“We work with many of the state liquor authorities to make sure this is the right thing to do.” In New York, for example, customers are limited to three drinks, and in New Mexico, Applebee’s cannot sell $1 drinks (though it can sell $2 ones). “It’s a big country with lots of laws, and we want to make sure we’re compliant,” says Kirk. does throw a bit of a wrench into the Applebee’s plan for Dollarita domination, though not as much as you might think. “Our bars are more crowded than they were 18 months ago, and we’ve attracted a younger crowd with our Neighborhood Drinks program.” Cywinski, in a story reported for CNBC, explained that “because are getting a great value on the beverage side, they tend to be ordering desserts and appetizers.” Kirk echoes the assertion that the drinks program gets people in the door, and has even expanded the restaurant’s demographic. And considering there are plenty of tequilas that sell at retail for less than 10 bucks a bottle, a profitable $1 Margarita really doesn’t seem all that out there.īut Applebee’s isn’t making money hand over fist on the drink itself. Either price leaves at least some room to cover the other ingredients-not to mention the labor-needed to make the $2 drink while still turning a profit. In California, where Southern Glazer’s also distributes Absolut, the best price is quite a bit higher: $16.43 for a 750mL bottle (if you buy at least 26 cases), for a per-drink cost of 91 cents. (This doesn’t even take into account the possibility that Applebee’s has negotiated an even better price-or even a kickback scheme-with Absolut itself, something that’s illegal but still widespread in the bar business.)
(Which, let’s be honest, should be pretty easy to do if you’re selling $2 drinks.) With a generous allotment for spillage, each of those bottles will pour twenty five 1 1/4-ounce shots, at a cost of 64 cents each. That’s if you buy at least 15 cases-180 bottles, or just short of 45 gallons-at a time. Let’s do some math: The best wholesale price you can get on Absolut from its New York distributor, Southern Glazer’s Wine & Spirits, is $15.99 for a 1-liter bottle. Patrick’s Day special that combines Absolut vodka with “green apple, ginger and lemon flavors” and is topped with a rainbow gummy garnish. However, we can at least get some insight by looking at Applebee’s featured Neighborhood Drink for March, the Absolut Rainbow Punch, a $2 St. While none of these tequilas are very expensive, it’s tough to run the Dollarita’s numbers without one single brand to point at. What doesn’t change from location to location is that Applebee’s makes money on every Dollarita it sells. “We work with seven or eight liquor distributors around the country to identify the best option for our franchisees.” A few phone calls yielded varying answers as to the well tequila of choice: in San Francisco it was Tequila 1800 in Chicago either El Toro or Montezuma and in Queens, New York, one location cited Conquistador. “For the Dollarita, we use well tequila,” says Kirk. The particular brand of tequila that each Applebee’s uses can vary, though. We started to ask ourselves, ‘Is this even possible as a brand to do this nationwide?,’” he says, adding, “A drink special can’t easily be promoted in just one state or one market word spreads really quickly online.”Ĭonsisting of an ounce and a quarter of tequila and nearly four ounces of Applebee’s house Margarita mix (the company uses an undisclosed proprietary formula), there’s nothing terribly unusual about the Dollarita-other than its price tag. “A franchise in Texas started doing $1 Margaritas. How, exactly? Patrick Kirk, vice president of beverage innovation for the brand, wondered the same thing.
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