You know what people notice most on your menu? Your highest-priced item. If the pizza is over $30 – even if it feeds eight – the average customer thinks, “Oh, wow, that’s an expensive pizza.” That’s the one they talk about, compare and critique.
You know what they rarely, if ever, notice? The soda price.
It’s assumed. Guests walk in expecting to order a drink. They’re not studying the menu for it – especially if it’s not on the physical menu. And by the time they see it on the receipt, the transaction already is complete. For the price-conscious customer, any inclination to complain is usually offset by the name “Unlimited Refill Beverage” or something close to that on the receipt. Truly, this is not an item people fixate on. That makes it your cleanest, open opportunity to create a profit margin.
This is not about being greedy. It’s about being responsible in one of the lowest-margin industries there is. If your restaurant isn’t producing the profit it should, you need to identify areas where you can improve without compromising the guest experience. Soda is that area.
For dine-in service, the play is clear. Set your price – $2.50, $2.95, $3.50, $3.95 – whatever fits your concept. Most guests won’t blink. They see the term “unlimited,” and they’re good. Syrup soda is relatively cheap, requires no prep labor, and the marketing is done for you by big soda corporations.
If you’re a takeout operation, the best item to carry is 20-ounce bottles. Why? Because cans usually cost around 50 cents each, and you can sell them for as much as $1.95. Meanwhile, a 20-ounce bottle costs you about 75 cents and can sell them for as much as $3.25. That’s $2.50 in profit. A four-pack combo of 20-ounce bottles at $9.95 will out-earn a $4.95 2-liter without question. This is the margin game, and if you are a restaurant professional, you must game pricing or it will game you.
It’s not about what you make once, it’s how you handle items over time, and soda is incremental revenue that stacks fast. Charge one dollar more to 120 customers a day, and you’ll net $43,200 per year! It’s insane how such a small change can produce such a huge result for no new work. Beverage pricing gives you a cushion to offset other choices – such as the appetizer you price at $13.95 instead of $16 to avoid scaring off guests. Soda absorbs that hit.
So, ask yourself: Are you making enough on the most ignored item in your operation? You don’t need to overthink it. You just need to start monetizing it properly, because it works and most customers don’t notice it or care the way they would about the price of something else on your menu.
Mike Bausch is the owner of Andolini’s Pizzeria in Tulsa, Oklahoma. Instagram: @mikeybausch