make-up brushes in holder and cosmetics isolated on whiteBy Hal M. Bundrick

Everyone knows movie theater popcorn is no bargain, but would you have thought it was served with a 900 percent markup? With a cost of 60 cents and a bucket price near $6, you're losing a quick fiver -- and that's before you splurge on the giant soft drink and a big box of candy. But those aren't the only high-profit items you're likely buying on a regular basis. The Student Money Management Center at the University of Nebraska-Lincoln, figured out some high-margin items.


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C

how does this get published. You are forgetting operating costs, salaries of the kids who serve you this, other materials..alfred below is correct. How can you compare a latte with a cup of coffee made at home..lattes are mostly milk! and if everyone takes a whole bunch of sugars that will reduce the company profits

June 09 2014 at 12:24 PM Report abuse rate up rate down Reply
arcoregar

You missed the biggest markup of them all...alcohol. We recently went to a concert and I paid $14.00 for a single shot of Absolute and cranberry drink for my girlfriend. And don't give me that whole overhead crap, at $20.00 for an entire bottle you do the math...it's a complete rip off.

June 09 2014 at 7:04 AM Report abuse rate up rate down Reply
alfredschrader

I'm actually a food insider and these number are well, a little off. There are hidden costs to French fries. There are gallons upon gallons of oil in the fryer that lasts maybe two days, then it has to be drained and thrown out (expensive). The fryer itself runs continuously whether you drop fries or not because it takes too long for it to warm-up. This makes your energy meter spin like a top - plus you are paying commercial rates. In the Summer the heat from the fryer makes your store A/C run continuously.

The real cost of your upscale latte is not what's in the cup, it's the cup itself which can cost as much as a dollar or more.

I've never seen a buffet that turns a profit - everybody has them to generate traffic. They are money losers. They eat electric power.
Few people will select the "buffet" if it looks picked-over, so you have to refill it every 5 minutes. You can't save the half empty dried-out pan so the dish washer throws it all out.
The heat lamps gobble electric power like a styling salon.
At the end of meal time all of the buffet food gets thrown out - you can't save it. The stuff has been sitting under the lights for hours - it's garbage. Fried food buffets are the worst money losers. And of course there are the spandex people. Who are the spandex people ?
You can pick them out when they arrive - they always wear spandex clothing that can expand.
I've seen them completely wipe out a buffet in 5 minutes.
Fountain soda supplies like syrup and CO2 come from major companies like Coke or Pepsi - none of it is cheap. Occasionally the CO2 bottle developes a leak and all of your expensive CO2 simply dis-appears.

June 09 2014 at 6:25 AM Report abuse -1 rate up rate down Reply
1 reply to alfredschrader's comment
tradebiz99

Agreed for the most part... They really OVER simplified these prices in this article, when there is a-lot more added to the final price of these products, even the worker dropping those fires into the oil has a price per hour spread out over everything they handle!!
BUT,
Your statement that buffets are money looser's is 100% false!
I have a really good friend who's father owns 2 Golden Corral Buffet franchises and he makes about 150K 'Profit' per store yearly! AND, he pays himself a small weekly salary as well, "not much per week, but his payday comes every quarter from the profits."
Also, there is a chinese buffet around the corner from me that has been in business since the 80's and the ONLY offer a buffet... I don't think he would be in business that long if he didn't make good money as well...

The article said it best when they said the "odds are in the restaurants favor" with buffets, most people eat nowhere near the amount they paid for the plat!

But otherwise your completely correct about the "other" overhead attached to a products markup...

June 09 2014 at 12:22 PM Report abuse rate up rate down Reply
Michael

the cost of living has not gone up but the cost of greed has!

June 09 2014 at 5:54 AM Report abuse rate up rate down Reply
guitarpack

As the owner of a small coffee house, the comments below have it pretty much covered. Although the markup is incredible on these items, what do they think pays all the salaries, rent, supplies, taxes and other overhead items that the incredible markup needs to cover. It's always cheaper to eat at home or never go anywhere.

June 09 2014 at 1:53 AM Report abuse +2 rate up rate down Reply
squigleycfp

This was a fairly stupid article. The cost of a French frie is not just the cost of a potato. Someone had to cut it into those pretty fries, the fryolator to heat them in, the oil, the labor involved, the rent of the restaurant, the lights if you don't want to eat in the dark, the toilet paper that everyone always wants to use for free etc. If you want cheap French fries, make them yourself! Same with everything above in the article. I wouldn't go to this school either!

June 08 2014 at 11:59 PM Report abuse +1 rate up rate down Reply
Mr. Ed

Do not buy or eat chips, cakes, pies, and candy.

June 08 2014 at 11:26 PM Report abuse rate up rate down Reply
1 reply to Mr. Ed's comment
C

go run a race and get shot. what does this have to do with the article

June 09 2014 at 12:28 PM Report abuse rate up rate down Reply
Dave Hein

Bag in Box Coca Cola costs $70 for 5 gal, yield is 25 gal. Cost for 16 oz. is .35 cup, lid and straw, another .10 ,then when you consider free refills... Maybe .90 per cup... not .15

Hey this is 2014, costs have risen a lot... And a cheap box of french fries cost at least $20 for 6 pounds, if you get 3 servings per pound, that is $1.10 not including box, or plate costs.

Please research current prices...

June 08 2014 at 11:08 PM Report abuse rate up rate down Reply
navalphoto

Forgot to mention printer ink.

June 08 2014 at 8:03 PM Report abuse -1 rate up rate down Reply
Hugo S LaVia

You forgot ammunition.

June 08 2014 at 5:18 PM Report abuse -2 rate up rate down Reply