
By selling 312 sandwiches on the first day each one costing about 49-69 cents just to pay of their college debts and medical fees with a loan as minimal as a $1000, And now having its franchise spread across in 100+ countries with over 41,512 franchises locations in the world, that’s how a 17-year old boy started this sandwich giant which we now know by the name, Subway
Subway, in India was first established in Delhi in 2001 and ever since it has about 660 locations spread across the country with 60 restaurants being added annually through its franchise model, growing at the rate of 12-13% every year, We bet you’re hungry for this franchise opportunity, aren’t you!
Subway is an American privately held restaurant franchise that primarily sells salads and submarine sandwiches (subs).
Facts about subway
Unique selling point (USP) : The unique selling point of having a subway franchise is the its competitive edge in :
Business model of a subway franchise
The business model of a subway franchise can be defined using these four variants
Value proposition: The value which this franchise is likely to bring to you is:
Target consumers: The target consumers to your healthy-cum-fast food franchise restaurant are
Competitor review: It goes without saying that the competition the fast food restaurant business is as aggressive as it gets. But subway has a different genre of its own because of the product it offers.
However, the few key competitors of this franchise are
Also read :
Marketing strategy: The marketing strategy that is implemented by subway is:
Advertising: Through tv commercials, billboards near airports, hoardings in an urban traffic prone area etc
Print media: Newspaper ads, blogs, articles etc
Listings: listing on google directories etc
Sales promotion: festive offers, combos etc
Wider target audience: The majority of the Indian population is the working class constituting 53% of it and the other majority being the Gen-Z which are the popular targets of subway because it promotes a healthy and diet conscious lifestyle
Low investment and high profit margin: Subway comes at low investment costs and also pre existing marketing and training supports extended by subway. It also yields a major portion of profit margin and expansion becomes easy
Brand familiarity: Because of being in operation since 65 years and ensuring localisation in taste like tandoori tofu, veg seekh in India and adding 8 new products annually to the menu subway has attracted many loyal customer and helps you enjoy brand familiarity
Assistance by subway: Another benefit of this franchise is the supports and assistance extended by subway to your franchise in terms of the following:
Growing demand for ready-to-eat food: Because of the busy schedule and cost cutting practices and dietary demands of the office going population , working class millennials and sturdy teenagers subway is the brand which caters to all the these needs of these consumers making it the most healthiest and quickest option when it’s comes to have a wholesome bite for lunch on a busy day, that is everyday
Increased demand for food delivery: The increased demand for food delivery from apps like ZOMATO and swiggy which now have an option for healthy eating, subway goes on top of the list getting more take out demands than the outlet based
Benefit of customisation: Unlike any other fast food joint like Burger King, McDonald etc subway offers a wide range of variety to customise the sandwiches, wraps, salads as they like on both app based and outlet based spaces thereby giving freedom to the customers in terms of the taste and benefits they like to seek
Requirements
Area requirements: minimum area requirement of
Skill requirements: Minimum skill requirements of Passing the skill test consisting of math and English based knowledge , scheduled and made mandatory by subway for all of its franchise owners
Manpower requirement: minimum manpower of 8 employees is required
Qualification in terms of the following documents:
The initial investment of running a subway franchise comes to
Content Amount
1. Initial investment ₹ 25 lakhs – ₹ 30 lakhs
2. Franchise fee ₹ 4.5 lakhs and 2.5 lakhs for the next
3. Advertising and loyalty fee 3.5% – 8%
The anticipated profit and return on investment is not less than 40% – 50% annually.
However the breakup of the capital requirements of a subway franchise on a wide basis goes as follows
The ways in which one can apply for a subway franchise are
Suggestions
Have you locked up on your favourite sauces and desired veggies for your ideal sub yet?
well, while you do that we’ll give you reasons as to why you should take up this franchise opportunity
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