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ECONOMIC/MARKETING OUTLINE – POTBELLY SANDWICH WORKS
I. ECONOMIC COSTS
A. Fixed Costs
1. Start-up require to be paid of franchise: $250,000 to $300,000 (Potbelly Sandwich Shop LLC Franchise Information, 2013)
a. This includes furnishings in the same state as tables, chairs, cash registers, etc.
b. Training of cunning practice is an additional cost
2. Lease/pledge of restaurant
3. Property tax
4. Insurance
5. Equipment let fees
6. Depreciation of restaurant outfit
7. Employee salaries
8. Employee benefits (i.e. assurance premium paid by employer)
B. Variable Costs
1. Hourly employee (in favor of temporary or part-time workers)
2. Employee bonuses
3. Utilities
4. Advertising expenses
5. Office supplies (i.e. pens, , receipt )
6. Credit card fees
7. Payroll taxes
8. Vacation
9. Bread
10. Vegetables
11. Deli Meat
12. Cheese
13. Milk
14. Beverages (protoxide of sodium, tea, bottles)
II. DEMAND SCHEDULE – PIZZA SANDWICH
A. Pizza Sandwich
1. 6” sandwich costs $5.00 in successi~ menu
a. Demand is declining suitable to current push for eating healthier (consumer preferences)
i. 612 calories on Pizza Sandwich using exact ingredients/toppings without interrupti~ menu
ii. $6.50 average price of salad at Potbelly (266-440 calories through salad as shown on menu outside of dressing)
b. Prices of related merchandise also must be considered
i. 12” sub from Subway averages $5-7 both
ii. 6” sub from Potbelly averages $6 each
c. Demand Schedule (current menu prices)
PRICE QUANTITY DEMANDED
$10.00 1
$9.00 2
$8.00 3
$7.00 4
$6.00 5
$5.00 6
$4.00 7
$3.00 8
$2.00 9
$1.00 10
B. My consumer dot-of-view
1. Lower prices would grant me the opportunity to more sandwiches since less cost.
2. The demand catalogue could also be impacted by e~ price promotions, i.e. two sandwiches toward $5.00 during the month of November
III. PRICE-TAKER OR PRICE-SEARCHER
A. Price-Taker
1. Accept the sort of the market price is and cannot make different it
2. No power to make different price because competitors are selling...
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