi or run a large restaurant chain in the US, I'm pushing this ban everywhere. Restaurants price soda to include the cost of people who
by philipodonnell 10y ago
If I'm Coca-Cola or Pepsi or run a large restaurant chain in the US, I'm pushing this ban everywhere.
Restaurants price soda to include the cost of people who get the free refills and the margins are high because of it.
If the government suddenly banned free refills, restaurants won't lower prices because it will hurt top-line revenue and buying decisions aren't made on the price of soda with your meal. Consumption goes down but prices are stable means profits are higher, so Coke and Pepsi can raise their prices to restaurants, say both sides capture half that new margin.
Soda makers win, restaurants win, consumers win because consuming less sugar assuming they don't pay for a refill, taxpayers win by lower burden on healthcare. Sounds great.
- notpc 10y agoYour understanding of the economics is off here. Soda syrup is dirt cheap. A five gallon box of syrup costs between $40 and $75 and makes 30 GALLONS of soda. So the syrup costs the restaurant 10-20 cents per cup of soda that they charge 2-3 dollars for.