Is McDonald’s losing money on $1 coffee?

Is McDonald’s losing money on $1 coffee?

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0 thoughts on “Is McDonald’s losing money on $1 coffee?”

  1. What Is the Profit Margin on a Cup of Coffee?
    This article suggests the cup of coffee costs a bit more than $1 to make. However, McD’s coffee is all but self service and I expect they use cheaper beans.
    I doubt they are making much money on coffee, but if that gets someone in the store, then that gives McD’s a chance to sell them something else that is more profitable.

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  2. The answer is yes. They are not really in the business just for coffee, but if everyone who loves coffee and hate’s junk food…this place would file for chapter 13 in about 10 years. They have too many employees as it is, with the minimum soon to be $15 an hour, its possible that MCD’S will have to raise the price of a cup of coffee to $4 to offset their overhead.

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  3. I highly doubt it. It’s bought in so much bulk that McD’s prolly wouldn’t ever lose money even if the price remained a dollar. Like soda, coffee is a big money maker. In addition, McCafe is now also sold in grocery stores, so that helps with the coffee profit margin.

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  4. not really.
    The average cost of a cup of coffee to make it is about $0.05. For the fancy stuff, let’s go $0.15 because you have to have someone actually make it.
    The cup is about $.10 or so.
    So, you’re looking at about $0.25 or so per cup in costs, max. That’s $0.75 per cup in profit.
    I’m not including the fixed costs here, because they have to pay those regardless. McDonald’s isn’t a coffee shop – they’re a fast-food restaurant. They offer coffee because most folks like coffee with their breakfast. It’s just an add on.
    It’s like the pop – they make a lot of money on that too. The cup costs more than the pop.

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