Meat, Cheese, Bread, Chips, Drinks, and Cookies Drive Most of Jersey Mike's COGS.

Which two GL categories represent nearly 80% of COGU?

• A. Meat and vegetables
• B. Cheese and bread
• C. Meat, cheese, bread and chips, drinks, cookies
• D. Chips and dips

Answer: (C)

The correct response highlights the comprehensive range of items that contribute significantly to the Cost of Goods Sold (COGS) in a business context such as Jersey Mike's. COGS encompasses all the direct costs attributable to the production of sold goods, which includes all the food items typically sold in a sub sandwich shop. By including meat, cheese, bread, chips, drinks, and cookies, this option recognizes the primary components of a Jersey Mike's menu. Meat and cheese are foundational for sandwiches, while bread serves as the base. Chips and drinks are common side options that add to overall sales, and cookies represent desserts that may be sold. Together, these items account for nearly 80% of the overall COGS, reflecting their importance in inventory management and financial analysis. The other choices are either too narrow in focus, covering only specific segments of the product range, or do not incorporate the complete variety that reflects the significant contributors to COGS in a sub sandwich business model. This understanding is essential for managing costs effectively and ensuring profitability in such a food service environment.

Ever notice how some menu items seem to shape the bottom line more than others? In a Jersey Mike’s style sub shop, the Cost of Goods Sold (COGS) isn’t just about a single recipe or a single sandwich. It’s about the big, steady drivers—the items that show up on every order and in every week’s inventory. If you’re trying to understand where costs come from, look at these core players and how they behave in a busy store.

COGS 101, but kept practical

COGS is the direct cost tied to producing the goods you sell. In a sandwich joint, that means the meats, cheeses, bread, sides, drinks, and even the little add-ons you see on the counter. Think of it as the price tag on each plate that travels from supplier to sandwich to customer. The goal isn’t to memorize a single number; it’s to keep tabs on how much those daily items push the total cost and how you can manage it without dulling the customer experience.

Now, let’s get to the heart of the matter—the big contributors

The items that collectively push COGS toward the 80% mark are:

• Meat and cheese

• Bread

• Chips

• Drinks

• Cookies

Yes, it’s a chunky list, but it makes sense when you map it to how a Jersey Mike’s operates. Meat and cheese are the core building blocks of every sub. Bread is the essential vessel that holds it all together. Chips and drinks aren’t afterthoughts; they’re the common, high-volume add-ons that boost sales and, with them, the cost of goods touched by every scoop, slice, and bag. Cookies round out the lineup as a dessert option that sees steady demand.

Why these categories carry so much weight

• Direct cost and unit economics: Meat and cheese sit at the top of the cost pyramid. A few extra ounces or a price shift from a supplier can ripple through the day’s totals. Bread, while cheaper per loaf than meat, is bought in large quantities and perishable—waste translates directly to COGS. Chips and drinks are not only high-volume sellers but also frequently bundled with orders, expanding the cost footprint through multiple SKUs. Cookies might seem small, but they’re impulse buys that accumulate fast.

• Perishability and waste: Fresh meat, fresh cheese, and daily bread have short windows. If shrink isn’t watched, the numbers creep up fast. Chips and cookies have longer shelf lives but still require careful stock control to prevent spoilage or waste when demand shifts.

• Menu mix and pricing pressure: If the menu leans heavily on these items, even small changes in purchase price or portion size can have outsized effects on COGS. Restaurants often balance this by tweaking portion control, supplier contracts, and daily usage tracking.

A practical approach to managing the big four (five)

Here are some straightforward ideas that can keep COGS in check without turning the shop into a math lab:

1. Track item-level costs and usage

• Keep a running cost for each meat, each cheese, and each bread type. This helps you spot price swings quickly.

• Compare what you actually use week to week against sales to spot waste or over-portioning.

2. Control perishables with smart par levels

• Set minimum and maximum stock levels for meat, cheese, and bread so you don’t run out during a rush or get stuck with stale items.

• Update par levels as demand changes (seasonal variations, new promotions, or shifts in consumer preference).

3. Negotiate and diversify suppliers

• Build relationships with suppliers who can offer consistent pricing or flexible terms.

• Consider secondary suppliers for non-peak items to avoid price spikes on the core proteins and bread.

4. Optimize the menu mix and portioning

• Keep the sandwich core consistent so you can forecast more accurately. If you rotate proteins or cheeses, do so with a well-planned forecast.

• Be mindful of portion sizes. A half-ounce here or there may not sound like a lot, but it compounds across dozens or hundreds of sandwiches daily.

5. Manage chips, drinks, and cookies with intention

• Chips and drinks are impulse-boosters. Align their display with demand and ensure pricing supports healthy margins.

• Cookies are dessert insurance. Monitor bake yield and shrink; small adjustments in recipe or portion can save money over time.

Connecting the dots: why this matters beyond numbers

For anyone working in or studying the mechanics of a sub shop, the takeaway is simple: understanding where most costs live helps you shape pricing, promotions, and inventory discipline. If you know meat, cheese, bread, chips, drinks, and cookies are the big levers, you can allocate effort where it matters. That translates into steadier profits, more predictable schedules for staff, and happier customers who get the same great value with every visit.

A few real-world analogies to keep it relatable

• Think of it like maintaining a car. The engine (meat and cheese) and the chassis (bread) are the core components you don’t want running lean. The add-ons (chips, drinks, cookies) are like the accessories that upgrade the ride but still need the same level of care to avoid a costly breakdown.

• Or picture a grocery budget. You don’t buy every item in equal measure; you focus on the big-ticket staples and the items that show up most often in the cart. The math isn’t fancy, but the effect is real: keeping the bigger costs in check keeps the overall budget healthy.

Common misconceptions, clarified

Some might think only one or two categories drive costs, but that’s not the whole story. While meat or cheese carry substantial unit costs, the combined weight of bread, chips, drinks, and cookies makes up the picture. It’s not about chasing price cuts in one place; it’s about understanding how these items interact across orders, inventory, and waste.

The practical takeaway for teams and students

• If you’re learning how a sub shop runs, focus on how these categories affect daily operations. The bigger picture isn’t just price tags; it’s how the pieces come together in a single day of business.

• For those who manage or study store performance, start with data. Gather a few weeks’ worth of usage, waste, and cost data on meat, cheese, bread, chips, drinks, and cookies. Look for patterns—weekly spikes, seasonal flavors, or promos—and use that insight to inform ordering and pricing decisions.

• Experiment with small, reversible changes. Increase or decrease portion size slightly, adjust display placements, or run a limited-time offer on a combo that bundles the big-cost items in a way that still feels fair to the customer.

A closing thought

In the end, the characters on the cost stage aren’t glamorous, but they’re essential. Meat and cheese headline the culinary show, bread provides the stage, while chips, drinks, and cookies make the experience complete. When you understand how these elements shape COGS, you gain leverage—techniques you can translate into sharper margins, smarter inventory, and a more consistent customer experience.

If you’re part of a team that operates a sub shop, the takeaway is practical and actionable: these items deserve close attention, not just because they’re tasty, but because they’re the heartbeat of the business’s cost structure. Keep a finger on their daily movements, and you’ll find a steadier path to profitability without ever sacrificing the taste that keeps guests coming back for more.