The Real Reason McDonald’s Soft Drinks Are Only $1

The Real Reason McDonald’s Soft Drinks Are Only $1


Lots of fast-food enthusiasts agree that McDonald’s
has the best-tasting soda fountain Coca-Cola of any chain. So, it’s no surprise if you’ve
ever stopped by a location just to get a medium Coke and maybe an order of fries, too. It
turns out McDonald’s and Coca-Cola go way back to the very beginning of the burger chain. When the duo partnered, Coca-Cola helped develop
a specialized method for storing the soda in stainless steel tanks that protect the
syrup from temperature and light, and McDonald’s adopted this same method. The water flows
through insulated tubes to ensure you get the coldest, best Coca-Cola available. Between
those extra steps and extensive water filtration, it’s easy for McDonald’s to serve up surprisingly
fresh, crisp Coke that keeps customers coming back. Today, McDonald’s deals for $1 include more
options than getting a soda in any size. Customers can get hot or iced coffee for the same price,
and on Fridays, the chain also offers a free medium fry with any $1 purchase by Mobile
Order and Pay. The McDonald’s dollar menu might be reduced
to mostly just drinks these days, but there’s a good reason for it. With the introduction
of 2 for $5 menus, and similar options for set periods of time, the chain ends up actually
making more money. Even with the $1 drink menu alone, Reuters reported sales rose, as
did shares of stock. According to Fortune, the chain smashed expectations with its $1
drink promotion and saw nearly a 4 percent increase in sales. CNBC cited the success of that quarter following
the $1 drink menu and $2 coffee menu as the push behind the introduction of the $1, $2,
and $3 dollar menu in early 2018. USA Today reports that the updated menu and even new
technology to modernize and streamline the process at the stores have been a profitable
success, and the chain believes its strategy of tiered pricing worked to draw customers
toward higher-priced items. “Well it’s called the McPick 2 menu, customers
are going to be allowed to pay two bucks for two of the following items, be allowed to
pay, you get to do this.” So the next time you stop in for nothing more
than a medium Coke, keep in mind the smell of those fries or a burger just might be working
hard to win you over for a larger order. With prices so low, how do fast food chains
make any money at all? Well, one way the dollar menu becomes profitable is through scale.
With employees focused on making a large quantity of these items rather than high-quality, customizable
products, it winds up cutting costs, according to the BBC. It also helps that soft drinks
make up a large portion of McDonald’s dollar menu, and even better, Payscale says filling
cups from automated soda fountains requires almost zero labor from employees who are paid
around the federal minimum wage. The truth of the matter is that these restaurants
make their money with promotions and marketing tricks. “Stay cool while you check things off your
summer bucket list. Like summer, any size soft drinks for a dollar won’t stick around
long.” Customer Survey Assist says one example is
the free menu items that are offered from time to time. Those free items generally end
up costing you money because they must be made with a minimal purchase, and even a single
dollar purchase can add up over thousands and thousands of customers. Many chains are more than willing to do away
with their dollar menus, but the low prices often get frugal customers inside the door.
Eat This reported that one study shows people will order and eat 85 percent more food when
offered directly from another person, like your server. However value menus have grown
over the years to include much more than your standard burger, fries, and sodas. According
to Time, while a smaller, more manageable menu with easy-to-make items might turn a
decent profit, new value menus with as many as 25 items are nearly impossible to make
money on, which is why some restaurants might consider dropping the menus altogether. One of the few highly profitable products
on the dollar menu, though, are soft drinks. Those large Coca-Colas are what make the value
menu all worth it. The Motley Fool reported that soft drinks can bring in up to a 90 percent
profit margin, which really adds up in the eyes of the restaurant. And according to AOL,
fast food restaurants like McDonald’s are able to cash in a bunch on their any size
$1 soft drinks, because each one costs them less than a quarter. Somewhere between 5 to
20 cents to be exact. Check out one of our newest videos right here!
Plus, even more Mashed videos about your favorite fast food chains are coming soon. Subscribe
to our YouTube channel and hit the bell so you don’t miss a single one.

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86 Comments
  1. Menaceblue3

    Just add more salt to fries!

  2. Kingboy12927

    (:

  3. Vaithy M

    Hey mashed

  4. Passion for food

    High-fructose corny goodness!

  5. Tem

    cool video it was really good

  6. Jason Lee

    This sounds like a McDonald’s ad

  7. Little Oggie

    The very end of the video pretty much explains it: when you factor in the cup, straw, lid, water and syrup that $1 beverage only costs them about a dime. They offer it cheap to get people in to the restaurant because while you are standing there in line to order your $1 drink and can smell the burgers and fries you might end up ordering food with your beverage.

  8. Mr. Popo

    Because it's 1 dollar

  9. 4 Minute Races

    Who would be interested in me starting a series on my channel where I do The Top 5 States with most (insert fast food restaurant) per person)

  10. Aezothr Havbaal

    ughh.. i'm getting fat

  11. Lroy Johnson

    1$ drink with a shit load of ice …take the ice out ends up 1/4 of coke hahah

  12. frank valenzuela

    Nothing new here in Washington a large soft drink is 1 $

  13. frank valenzuela

    Has always been a dollar

  14. Jared Orlando

    Well since I was an employee during the 90's at multiple locations in Atlanta area. There were no stainless steel tanks at the locations I worked. It was called syrup boxes hooked through line that went to common soda fountain. Coke at McDonalds doesn't taste the best (subjective)…it doesn't match the taste out of a classic coke bottle or can for that matter. Since management always said to all employees that the soda is cheaper than the ice in the cup. We never cared about giving away a free soda. They always wanted us to use less ice.

  15. Awesome

    Mashed, great video! Enjoy your Tuesday!💯😍

  16. zach white

    I hate the $1 drink thing when I work for McDonald’s we would get people that would just get a drink and pay with $100.

  17. Kylil Johnson

    McDonald's ad at it best

  18. Gray Swan

    McDonald's has gotten pricy recently for sub par food so we just pass them up for better quality burger fare at about the same price..I see problems coming for MCD in the future to stay relevant.

  19. Pablitoxyz

    nothing beats a can of Coke!

  20. Adam Bosak

    i use to work on these machine and you dont want to know whats inside the tubes that your drink flows thru. so you know its nasty and if you knew you would never drink from it ever again

  21. AMF75

    In europe it's like 2 euros

  22. Youtube Channel

    Probably so they can get you into the doors and you buy someone else

  23. Rude Valve

    Certified Gold!!!!!

  24. Toni Earling

    Their soda has so much water in it that when we go there I buy one somewhere else

  25. Siren Thomas

    Not here they are 1.50 only the tea is a 1.00 …gotta love franchises 🙄

  26. snowbird

    Please do a video on the profits Walt Disney World makes on their soft drink sales.

  27. turnbomb4

    Oh my, for once they weren't bashing on McDonald's

  28. Paul Leepoy

    No ice in the summer time😎🍟🍔🍻

  29. Amber G

    It's better than coffee

  30. 74LOL74

    Did she really cite 4chan….. damn /biz/

  31. Stephen Averbuck

    How much should it cost? Frequently it costs 1 dollar or even less for 2 litres. What I want to know is when they'll use sugar again instead of high-fructose corn syrup, AKA diabetes in a glass?PS if McDonald's asked for it they would make it, they make Passover Coke with sugar.

  32. James Smith

    MCDONALD'S JUST CHANGED THEIR BURGER BUNS AND THEY SUCK.

  33. Joseph Stokes

    My mind was just blown by seeing someone put fries on their burger.

  34. GHOST JAZZKHILL

    I Thought they just did that for me.😥

  35. S Wms

    It’s cheap as it’s half ice. You can ask for no ice to beat that

  36. Frank Lee

    Also the large cokes are slowly decreasing by 2oz at a time. I think it’s down to 28oz now?

  37. Hameed Matooq

    Sadly it’s only in the U.S not everywhere

  38. Frank Gutowski

    Wherever they’re doing is fine with me. Bought shares for decades regardless of price since first buying shares in the late 1960s for $1600 (worth >$500K today). Never sold a share. Live comfortably off the dividends.

  39. john gibson

    Ice cold Coke, Iced Coffee, Get it yet McDonalds sells ICE.

  40. matt gyure

    I don’t understand how Coca-Cola allows them to sell their product for less than half of what everyone else does

  41. Lobster Johnson

    You guys know you have to disclose paid promotions?

  42. Happy Hour Girl Kola

    Yes McDonalds Coca-Cola is the best and they clean/filter daily 🥤

  43. Anthony Roberson

    LOL the dollar sodas or just to get you in the door

  44. Anthony Roberson

    I went in to Micky D's just to spend a dollar and ended up spending 10$

  45. Future Sales

    The real reason its $1 is because of @dcigs rant; Black Man Angry At McDonald's.

  46. Daniel Johnston

    Any food outlet, that has fountain soda, is making 300 % profit with it! Plus, if they fill the cup with ice, you only wind up with about 3 ozs. of soda! Free refills? Why not? Always say, ice on the side, in a separate cup. Then you control how much ice in your drink!

  47. Kamala2111

    Good price

  48. Mashed

    What's your go-to McDonald's order?

  49. Weatheronthe8s

    Why would you get the medium when the large is the same price? Either way, I love to get a large sweet tea for $1. I love their tea, but their other drinks are good too. There have been a couple times I have gotten a drink and fries for $1 + tax because of deals on their app that almost sounds like a loophole. That's hard to pass up.

  50. Curtistine Miller

    If you're thirsty,you will probably by a fish sandwich an order of fries or something,🍔🍟🥤,,

  51. Thunderbunny 17

    Because its a bait

  52. sevenmilegoku

    Nah, what we AGREE on is the strength of their Sprite

  53. Zinn's Tiger Town Mowers

    Burger king has the worst coke. Just saying

  54. Jordan Lego

    Uhhh I worked at McDonald’s and none of that was correct 10 years ago. Just warm bags of syrup in the back room hooked up to room temp hoses. What a joke of a channel.

  55. 3dd Visuals

    The only website I trust for weekly paychecks of $2491 is this. look up in Google this without spaces Fun Onli neWo rk .c om

  56. Bill G

    Why do they keep showing Coke in a glass in the ads? Good Luck finding a Glass in McDonald"s. LOL

  57. Hinesh Khatri

    It's different in Fiji!
    McDonalds coke taste flat

  58. Christopher W. Sanders

    So you'll get diabetes.

  59. B G

    Maccas drink dont cost $1 in Australia

    Its the rip off country

  60. Willy Joe Rockhead

    Is this a commercial?

  61. Lilly V Gutierrez

    $1 soda amazing other plans $3 for large drink del taco burger King

  62. Samhain Night

    $1? Where? It's over $2 in ny

  63. Jamie Lehman

    McDonald's can be so dirty sometimes, not a good idea to go right now with the CCP Coronavirus pandemic.

  64. Andy Yang

    Simple. It’s just carbonated water mix with flavored corn syrup.

  65. vtecx626

    I always save my cup to get free refills. They lose money when I arrive.

  66. Nezoxy

    What here its over 3 dollars

  67. Grizz Axxemann

    In Canada fountain drinks at McD's are NOT a dollar. Except for a few weeks in the summer.

  68. Sean Wilson

    Notice these people are following social distancing

  69. Vaginas_ Vibrators

    McDonald's old nasty food

  70. N SPM

    This video sounds like advertising…

  71. Kaeson Teo

    What do you mean, where I come from a large coke is like $3.90-$4. So it usually comprises of 50% of the price of the meal.

  72. CALLME FAYFAY

    because it's poison.

  73. sarah mervine

    No there not I paid 1.64 for a 1$ drink

  74. ComeAtMeBro

    Hmm

  75. Father Gabriel Stokes

    So THAT'S why there's giant soda tanks down there in the storage area in my McDonald's!!

  76. Cricket IV

    Dude… they aren’t $1 anymore, are you mental?

  77. -PARADOX-

    It's only Sugar and water that's why.

  78. only1june bug

    My manager told me that the srinks are a dollar now because it was either styrofoam cups at a higher price or plastic and paper cups for $1

  79. A Red Fox

    Well given that a small can of soda can fill into a medium cup, i say why not. But really, it's because McDonalds can take the loss

  80. dflet03

    Bring back the orange hi c

  81. Mike Trotter

    McChickens went up to 1.69 tho, too rich for my blood

  82. Anthanese Boissiere

    McDonald's Coke is just like getting it out of the bottle.

  83. Robert feost

    I only get the sweet tea

  84. Raine

    Also why America is #1 in obesity in the whole world

  85. whatachola

    Off topic that chicken McGriddle breakfast sandwich slaps

  86. Q The Messenger

    Plot twist. All the cups really hold the SAME amount of liquid 😱🤷🏽‍♂️. Jus looks bigger

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