Profit Margin on Sandwich/Roll?

JQ

Hi,
does any one know what the typical profit margin is on a sandwich or roll that sells for about €3.75?

Jim.

jetsonx

there is no answer to that - it varies where you buy it.

A small indepentanly owned sanwhich shop on Baggot St might make only
2 euro profit because of their sky high rent they have to pay. Meanwhile,
a similar outfit in the suburbs with a steady passing trade might sell the sambo
for the same price but make a profit of a much higher 2.50 euro. Their overheads being much lower.

Another thing to take into account that if you buy it from a chain sandwich store it is likely the profit per unit (in this case a sandwich) will be higher because of economies of scale buying bread, butter , paper napkins etc.

ah...the management science of a sandwich....that has put me in the right mood for bed.

Victor

The question fundamentally fails to understand Management Acocunting and marginal costing.

The cost of rent, equipment, utilities and to a large extent, staff are fixed on a time basis. To a degree, the cost of materials is fixed (because food goes off). While the materials in a sandwich might cost 50c and labour might cost 50c, this might account for only 30% of the total cost of running the business.

For every €2 profit the are making at lunchtime, they are losing €1 for the rest of the day.

leftofcentre

Watching that Ramsey's kitchen nightmares show the other week, the bold Gordon says you should mark up food 4 times. So if the ingredients cost you €1 sell the item for €4. Mind you thats restaurants, not sure if it applies to take away.