05/31/2024

McDonald's Says No More Free Refills

This change for the high-margin item may lead to franchisees cheering

As retailers and grocers from Target to Amazon Fresh to fast food chains minting $3 and $5 menus, something has to give. That something is soda.

McDonald's recently said it is phasing out soda fountain stations--and it will start charging for refills. The news may be hard to stomach for consumers; however, for franchise owners it's a refreshing turn. Sodas have long served as one of the highest margin items on fast-food menus--and they've saved franchise owners from dipping into the red countless times over the years.

This is especially true when franchise systems--you know who you are--have pushed different freebies and loss leaders. Long before the $3 and $5 menus, there was the dollar menu, after all. These loss leaders can sting, as franchise owners often cannot pick and choose the campaigns in which they can participate.

Please select this link to read the complete article from Inc.