What percentage is considered the ideal COGU?

The ideal Cost of Goods Used (COGU) percentage is 28% because this figure represents an effective balance between maintaining quality and managing operational costs. This target percentage allows a restaurant or sandwich shop like Jersey Mike's to ensure that the cost associated with ingredients is kept in line with overall sales, enabling the business to achieve sustainable profitability. Operating at this percentage helps in controlling food costs, maximizing production efficiency, and ultimately ensuring that financial resources are allocated effectively.

Choosing this ideal percentage is crucial for setting pricing strategies, which can then reflect the quality of the product while remaining competitive in the market. It also highlights the importance of careful inventory management and waste reduction, as these factors are critical to maintaining a healthy COGU that can contribute to the financial success of the business.