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Written by Elma Steven | Updated on July, 2024

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Find Out- Is Sandwich Shop Business Profitable?

The profitability of your Sandwich Shop business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Sandwich Shop business. 

Sandwich Shop Industry Prospects

The global sandwich market size in 2023 is projected to be valued at $0.6 billion, with an expected compound annual growth rate (CAGR) of 13.73% during the forecast period (researchreportsworld). Additionally, the sandwiches market size is estimated to grow by $41.15 billion from 2023 to 2027 at a CAGR of 4.9% (technavio).


Property Purchase or Leasehold Improvements: If you’re buying property, the purchase cost is a significant CapEx. For leased spaces, investments in modifications and improvements to the space (such as remodeling the kitchen, dining area and customer service areas) are essential CapEx investments.

Kitchen Equipment: This includes commercial-grade refrigerators, freezers, ovens, grills, sandwich prep tables and other specialized equipment necessary for preparing sandwiches and other menu items.

Furnishings and Fixtures: Costs for acquiring tables, chairs, service counters, menu boards and shelving. The layout and design elements that contribute to the ambiance and functional use of space in both the customer seating and service areas are critical.

Point of Sale (POS) System: Investment in a POS system for order taking, sales tracking, inventory management and financial reporting. Modern POS systems also support online orders and delivery management.

Signage and Branding: Exterior and interior signage that reflects your brand, including illuminated signs, window graphics and menu displays inside the shop.

Initial Inventory: The cost of initial food supplies (bread, meats, cheeses, vegetables, condiments) and beverage products, as well as disposable items (napkins, to-go containers, utensils).

Safety and Sanitation Equipment: Fire suppression systems, grease traps (if applicable), first-aid kits, handwashing stations and other equipment to ensure compliance with health and safety regulations.

Technology and Communications: Costs associated with setting up business communication systems, including internet service, business phone lines and any software subscriptions needed for operations (e.g., accounting software, employee scheduling).

Decor and Interior Design: Investments in the interior design elements that define the dining experience, including lighting, wall decor, flooring and bathroom fixtures, if applicable.

Delivery Vehicle: If offering catering or delivery services, the purchase of a reliable delivery vehicle equipped for food transport.

Marketing and Promotional Materials: Initial marketing efforts, such as website development, social media presence setup, printed menus, flyers and grand opening advertisements.

Professional, Legal and Consulting Fees: Costs for legal advice on business formation, lease agreements, trademarking and initial financial and business planning consultations.

Licenses, Permits and Insurance: Upfront fees for obtaining necessary business licenses, food service permits, liquor licenses (if applicable) and initial insurance premiums for property, liability and workers’ compensation.

Training and Development: Costs related to training for you and your staff on food safety, customer service and operational efficiency, including any certification courses required.

By carefully planning and budgeting for these CapEx items, you can set a strong foundation for your sandwich business in Omaha. It’s advisable to consult with industry experts, financial advisors, or business consultants to ensure you’ve accurately estimated these costs and structured your investments for optimal business growth and sustainability.


Sales of Sandwiches: This is your primary revenue source. Offering a variety of sandwiches, including specialty, gourmet and customizable options, can cater to a broad customer base.

Beverage Sales: Including coffee, tea, soft drinks and possibly alcoholic beverages if you have the necessary licensing. Offering a selection of beverages can significantly increase your average order value.

Sides and Snacks: Offering complementary sides like chips, fries, salads, soups and baked goods can boost sales. These items often have high-profit margins.

Catering Services: Providing catering services for corporate events, parties and other gatherings can be a lucrative revenue stream. This can include sandwich platters, boxed lunches and buffet setups.

Meal Deals and Combos: Creating meal deals that bundle sandwiches with sides and a drink at a discounted price can encourage larger purchases and attract budget-conscious customers.

Loyalty Programs: Implementing a loyalty or rewards program to encourage repeat business. Customers can earn points for every purchase, redeemable for discounts, free items, or special offers.

Merchandise Sales: Selling branded merchandise such as t-shirts, hats, mugs and reusable bags can not only provide an additional revenue stream but also serve as marketing to increase brand visibility.

Seasonal and Limited-Time Offers: Introducing seasonal items or limited-time offers can create urgency and attract customers wanting to try new and exclusive products.

Online Ordering and Delivery: Setting up an online ordering system for pickup or delivery can expand your customer base beyond traditional walk-ins, especially important in today’s digital and convenience-focused market.

Subscription Services: Offering a subscription service where customers can sign up for daily or weekly meal delivery at a set price. This model can provide a steady revenue stream and cater to busy professionals or students.

Special Events: Hosting special events like sandwich-making classes, tastings, or pairing dinners (if alcoholic beverages are served) can attract customers to your location for unique experiences.

Partnerships: Collaborating with local businesses, schools, or event organizers to be their preferred food provider can guarantee regular orders and expose your brand to wider audiences.

By leveraging these diverse revenue sources, you can maximize the earning potential of your sandwich business in Omaha. It’s crucial to continuously evaluate the popularity and profitability of these streams and adapt your offerings based on customer demand and market trends.

Cost of Goods Sold

Ingredients and Food Supplies: The primary component of COGS. This includes all the raw materials used in making sandwiches, such as bread, meats, cheeses, vegetables, condiments and any other fillings or toppings. The cost will vary based on the quantity used, the quality of ingredients and supplier prices.

Beverages: If you offer drinks as part of your menu, the cost of purchasing these beverages for sale, including soft drinks, bottled water, coffee, tea and potentially alcoholic beverages (if your shop is licensed to sell them).

Packaging Materials: Costs associated with packaging for takeout and delivery orders, including sandwich wrappers, boxes, bags, napkins and disposable utensils. The cost can vary based on the volume of takeout and delivery orders.

Food Waste: Any costs related to spoilage or waste of unsold food items. Effective inventory management can help minimize this expense, but some level of waste is typically unavoidable in the food service industry.

Delivery Costs: If you purchase ingredients from suppliers who charge for delivery, these fees are part of your COGS. Additionally, if you offer a delivery service, the direct costs associated with delivering orders to customers (excluding labor, which is considered an operating expense) can be included here.

By carefully managing these variable costs, you can maintain a healthy gross margin for your sandwich shop. Strategies such as negotiating better prices with suppliers, optimizing inventory levels to reduce waste and carefully pricing your menu items to cover these costs while remaining competitive are crucial.

Operating Expenses

Rent or Lease Payments: The cost for leasing the space where your sandwich shop operates. This is one of the most significant fixed costs and does not fluctuate with sales volume.

Utilities: Regular expenses for electricity, water, gas and internet services that are necessary to maintain an operational facility. This includes lighting, heating/cooling and running kitchen equipment.

Salaries and Wages: Payments to employees who work in your shop, including sandwich makers, cashiers and any management staff. This category also includes payroll taxes, health insurance and any other benefits provided to employees.

Insurance: Premiums for various types of insurance policies required to protect the business, including general liability insurance, property insurance, workers’ compensation insurance and food spoilage insurance.

Marketing and Advertising: Costs associated with promoting your business, such as online advertising, print materials, social media campaigns and promotional events to attract new customers.

Professional Services: Fees for services provided by accountants, lawyers and consultants. These services might include tax preparation, legal advice on contracts and liabilities and business consulting to help manage and grow your operation.

Office Supplies and Expenses: Costs for running an administrative office for the sandwich shop, including stationery, printing, phone bills and any other administrative supplies.

Repairs and Maintenance: Regular maintenance and any necessary repairs of the business premises, kitchen equipment and furniture not directly related to producing the goods sold but essential for the overall upkeep of the space.

Software Subscriptions: Ongoing costs for software used in managing the business, such as point of sale (POS) systems, inventory management software, customer relationship management (CRM) platforms and accounting software.

Training and Development: Costs associated with professional development and training courses for you and your staff to enhance business management, customer service and culinary skills.

Travel and Entertainment: Expenses related to business travel or entertainment, whether for sourcing ingredients, attending industry conferences, or entertaining potential business partners or clients.

Depreciation and Amortization: Non-cash expenses that account for the depreciation of tangible assets (such as kitchen equipment and furniture) and amortization of intangible assets (like trademarks or software) over their useful life.

Efficiently managing these operating expenses is crucial for ensuring the profitability of your sandwich shop. Regular review and optimization of these costs, where possible, can help maintain financial health and support the sustainability and growth of your business.

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