Restaurant owner here... the cost to purchase 5 gallons of tea now equals the price of a keg of craft beer.
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Just for shits and giggles I did a little research. Not sure what brand you use so just doing a hypothetical thing here just for fun.
I found a box of liquid tea for soda fountain for $42.71. It is “Narvon 5 Gallon Bag in Box Unsweetened Iced Tea Syrup” (https://www.webstaurantstore.com/narvon-5-gallon-bag-in-box-unsweetened-iced-tea-syrup/515BIBTEAUNS.html)
The nutritional information says it contains 320-12oz servings of the finished product (1 part syrup to 5 parts water) Which equals out to 3,840 ounces of finished product.
I looked up commercial tea pouches (sorry for the Amazon link) and found a case of 24-3 gallon tea pouches for $32.79 (https://www.amazon.com/Lipton-Iced-Black-Unsweetened-gallon/dp/B01MTG7Q9A/ref=mp_s_a_1_3?dchild=1&keywords=commercial+tea+bags&qid=1618993168&sr=8-3) each case will make 72 gallons, or roughly 9,576 ounces of tea.
Liquid tea box at $42.71 is costing roughly $0.011 per ounce to make before accounting for cost of water, power for the fountain, and any lease or maintenance of fountain.
Brewed tea case is $32.79 is costing roughly $0.003 per ounce before other expenses.
Here is a BUNN 5 gallon dispenser for iced tea for $76.99 (https://www.webstaurantstore.com/bunn-34100-0001-tdo-5-5-gallon-iced-tea-dispenser-with-solid-plastic-lid/234341000001.html?utm_source=shopzilla&utm_medium=cpc&utm_term=234341000001&utm_campaign=restaurant_equipment) probably fits under a tall coffee maker. But same website has a low profile 3.5 gallon dispenser for $63.49.
Hope this helps fren! Good luck to you and hope your business is doing better!
Now he just need to determine if his employee's time costs more to make that than hook up the box of syurp.
Great breakdown fren!
True, but id say do a taste test and let the customer decide. They are the ultimate judge of whether something is of value or not.