Most restaurant owners calculate margins the same way across all menu items. But sandwich shops face unique challenges with their mixed offerings. Your bread-based items, liquid soups, and fresh salads each demand different costing approaches.
Divide your assortment into three categories
For accurate margin calculation, organize your products into groups with similar cost structures:
- Sandwiches: Bread + filling + garnish
- Soups: Ingredients + preparation + packaging
- Salads: Fresh ingredients + dressing + toppings
? Example sandwich calculation:
Healthy sandwich (€6.50 incl. 9% VAT):
- Whole wheat roll: €0.45
- Cheese (30g): €0.60
- Ham (25g): €0.85
- Lettuce, tomato, cucumber: €0.35
- Butter, mustard: €0.15
Ingredient costs: €2.40
Selling price excl. VAT: €5.96
Food cost: 40.3%
Calculate your average margin per product group
Each product category has different profitability. Measure this separately:
- Sandwiches: Typical 35-45% food cost
- Soups: Typical 25-35% food cost
- Salads: Typical 30-40% food cost
? Example total calculation:
Daily sales €800 (excl. VAT):
- Sandwiches: €500 sales, €200 cost = 40%
- Soups: €200 sales, €60 cost = 30%
- Salads: €100 sales, €35 cost = 35%
Total cost: €295
Average food cost: 36.9%
Account for preparation time
Soups and salads require more preparation time than sandwiches. This affects your labor costs:
- Sandwich: 2-3 minutes preparation time
- Soup: Pre-prepared, just serving (1 minute)
- Salad: 4-5 minutes chopping and assembling
⚠️ Note:
Factor in trimming loss for salads. From 1 kg of lettuce you'll have about 800 grams left after cleaning. This makes your actual purchase price 25% higher.
Track your sales mix weekly
The ratio between sandwiches, soups and salads determines your overall margin. If you sell more salads, your food cost increases - a pattern we see repeatedly in restaurant financials during health-conscious seasons:
? Example mix effect:
Week 1: 70% sandwiches, 20% soup, 10% salad
Average food cost: 37.5%
Week 2: 50% sandwiches, 20% soup, 30% salad
Average food cost: 39.2%
Optimize your menu engineering
Guide your customers toward your most profitable products:
- Promote soups: Lowest food cost, high margin
- Limit salad varieties: High food cost due to fresh ingredients
- Standardize sandwiches: Consistent portions = predictable margin
How do you calculate your sandwich shop's margin?
Calculate cost price per product group
Add up all ingredient costs per sandwich, soup and salad. Don't forget to include garnish, butter, packaging and trimming loss.
Track your sales mix per week
Note how much of each product you sell. Your total margin depends on the ratio between your three product groups.
Calculate weighted average food cost
Multiply the sales per product group by the food cost. Add everything up and divide by your total sales to get your average margin.
✨ Pro tip
Calculate margins on your top 3 sandwiches every 2 weeks during your first quarter. These items drive 60-70% of your revenue, so getting their costs right stabilizes your entire operation.
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Frequently asked questions
What's a good food cost for a sandwich shop?
Should I include packaging costs in my calculations?
Why do soups have lower food costs than sandwiches?
How often should I recalculate my margins?
Can I use different margins during slow periods?
How do I handle seasonal price swings on lettuce and tomatoes?
Should I track waste differently for each category?
Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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