Is iced tea more expensive than soda?

[Aimeedyan]

I always think of iced tea (unsweetened) as being dirt cheap, esp in comparison to sodas, but maybe it's not when in a restaurant setting? I know Disney gets a great deal on their sodas because of a contract...

I drove through Wendys this afternoon and tried to order a 99 cent value size iced tea (16 ounce). I can't drink soda anymore.

I was told you can't get iced tea in that size, the smallest I could order it in was the 20 ounce "small" that was $1.29. I was a little put off as I really just wanted a small glass to drink on my way to my next stop but didn't have a choice evidently.

Is tea that much more expensive that they can't offer it in the 99 cent size along with sodas? Or is just one of those strange things Wendys has decided?

 

[Papa Deuce]

Put it this way... I have read several books about opening BBQ joints... when it comes to profit, they all say "push the Iced Tea and lemonade", over soda.

 

[Pop Daddy]

even bottled water is sneaking up there

 

[Rafiki Rafiki Rafiki]

I think they do that because drinks are where they make a majority of their money. It may cost less money to make tea than to have soft drinks, but they'll lose money if everyone gets tea.

 

[NotUrsula]

Depends on how it's made. If you serve it out of a drink fountain it is made with liquid concentrate that comes from the drink service company, along with the soft drink syrups. They often pay a standard price for a pkg. of drink syrup regardless of content.

Now if you make it inhouse from tea bags, tap water and sugar, then it's dirt cheap. I used to work hotel banquets for years, and we always gave it away free in that setting; it's common to get unlimited tea served free if you cater a meal.

 

[Aidensmom]

Depends on how it's made. If you serve it out of a drink fountain it is made with liquid concentrate that comes from the drink service company, along with the soft drink syrups. They often pay a standard price for a pkg. of drink syrup regardless of content.

Now if you make it inhouse from tea bags, tap water and sugar, then it's dirt cheap. I used to work hotel banquets for years, and we always gave it away free in that setting; it's common to get unlimited tea served free if you cater a meal.

Yep, and a lot of places serve the stuff made from the concentrate.

I saw an ad last week making a big deal that Taco Bell was now making fresh brewed iced tea. I used to work there in the 80's, and it was fresh brewed then. Apparantly they switched sometime in between. Honestly, because it is so cheap to make, and because it is usually sold for the same price as soda, I'm surprised any company decides its a good idea to switch to the nasty tasting concentrate. All it saves them is about 30 seconds of employee time per shift.

 

[MAKmom]

It must be the fresh slice of lemon, they are 2 for a $1.00 right now.

 

[bicker]

Cost generally has little to do with price. If a restaurant is basing its menu prices based on its costs, then it is already in pretty bad trouble financially. A profitable restaurant makes a certain amount of money per diner, regardless of what the diner orders. In that way, you can almost think of their costs as mostly fixed, and therefore the amount you're going to pay is mostly fixed. The variability is mostly a matter of number of courses ("side of fries with that"), rather than being due to having ordered X versus Y (whether it be beef versus chicken or soda versus tea). That's not 100% the case, but far more so than most folks prefer to think.

The best way to economize as a patron is to simply do without. Eat at home, eat less, select lower grade dining experiences, etc. Trying to economize by choosing one menu item instead of another isn't going to work out well in most cases.

 

[Carl]

In Houston, all the restaurants have been raising the price of tea. It used to be $1.59 at Casa Ole, but the raised it until it got to $1.99. Most other restaurants charge $2.10. I think it is a profit maker.