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Question about food costs/profits

1K views 4 replies 5 participants last post by  tsc 
#1 ·
Hi Everyone,

I'm doing some research for a lunch delivery business and I'm trying to figure out the most popular lunch items (sandwhiches, wraps, etc) that have the highest profit margins. My goal is to keep food costs no higher than 20% - not quite sure if that's possible. For instance, if we sell a sandwhich for $8, is it possible to cap our food costs at just $1.60 and still turn out a decent product?

Also, where do most caterers purchase their food items? Do you use wholesale distributors or go to the local farmer's market on most occasions? I know these are probably very ametuer questions, but any and all suggestions would be greatly appreciated! Thanks in advance.
 
#2 ·
Ann,

If you would like to give me your personal email address I can attach a copy of prices, food cost, what we payed what we sell for, ect... I did a huge spread sheet for a corporate dining account that has all that info for you, I think it is what your looking for. it has sandwiches, wraps, chips, muffins, salads, soda, water, and ect.. I think it would make a good tool for what you explained.

As far as getting product it varies for small parties I will go to grocery store, for a larger party 20-600 I go to distributers..It depends on what my needs are and pricing.
 
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