US Fast food employees - how does your company manage to make a profit off of 4-8pc $1 chicken nuggets? To further that point - what is in them such that they are only $1?

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tugce Öğrenci Hakkari 1 yıl önce

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US Fast food employees - how does your company manage to make a profit off of 4-8pc $1 chicken nuggets? To further that point - what is in them such that they are only $1?

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mattheus Öğrenci Kırıkkale · 1 yıl önce

bulk, low quality chicken is probably 25 cents/lb or less.

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majry Öğrenci Konya · 1 yıl önce

Subsidized by sugar water (aka soda) which is pure profit. Edit: not pure profit of course. But many other items like French firies - very high margins.

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grayce Gelişen Kütahya · 1 yıl önce

"Chicken nuggets are what is referred to as a "loss leader." A product that is so cheap the company actually loses money selling it, but it gets customers in the door and buying other items. For example, most people buy a drink with their food. A large fountain soda is $2.99, but only costs the restaurant about $0.04. So even though they took a hit on the nuggets, the soda they bought made up for it. "

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rosmarie Öğrenci Konya · 1 yıl önce

Animal suffering on an industrial scale.

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arleyne Öğrenci Tekirdağ · 1 yıl önce

They don't make money off of sale items. They make it on premium items you end up buying by being lured in by the sale items

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glennie Öğrenci Bartın · 1 yıl önce · Accepted Answer

"First, I don't expect the average fast food employee to have significant insight on this one. Second, centralizing production and buying enough bulk to control the market, etc... keep the costs down. Third, some products are known as "loss leaders". Costco doesn't make money on the rotisserie chicken or the hotdog/soda combo, but nobody is going to Costco for just a $7 rotisserie chicken, it's just tacked onto an $75-300 purchase. When it's something like a fast food coupon, it's often 2 sandwiches for $5, or 2 biscuits for $3, no fries, no drinks. They're counting on a certain percentage of people to tack on those items with high profit margins. "