The Price of a Sandwich...!!!!

BnA

No.... I'm not giving out about me local Spar shop.

Just doing some rough figures on an idea that I have had in my head for a few years RE a Deli/Cafe type business.

I would appreciate if someone in a similar business could tell me a figure to use as the average cost of the ingredients of a typical cold sandwich.

I was using a rough cost of € 0.50 using

2 Slices of Bread : € 0.10
1 Slice of Meat : € 0.20
Salad : € 0.10
Cheese € 0.10

How do those figures look to someone in the business ? Am I way out ?

I know you have a lot more to take into account like Rent, ESB, Insurance and of course Staff, but I can cost these up myself as I already in business and would have a fair idea of them. It is just the cost of the ingredients of a sandwich I am interested in.

Thanks in advance

maxwell smart

Have you checked out Musgraves for prices? The meat and cheese would be cheaper there if you bought the catering size porducts.
And a 19 slice white pan is 49cent in Dunnes, thats approx 2cent per slice, and its not bad either!
You'd also need to price in butter or mayo. Few people would buy a sambo without one of them

Bandara

BnA wrote: »

No.... I'm not giving out about me local Spar shop.

Just doing some rough figures on an idea that I have had in my head for a few years RE a Deli/Cafe type business.

I would appreciate if someone in a similar business could tell me a figure to use as the average cost of the ingredients of a typical cold sandwich.

I was using a rough cost of € 0.50 using

2 Slices of Bread : € 0.10
1 Slice of Meat : € 0.20
Salad : € 0.10
Cheese € 0.10

How do those figures look to someone in the business ? Am I way out ?

I know you have a lot more to take into account like Rent, ESB, Insurance and of course Staff, but I can cost these up myself as I already in business and would have a fair idea of them. It is just the cost of the ingredients of a sandwich I am interested in.

Thanks in advance

Your miles out, and your quality will be appalling if you go down the cheap ingredients road.

I don't have time to go into it now but for example "10c for two slices of bread", you cannot use regular retail bread in a deli, its too small, too thin and too 'wet' to be able to make a sandwich out of it. The sandwich will be tiny, the bread will tear as you make the sandwich and most of all once you put toppings on it the bread will go to mush. No one will ever buy another sandwich off you again.

Which means you will have to use a good quality catering bread, I only use Brennans thick sliced catering (I find even the medium sliced is useless), a pan of this costs about €2.20 (approx) and you get about 14 slices in it that are useable (ie you can't use the heels), so €2.20 / 14 = 16 cent a slice AND I would always allow for 5% wastage on any deli stock so thats brings your price up to almost 17c.

Yes you can buy cheaper no brand bread etc but in the food business you either do it correctly or you fail.

On your other costings I'd off the top of my head be saying 30 cents a slice of decent quality ham at €9 a kilo, about 29 slices in a kilo, you have to allow a considerable amount for the end of the ham which are unsliceable (but can be used elsewhere in a hotdeli). Also you will need the slicing equipment as to buy pre-sliced ham increases the costs considerably.

Salad - is a lot more than 10c, i'd go 25c, cheese also is about 25c, even more if you stay away from the horrible blended stuff.

All in your good quality cold sandwich ham, cheese, tomato and coleslaw sandwich on thick bread and packaged in greaseproof with salt sachet included etc will come in about €1.15 - €1.25 cost price, and you'll sell it for about €3.39, factoring in your bills and staff costs you should be coming in for between 45%-50% margin. You better be seriously on top of your portion control and monitoring whats being prepped also.

And most importantly you will be guaranteed repeat business.

I hope this is of some help.

HT

TheWaterboy

I would agree with hammertime - i dont think people mind paying 3.50 for a sambo if it is filling and of good quality. What really annoys people is paying 3.50 for two slices of bread and a miserable bit of meat in between - this is what alot of the prepacked sambos are like that you buy in some of the convience stores. Most of these are imported too as far as I know.

There is probably a market out there but in my opinion quality triumphs over price in alot of instances.

BnA

Thanks Hammertime. That is exactly what I was looking for.

If I was to go down the route, I would certainly be looking at using quality ingredients. I would be relying on repeat business so a decent quality sandwich would be critical.

I did think my 10c for salad was a bit optimistic alright...!!

Clytus

not directly involved...but in a similar business.
Your just focusing on the material costs. you also have overheads and your margin.
And also remember your retial price will include Vat on take away stuff ( pls correct me if Im wrong here).
net margin IMO should be around 35%.

DubTony

Clytus wrote: »

not directly involved...but in a similar business.
Your just focusing on the material costs. you also have overheads and your margin.
And also remember your retial price will include Vat on take away stuff ( pls correct me if Im wrong here).
net margin IMO should be around 35%.

The vats only on hot stuff. Well, either that or I've been ripping the tax man off for years.

Portion control is of the utmost importance. But then you have to be sure you're not skimping as well. Staff will give their friends and customers they like a lot more in a sandwich or roll than you would expect. I cut this out by weighing all sandwiches and for a few days ensured I was at the till to sort out any nonsense. The staff didn't care about handing a sandwich over at €6 or €7 but the customer sure didn't want to pay for it. Eventually it got sorted, but I lost 2 deli staff beforehand. Guess what was going on there. :mad:

bacon?

DubTony wrote: »

The vats only on hot stuff. Well, either that or I've been ripping the tax man off for years.

Portion control is of the utmost importance. But then you have to be sure you're not skimping as well. Staff will give their friends and customers they like a lot more in a sandwich or roll than you would expect. I cut this out by weighing all sandwiches and for a few days ensured I was at the till to sort out any nonsense. The staff didn't care about handing a sandwich over at €6 or €7 but the customer sure didn't want to pay for it. Eventually it got sorted, but I lost 2 deli staff beforehand. Guess what was going on there. :mad:

they were stealing from you?

FusionNet

I saw the rates for a tiny coffee shop in my area today, 5k..!! The deli business is not one id personally like to be in right now, I mean we've all cut down on our eating out budgets in the past year.. Best of luck...

bacon?

FusionNet wrote: »

I saw the rates for a tiny coffee shop in my area today, 5k..!! The deli business is not one id personally like to be in right now, I mean we've all cut down on our eating out budgets in the past year.. Best of luck...

can someone explain rates to me, is it a tax paid to the local council? if so for what? maintaining the street outside your shop?

bacon?

FusionNet wrote: »

I saw the rates for a tiny coffee shop in my area today, 5k..!! The deli business is not one id personally like to be in right now, I mean we've all cut down on our eating out budgets in the past year.. Best of luck...

true for the likes of restaurants, but take out food is up..... places like dominos pizza are doing great business.... so, if you get the right food in the right area, i think it's a goer...

DubTony

bacon? wrote: »

can someone explain rates to me, is it a tax paid to the local council? if so for what? maintaining the street outside your shop?

It is tax paid to the local council. We still don't know what they do with it though.

Councils are funded by central government and business rates. They do with it, whatever it is councils do with money.

bacon?

DubTony wrote: »

It is tax paid to the local council. We still don't know what they do with it though.

Councils are funded by central government and business rates. They do with it, whatever it is councils do with money.

blow it on limos

mcaul

Rates are used for social housing, rent allowances, roads and general running of a council area.

In the UK you have council tax paid by all homeowners and lower commercial rates. here, you have central funding + high commercial rates paid for by business who have to pass it on the the customer.

Another cost for a sandwich bar is insurance which will be higher because you serve food.