Anyone here will tell you that my parents made me work in their restaurant since I was 8. I know the numbers on a balance sheet forwards and backwards.
The francisee's breakout of his revenues are consistent with other restaurants in the industry. Apparently, he was suprised to make 10%.
The airline business is not unlike the restaurant business - capital intensive, high overhead, low margins.
And obviously, you didn't read the part where I use the word "quick service" restaurant many times over. This pertains to quick service franchise type restaurants.
You still don't get it.
Gross margins are almost the same with a Quiznos or a McSchmicks. You have overhead, you have labor, and you have COGS. Those remain farily constant regardless of whatever you're serving as a % of revenue. Ask amused.
Gross margins are almost the same with a Quiznos or a McSchmicks. You have overhead, you have labor, and you have COGS. Those remain farily constant regardless of whatever you're serving as a % of revenue. Ask amused.
No you're the one that don't get it.
I'm tired of argueing with you guys so I will shut you up.
Here is an example of a P&L for one of our store.
McDonalds
It has one of the best TOTAL food cost in the company despite having lower sales than most(most of the stores does close to $2mil/yr).
Mind you that the 22.9% is TOTAL food cost.
This includes:
raw waste
complete waste
condiments
discount
manager/employee meals
stat loss
unexplained
So in actually the based food cost is closer to 20% and the components add another 2.8%
Even in our worst store, the TOTAL food cost is 25% so the based food cost is around 22%
Same with Wal-mart McDonalds stores...they run the same food cost numbers and they do about $700K/yr.
So when you're talking about 29%, that is extremely for quick service franchise type restaurants.
I do know full service restaurants can run much higher food cost but we're comparing quick service here.
That would be a NO since they majority of their "food cost" is coffee and the profit margin for coffee is very high.
I don't know about Starbucks but a small coffe cost us ~.11 cents and we sell it for $1.39.
Thats 8% food cost.
All you guys actually eat a fvcking 12" Quiznos combo w/chips & drink for lunch? Their medium is plenty of food, especially with the chips. No wonder this country is so damn fat and gross.
Amused
Elite Member
- Apr 14, 2001
- 56,464
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McDonald's food is cheaper, frozen and ready made. Subway and Quizno's use fresher, more expensive foods. The deli meats alone are much more expensive than the hamburger McDonald's uses.
Apples and oranges.
Why not go ask a local sit down restuarnt how much their food cost is. The higher the quality of food, the more expensive it is. the more expensive it is, the higher the food cost.
It's really that simple.
QueBert
Lifer
- Jan 6, 2002
- 22,546
- 832
- 126
My problem with most (I said MOST) local mom and pop deli shops, they don't have a good selection of bread. What they have might be tasty as hell, but I'm stuck with very basic choices. Sourdough, Rye, Wheat, White. Subway has the California Cheddar which I love. And they have the subs on Garlic Bread now, which I love. I'm not a huge fan of Subway, they are definitely fresher then a McDonalds, but everytime I go in one, I'm always wondering to myself "how fuxin long has this meat been sitting out?" And the quality of their meats, even Quiznos, can't compair to a place like Jerry's Deli. Neither of them cut their meats fresh. If your local supermarket makes sandwiches, chances are they'll be far better, based off selection alone. The Vons by me has no less then 4 types of Salami to choose from, about 20 cheeses and every other type of meat and bread you could imagine. Also Vons has Vons Club, if you eat 8 6" sandwiches, you get a free foot long. Which'll have 2x the meat of anything Quiznos will throw at you 
QueBert
Lifer
- Jan 6, 2002
- 22,546
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You know I had Blimpies a few times, I thought they were a strictly East Coast thing. Was a pretty decent sub *the one I remember having* had a Pastrami, was interesting that the person making it put Manoyaise(sp?) on it. I tend to naturally gravitate towards unhealthy foods. and I'm pretty sure a Pastrami with Manoyaise ranks high on the unhealthy list. Maybe I should find one around me and try it again hehe.
i would assume it is the same for a subway? i always figured it costs more at quiznos because they have higher quality ingredients that cost more
Club-card program was closed due to lots of fraud by employees. (employees were giving free stamps to their family/friends and also selling them on ebay etc.)
Your local Mom-Pop sub shop will usually have a lower quality of Meat/bread than Subway/Quiznos etc. Just because they slice the meat at the store doesnt mean that the meat is of highest quality and is fresh. Those bulk packages comes from the same vendors where Subway/Quiznos get their pre-sliced meat for.
Subway/Quiznos/other franchisees will get the higher quality meat direct from the meat factory and the left over goes to local supply stores that supply the meats/veggies to the local mom-pop stores and goes thru many channels before it ends up in your mom-pop store.
How do I know this ? One of the family friends owns several Burger King restaurants. I own a Subway restaurant. The basics is the same at both places. They have strict quality controls and standards in place. We just cannot go and purchase our food from anywhere, food has to come from approved vendors.
One time, we were out of Lettuce at our store on the day before our delivery was due. I went to a local supply store (where your mom-pop stores purchase lettuce from) and the lettuce was of very poor quality as compared to our lettuce. Needless to say, I had to waste those cases of lettuce that I purchased from that store.
Again, the quality of food can differ from one Subway/BK to another Subway/Bk depending on the way each store operates. Some stores will ensure that they get fresh food from their vendors while others might just stock up.
and regarding food costs, etc...normal is ~30-31% (for both Subway and BK) when you include the food, drinks, paper, cleaning supplies, wastage(tons more at BK as compared to Subway/Quiznos), theft, etc. I am expecting it to rise for us since gas prices went up and therefore, our supplies prices have gone up too.
The main things that kills the profits for owners of Franchisees are:
1) Theft
2) Labor costs
if you can control those two, you should be good (provided you provide good customer service and good quality of food).
I have eaten food at Subway store that was really bad while at another Subway store, the same sandwich was extremely good. (same with Quiznos and other franchisees). A lot depends on your local store owner and the way he operates his store.
All franchisees have a formula for preparing your food. Quiznos/Subway/BK etc, all have a formula for each sandwich. Again, it depends on the franchisee owner of the particular store on whether he follows the formula or not.
EDIT: Also, regarding that article, the owner is calculating some costs twice:
Spoilage, Supplies, Promo Food, Comp Food, Coupons, Food waste SHOULD be calculated and INCLUDED in FOOD COSTS(29%) and PAPER COSTS(3%). (thats ~4.4% of $40,000 = ~$1760 per month that he is not calculating right/counting twice).
Credit card fee of 2.9% SHOULD NOT be on the entire $40k sale figure. It is ONLY paid on the sale where customer paid with a Credit card (About 70% customers pay with cash and remaining 30% use CC).
Also, his insurance costs are very high (unless he is also including his/family health insurance in it). Same thing with his labor costs, it is very high (unless he is including his own salary in it)
QueBert
Lifer
- Jan 6, 2002
- 22,546
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With the exception of the special subs they have (Beef Brisket etc) Quiznos has pretty standard meats. I am a Salami freak, and neither Quiznos or Subway has decent Salami. Subway is always running specials out here 3 subs for 12 bucks. Most people eat at Subway to get full for cheap, not to have a gourmet sub. I've been to Subways all over, and the quality is always decent at best. I ordered a hot sub one time, it was thrown together by the sandwich Artist *haha what is that!??!* then nuked in a microwave. BLEH! A good sandwich is worth the money. Go to Jerry's Deli in LA or OC, you'll pay 12+ bucks for a Pastrami, but it will be on a level no chain can touch. I will say over the past 3 or so years Subway has improved greatly, mainly in offering different breads, even if they don't measure up to what a good bakery can offer, it's still a big plus. And to the Subway owner below, don't lump all mom and pop places into the same catagory, I've been to numerous ones who buy their meats strictly from specality butcher shops. Does Subway even offer a steak sub made with an Rib Eye level cut of meat? I don't think so.
you mean above
. Again, as I mentioned several times, each store is different (whether it is mom-pop or franchise). If your mom-pop store is buying their meats from speciality butcher shops, then they MUST be paying too much for the meat and hence, their prices for sandwiches will be HIGH also.
again, its the same old saying: you get what you pay for. $12 for a Pastrami sandwich at Jerrys vs ~$6 at Subway (the quality will ofcourse be different).
Think of it as this way:
~$3 chicken sanwich at Mcdonalds/BK vs ~$6-7 chicken sub at Subway/Quiznos vs ~$12 chicken Sub at Jerry's/Other local sub shop.
In the ~$3 range, Mcdonalds/BK come out ahead.
In the ~$6-7 range, its Quiznos/Subway/other franchise stores/avg local mom-pop delis
in the ~$10+ range, its your premium sub stores.
same thing with pizza and almost every other thing sold on this planet. (quality of a $600 dell laptop vs $1000 IBM laptop etc etc)
0roo0roo
No Lifer
- Sep 21, 2002
- 64,795
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i tried quiznos two or three times cuz they sent me coupons i wasn't wowed at all, the sandwich was tiny, toasted sure...but really not that great. the whole toasting adding supposed value is just something i don't really get. i prefer togos if i'm going to do sandwiches like that.
and of course theres always the vietnamese sandwich shops, and those are always good value for money
only been there 3 times, but each time they were almost empty
at quiznos prices u should just get chinese takeout or something, better value.
i wasn't wowed at all, the sandwich was tiny, toasted sure...but really not that great. the whole toasting adding supposed value is just something i don't really get. i prefer togos if i'm going to do sandwiches like that. and of course theres always the vietnamese sandwich shops, and those are always good value for money
only been there 3 times, but each time they were almost empty
at quiznos prices u should just get chinese takeout or something, better value.
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