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Re:U.S. annual inflation rate drops to 8.5% by Sohcahtoa82 on Wednesday August 10, 2022 @10:23AM (#32412477)
> They have like 90 percent margins on those syrup/water mixes.

Not really. There's this myth that it only costs a few pennies to fill a cup with soda.

I was a manager at a Subway from 2006 to 2012, so I got to see the costs of all our food. I did the math and found it cost about 1.7 cents per ounce dispensed, so a 32 oz soda cost 54.4 cents to fill assuming no ice. The cup/lid/straw cost us about 12 cents. At the time, we charged $1.69 for the soda, giving a margin of about 60%. This margin of course went up if they used ice, but went down if they refilled it.

Re:U.S. annual inflation rate drops to 8.5% by eertami on Wednesday August 10, 2022 @12:25PM (#32414585)
> 32oz soda ... $1.69

I'm sorry, what? People drink a whole litre of soda with their lunch? I don't understand this on multiple levels. Who would buy this, why would anyone sell it, and should that even be legal?

Re:U.S. annual inflation rate drops to 8.5% by Sohcahtoa82 on Wednesday August 10, 2022 @12:29PM (#32414639)
I take it you're not American.

We Americans love our soda far more than our friends around the world.

I had sticker shock when I went to Italy a couple weeks ago and if I ordered a soda at a restaurant, I'd pay 3-4 euros and get a tiny 8 oz can.

In America, at a restaurant, if you order a soda, it's $2-4, and you'll usually get a 12 or 16 oz cup and get free refills.

At least I stick to the Diet/Zero-Sugar varieties so I'm keeping the calories down.

Re:U.S. annual inflation rate drops to 8.5% by c22 on Wednesday August 10, 2022 @10:52AM (#32413002)
Okay, what was the margin on sandwiches?
Re:U.S. annual inflation rate drops to 8.5% by Sohcahtoa82 on Wednesday August 10, 2022 @12:26PM (#32414592)
The cost of ingredients for sandwiches was 22-35%, depending on what sandwich it was. Of course, that's only for the ingredients themselves.

About 20% of revenue went to labor. I'm sure you're thinking, "But if you can make a sub in under a minute, and you pay $10/hr, shouldn't it be less?", but there's a lot of time spent not making sandwiches, such as cleaning, baking bread, and other food prep. Sure, the lettuce came pre-shredded in bags, olives and jalapenos are pre-sliced, but we had to slice the tomatoes, cucumbers, onions, and green peppers.

And then of course, there's the cost of rent and utilities, plus franchising fees. Overall, our profit margin was under 10%.