Hi, is running your sandwich shop profitable?

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Redvelvet9

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May 19, 2011
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London
Both my partner and I are thinking of starting a sandwich shop in London or greater, he would manage with another full time hire and I'd continue with my job. I was thinking after bills/bank loan/rent/staff cost whether any left in pot to eventually use to either purchase another shop (providing this was a success) or for other means like home deposit along with savings i'd build with my job.

It would be great to have existing sandwich owners true financial viewpoint on this. I would love to kick my job to curve but it pays well and so I guess what I most want is for my existing job not having to also cover the costs of my business which my partner would manage. Ideally, the business would pay for itself leaving a reasonable profit we could set aside to either reinvest or use towards deposit.

Any advice would be truly appreciated. Plus your start up stories would be great too. Right now we are reading Jill Sutherland sandwich book plus the coffee boys too. In research and planning stages too.


Thanks again
 
Like all things it depends.. Some sandwich shops do very well, others fail. It's all down to proper planning. You have to attack it from two angles.

First, is the costings. You need to work out all the costs that aren't related to food used, i.e. premises, staffing, utilities, administration, financing, equipment etc. You then get a figure which has to at least be covered by profit on sandwiches before you even think of a profit for yourself. If, say, your costs are £100,000 p.a. then if you think you'll make £1 profit per sandwich, you clearly have to sell 100,000 sandwiches pa.

The next aspect is how realistic will it be to sell 100,000 sandwiches p.a., and whether you'll make £1 per sandwich after allowing for the costs of the raw materials, i.e. bread, food, wrapping, etc.

If that stacks up, you'll at least break even hopefully. Then you have to work out how many more you can sell, to start making a profit. If you want to make £100k profit, then obviously, you need to sell another 100,000 sandwiches p.a., but then comes another set of problems. To sell 200,000 sandwiches, would you need bigger premises, more staff, more equipment, etc., and so it goes on.

One thing is for certain is that if you fail to plan, then you have to plan to fail!

Like I say, some sandwich shops turn a handsome profit, others close down after just a few months. There are no hard & fast rules. It's all down to planning, to get your product mix right, prices right, make sure the location is right to get footfall, etc.
 
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Bronze

Free Member
Feb 3, 2011
64
8
Like all things it depends.. Some sandwich shops do very well, others fail. It's all down to proper planning. You have to attack it from two angles.

First, is the costings. You need to work out all the costs that aren't related to food used, i.e. premises, staffing, utilities, administration, financing, equipment etc. You then get a figure which has to at least be covered by profit on sandwiches before you even think of a profit for yourself. If, say, your costs are £100,000 p.a. then if you think you'll make £1 profit per sandwich, you clearly have to sell 100,000 sandwiches pa.

The next aspect is how realistic will it be to sell 100,000 sandwiches p.a., and whether you'll make £1 per sandwich after allowing for the costs of the raw materials, i.e. bread, food, wrapping, etc.

If that stacks up, you'll at least break even hopefully. Then you have to work out how many more you can sell, to start making a profit. If you want to make £100k profit, then obviously, you need to sell another 100,000 sandwiches p.a., but then comes another set of problems. To sell 200,000 sandwiches, would you need bigger premises, more staff, more equipment, etc., and so it goes on.

One thing is for certain is that if you fail to plan, then you have to plan to fail!

Like I say, some sandwich shops turn a handsome profit, others close down after just a few months. There are no hard & fast rules. It's all down to planning, to get your product mix right, prices right, make sure the location is right to get footfall, etc.

This is all good but the most important thing you've missed out is LOCATION.

You can plan as much as you like, have the best looking sandwich shop making the best tasting sandwiches but could be located down an alley way which no one knows is there.

Good spots will cost money and I'm sure a good spot in London wont be cheap.

Yes you need a solid business plan but you need to be clever in where you pick your spot.

Personally I would just start a mobile sandwich shop and get contacts with offices as this is more affordable. But then again this is a very very very and I stress very competitive market but at least going down the mobile route wont cost you so much if all fails. With premises you could be stuck in a lengthy contract.

Redvelvet you wont get any answers on here that'll tell you wether or not it'll be viable as every case will be different as there are so many variables. You may get a set of figures from someone who's doing extremely well but they could be situated next door to a factory with 10,000 employees which you wont account for.

You need to go out there and research!
 
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