Sandwich place

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A local sandwich place has a shop located in a busy business district. The business district is filled with large head-offices of major corporations, a train station & a university. The sandwich place only sells one type of sandwich priced at $5.00. This is a cold-cut salmon sandwich with bread, smoked salmon, salad, cheese & sauce. The sandwiches are freshly made and only prepared after the order is placed, so no pre-packaged sandwiches. The shop has 3 employees who all service customers and it is a take-away without any seating.

Try to estimate the total revenue this shop can generate in one month. Costs are no factor here. Try to base your estimation on logical & reasonable assumptions that would be common for a sandwich place as described here.


Since this is a candidate-led case, the candidate should drive the case from start to finish.

  • The candidate should make his/her own assumptions whereas interviewer should check for business sense, logical assumptions, details and structure.
  • Solution below is a possible solution based on our assumptions.


Total estimated revenue per month is $13,500 based on our assumptions.

Detaillierte Lösung

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I. Assumptions

We can make the following assumptions:

  • Sandwich is a cold-cut, so it shouldn't take more than 5 minutes to prepare each sandwich.
  • Shop follows office hours operating 9 hours from 10.00 AM to 07.00 PM.
  • Shop is closed during the weekend.
  • Between 10.00 AM & 12.00 PM the shop is preparing for the busy lunch-rush, so it doesn't sell anything in those 2 hours.
  • Assuming shop has three time-segments with a lunch-rush between 12.00-02.00 PM, light afternoon between 02.00-05.00 PM and evening rush between 05.00-07.00 PM.

II. Revenue

Revenues are generated within the three time-segments mentioned above only. You could argue that you need the time between 10AM and 12PM to prepare the sandwiches for the lunch-rush.

We can now calculate revenue:

  • 3 employees are able to prepare 36 sandwiches an hour.
  • During lunch hour, they sell 100% of production which is 36*2=72 sandwiches.
  • During the afternoon, they sell at 25% capacity which is (36*25%)*3=27 sandwiches.
  • During the evening, they sell at 50% capacity which is (36*50%)*2=36 sandwiches.
  • Total daily revenue is (72+27+36)*$5=$675.
  • Total monthly revenue is $675*20 days=$13,500.

Total estimated revenue is $13,500 per month.

Schwierige Fragen

  • How could this shop double his revenue in the same location?

Verwandte Consulting-Fragen

Hi there, I would start by asking some general questions to have a better feeling on the case: 1) Does our client provides this new service elsewhere? If not, does our client already has the cap... (mehr)

Hi, I would try to make an estimation from demand side: We cant split market value into two components: $ spent by citizens of given country and $ spent by people from abroad. I think that we... (mehr)

Beste Antwort bisher:
McKinsey Associate | London Business School consulting coach, with 300+ mock interviews | 100% recommendation rate!

Hey Philip, There are for sure several ways of estimating that number, but a quick top down approach can be resumed in 3 steps 1. Estimate the total population of the US: ~300M (I guess it's alrea... (mehr)

Beste Antwort bisher:
Ex BCG | MBB Specialist | #1 Expert for coaching sessions (1200+) and recommendation rate (100%)

Hi Anonymous, there may be several reasons for that; some of them, in order of frequency, are: Your structure is not complete enough – you are just using not MECE/ not complete structure... (mehr)

Bisher beste Antwort von 3 Antworten:
I am a former BCG decision round interviewer with 300+ real interviews conducted and 8 years interviewing experience

In my experience at Bain, BCG and McKinsey no use of calculator during in-person interviews is generally allowed. However the suggestion of writing down the math and calculation is one that I second w... (mehr)

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