Costing Out Soda & Free Refills in Foodservice – How to Price Soda
A traditional box of syrup or B I B (bag in the box) holds 5 gallons of syrup. Let’s say a five gallon BIB of your favorite Cola costs $50. The ratio of syrup to water is 5 to 1, meaning for every gallon of syrup served, 5 gallons of water is also used. In other words if you serve an entire BIB to Foodservice customers you have served 5 gallons of syrup + 25 gallons of water for a grand total of 30 gallons of product. As we know, there are 128 oz in a gallon. Therefore, 128 oz x 30 gallons yields 3,840 oz of product. To take this one step further, I am accustomed to getting around an 98.5% yield out of each BIB. Because I pay for 100% but only use 98.5%, my costs increase concurrently. To figure out the real usable product we will take 3,840 oz x 98.5% and the true amount of product to be sold is now = 3,782.4 oz.
To figure our soda cost we will need to uncover the $ cost per ounce and apply that to the soda sizes you offer. We will use a 20 oz beverage for this calculation. Knowing we get 3,782.4 oz out of a 5 gallon BIB we will divide into this quantity of 3,782.4 oz into our $50 BIB cost. Therefore, $50 / 3782.4 = .0132 This tells us that each oz of served product costs us $0.0132.