Quick Service Restaurant Costs

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A quick overview of the real costs of QSR food.

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QSR 101QUICK SERVICE RESTAURANTS LEARNINGS

The term “franchise” originated from a French word, meaning

“free from servitude”.

0

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

1999 2004

Sandwich, Subs and Wraps Market

70% Growth

$9.9 billion

$16.8 billion

Average QSR Food costs 26-32%

(McDonalds & Burger King 26-27%)

Costs

Soft Drinks1¢ per ounce

Paper5% of total sales

(10-15% of sale price, add 3-4¢ for cup, lid, straw)

Costs

Coffee 15-20%

Costs

Specialty Coffee 12-18% (no free refills)

Costs

Costs

Iced tea 5-10% (highest cost is the slice of lemon)

Beverages are very high margin products,

Menu should push beverages at every possible opportunity.

38% of foodservice sales are to-go

38% of foodservice sales are to-go

Take-out is a $160 billion industry

Top 10 Most Popular FoodsMen1) Hamburger2) French fries3) Pizza4) Breakfast sandwich5) Side salad6) Eggs7) Doughnuts8) Hash browns9) Chinese food10) Main salad

Women1) French fries2) Hamburger3) Pizza4) Side salad5) Chicken sandwich6) Breakfast sandwich7) Main salad8) Chinese food9) Chicken nuggets or strips10) Rice

QSR 101QUICK SERVICE RESTAURANTS LEARNINGS

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