A Word or Two on Profit Margins

So what kind of profit percentages are there in the sandwich trade ?

Typically, you should be aiming for a margin of around 75 percent on your sandwich sales. Cakes and cookies offer about the same, or more depending if you do your own baking. Most of the other menu items will offer lower percentages, apart from coffee and tea which are especially high.

In my experience, the overall percentage for all products probably runs between 60 and 65 percent. Be careful though, this margin is dependent on two other factors, and could vary as a result

The prices your competitors charge

Your prices may be a little higher, but don’t go overboard, stay in the same ballpark or you lose customers. Some menu items should be the same as your competitor or slightly lower. A person will resent paying you 15p more for a can of coke, when a nearby shop is 15p lower. Keep an eye on your prices.

The geographic location

The better the location of your shop, the more rent you will pay, the margin on your sandwiches will have to be higher to compensate. This is especially noticeable when comparing different towns.

During your research you will come into contact with the large chains, don’t be put out and think that you can’t compete them, thousands of small shops thrive in the UK, providing comfortable incomes for their owners. Always remember that as an independent , you have flexibility that the large franchises can only dream about.

You can change your prices, menu, or anything else on the spur of the moment. Variety is the spice of life, and its something that customers appreciate. There will always be opportunities for small independents offering a varied, and varying menu, and that sense of individuality that the big chains just cannot match.