Why a 28% COGU target helps Jersey Mike’s balance quality and profitability.

What percentage is considered the ideal COGU?

• A. 30%
• B. 28%
• C. 25%
• D. 33%

Answer: (B)

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.

What is COGU, and why should you care about a single number?

If you spend a minute thinking about a Jersey Mike’s sandwich, you’re really thinking about a lot more than bread and fillings. You’re thinking about cost control, consistency, and how to keep recipes tasting the same from dawn to close. In the world of fast-casual dining, there’s a shorthand for that balance: COGU, or Cost of Goods Used. It’s the slice of the revenue pie that covers the ingredients that go into every sandwich, wrap, or bowl. And yes, there’s a sweet spot—the ideal percentage that keeps everything humming without turning quality into a luxury item.

So, what percentage is ideal? The consensus isn’t a mystery: 28%. That’s the number to remember, and here’s why it matters.

The short version: 28% is the sweet spot

Think of COGU as a dance between two steps: the money you put into ingredients, and the money you take in from sales. If you pull too hard on the ingredient side, your food costs eat into profits. If you lean too far the other way, you risk delivering a subpar product, and that can hurt reputation, repeat visits, and long-term viability. 28% sits in that comfortable middle ground where most guests experience consistent quality, while the business still has room to cover other expenses and invest in growth.

Why not 25% or 33%? Let me explain with a quick intuition test.

• If you hovered around 25%, you might squeeze too aggressively on portions, trim too many garnishes, or chase the cheapest suppliers too relentlessly. The result can be a flavor profile that feels one-note, or ingredients that don’t stand up to a busy lunch rush. In a sandwich shop, consistency is a brand signal—people notice when a “usual” sandwich tastes off.

• If you drift toward 33%, you’ve got more money tied up in ingredients than the sales line supports. Profit margins shrink, and you end up carrying more waste, more spoilage risk, and more pressure to jack up prices. That’s a fast lane to losing customers who expect steady value.

The magic of 28% is that it acknowledges reality: ingredients cost money, but so does keeping the lights on, paying staff, and buying the right equipment. It’s a practical target that aligns with the way Jersey Mike’s operates—efficient kitchens, consistent portions, and careful supplier management.

How this target translates into the everyday kitchen

Let’s connect the dots between a number and the busy reality of running a sub shop.

• Portion control without feel of scarcity

Consistency is king. If you measure a little more tightly on meat, cheese, and toppings, you get predictable costs per sandwich. But you don’t want to feel rigidly measured in a way that makes customers notice. The goal is standardization that’s invisible to guests—like a recipe you can repeat perfectly with the same yield every time.

• Inventory management that respects freshness

A 28% target only works if you’re not hoarding ingredients that will spoil. Smart ordering, par levels, and regular stock checks keep you from tossing a half-used tray of turkey at the end of a shift. It’s not glamorous, but it’s the quiet backbone of profitability.

• Waste reduction as a daily habit

Waste isn’t just spoiled lettuce. It’s over-prepped veggies, trimmings that could be repurposed, or unused condiments that go straight to the disposal. Small, disciplined practices—like repurposing back-of-house scraps into daily soups or stocks where appropriate—move the needle toward that 28%.

• Menu design with cost in mind

The cogs of 28% turn more smoothly when the menu itself helps you manage costs. That doesn’t mean sacrificing variety; it means choosing combinations that share ingredients, using multi-use items, and pricing carefully so popular items stay profitable.

What the numbers tell you about pricing and competitiveness

Pricing strategy isn’t just a sticker on a sandwich. It’s a signal to guests about value, quality, and consistency. When you target 28%, you also get a framework for pricing that reflects both the guest experience and the business’s needs.

• Value perception matters

Guests notice when a sub feels like it’s loaded with premium ingredients, even if it’s priced competitively. Maintaining a solid COGU helps you keep that balance—high-quality taste without the sticker shock that comes from chasing prices upward.

• Promotions and value deals

If you’re running promotions, the 28% target gives a guardrail. You can offer a deal that attracts guests while still protecting margins, as long as you keep a close eye on the incremental cost of each offer.

• Seasonal and regional tweaks

The same sandwich might see slightly different ingredient costs across seasons. A flexible approach—adjusting portions modestly or substituting ingredients with minimal flavor impact—lets you stay near 28% without compromising the overall guest experience.

Practical levers that keep COGU near 28%

If you’re in a kitchen where Jersey Mike’s flavor and speed are the daily rhythm, here are practical steps to stay close to the ideal COGU.

• Standardize recipes and plating

Write down exact specifications for every sub: weight of meat, cheese thickness, veg amounts, sauces in precise amounts. Train staff with quick checks—“this is the standard,” not “this might be close enough.” Consistency is the best cost-control tool.

• Tighten supplier relationships

Build reliable partnerships with vendors. Favor volume consistency, negotiate favorable buy terms, and keep open lines for substitutions when a product spikes in price. A reliable supplier is worth its weight in fresh mozzarella.

• Monitor yields and waste daily

Track what gets used versus what’s discarded. If you notice a pattern—more waste on a certain day or shift—adjust the process, not just the stockroom.

• Use portion control tools

Scales, portion cups, or labeled scoops become invisible allies. The goal isn’t micromanagement; it’s predictable outcomes, every single time.

• Forecast demand with care

Use past sales to guide future orders, but stay adaptable. If a local event or change in weather is likely to spike traffic, you’ll want to pre-adjust stocks, not scramble at rush hour.

• Cross-utilize ingredients

Choose items that share core ingredients. For example, if you’ve got a popular roast beef and a ham, design sandwiches that can reuse sliced meats efficiently without compromising flavor.

• Maintain a lean prep flow

A streamlined prep line saves time and reduces waste. If it takes too long to assemble a sandwich, it’s not just customer experience that suffers; costs can creep up too.

Real-world tangents that connect back to the core idea

CAUTION: don’t get lost in the tangents. The idea is to bring clarity, not chaos.

• Local sourcing and seasonality

A local supplier might offer fresher ingredients at a fair price, helping you keep 28% stable. It’s not always the cheapest option, but the reliability and flavor often pay for themselves in guest satisfaction and waste reduction.

• Sustainability as a cost saver

Yup, being green isn’t just good vibes. Reducing single-use waste, optimizing packaging, and recycling can trim costs and improve margins in the long run. It ties back to the same core principle: smarter use of resources keeps the COGU in check.

• Training that sticks

Short, hands-on training beats long memos every time. Role-play the assembly of a few top sellers to lock in the habit of precise portions and consistent results.

Common potholes to avoid

Nobody wants to learn the hard lesson twice. A few predictable traps to steer clear of:

• Treating COGU as a one-time target

It’s a living metric. Review it weekly or monthly, not just quarterly. Small drift adds up.

• Ignoring the data

Numbers don’t lie, but they do require interpretation. If you see a spike in waste, find the root cause—equipment, prep, or ordering.

• Overcorrecting

Don’t swing to the opposite extreme after a single bad week. Make measured adjustments, test, and then decide.

• Forgetting the guest experience

The ultimate goal isn’t just cost control. Guests come back for taste, balance, and reliability. If you lean too far toward savings at the cost of flavor, you’ll lose repeat business.

Wrapping it up with a clear takeaway

In the busy world of Jersey Mike’s, the idea of an ideal COGU—28%—isn’t just a number. It’s a practical compass that guides how you plan, buy, store, prep, and serve. It helps you keep food quality high while protecting the bottom line. It supports fair pricing that reflects value, and it nudges teams toward routines that make every sandwich predictable and delicious.

If you’re building or evaluating any menu, ask yourself a few simple questions: Are my portions consistent? Am I wasting less than before? Do I have reliable suppliers who can ride price fluctuations with me? Am I pricing items in a way that signals quality without alienating value-conscious guests? If the answers point toward tightening standards and thoughtful adjustments, you’re likely on the right track toward that 28% target.

The bottom line is this: a well-managed COGU is a quiet engine behind everything guests notice—the crisp bread, the bold flavors, the smile when a sandwich is handed over the counter. It’s not flashy, but it’s powerful. And when it’s done right, it shows up in the numbers—and in the everyday guest experience—without you having to yell about it from the kitchen.

Curious about how specific ingredients and menu items affect your COGU? A quick review of your most-wanted subs can reveal where you’re already close to 28% and where you’ve got room to tighten. Sometimes small recipe tweaks or a modest swap of toppings can sustain flavor while trimming waste. And isn’t that the kind of practical balance we all want—a little more consistency, a touch more profitability, and still the same great sandwich guests expect?