One Of America's Favorite Restaurant Orders Is Also The Most Overpriced Item On The Menu
Almost every restaurant keeps fountain sodas on the menu and The Takeout reports that, as of May 2025, restaurants mark up these drinks by about 1,125% because the profit margins are astonishing. The Takeout further revealed in another report in January 2025, that a $3 fountain soda costs just 25 cents to 40 cents for syrup, water, and the cup, which is a 650% to 1,100% markup; 7.5 times to 12 times the return on investment. The only other simple menu item that does this is burgers. Food blog, The Secret Sauce, says that the cost of a specialty burger — patty and buns with premium ingredients or unique toppings — has a 300% added cost. In essence, the raw ingredients cost far less than the final price.
Some might argue that the increase is unfair because, unlike meals that take more time, effort, and skill to prepare, modern fountain units are easy-to-use. Just push a button or pour from a dispenser. This makes soda one of the most overpriced items on the menu. Still, you can avoid its cost by ordering combo meals that can give you burger, fries, and a drink for around $8.99, or you can use the rewards program at McDonald's, where you get points per order, which you can then redeem for specific items on the menu, thereby reducing the cost of your total.
Why restaurants might need the soda markup
The "effort" might be cheap, but the machine, syrups, and the location(s) are not. It costs about $2,000 for a re-manufactured 8-flavor soda fountain system via Soda Dispenser Depot, and around $10,000 for a beverage dispenser with 12 UFB-1 Sanitary Lever Valves, via Webstaurant Store. Then, there are consumables; every case of syrup runs about $40 to $60, and a CO₂ refill is $15 to $30. That sounds small, but multiply it by hundreds or thousands of drinks a week and the bill piles up fast.
Above all is the taxes and policy hits. Between 2017 to 2018, via Berkeley Public Health, Boulder, Philadelphia, Oakland, Seattle, and San Francisco began charging distributors one cent for every fluid ounce of sugary drinks (which includes soda) they bring inside city limits. Per a 2024 study by researchers at UC Berkeley, retail soda prices jumped 33% within two years of the tax taking effect. An indication that operators in those markets had to build that surcharge into every cup.
Besides, location matters. Combo-meal research published by LendingTree in May 2025 shows the average entrée-plus-side-plus-drink now costs $13.88 in San Francisco but only $10.01 in Columbus, Ohio, a gap driven by higher wages, rent, and local fees on the West Coast. The fountain drink inside that combo inherits the same local overhead, so its markup is much higher in expensive cities than in cheaper metros.
How you can avoid the soda up-charge
To avoid paying $3 for soda, ask for plain water to go alongside your meals. Restaurants will not hand it over unless you request it in many places. California's statewide drought rule, for instance, forbids staff from pouring water unless you ask. This confirms that the restaurants in the state are not obligated to offer water as an alternative to soda unless you request it. If you still want a fizzy drink, look for spots that still offer free self-serve refills, a practice so common in North American fast-food that it has its own entry in Wikipedia.
If you're dining somewhere fancier, bring a refillable bottle or choose a Bring-Your-Own-Beverage (BYOB) venue. Philadelphia, for instance, is famous for its BYOB culture. The state has the 16-seat seafood spot, Little Fish, that is strictly BYOB, encouraging guests to pick up a bottle at a nearby wine shop before dinner. Other strategies through which diners can save without stiffing the restaurant include letting up on appetizers, which are inexpensive to make, per Gloria Food, but free up your budget to include a possible order of a side of salad or cocktail. You can also always opt for bundle deals menus where you get discount combo offers that include burger plus drinks.