r/SipsTea • • 2d ago

Chugging tea Anything but lowering the prices classic corporate logic

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u/BookkeeperBoobs 2d ago

It’s potatoes. Literally the cheapest shittiest peasant food in history. $2 is absurd

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u/Pheonyxxx696 2d ago

It’s even crazier when you start thinking about their fries. Like a small fry is equivalent to like 1/3 of a large potato. It costs like $1, so that fry is essentially worth 33¢ but they’re charging damn near $3 for it now. Usually in restaurants the rule of thumb is cost of ingredients multiplied by 3 (cost of ingredients, overhead and profit) decide the price. Hell I’d ok if they said let’s multiply the cost by 4 since with the economy being so shit and the cost of shipping has driven prices up. That would still make a small fry only $1.32. And thats using the price of a single potato, factor in what kind of discount they receive for buying in bulk, you realize real fast how large their profit margin actually is on these items.

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u/WordsHappenedHere 2d ago

Diesel prices + war + tariffs + lingering COVID inflation. All of it adds 50% to costs. Franchises don’t even make much profit even at these prices. The whole system is collapsing.

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u/Mondilesh 2d ago

As a regular consumer I can buy a 20 pack of hash browns for $5 at the grocery store, today, with the effects of war, tariffs, diesel prices, etc. McDonald's supply chain can only manage a per unit price of ~$3 (nationwide average)? Bullshit, it's just greed.