By Lingxiao LiI read an article and found it might be interesting to share.
McDonald's "Dollar Menu." Subway's "$5 Footlong." Quiznos's "Million Sub Giveaway." As the U.S. tries to climb out of the recession, these bargain fast-food meals have become familiar subjects of TV and Radio ads. For many consumers, they are some of the best food values around. How much money are local stores making -- or losing? According to a survey, On top of paying royalties (of about 11% to 12% of sales) to the franchisor, franchisees often bear the brunt of a promotion's cost. We also asked franchisees about their wholesale costs for food, as well as labor, rent and utilities, among other things. Prices and menu for a particular promotion also vary depending on location. Here are some facts I found online.
McDonald's
Pre-promotion price: $1.50 (double cheeseburger)
Promotion Price: $1
Bottom line for restaurant: Profit of roughly 6 cents a burger
Quiznos
What some stores normally charge: $5.29 (one six-inch chicken sandwich)
Promotion Price: Free
Bottom line for restaurant: Loss of roughly $2.25 a sandwich
Subway
What they normally charge: $5.89 (12-inch turkey sub)
Promotion Price: $5
Bottom line for restaurant: Profit of roughly $1.20 a sandwich
Sources:
http://finance.yahoo.com/family-home/article/107106/Can-They-Really-Make-Money-Off-the-Dollar-Menu
http://www.smartmoney.com/index.cfm?adv=yahoo2&creative=170x40logo
http://www.smartmoney.com/personal-finance/health-care/
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