Subway Switches To Pepsi For 10 Years From Coke

[BillyGr]

On the contract, restaurants get a discount if they exclusively use Coke or Pepsi. No major restaurant chain serves both Coke and Pepsi.

Though many of the convenience stores do have both in their machines

[Super S]

No major restaurant chain serves both Coke and Pepsi.

This is not entirely accurate, especially when factoring in airport locations, some of which have contracts (which also apply to restaurants in the airport) stipulating only one brand can be sold throughout the airport. The Detroit Airport is one where I remembered had a McDonald's that served Pepsi because of said contract. The airport now has a contract with Coke, and as a result, the McDonald's no longer has Pepsi.

Also, some chains such as Arby's and Dairy Queen, could be either Coke or Pepsi depending on the location and franchise. Arby's seems to be shifting more toward Coke, but I am unsure about Dairy Queen.

[Alpha8472]

Some restaurant chains claim that the margin on fountain soda is thin. So they claim signing an exclusive contract is the only way to keep soda fountains profitable. You see restaurants restricting refills or charging for refills.

Are margins that thin or are they claiming so to make more of a profit?

Independent restaurants often have both Coke and Pepsi soda fountains. This is because they buy their syrup bags from food service and don't have contracts.

[storewanderer]

Some restaurant chains claim that the margin on fountain soda is thin. So they claim signing an exclusive contract is the only way to keep soda fountains profitable. You see restaurants restricting refills or charging for refills.

Are margins that thin or are they claiming so to make more of a profit?

Independent restaurants often have both Coke and Pepsi soda fountains. This is because they buy their syrup bags from food service and don't have contracts.

Fountain drinks are still very profitable but not quite the pure profit they once were. Before you had the cup that cost maybe 15 cents, the straw and lid that cost a cent, and probably 10 cents worth of soda in the cup and it was sold for $2+. Now you have the cup that costs closer to 30 cents, the straw that costs 3-4 cents, and the lid that costs 2-3 cents, and the soda that goes into the cup that may now cost 25 cents. You now sell the drink close to $3 in a lot of cases. There is still plenty of profit.

Syrup cost has gone up a lot. The cost of the cup has gone up. Regulations on straws has pushed straw cost up. This is why they are doing weird downsizes with cup sizes and such. But there are ways to help make the sale of cold beverages in a cup more profitable. Ensuring availability of things like iced tea and seltzer water which are at a lower cost than soda and which are more and more popular as we are well over a decade into the soda ban at public schools, can help profits even more.

[jamcool]

No major restaurant chain serves both Coke and Pepsi.

This is not entirely accurate, especially when factoring in airport locations, some of which have contracts (which also apply to restaurants in the airport) stipulating only one brand can be sold throughout the airport. The Detroit Airport is one where I remembered had a McDonald's that served Pepsi because of said contract. The airport now has a contract with Coke, and as a result, the McDonald's no longer has Pepsi.

Also, some chains such as Arby's and Dairy Queen, could be either Coke or Pepsi depending on the location and franchise. Arby's seems to be shifting more toward Coke, but I am unsure about Dairy Queen.

Arby’s has gone all Coke products in the last year. DQ seems to have also gone to Coke- parent company Berkshire Hathaway has investment in Coca Cola, among other companies.

[jamcool]

Some restaurant chains claim that the margin on fountain soda is thin. So they claim signing an exclusive contract is the only way to keep soda fountains profitable. You see restaurants restricting refills or charging for refills.

Are margins that thin or are they claiming so to make more of a profit?

Independent restaurants often have both Coke and Pepsi soda fountains. This is because they buy their syrup bags from food service and don't have contracts.

Fountain drinks are still very profitable but not quite the pure profit they once were. Before you had the cup that cost maybe 15 cents, the straw and lid that cost a cent, and probably 10 cents worth of soda in the cup and it was sold for $2+. Now you have the cup that costs closer to 30 cents, the straw that costs 3-4 cents, and the lid that costs 2-3 cents, and the soda that goes into the cup that may now cost 25 cents. You now sell the drink close to $3 in a lot of cases. There is still plenty of profit.

Syrup cost has gone up a lot. The cost of the cup has gone up. Regulations on straws has pushed straw cost up. This is why they are doing weird downsizes with cup sizes and such. But there are ways to help make the sale of cold beverages in a cup more profitable. Ensuring availability of things like iced tea and seltzer water which are at a lower cost than soda and which are more and more popular as we are well over a decade into the soda ban at public schools, can help profits even more.

Supposedly the switch to Pepsi was because Subway has fewer drinks purchases than other QSRs. Sub sandwiches are rarely eaten at the store, they are mostly takeout for lunch or for home, not requiring a fountain drink. I’ve never seen a soda fountain at Subway with much use, plus the cost of keeping the fountain clean, straws, cups, etc. makes selling bottled beverages easier.

[storewanderer]

Some restaurant chains claim that the margin on fountain soda is thin. So they claim signing an exclusive contract is the only way to keep soda fountains profitable. You see restaurants restricting refills or charging for refills.

Are margins that thin or are they claiming so to make more of a profit?

Independent restaurants often have both Coke and Pepsi soda fountains. This is because they buy their syrup bags from food service and don't have contracts.

Fountain drinks are still very profitable but not quite the pure profit they once were. Before you had the cup that cost maybe 15 cents, the straw and lid that cost a cent, and probably 10 cents worth of soda in the cup and it was sold for $2+. Now you have the cup that costs closer to 30 cents, the straw that costs 3-4 cents, and the lid that costs 2-3 cents, and the soda that goes into the cup that may now cost 25 cents. You now sell the drink close to $3 in a lot of cases. There is still plenty of profit.

Syrup cost has gone up a lot. The cost of the cup has gone up. Regulations on straws has pushed straw cost up. This is why they are doing weird downsizes with cup sizes and such. But there are ways to help make the sale of cold beverages in a cup more profitable. Ensuring availability of things like iced tea and seltzer water which are at a lower cost than soda and which are more and more popular as we are well over a decade into the soda ban at public schools, can help profits even more.

Supposedly the switch to Pepsi was because Subway has fewer drinks purchases than other QSRs. Sub sandwiches are rarely eaten at the store, they are mostly takeout for lunch or for home, not requiring a fountain drink. I’ve never seen a soda fountain at Subway with much use, plus the cost of keeping the fountain clean, straws, cups, etc. makes selling bottled beverages easier.

I've seen some Subway units who have the soda fountain machine with a sign posted that says either no refills or want an extra fee for refills. I think I've seen some who serve liquor too. Cannot remember where.

I think slower business Subway units would be better off removing the fountain equipment entirely and going to bottled beverages or canned beverages. I feel like a number of independent delis operate that way as it is.

[Super S]

I've seen some Subway units who have the soda fountain machine with a sign posted that says either no refills or want an extra fee for refills. I think I've seen some who serve liquor too. Cannot remember where.

Several years back, I visited a Subway in the Portland area (I don't remember where) which charged a fee for refills but it wasn't posted anywhere. They basically yelled at me across the store in a nasty tone, as I got a refill, that the refills were 50 cents. I ended up just dumping my entire pop in the drain and walked out after that.

[babs]

I've seen some Subway units who have the soda fountain machine with a sign posted that says either no refills or want an extra fee for refills. I think I've seen some who serve liquor too. Cannot remember where.

Several years back, I visited a Subway in the Portland area (I don't remember where) which charged a fee for refills but it wasn't posted anywhere. They basically yelled at me across the store in a nasty tone, as I got a refill, that the refills were 50 cents. I ended up just dumping my entire pop in the drain and walked out after that.

I would have dropped it on the the floor. Oops!

[storewanderer]

I've seen some Subway units who have the soda fountain machine with a sign posted that says either no refills or want an extra fee for refills. I think I've seen some who serve liquor too. Cannot remember where.

Several years back, I visited a Subway in the Portland area (I don't remember where) which charged a fee for refills but it wasn't posted anywhere. They basically yelled at me across the store in a nasty tone, as I got a refill, that the refills were 50 cents. I ended up just dumping my entire pop in the drain and walked out after that.

I would have dropped it on the the floor. Oops!

50 cents - okay, here is my credit card. Enjoy the processing fee. Hopefully I use the one that costs you the most possible to process.

Also watch me run the soda lever for an extra 30 seconds after I fill my cup.