I’m guessing it drives more profits
The actual value of those coupons is far lower to them, since they aren’t really losing the proportion of profits - and yes, it drives more business to them.
not losing profits? some of those coupons are half off, no way their profit margins are that high. but I’m sure that its outweighed by the extra foot traffic or something
Basically, their goal is to get you in the store. the coupon usually only covers part of a meal that people typically buy, so you go in and you end up buying significantly more than you would have, covering the “loss”.
Futher, they can then declare the loss as a charitable contribution or something.
Also, they get to take credit for that one dollar donation and inflate their corporate “We Don’t Look Like Assholes” numbers.
Yep. They get credit for your donation & they get a tax write-off for the coupons, and they get to sell more stuff so you’ll get the “value” out of the coupons. It’s a win win win for them and only a win for you if you were going to otherwise buy the exact same things the coupons covered.
The profit margins are that high - or its for an item that’s likely going to encourage sales of a higher margin item.
The profit margin on Coca Cola for a store like KFC is basically 100%.
Also, do you use all of the coupons? If you do, you can end up spending 2-3x of the coupon value easily if you are careful not to buy anything else.
hm actually profits on drinks aren’t as good as I was expecting. if I’m seeing correctly, a 5 gallon box of Pepsi syrup costs $105
if I do my math correcy that comes to $3.5/gallon (1 part syrup, 5 parts water)
we sell that (best price) $8.38/gallon and worst price ~$20/gallon
so yeah actually for the medium drinks that’s a crazy profit margin of what like 85%? add to that the fact that there’s ice, so you’re not actually getting the cup full, I wouldn’t be surprised with a margin of like 95%
that’s why I give those for free half the time lol
can’t really find anything else, not sure how to read these charts
definetly true. I need to look at the next truck order, I’m curious what they’re paying for this stuff. see what sorts of margins they’ve got.
Their margins are very high on some items compared to the ingredients, their costs are more dominated by other factors like wages and the costs for the location.
Edit: I’ve been corrected in the comments. Happy to be wrong about this so thanks to the correctors.
Charitable donations can be written off on the businesses taxes, so by having customers pay for the donations it means the company gets to double dip. They write it off and the customer reimburses them for it.
Moral of the story: don’t donate to corporations. Give it directly to a charity.
This isn’t completely true…
https://www.taxpolicycenter.org/taxvox/who-gets-tax-benefit-those-checkout-donations-0
I stand corrected! I’m glad to be wrong about this one. Hard not to be cynical these days and it’s easy to assume ulterior motlves.
What you’re describing just isn’t compliant with tax law in any jurisdiction I’m aware of.
The idea is to get people used to visiting KFC.
Corporations: why spend our own money when we can get these chumps to spend it for us?
Donate directly to the charity and get Korean Fried Chicken instead.
