When you switch to smaller cup sizes, you are selling less liquid, but keeping the price the same. That is a nice boost to the margin giving c-stores a great profit. Most leading coffee shops have already done this. For example, Dunkin’ Donuts in 2012 changed its cup sizes so now a small cup is 10 ounces. Most people think it’s still 12 ounces. The medium is 14 ounces, not 16 ounces, and the large is 20 ounces, not 24. Yet, the price stayed the same so they were selling the same amount of cups, getting the same dollar ring, but actually serving less coffee. That means great profits. Most bars also use a 14-ounce glass despite saying they are selling you a “pint” of beer. This is all done to cut costs and enhance profitability.
Do you have an idea to share? Email Senior Editor Erin Rigik Del Conte at [email protected].