Subway Franchise...

olly300

nexuss wrote: »

Subway cannot compete with mcdonalds regarding breakfasts especially and their costs.Look at how many subway franchises are closing down all over the UK.
I have seen a lot of subway staff 'microwave' coffee latte instead of using the normal coffee machines in front of the customer which made me laugh simply to speed things up.

Subway has a problem in this country that they are completing with many different markets which make sandwiches and sell better coffee.

In the morning they are completing with MacDonalds, cafes and coffee shops. And some of the cafes now thanks to the likes of Starbucks are really good.

At lunch time they are completing with local independant sandwich shops, bakeries and the likes of Pret plus M&S and supermarkets.

In the evening they are completing with fast food shops and cafes who think they can make a profit by being open that late.

The only time I used a Subway was aboard because in the UK there are enough independent sandwich shops, cafes and other chains with better sandwiches that means I don't have to use them.

nomoneytoday

How would you make a profit if they opened another franchise nearby?

Lokolo

A lot of Subways now open in the early hours to compete with kebab shops. ON NOM NOM NOM.

And different target markets. One subway in my area tries to get in with the local business's and has opened up by an industrial park. One is next to the bus station (where there is no fast food place nearby). One is right in the centre of town. They are all owned by the same person though!

ses6jwg

I love Subway. Meatball Mariniara is divine.

Amit92

You guys are all right. Im glad ive got over this idea now than later in life

Savvy_Sue

Amit92 wrote: »

You guys are all right. Im glad ive got over this idea now than later in life

:rotfl: How refreshing, a 17yo who listens ... :rotfl::rotfl:

Subman_2

I'm a Subway franchisee, so I'll add my tuppence worth to the debate.

First and foremost though, I see the OP has already decided not to progress further with Subway and this is the right decision. A Subway franchise is an excellent opportunity, but for it to work you need a great location and to make the real money, you need multiple units. Joining the franchise at this stage, you WILL NOT be able to open in a location that will make you the big bucks, in addition you will never be able to expand your business as you might hope, there will simply be too many "bigger" franchisees around you with more sway and capital to open new stores.

Subway is also currently suffering at the hands of HMRC, after being forced to charge VAT on certain products that have historically been VAT free. This has had a huge impact on margins, and although it is being challenged, it has the potential to put a lot of people out of business.

The store you posted that's for sale is on the market for one clear reason, it doesn't make any money. Don't even look at a store that takes less than £5000 a week and don't kid yourself into thinking you can "turnaround" a store and increase the turnover. You can to an extent, but if it's taking £4000 a week now, you need a 100% increase in sales before you have a store that'll allow you to live well off the proceeds without having to put in some seriously hard work.

The brand attracts people, that is certain. If it was my name above the door and not Subway, I'd have half the customers I do no and our customers love what we do and many travel quite surprising distances to eat at our stores. Definitely look into franchising in more depth, as although there are many instances where it does not work, fast food is generally one example where it can be hugely beneficial.

Have you any idea the cost of signage & fit out for a new subway store? Overs, blast grills, chiller cabinets, counters etc? I reckon its well to the £30k + mark, and that is before you sell a sandwich.

Starting more modestly, a second hand chiller, some worktop from B&Q and a couple of fridges from Currys and you could be up and running for £3-4 grand.

There's a lot more to factor in than that. To fully kit out and open a Subway store will be well over 100k, I know some who have paid around the 200k mark to get up and running.

I know people who have opened up cafes and sandwich shops from scratch and the actual cost isn't as different as you might imagine. To set up a sandwich shop capable of making the same money as a Subway store you'd need an awful lot more than 3-4 grand and some second hand chillers! What about shopfitting, electrics, plumbing, alarm systems, signage, POS, stock, working capital, furniture, commercial catering equipment etc etc etc.

oh and by the way where do you think you have to buy your supplies from, the cheapest provider... oh no, SUBWAY approved of course!!!

Actually, that is one hugely positive aspect to the Subway franchise. Unlike most in our industry, we do not buy our stock through the franchisor. We have a franchisee run co-op that sources products and services on our behalf, meaning we get a fantastic deal on most products and benefit from huge buying power. Far too often in franchising, the franchisor makes huge profits by controlling the supply chain, in Subway this is not the case.

Feel free to ask any further questions if you have them, but as I have said, my advise is to look elsewhere for business opportunities at this stage.

Amit92

Subman wrote: »

I'm a Subway franchisee, so I'll add my tuppence worth to the debate.

First and foremost though, I see the OP has already decided not to progress further with Subway and this is the right decision. A Subway franchise is an excellent opportunity, but for it to work you need a great location and to make the real money, you need multiple units. Joining the franchise at this stage, you WILL NOT be able to open in a location that will make you the big bucks, in addition you will never be able to expand your business as you might hope, there will simply be too many "bigger" franchisees around you with more sway and capital to open new stores.

Subway is also currently suffering at the hands of HMRC, after being forced to charge VAT on certain products that have historically been VAT free. This has had a huge impact on margins, and although it is being challenged, it has the potential to put a lot of people out of business.

The store you posted that's for sale is on the market for one clear reason, it doesn't make any money. Don't even look at a store that takes less than £5000 a week and don't kid yourself into thinking you can "turnaround" a store and increase the turnover. You can to an extent, but if it's taking £4000 a week now, you need a 100% increase in sales before you have a store that'll allow you to live well off the proceeds without having to put in some seriously hard work.

The brand attracts people, that is certain. If it was my name above the door and not Subway, I'd have half the customers I do no and our customers love what we do and many travel quite surprising distances to eat at our stores. Definitely look into franchising in more depth, as although there are many instances where it does not work, fast food is generally one example where it can be hugely beneficial.



There's a lot more to factor in than that. To fully kit out and open a Subway store will be well over 100k, I know some who have paid around the 200k mark to get up and running.

I know people who have opened up cafes and sandwich shops from scratch and the actual cost isn't as different as you might imagine. To set up a sandwich shop capable of making the same money as a Subway store you'd need an awful lot more than 3-4 grand and some second hand chillers! What about shopfitting, electrics, plumbing, alarm systems, signage, POS, stock, working capital, furniture, commercial catering equipment etc etc etc.



Actually, that is one hugely positive aspect to the Subway franchise. Unlike most in our industry, we do not buy our stock through the franchisor. We have a franchisee run co-op that sources products and services on our behalf, meaning we get a fantastic deal on most products and benefit from huge buying power. Far too often in franchising, the franchisor makes huge profits by controlling the supply chain, in Subway this is not the case.

Feel free to ask any further questions if you have them, but as I have said, my advise is to look elsewhere for business opportunities at this stage.

Thanks greatly for this post. If not a Subway, then what else is beneficial of franchising or setting up independently?

Amit92

Savvy_Sue wrote: »

:rotfl: How refreshing, a 17yo who listens ... :rotfl::rotfl:

I would of thought most 17yo think wise and hard.

Savvy_Sue

Amit92 wrote: »

I would of thought most 17yo think wise and hard.

Oh, they may be THINKING, but they don't seem to LISTEN! at least not to their parents. :rotfl: