Rapid Fill Mug Program Fails (at more ways than you might think)

[RustySpork]

Agreed. But, I think that there is also a package that includes them, like the free mini golf. I think it's a ticket/room package. It's been a while since I researched, but I believe it has to do with booking a package with WDW vacations vs booking a room only reservation. Those have different deposits, payment dates, etc. also.

Oh, I hadn't seen that package. That would be a value add.

 

[csmat99]

Can anyone really drink 5 cups of soda in an hour?lol

Every teenager since beg of time or at least since soda was created.

 

[csmat99]

So Disney and McDonalds and other large users will get a significant discount, so this pricing won't be perfect...

But on Amazon, you can get 2.5 gallons of Coke syrup for $79. https://www.amazon.com/Coke-Classic-Soda-Syrup-Gallon/dp/B00HE42V8Y

Don't forget there is also the cost of carbon dioxide, filters and water.

2.5 gallons of syrup at 5 water to 1 syrup gives 12.5 gallons of Coke or 1921oz, so on a 20oz serve thats 96 servings.

So at $79 per box of syrup its 82 cents a serving. Of course wholesale will be a LOT less than this price on Amazon, but even if its 90% cheaper thats still 8 cents. So not quite a fraction of a penny. and still need to add cost of carbon dioxide and filters etc. Then of course building overheads, ice machine ruining costs, staffing/cast, delivery and everything else.

That pricing is way inflated. 5 gallons of syrup for restaurant box of coke and not someone as big as Disney will run you around $30 before any discount. Disney pricing with Coke basically works out to be about 2-3 cents for 20 oz serving.

 

[21stamps]

Ah, so it's a resort only thing. Which counts me out, lol. Out of curiosity, how much do they cost per day?

$17.99. It's actually a very good deal compared to other hotels that have the same option.i.e GWL.. typically a stay at WDW is longer so it's a value imo.

Agreed. But, I think that there is also a package that includes them, like the free mini golf. I think it's a ticket/room package. It's been a while since I researched, but I believe it has to do with booking a package with WDW vacations vs booking a room only reservation. Those have different deposits, payment dates, etc. also.

I didn't know about this. When I did a ticket/room package in '15 we did get free mini golf, but the mug was part of the dining plan. It would be great if that changed.

 

[21stamps]

Every teenager since beg of time or at least since soda was created.

Lol. Not me as a teen!

 

[csmat99]

Lol. Not me as a teen!

We used to go to Wawa after playing basketball for few hours and just keep drinking from fountain and refilling few times and then check out.

 

[21stamps]

We used to go to Wawa after playing basketball for few hours and just keep drinking from fountain and refilling few times and then check out.

Maybe it's a boy thing. Lol

 

[csmat99]

Maybe it's a boy thing. Lol

True might just be us boys. Now at my old age I get my barista's worried for my health when I order my 6-7 espresso shot americano's.

 

[DryerLintFan]

I'm immune now. No joke I can drink a latte and go to sleep shortly after. I'm a coffee addict. I have my own Verismo in my office so I don't have to drink Nescafé.lol I can't even count how many cups I drink.

When I'm at Disney- my rapid refill mugs only have coffee or water in them.

I noticed in your trip reports that you get coffee well into the evening. I can't drink coffee past 11 ish AM without it affecting my sleep.

 

[21stamps]

I noticed in your trip reports that you get coffee well into the evening. I can't drink coffee past 11 ish AM without it affecting my sleep.

I wish it affected me the same way!

 

[bigrigross]

So Disney and McDonalds and other large users will get a significant discount, so this pricing won't be perfect...

But on Amazon, you can get 2.5 gallons of Coke syrup for $79. https://www.amazon.com/Coke-Classic-Soda-Syrup-Gallon/dp/B00HE42V8Y

Don't forget there is also the cost of carbon dioxide, filters and water.

2.5 gallons of syrup at 5 water to 1 syrup gives 12.5 gallons of Coke or 1921oz, so on a 20oz serve thats 96 servings.

So at $79 per box of syrup its 82 cents a serving. Of course wholesale will be a LOT less than this price on Amazon, but even if its 90% cheaper thats still 8 cents. So not quite a fraction of a penny. and still need to add cost of carbon dioxide and filters etc. Then of course building overheads, ice machine ruining costs, staffing/cast, delivery and everything else.

Its actually 8 cents for a 32 oz coke. The syrup you pointed out on at amazon is not the stuff they use today. Almost all coke machines have been moved over to the concentrated syrup which at Samsclub is 86 dollars for a 5 gallon of concentrate which makes 300 gallons of soda when mixed with soda water. And that is just the cost at Samsclub and not the corporate contract that makes it cheaper. Also, if your company only sells Coke products, you get a substantial price reduction. My uncle who got into a franchise store, states with lids, cups, straws, CO2 water, and concentrate, it comes out to 8 to 12 cents for that 32 oz drink after all price discounts depending on the syrup. Coke is the cheapest I believe he said. Others less popular ones are more expensive.

 

[L.C. Clench]

That pricing is way inflated. 5 gallons of syrup for restaurant box of coke and not someone as big as Disney will run you around $30 before any discount. Disney pricing with Coke basically works out to be about 2-3 cents for 20 oz serving.

We used to own a small restaurant and our local distributor would sell to us at $30 a box and that included the machine and all other related services. The only other expense we had was cups so it worked out to 8 cents a drink cup included for us. Only soft serve ice cream is a bigger money maker than fountain soda.

 

[Jon81uk]

That pricing is way inflated. 5 gallons of syrup for restaurant box of coke and not someone as big as Disney will run you around $30 before any discount. Disney pricing with Coke basically works out to be about 2-3 cents for 20 oz serving.

Assuming it is always a 5:1 ratio (I haven't found anything that isn't) then I worked out 8 cents a 20oz cup based on $8 for 2.5 gallons syrup as I said the Amazon price is inflated as its one off purchase.

So yes it is massive margin on a cup but in the 5-8c a cup range rather than fractions of a penny still.

 

[UKDisney Dave]

It's 5.2 : 1 ratio, but that's for UK market, so may vary country to country. Also makes the maths harder!!

You're also assuming they are paying for the syrup. Coke are often more interested in locking up market share and so offer their syrup for free providing the retailer also exclusively stocks other Coke products.

 

[bigrigross]

Assuming it is always a 5:1 ratio (I haven't found anything that isn't) then I worked out 8 cents a 20oz cup based on $8 for 2.5 gallons syrup as I said the Amazon price is inflated as its one off purchase.

So yes it is massive margin on a cup but in the 5-8c a cup range rather than fractions of a penny still.

Coke no longer sells the non concentrate anymore. A 5 gallon of concentrate syrup makes 300 gallons of soda. You cant even buy a soda machine with the old nozzles to use the old syrup with. The new nozzles are all made to be used with the concentrated syrup.

 

[L.C. Clench]

Do you honestly believe that Disney spent literally hundreds of thousands of dollars to implement this to stop less than a penny loss? I mean, you are one of the people that claim Disney is cheaping out on everything, so if it really is that little of a loss, why would they spend that much to stop it? If what you say is true, it will take them decades to recover the cost of implementation. While we may not agree with everything that TWDC does, they aren't stupid.

At some point someone had to present a cost analyst of implementing the RFID cups and machines. The VP's would have never approved the funding for the project unless it was a significant cost savings. It is not always about squeezing another penny out of the customer. Sometimes it is about cost savings and the RFID is value added because the customer is willing to pay for it. Six Sigma at it's finest.

It's not about the loss but the profit. The decision was made to push the sales of the mugs at the resorts. They may lose $2 per person per stay if they were "stealing" soda before but I'd guess their profit on the mugs drinks included is still in the $13 dollar range. It would take a lifetime to make that money back in the losses but if you sell 1 more mug for every 4 people you stopped loss on you've still pocketed $5 plus.

 

[Jon81uk]

Coke no longer sells the non concentrate anymore. A 5 gallon of concentrate syrup makes 300 gallons of soda. You cant even buy a soda machine with the old nozzles to use the old syrup with. The new nozzles are all made to be used with the concentrated syrup.

I assume you just mean more concentrated. As all syrup I've seen are concentrated and are used at around 5 parts (sometimes 5.4) water to 1 part syrup. That means a 5 gallon box of syrup makes approx 30 gallons of drink. I would assume if it is making 300 gallons then it is the Coke Freestyle highly concentrated syrup and is therefore priced accordingly.

 

[Goofyernmost]

the whole thing is stupid... Soda costs a fraction of a penny...
it is chasing down a less than a penny loss

Maybe... I don't know, and neither do you. Unless, of course, the bill from Coke comes through your house. That was a number that certain "old time" posters threw out there as the cost of the Coke to Disney. Pure speculation not based on anything at all.

 

[ford91exploder]

Maybe... I don't know, and neither do you. Unless, of course, the bill from Coke comes through your house. That was a number that certain "old time" posters threw out there as the cost of the Coke to Disney. Pure speculation not based on anything at all.

Or some of those insiders did 'F&B' management at national chains and knew exactly what the costs were. But not allowed to state directly as most distributor discounts are confidential

 

[Goofyernmost]

Or some of those insiders did 'F&B' management at national chains and knew exactly what the costs were. But not allowed to state directly as most distributor discounts are confidential

Possible, but, what exactly is the motivation for Coke to give their product away. Regardless of quantities there are ingredients that don't fall from the sky. I don't say that it isn't discounted, quantity discounts are more then likely, I'm just saying that like the cost of many Disney projects are grossly overstated and things like this are grossly underestimated. However, the part of this whole thing that no one cares to admit is that Disney is a for profit business and it is a business that due to its definition can and does not only require massive profit, but, are justified in charging for them. After all, no one is forced to go there. We voluntarily go to the parks, resorts, etc. and for that we have to pay. It is simple economics and not complex at all. I don't care if Disney gets paid by Coke to carry their products. I don't believe for a minute that this is happening. They would be more then happy to allow Pepsi to go broke.