Subway Franchise Business Plan Sample

Do you need help starting a subway franchise? If YES, here is a sample subway business plan template.

Subway restaurant is one of the largest restaurant chains in the world. To own this franchise, you need to have a business plan ready. This Subway franchise business plan example is provided for this purpose.

Do you know what it takes to start a Subway sandwich shop? How much does a Subway owner make a year? Subway is a top eatery in the food industry that has been franchising for many years. Though it reached the peak of success in the food business in record time, Subway continues to have increased demand and is expanding faster than ever before.

SUBWAY FRANCHISE BUSINESS PLAN GUIDE

If you are an entrepreneur with a good eye for lucrative business and a desire to play in the food industry, owning a franchise with Subway is the best thing to do.

This article serves as a guide to buying and running a Subway franchise, so read further with rapt attention to know and understand the company and its system of doing business and see how well you can fit in.

You should know about the organization you want to start a business with, so let me introduce the company before I go into the business model of the Subway franchise.

About Subway Franchise

It all started in 1965 when a young man went to a family friend to solicit college funds. The founder of Subway, Fred DeLuca, got the money he asked for, but his benefactor, Dr. Peter Buck, gave him $1,000 on the condition that he opens a sandwich shop.

This led to the birth of Subway, as both men became business partners, but the name was not always Subway; it started as Pete’s Super Submarines, which was replaced by Subway in 1974.

The first shop was opened in Bridgeport, Connecticut, and about nine years after the first opening, they had managed to open 16 other branches all over the state of Connecticut. This progress looked slow to the founders, who decided to start offering franchising opportunities to boost the expansion of the business.

Since the first franchising unit was opened in Wallingford in 1974, Subway started to experience a rapid expansion. As of 2013, this business opened more than 50 new franchising units weekly!

With global recognition as a nutritious substitute to the traditional fast foods we have around, Subway continues to feed customers with the improvement of their health in mind.

A Subway menu contains breakfast, salads, all sandwiches, guest subs, kids pack, side drinks, and extras. Platters are also available for all kinds of occasions with any size of the crowd.

Currently, over 44,000 Subway franchises are scattered all over 111 different countries worldwide.

These are the vital things you need to know about the Subway franchise;

  • First, you do not need any previous experience with business owners to start a franchise with Subway, but good leadership skills and business management are an added advantage.
  • Even if this is a food business, you don’t need to be a cook because the Subway manual clearly states that there is no cooking or grills.
  • Being a Subway franchisee means you will pay an ongoing royalty fee of 8% and an Ad royalty fee of 4.5%.
  • You are allowed to have absentee ownership.
  • You will need eight to twelve employees to run your Subway franchise.
  • You can build your restaurant by using your contractor or letting Subway recommend one.
  • You can choose to sell your restaurant any time you feel like it; the company has to approve the buyer.
  • You will have proper training and support before you launch your business, and even after you start, there will be periodic training for you and your staff.
  • Lending services are available for you in case you need them.
  • Subway does not explicitly publish any earning claims for its franchisees. You can refer to the Franchise Disclosure Document (FDD) for more information.
READ:   Restaurant Business Plan Sample

Starting your Subway Franchising Business

How much does it cost to own a subway? To start your Subway franchise;

  • You must have a net worth ranging from $80,000 to $310,000, along with other financial requirements.
  • You will need liquid cash ranging from $30,000 to $90,000.
  • You will make an initial investment of $147,050.

These are the steps to acquiring and running your Subway business;

How do I become a subway franchisee?

  1. Attend the free seminar organized by the company and meet Subway representatives.
  2. Fill out the franchise application form on this website https://subapps1.subway.com/AdditionalInfoApp/index.aspx.
  3. You will pay a franchise fee of $15,000. It is a one-time payment that will give you the right to use the Subway trademark and brand name anywhere in the world.
  4. Sign the Subway franchise terms of agreement and renewal, which seals your 20 years contract that can be renewed on expiration with the company.
  5. Attend the two weeks Subway training course where they groom you and your staff on basic management skills and the Subway system of doing business.
  6. Secure a location for your business. Subway will provide you with a list of approved sites during your qualifying process.
  7. Purchase food for your restaurant by ordering from a Subway-approved vendor.
  8. Launch your business

Subway is headquartered at 325 Sub Wy. Milford, CT 06461, and the present Chief Executive Officer is Suzanne Greco.

SUBWAY FRANCHISE BUSINESS PLAN EXAMPLE

Using this sample business plan, you have a template to work with. We have covered some of the most overlooked areas by newbie entrepreneurs. Now you have the opportunity to put together a plan that captures the vital aspects of doing business.

Let’s get into the nitty gritty without further ado;

  • Executive Summary

Subway Restaurant is a franchise opportunity that seeks to replicate the franchisor’s successes. We are a dynamic team driven by a desire to run a highly efficient business model. We are located in Baton rouge, LA.

Our products and services will consist of those allowed by the franchisor.

Some of these will include the franchisor’s signature product, the submarine sandwich, also known as subs. Others are donuts, muffins, cookies, paninis, salads, and wraps.

Our business will be located in the heart of Baton Rouge’s central business district. This location is strategic and presents us with an opportunity to grow and expand rapidly.

  • Our Products

All Subway Restaurant’s products and services are of the highest quality. We seek to continue this tradition of excellence by making these products available to all our esteemed customers. These products include submarine sandwiches, known as Subs, salads and wraps, paninis, cookies, muffins, and donuts. These will be prepared with specially formulated spices in a hygienic environment.

  • Vision Statement

We will not only continue in the franchisor’s tradition of excellence but will follow a growth model that will result in the opening of multiple units. Because we are expansion-driven, our sights will be set on identifying opportunities from the onset. This will allow us to implement strategies to establish more franchise units quickly; this will be done with the complete guidance of the franchise owners.

  • Mission Statement
READ:   Fried Chicken Restaurant Business Plan Sample

Our mission at Subway Restaurant is to offer our clients delicious meals in a cozy and comfortable environment. We also seek to become one of the most productive and competitive Subway franchises.

  • SWOT Analysis

For meaningful growth to be achieved, a SWOT Analysis of our business operations has been conducted. This has allowed us to identify key areas important to achieving our set targets. The following are our findings;

  • Strength

The experience of our workforce is of great importance to us. This is coupled with our strategic location. This location is easily accessible from all directions of the city. This busy location enhances our potential for profitability.

Our firm commitment to growth also counts among our strengths. Every member of our team is driven by this single determination to succeed.

  • Weakness

Our weakness can be attributed to the availability of substantial funding. We would have loved to start on a larger scale. The consolation is that we will gradually expand with the right approach and determination, no matter our current size.

  • Opportunities

With a Subway franchise, opportunities are never in short supply. We are taking full advantage of these opportunities to establish a thriving business that will help us achieve three objectives; increase sales and profits, create employment opportunities and satisfy our clients.

  • Threats

Threats faced by our business include the risks posed by a troubled economy or a recession and stiff competition from an oversaturated industry. The former cannot be readily predicted, but there is a chance it could happen anytime.

  • Target Market

A lot of people love to eat out. This is the primary reason restaurants are still relevant. We have a diverse target market: families, single men and women, tourists, teenagers, corporate executives, and lovers. Others include families and the young. These segments of society regularly patronize restaurants.

Our services and products will be targeted at them to help us build a dedicated group of clientele.

  • Sales Projections

With the vast market at our disposal comes the opportunity to grow our client base. To achieve a level of sales sufficient enough to help us realize our growth potential, we have come up with a 3-year projected sales as seen below;

  • First Financial Year.             $390,000.00
  • Second Financial Year.        $560,000.00
  • Third Financial Year.            $800,000.00

 

  • Marketing and Sales

Marketing is essential to us. We seek to adopt the most effective strategies. These have a direct bearing on sales. We will assume the internet as a tool to promote our restaurant. This will be through creating a user-friendly website revealing every service we provide. Social media marketing will also be adopted.

We will also have a referral program where customers will accumulate points that can be redeemed for our products. Paid ads will run on TV and radio stations in addition to the distribution of handbills.

  • Competitive Advantage

Other businesses offer similar services. However, what sets us apart from the pack is our brand. Subway is a reputable brand with both domestic and international appeal. We will use this advantage to set up a restaurant business to consolidate its previous successes.

This Subway restaurant business plan sample has provided essential information you can work with to draft your unique plan.

While using this as a template, you can use information obtained from your feasibility study to write a plan that will benefit the growth and stability of your business.

Leave a Comment