Subway Franchise

RichyRich

According to Fast Food Nation (by Eric Schlosser), in the US the subway franchising system's a bit dodgy. Don't know about the UK, but worth checking out first methinks.

Rich

calleyw

I know nothing about subways franchise.

But I did read or heard somewhere that the best franchises are the ones where you pay a monthly fee to. Because they are always there to help out and just don't take your money and then dump you and run.

All the best what every franchise you take out.


Yours


Calley

pickle

Why not do a bit of market research and ask people on the street their thoughts about whether they would prefer Subway to the Burger Bar? Or vice versa. The one in our local area does reasonably well but the burger bar is always more crowded. Subway do make a steady income and they stay open late hours for the pub trade.

woohoo_postingid

Two subways opened near me recently and they are always packed. I go there regularly and always chat to the franchisee. I believe there is quite a bit of money to be made but you will have to work your !!!!!! off in order to make money. Don't expect an easy ride, you really will have to work for your money.

Franchises are one of the best ways to be get into self-employment. Why take the risk of setting up your own business when you can buy into an already successful one??

Just make sure you get plenty of business advice and don't enter into it lightly - and be prepared to work very hard and long hours (in case I didn't mention it already!).:D

Good Luck :money:

lswwong

There are quite a lot of Subway outlets in Central London nowadays. I have not tried one personally but heard good things about them.

I echo the advice of those posters who say "catering is really hard work". Lots of hard work on a good number of fronts: controlling costs, sorting out health & safety and regulatory costs, maximising income, managing staff (as well as their turnover), pleasing customers etc etc. Hell of a lot of work. Not for the faint hearted but excellent for someone who loves the work and the reward it brings.

Obtaining the best business start up advice is crucial.

Good thing about buying a "brand" is that part of your marketing is taken care of.

Best of luck! Really wish you well.

tubster

Subway are supposed to be the fastest growing fast food company now. I read that the franchise is relatively cheap to buy but there was no restriction on how many/where they are so in the future you might have another one open nearer than you might wish. You could search some of the newspaper websites for archive articles etc. I would try and talk to some people that have done it already in a very different area, so they don't feel you will be in competition and put you off.

Stonk

The first things you should find out are - what is the up-front franchise fee and what are the on-going fees? Then get some idea of turnover from a similarly positioned franchise, and determine what your profit margin might be.

The turnover of the business might be enormous (I imagine so; Subway are pretty good), but if the fees are also enormous then your profit is low. Don't for a moment think that the franshisor will underestimate the value of the franchise and sell it to you for a ridiculously low price! They are in business too, and their business is to make the most money for the franchises they sell.

I don't know about Subway's fees in particular, but perhaps to give you an idea I do know a bit about Dominos Pizza (I looked into it a while ago, but didn't go for it).

The franchise was going to cost about £220,000, one-third of which you had to fund in cash, the other two-thirds you could borrow. They reckoned your profits would about 10-15% of turnover, and that you would have made your capital back after 3 years (this ignored the cost of borrowing, the "lost opportunity" cost (i.e., your £220K could have been growing elsewhere), and inflation). After that, that 10-15% of turnover is profit in your pocket. No guarantees, of course - your business could well flop completely, or worse than others, or do better; these were just average figures.

I imagine that franchises in businesses in the same market sector would generally be priced pretty similarly, per £ profit, if you see what I mean. They would all net you roughly the same return on investment. If not, all the Dominos franchisees would be selling up and buying Subways instead. Then again, Subway is not so well established, and I would expect the fees to be lower - for now, anyway!

Stompa

I've seen a lot of them about and they generally seem pretty empty. Quite frankly they also look a bit naff, and personally I'd choose to go to an independent shop instead.

Stonk

Stompa wrote:

I've seen a lot of them about and they generally seem pretty empty. Quite frankly they also look a bit naff, and personally I'd choose to go to an independent shop instead.

Don't underestimate the value of the brand name. Look at McD's. By rights, people ought to avoid them like the plague, but instead they flock there!

I don't see Subway in the McD's league yet, or maybe never - more of the BK level at best, perhaps (they get pretty full in the US from what I have seen). Their product is actually quite good, and sufficiently different from those awful pre-packaged sandwiches that many many working people subsist upon. Personally, if opened in the right locations, I see them taking market share from places like Pret-a-Manger, M&S's lunchtime food, and some of the independents.

If you want to provide a valuable, healthy, ethical, environmental (etc) service, then sure, open up an independent place. I will shop there, and many others will too. But if you want to reach the real mass-market, that's a very different matter. And as a businessperson, you're primary aim should be the mass-market.

nej

I went to Canada a few years ago and I saw more Subways than McD's over there. Give it time, and it will become more popular in the UK.