Business Facts

The most profitable item on McDonald's menu is its fountain drink. It costs between 13 and 18 cents to produce a drink.


Drinks are often the most profitable item in restaurants.

The Journal of Agricultural and Resource Economics reports that the biggest mark-ups on any restaurant menu are drinks and side dishes, thus maximizing the profits for the business.

This holds especially true with fast food restaurants. McDonald’s, for example, spends between 13 and 18 cents to produce a soft drink.

That includes the syrup, the cup, water, ice, electricity, labor, and wastage.

If the particular restaurant has customers fill their own drinks, you can essentially take labor out of that as well.

A medium sized soft drink at McDonalds costs them 15 cents or less. The typical profit margin on fountain beverages is approximately 85%. McDonald’s profit margin is 90% or more because of their volume purchasing power.

Concentrate for 50,000 Cokes costs $2.60, including labor. A single penny’s worth of syrup makes almost 200 cups of Coke.

The new McCafe has only increased their profits from drinks, and is considered one of the main driving factors in the company’s growth. They plan to expand the McCafe globally.

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Guy Fieri didn't register his Times Square Restaurant's domain, so a random person bought it and made a fake website.


Restaurant owners would probably give and arm and a leg to get a spot in Times Square, one of the most highly trafficked places in one of the busiest cities in the world.

Of course, when you disappoint in a place like that, people notice.

Guy Fieri’s not-so-cleverly-named restaurant ‘Guy’s American Kitchen & Bar’ was certainly noticed for this.

A New York Times review sarcastically asks “Did panic grip your soul as you stared into the whirling hypno wheel of the menu, where adjectives and nouns spin in a crazy vortex?” And that was only the start of the review.

Flash forward some months and one man, Bryan Mytko, noticed something else lacking from the restaurant: a website. He jumped on the opportunity, registering the domain guysamericankitchenandbar.com and posting a satirical menu.

On it are cleverly, overly detailed items including some not-so-appetizing choices such as deep fried snake.

One item is certain to become a patron favorite: Guy’s Big Balls.

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The Asylum, creators of 'mockbusters' such as Sharknado, Titanic II, and Transmorphers, has never lost money on a film


Film studios are bound to lose money on films once in a while. That’s just the nature of the business.

It’s quite impressive, then, that the film studio and distributer The Asylum has never lost money on a film with around 100 releases.

The company produces mainly “mockbusters,” films that capitalize on productions by major studios, usually resorting to film titles and scripts very similar to those of current blockbusters in order to lure customers.

David Latt, a director and one of the studio’s founders, prefers the term "tie-ins" to "mockbusters", stating that The Asylum's productions, even those that capitalize on major releases, contain original stories.

They typically spend “well under a million dollars” on a film and they usually break even after about three months.

Latt states that the studio plans its productions around the word of mouth of the financial prospects of upcoming films. The studio's films are usually released on video shortly before the theatrical release of a major studio film with similar themes or storylines.

Some of the more notable films this studio has produced are H.G Wells’ War of the Worlds and Sharknado.

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Burger King will get 100% of it's food from completely cage-free animals by 2017. It costs an extra 25 cents to 40 cents per dozen to produce cage-free eggs.


It’s no secret that animals destined for the dinner plate are generally not treated very well. This is largely thanks to various campaigns to illuminate this subject, and now the push is for better treatment.

Burger King is taking a huge step to increase the living conditions of animals.

They currently get 9% of their eggs and 20% of their pork from cage-free animals. Burger King isn’t the only fast food chain to use cage-free products, but they are taking it further than anyone else. The plan is to be 100% cage-free by 2017.

This doesn’t come without cost to Burger King. They will be spending an extra 25 cents to 40 cents per dozen to produce cage-free eggs. Multiply that by the literally billions of dozens of eggs they use every year and you can see that they are taking a significant financial hit in order to do the right thing and cater to those who demand humanely produced food.

Farms now have the option to switch to cage-free production, but without their customers pushing for it, they have no reason to. It will cost them money as well.

"Our attitude is our producers believe in consumer choice and if that's what their consumers want to buy, they'll produce cage-free eggs for the marketplace provided the customer is willing to pay the additional cost," said Gene Gregory, chief executive of the farm group United Egg Producers.

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If you asked the founder of McDonald's what business he was in, the answer would surprise you!


Quick… what business is McDonald's in? If you said in selling fast food, you'd be wrong. At least if you asked the man who founded it. In 1974, Ray Kroc, the man who started the golden arch empire asked an MBA class at the University of Texas, Austin this same question. Of course, everyone said hamburgers. Kroc's answer surprised everyone: he said he was in the real estate business.

Here's the way he explained it: his primary business focus was to sell franchises of the restaurant. He knew, however that real estate and location were the most important factors of success for each franchise. A poorly placed restaurant would go broke. McDonald's is now the single largest owner of real estate in the world.

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