Originally posted by: Cyberian
Is that the actual profit on a sandwich?Originally posted by: vi_edit
You'd be amazed at how fast that add's up. I'm actually in training, for an Arby's, doing inventory management at the moment.
When your profit on a sandwich is $.15, and you are giving away $.02 in packets, you are loosing 7.5% in profit.
Take that times 300 sandwiches a day, 360 days a year, and it adds up.
How many would a store have to sell to pay for rent, heat, electric, salaries, etc.?
Originally posted by: aphexII
Dont ever come over here to holland then, ALL the fast food restaurants charge $.25 PER packet.
Originally posted by: Viper GTS
Originally posted by: Cyberian
Is that the actual profit on a sandwich?Originally posted by: vi_edit
You'd be amazed at how fast that add's up. I'm actually in training, for an Arby's, doing inventory management at the moment.
When your profit on a sandwich is $.15, and you are giving away $.02 in packets, you are loosing 7.5% in profit.
Take that times 300 sandwiches a day, 360 days a year, and it adds up.
How many would a store have to sell to pay for rent, heat, electric, salaries, etc.?
Profit accounts for all that already.
Viper GTS
OK, apparantly there are differing interpretations of 'profit' in this example.Originally posted by: Chadder007
Originally posted by: Viper GTS
Originally posted by: Cyberian
Is that the actual profit on a sandwich?Originally posted by: vi_edit
You'd be amazed at how fast that add's up. I'm actually in training, for an Arby's, doing inventory management at the moment.
When your profit on a sandwich is $.15, and you are giving away $.02 in packets, you are loosing 7.5% in profit.
Take that times 300 sandwiches a day, 360 days a year, and it adds up.
How many would a store have to sell to pay for rent, heat, electric, salaries, etc.?
Profit accounts for all that already.
Viper GTS
Yep, the 15 cents is what goes into the owners pockets.
Originally posted by: vi_edit
You'd be amazed at how fast that add's up. I'm actually in training, for an Arby's, doing inventory management at the moment.
When your profit on a sandwich is $.15, and you are giving away $.02 in packets, you are loosing 7.5% in profit.
Take that times 300 sandwiches a day, 360 days a year, and it adds up.
Originally posted by: vi_edit
You are looking at roughly $1.00 in food costs alone for the sandwich - roast beef, bun, cheese, sauce on the sandwich, then extra packet of sauce.
Now, take into consideration you have to also pay for the $1,000,000 in property fees, the labor for the cashier that took your money, the cook that put the sandwich together, the manager that runs the store, then pay electric fees, the cost of the $35,000 point of sale system, the 5% franchise fee, the $5,000 a month for franchise renewal, ect. ect. ect. and you are making very, very little on the $1.66 sandwich.
And if that isn't enough, you've got above store management. An accountant to balance the bills. A consultant to handle computer problems. A human resource person to do human resource stuff. Ect. ect.
Originally posted by: vi_edit
We buy roast beef at $57 for 40 pounds. Post cooking shrinkage and scrap takes away 7% of that 40 pounds, so you are down to 37.2 pounds. Take that $57 and devide it by 37.2 and you are looking at about $1.50 per pound.
A beef 'n cheddar has 8oz of beef so you have a beef cost of $.75.
The bun is around $.12 for the onion roll.
Figure another $.02 or $.03 for the cheddar sauce, the arbys sauce that they already put on there, and the wrapper.
Now put in another $.02 for extra packet.
That's $.95 in food costs alone. Now factor in labor, operating expenses, property, and above store expenses and you are really starting to add things up.
That sandwhich cost you $1.66, it may have cost us $1.50 to put it together. We're only making $.15 or cents on the sandwich.
Fast food industry is all about quantity. The more you sell, the more you make per sandwich, but, on the other hand, the more freebee's you give out, the harder it is to make money.
Most people really have no concept of the costs associated with running a quick serve business. It's just not money spent on food costs, there are literally hundreds of other variables that go into the final price of that sandwich.
It's not uncommon for a restuarant to have 200 or 300 transactions a day. If every one of those transactions takes an extra $.02 packet of sauce, that's $6 a day, $186 a month, $2232 a year. We've got 18 stores, if you take that $2232 a year x 18, that's $40,176 dollars a year my company is loosing just by giving away an extra packet of sauce.
I don't care what you think, or who you are, $40,000 a year is not a small amount of money.
Originally posted by: HighTechRedneck
Originally posted by: vi_edit
We buy roast beef at $57 for 40 pounds. Post cooking shrinkage and scrap takes away 7% of that 40 pounds, so you are down to 37.2 pounds. Take that $57 and devide it by 37.2 and you are looking at about $1.50 per pound.
A beef 'n cheddar has 8oz of beef so you have a beef cost of $.75.
The bun is around $.12 for the onion roll.
Figure another $.02 or $.03 for the cheddar sauce, the arbys sauce that they already put on there, and the wrapper.
Now put in another $.02 for extra packet.
That's $.95 in food costs alone. Now factor in labor, operating expenses, property, and above store expenses and you are really starting to add things up.
That sandwhich cost you $1.66, it may have cost us $1.50 to put it together. We're only making $.15 or cents on the sandwich.
Fast food industry is all about quantity. The more you sell, the more you make per sandwich, but, on the other hand, the more freebee's you give out, the harder it is to make money.
Most people really have no concept of the costs associated with running a quick serve business. It's just not money spent on food costs, there are literally hundreds of other variables that go into the final price of that sandwich.
It's not uncommon for a restuarant to have 200 or 300 transactions a day. If every one of those transactions takes an extra $.02 packet of sauce, that's $6 a day, $186 a month, $2232 a year. We've got 18 stores, if you take that $2232 a year x 18, that's $40,176 dollars a year my company is loosing just by giving away an extra packet of sauce.
I don't care what you think, or who you are, $40,000 a year is not a small amount of money.
Why not just get rid of the sauce entirely, and save your company $40,000 a year. The customers wouldnt be able to complain about it if you didn't have it.![]()
Why not just get rid of the sauce entirely, and save your company $40,000 a year. The customers wouldnt be able to complain about it if you didn't have it.
Originally posted by: MrPhelps
Lets all get together and order our meals without ice in the pop. That will kill the pop profit..![]()
Originally posted by: FrustratedUser
Originally posted by: MrPhelps
Lets all get together and order our meals without ice in the pop. That will kill the pop profit..![]()
I am already doing that. LOL! I hate when they put in 75% ice and charges me for 100% pop.
Originally posted by: Shaftatplanetquake
vi_edit if you spell losing as loosing one more time I am going to go insane.
Originally posted by: vi_edit
You'd be amazed at how fast that add's up. I'm actually in training, for an Arby's, doing inventory management at the moment.
When your profit on a sandwich is $.15, and you are giving away $.02 in packets, you are loosing 7.5% in profit.
Take that times 300 sandwiches a day, 360 days a year, and it adds up.
You maybe correct in your whole pricing diagram but arby's will never build a loyal customer base with these types of atitudes.
Future Horsey Sauce IngredientOriginally posted by: yamahaXS
mmm....horsey sauce! its so good...but what the hell is in it?
