The Logistical Reason Chains Can't Sell Both Coke And Pepsi

Is Pepsi okay? It's the age-old question that seems to be asked whenever we order a "Coke" at a restaurant that exclusively sells Pepsi products. Of course, it suggests that the former is inferior to the latter, but it's not as simple as restaurants choosing to sell Coke over Pepsi simply because they think one is better than the other.

Coca-Cola was first sold in stores way back in 1886, while Pepsi didn't come along until 1893 (but wasn't marketed as "Pepsi" until 1898). Since then, the two soda giants have developed plenty more flavors and soft drinks that are on the market today.

Coke and Pepsi share similarities in their looks and tastes; they are both sweet, carbonated soft drinks that are dark in color and have similar sugary flavor profiles. Some people can't even tell the two apart, while others will die on the hill that one is enormously better than the other. However, you'll almost never find a restaurant that sells both — and the reason is much more involved than just personal preference.

As with most businesses, it all comes down to price. The simple answer is that when Pepsi or Coca-Cola signs a deal with a restaurant, it's almost always exclusive — meaning the restaurant must agree in writing that it will not sell other soft drink companies' products. 

Dave Brennan, a professor in marketing at the University of St. Thomas, explained to CBS in 2013 that soft drink companies can submit bids to restaurants with their lowest offer, which often gets their product in that restaurant. Pepsi did just that with Buffalo Wild Wings back in 2013, and Brennan explained that it could have saved BWW millions of dollars over several years. 

This is because with an exclusivity agreement, Pepsi essentially guaranteed to sell their products to the Buffalo wing chain at a lower price, which means the restaurants save money in the long run. In other cases, Coca-Cola wins the bid, which is why the preferred brand varies depending on where you eat.

Statistically, you're more likely to see Coca-Cola products offered in a restaurant versus Pepsi products, at least when it comes to major U.S. restaurant chains. According to a chart by Business Insider, Coca-Cola products outnumber Pepsi products in major chains. 

Coca-Cola products are sold in sit-down restaurants such as Outback Steakhouse, fast-casual spots such as Chipotle, and fast-food restaurants such as Burger King. Still, Pepsi is sold in a decent number of chains, including Applebee's, Panera, and Taco Bell.

Every once in a while, a chain makes the switch from one to the other — and it's often newsworthy. Back in January, Culver's announced that it was moving from Pepsi to Coca-Cola products in its 900 restaurants in a move that made headlines. Fans of the chain's Pepsi products took to Twitter to express their distaste in the decision, though the agreement moved forward regardless.