Article on profit margin with value menus

[Flammable]

Provides an interesting look at the profit margin of local franchises and corporate. I know quiznos franchises' are raped in the ass with corporate fees but I didn't expect Mcdonalds to be so low..

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[Crono]

Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

 

[Colt45]

they make up for it when you get fries and a drink with it

 

[mrblotto]

Very interesting. Thanx for bringing this up OP!

 

[frostedflakes]

Yeah especially if you pay with credit card I doubt there's much money to be made on dollar menu items after merchant fees. Drinks are where they make that money back, a $2 soft drink probably costs them pennies.

 

[RichieZ]

rent and labor are fixed costs in the short/medium term, this analysis is pretty bogus

 

[da loser]

i wonder about wendy's, especially after they minisized their dollar menu

 

[lxskllr]

Originally posted by: frostedflakes
Drinks are where they make that money back, a $2 soft drink probably costs them pennies.

I bet the cup costs more than the drink does. The soda's probably free on a per drink basis.

 

[imported_Imp]

So, should I feel bad and buy more overpriced shit on their menu...

 

[compuwiz1]

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

 

[Slew Foot]

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

 

[frostedflakes]

Originally posted by: lxskllr

Originally posted by: frostedflakes
Drinks are where they make that money back, a $2 soft drink probably costs them pennies.

I bet the cup costs more than the drink does. The soda's probably free on a per drink basis.

True I didn't think about the cup, it's probably the bulk of the cost.

 

[compuwiz1]

Originally posted by: Slew Foot

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

You just made my point. You can't buy precisely the right amount of stuff for 1 sandwich for $5. For the convenience, a $5 sub is a good value.

I can see someone trying this and looking like a dork :laugh:

 

[Balt]

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

It was nice when you could get an Italian BMT for $5. I felt like that was a pretty decent deal.

 

[mugs]

Originally posted by: frostedflakes

Originally posted by: lxskllr

Originally posted by: frostedflakes
Drinks are where they make that money back, a $2 soft drink probably costs them pennies.

I bet the cup costs more than the drink does. The soda's probably free on a per drink basis.

True I didn't think about the cup, it's probably the bulk of the cost.

I did the math when I worked at a convenience store, and I found that fountain sodas cost the store about $.01 per ounce. Cups are $.05-.10 (plastic is more expensive than paper).

 

[frostedflakes]

Originally posted by: mugs

Originally posted by: frostedflakes

Originally posted by: lxskllr

Originally posted by: frostedflakes
Drinks are where they make that money back, a $2 soft drink probably costs them pennies.

I bet the cup costs more than the drink does. The soda's probably free on a per drink basis.

True I didn't think about the cup, it's probably the bulk of the cost.

I did the math when I worked at a convenience store, and I found that fountain sodas cost the store about $.01 per ounce. Cups are $.05-.10 (plastic is more expensive than paper).

Interesting, thanks for sharing that. I know a lot of the convenience stores around here offer a discount on fountain drinks if you reuse their cups. At one of them it's actually about half price if you bring in your own cup, I think it costs me like $0.63 to fill up a 44 oz w/a reused cup.

 

[Slew Foot]

Originally posted by: compuwiz1

Originally posted by: Slew Foot

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

You just made my point. You can't buy precisely the right amount of stuff for 1 sandwich for $5. For the convenience, a $5 sub is a good value.

I can see someone trying this and looking like a dork :laugh:

But by making semi larger quantities you come out way ahead. Thats why Americans are so deep in debt, they cant do math and have no foresight.

 

[miri]

Originally posted by: Slew Foot

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

footlong = 2 sandwiches

6 sandwiches for $15

 

[yhelothar]

Originally posted by: miri

Originally posted by: Slew Foot

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

footlong = 2 sandwiches

6 sandwiches for $15

winnar
and you have to factor in the condiments too

 

[Slew Foot]

Originally posted by: astroidea

Originally posted by: miri

Originally posted by: Slew Foot

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

footlong = 2 sandwiches

6 sandwiches for $15

winnar
and you have to factor in the condiments too

What kind of hoagie rolls are you getting that are 6 inches long? Ok then 12 sandwiches for $18, subway=loser.

 

[compuwiz1]

Originally posted by: astroidea

Originally posted by: miri

Originally posted by: Slew Foot

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

footlong = 2 sandwiches

6 sandwiches for $15

winnar
and you have to factor in the condiments too

Yep

a jar of mayo
a jar of mustard
pickles
onions
olives
peperoncini

All that shit adds up. Plus I will not eat 6 sandwiches in a week, so some of my meat and most of my vegatables would go to waste.

 

[Hail The Brain Slug]

Originally posted by: Slew Foot

Originally posted by: astroidea

Originally posted by: miri

Originally posted by: Slew Foot

Originally posted by: compuwiz1

Originally posted by: Crono
Subway - "To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. "

I like their subs, but they've never been a good value, even with $5 footlongs.

How not a good value? Try going to the grocery store and buying all the ingredients. You can't make it yourself that cheap.

6 pack of hoagie rolls = $3
2 lbs deli meat= $10
1 head lettuce= $1
Some tomatoes= $1
1/2 lb cheese= $3

6 sandwhiches for $18
and youre probably getting better quality stuff too.

footlong = 2 sandwiches

6 sandwiches for $15

winnar
and you have to factor in the condiments too

What kind of hoagie rolls are you getting that are 6 inches long? Ok then 12 sandwiches for $18, subway=loser.

I've never seen any hoagie rolls longer than 6-8" for that cheap. I believe you need to actually pay attention to what you're saying, footlong bread rolls cost upwards of $1 at every store I shop at.

 

[Zim Hosein]

Originally posted by: compuwiz1

All that shit adds up. Plus I will not eat 6 sandwiches in a week, so some of my meat and most of my vegatables would go to waste.

TMI!

 

[ultimatebob]

I'd love to know how much KFC lost during that whole free grilled chicken coupon debacle... anybody have an article with numbers for that?

 

[Ns1]

Pretty retarded since owners shouldn't be factoring in rent/labor/utes in their profitability calculations.

They are basically fixed costs and as long as revenue > variable cost, they should just keep selling the damn things.


To the math some guys are spouting above:
I don't want to eat 12 sandwiches in a goddamn week.