3 ms·
Okay, what was the margin on sandwiches?
by c22 4y ago
Okay, what was the margin on sandwiches?
- Sohcahtoa82 4y agoThe cost of ingredients for sandwiches was 22-35%, depending on what sandwich it was. Of course, that's only for the ingredients themselves. About 20% of revenue went to labor. I'm sure you're thinking, "But if you can make a sub in under a minute, and you pay $10/hr, shouldn't it be less?", but there's a lot of time spent not making sandwiches, such as cleaning, baking bread, and other food prep. Sure, the lettuce came pre-shredded in bags, olives and jalapenos are pre-sliced, but we had to slice the tomatoes, cucumbers, onions, and green peppers. And then of course, there's the cost of rent and utilities, plus franchising fees. Overall, our profit margin was under 10%.