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Why does McDonalds coke taste better and how does it help them to win the competition in an oligopoly of fast food industry?

by on May 11, 2012


            Among the big fast food restaurants, why does McDonalds’ coke taste better? That is because McDonalds uses the different syrups and drink fountains while other restaurants which sells Coca-Cola fountain drinks uses the same one. To make fountain drinks, there are objects of scenario: water, syrup, CO2, ratio of ingredients, mix of ingredients, and temperature. Most of the objects are controlled by Coca-Cola or the customers. CO2 is a standard gas that are same everywhere and cannot be different. Ratio and mix of ingredients are set by Coca-Cola Company which is in the fountain machine. The temperature of drink can be changed by customers by adding ices. Therefore there are only two left which can be controlled by McDonalds: water and freshness of syrup.


Water is 85% of a fountain drink; therefore if water is bad, you will taste it when you drink the coke. McDonalds knows that and therefore they use osmosis filter to provide the best water in making their products. This is also the reason why their coffee tastes better.


Most restaurants use the boxes of coke syrups which are small therefore produce minimal investment.  However, McDonalds is a big company which sells a lot of Coke. So they get delivered their syrup from a tanker truck and store it in a stainless steel cylinder. This big cylinder keeps the syrup fresh and fountain cokes with fresh syrup makes the drink takes better. Not only that, they keep the freshness by cleaning the hoses and machines daily so they won’t let old syrup to sit in these and get mixed with fresh syrups or even let bacteria to grow.


How does the McDonalds in Korea uses the efficiency with their factors of productions?


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One Comment
  1. msmuntz permalink

    Interesting information, but you do not overtly relate your point to economics.

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