Some operators find there's a profitable side to unlimited refills. Consumers asked for them,'' says Downs. Now, coffee, iced tea and a variety of soft drinks come with bottomless cups and glasses. Our costs are higher than margin, but in the end we make more money. Unlimited refills are more about hospitality than economics, according to Don Dobson, vice president of operations for Furr's Restaurant Group, of Richardson, Texas, operator of Furr's Family Dining and other concepts.
Customers perceive it as extra-value.
Food cost on fountain-style soft drinks is pennies, he adds. What's more expensive is the slice of fresh lemon, about 2 cents. Or the use of artificial sweetener, which is about three times the cost of sugar. The amount of ice has no impact on profit or loss. What is a consideration is keeping the ice machine in top condition or spending for the labor to keep the beverage area tidy.