How much food costs McDonalds. Nothing nefarious, just interesting.

[TalkingDog]

http://imgur.com/CvHqp6V

And no, I haven't eaten at a McDonalds in decades.

[yeoman6987]

1. Subway

It was interesting to learn this when I worked at Subway around 15 years ago. I was talking to my Boss (owner) and she mentioned that it cost her 60 cents per sandwich. I thought to myself and you sell them for 5.75 for a footlong (I understand they are much more now). That always stuck with me. I was paid 6.25 an hour at the time so as long as she sold 2 foot longs an hour, she paid for the footlong sandwich and my salary and even had some money left over. Of course she sold a ton more than that an hour. Not complaining but just being a bit informative.

[brewens]

13. My old boss that owned a Burger joint and a Skippers years ago told me that pizza places

are where the food costs are really low. I have no reason to doubt him but I really don't know. It sure seems like we have a lot of them and a couple hang on not being real busy.

[Shandris]

17. I used to do the ordering for a pizza place...

...among my many other jobs I've held at one time, and he's accurate up to a point. MOST of the food costs in a pizza joint are low, but it all gets made up for on the cheese. And the more mozarella it is (ie, the closer to 'pure mozarella'), the more expensive it is. That's why, for instance, most of the big chains use only 1/3-1/2 mozarella, with mild cheddar or colby/jack as the mix-in. The cost on cheese is/was staggering. Despite all the various toppings, side dishes, beverages, sauces, and crusts to purchase, cheese accounted for almost 60% of the ordering budget.

Now, this was true as of 1994. It is possible that it has changed by now, of course.

[Chan790]

18. This is true.

The cost of production of a large pepperoni pizza is around $2 assuming, as Shandris said, you use crappy cheese. Everybody pretty much uses crappy cheese.

The gourmet place my brother works uses authentic mozzarella di bufalo and it's closer to $6/pie which is why they have one size, it's basically personal-sized and it's $20. (They also have a James Beard award-winning chef and $30 pasta entrees and $500 bottles of wine to give you an idea of the place. I'm a chef, his boss is in a different universe and does food-things that would never occur to me as if they were the most obvious idea in the world.)

[brewens]

20. We have a family run pizza joint here that owns the road. Fazzari's Finest in Clarkston, WA.

That place is slammed to the walls all the time. No specials, no coupons, nothing like that ever but they keep it reasonable. The specialty they are most known for is "The Schotzie". They have a special mustard sauce and on that one, German sausage, sour kraut and onions. It is freakin' good!

[WillowTree]

21. Of course, there's always.......

.......rent and utilities and upkeep of fixtures and supplies and advertising and licensing fees and a host of other costs of running a business.

[burrowowl]

2. K&R

[yeoman6987]

3. Another thing while on the soapbox

Why is McDonald's the one picked on all the time? Seriously, Burger King, Wendy's, all of them are as guilty but they get away with murder. How unfortunate for McDonald's to be on the end of the stick all the time. It would appear that they can do nothing right. Back when fast food was criticized for not offering better food, McDonalds completely added many "healthy" alternatives but still get zero love. Sorry but I have a soft spot for McDonald's probably from childhood and seeing those arches on road trips especially.

[Warpy]

8. The only things I ever ate there were the fish sandwich and fries

but yeah, it was cheap protein, predictable and available on the road. Were I doing a marathon drive and hungry to the point of getting woozy, I'd probably go there again for the same thing. There's a lot to be said for predictable road food, even when it's bad for you.

As it is, I haven't been that desperate in nearly 40 years.

And yes, most fast food is very bad for you. Even Subway does things like try to extend the tuna salad with too much mayo.

Our bodies were designed to handle a lot of really bad food. They're just not designed to handle it to the exclusion of everything else. That's where the line is.

[Coexist]

25. I think it the factory farming

they might all do it now, but I believe McDs was the original sinner - feel free to correct me if I am wrong

[reformist2]

4. It's not the gross profit margin that matters, but how they divvy up that profit!

[wercal]

5. This is nothing compared to the soda profits.

[JHB]

6. Ingredients for burgers/sandwiches/pizza/etc. are usually cheap compared to sales price

The sales are what brings in the revenue. The sales price has to factor in all of the expenses of the business, not just the ingredient prices of particular items.

As you say, nothing nefarious, just a reality of the restaurant business.

[Warpy]

10. Right, they cook it for you, they bring it to you, and they clean up after you

and all those things are factored into the price. Even McDonald's needs to be swept and mopped down at least daily.

Not only that, but those cheap ingredients often have to be transported many hundreds of miles to the individual restaurants and that means refrigerated trucks and that costs, too.

[DebJ]

23. And they scrub the bathrooms. I worked as a QSF manager in a higher-end small chain

and sometimes the things people would do in a bathroom are absolutely nauseating.

[Buns_of_Fire]

7. "Would you like some Completed Waste with that order?"

Odd choice for subcategory headings...

[DJ13]

9. Big Mac .77 cents

Over $4 on the menu.

Tell me they couldnt afford to pay better........

[Niceguy1]

16. that is a waste sheet

And the pricing is probably way out of date...margins are so tight that they tally the food that is rhrown away every day amd that is factored inro the cost accounting

[dembotoz]

11. this is why it is cheaper to eat at home

[TreasonousBastard]

12. All restaurants are like that-- food costs are minimal but...

there's the cost of depreciation of plant and equipment
franchise fees and other startup costs that have to be amortized
gas and/or electric bill
maintenance costs
taxes, expenses, and fees
payroll (often the largest single cost with up to four shifts-- even at that low pay)

it all adds up.

Maybe they do take more profit than they should, or maybe they don't. I don't know how you would run a restaurant if you had one, but anyone is free to eat at McD's. Or not eat there.

If one personally doesn't eat there, what is the point of a crusade against them? Assisting the poor, mindless crowds who do?

[davidn3600]

14. The raw food cost doesnt include other business expenses

Labor, taxes, insurance, utilities, maintenance on the equipment and the building, and other overhead costs are all part of the final price.

Not suggesting that the final profit isn't being divided up fairly, but to only go off the raw food supply costs is misleading.

[Mr.Bill]

15. Yeah, my local bar charges me

5.00 for a beer I can buy at the grocery store for 1.25. But like others have said, there's more to it than just the cost of goods sold.

[madville]

19. Not an industry I want to be in

The restaurant business is tough and margins are thin. The general rule is to keep food cost under 30%, labor 30%, and all other expenses 30%. If the owner is lucky they might get a slice of the remaining 10%.

Restaurants with low food cost go broke everyday.

[DebJ]

24. I was in the business about 10 years and frankly

most restaurant managers are idiots, and lazy to boot, and treat employees terribly,
and THAT kills a lot of them. If Restaurant Stakeout has any reality to it, what it shows
is that a lot of restaurant owners have no idea what they are doing. I have read that
a lot of people think if you can serve supper at home, you can run a restaurant, and
that seems to be what that show is proving or picking on.

I had a great deal of fun doing as a restaurant manager for the three years i worked
for a small chain that RESPECTED its employees. It was long hours and hard work, but my
team was like my family. I loved them all. And we made good money together until
the recession hit in March 2001. Eating out is always the first thing to get the family
budget cut ax.

[KentuckyWoman]

22. I'm kindof surprised it's that high.

Hamburger food waste cost is 34 cents would mean total cost wrapped, bagged, out the drive thru window with 2 napkins is very near a dollar. Would not surprise me if it is a break even item or even a loss leader.