Profit in Subway Franchise | 3 Ways to Increase It

In the last few years, Subway has been expanding rapidly. It had more than 700 active outlets across India in 2021. 

 

In fact, in the next 10 years, Subway wants to add 2,000 outlets across India. Everstone is the Master Franchisor of Subway in India.

 

It offers a range of sandwiches, wraps, salads, desserts and drinks to its customers with 234% Indianised menu options.

 

So, if you are looking for a profit in a subway franchise and what are the perks of owning one, you are at the right place.

 

Investment Required to Get a Subway Franchise

 

The Subway Franchise Cost in India varies from city to city and ranges from Rs. 60 lacs - 1 crore, including the initial franchise fee.

 

Moreover, in addition to the initial franchise fee, each location is different and the initial investment varies depending on restaurant size, build-out costs, location, etc.

 

Expected Average Sales 

 

Officially, Subway does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets. 

 

However, if you are purchasing an existing Subway franchise, the company may provide you with the actual records of that franchise.

 

A mouth-watering aroma of freshly-baked bread is sure to hit you as you enter Bengaluru’s Kempegowda International Airport. 

 

And the only store responsible for this is the Subway outlet, which bakes fresh bread up to 10 times a day to meet its massive demand.

 

This outlet also holds the record for selling the most sandwiches annually across all Subway outlets worldwide.

 

The owner of the Bengaluru Airport Subway Franchise Griffith David stated that " My outlet at Bengaluru airport was awarded number one in unit sales worldwide in 2015 and 2019. It is in a great location, open 24/7, managed efficiently and serves only fresh food. Further, we ensure the line moves quickly. This way, we can sell around 1,200 subs each day.”

 

Mr. Griffith made sure that the store has everything that it needs to be successful, such as:

 

• Great Location
• Open 24/7
• Managed Efficiently
• Serves Fresh Food
• Targeting the Crowd who can afford it

 

As a result, this proved to be very useful as he acquired the know-how needed to run a Subway Franchise.

 

So, if you keep all the above things in check, you can also expect good sales as well.

 

The increasing cross-cultural interaction, inclination towards consumption of Western food and cuisines, and a growing number of modern retail outlets fuelling this growth.

 

ROI (Return on Investment)

 

Based on the average sales, at an average of a 15% profit margin, it will take approximately 7 years to recover your investment, which is longer than most franchise opportunities. 

 

Usually, the time to start recovering investments includes roughly 2 years to scale up the franchise, including finding the location, building the restaurant, passing break even, and then reaching significant income.

 

Absolute Profit

 

According to information available on the internet, a profit of Rs. 50,000 - Rs. 75,000 can be earned per month by running a Subway franchise. 

 

However, this depends on several factors like population, market maturity, disposable income, market demand and location. let us discuss how these factors determines your business profit.

 

Top 6 Factors That Determines Business Profit

 

Population

 

The population is an important factor when it comes to business success. It is not just about having a large market size or having a high GDP. It is about understanding what makes a country profitable and how the population affects it.

 

Businesses are always looking for ways to grow their profits. But what is the best way to do that?

 

To make a business profitable, you need to have a certain population of people who are willing to purchase your products or services. 

 

It is where population comes into play in determining how much profit a business can generate.

 

Market Maturity 

 

Market Maturity is a measure of how much the market has changed in terms of technology and consumer behavior.

 

For example, when you look at the mobile phone industry, it is been around for quite some time now and there are many different models, but it is still considered to be an immature industry because consumers are just getting accustomed to having these devices in their hands every day.

 

Disposable Income

 

Disposable income is the amount of money that a person has left after paying for necessities. 

 

It is a term often used in economics to describe how much money an individual has at their disposal after accounting for taxes, social security, and other compulsory expenses.

 

To successfully run a business, it is important to understand how disposable income affects business profit. 

 

Disposable income can determine the success of a business because it determines how much money an individual has left after paying for basic necessities and spending that on your product or service.

 

Need/Market 

 

In terms of need, the market dictates the profitability of a business. In other words, businesses that have a larger market will be more profitable than those with smaller markets. 

 

The bigger the market, the more customers they can serve and therefore make more money.

 

Businesses have to be able to predict their market's needs and demands before they can meet them.

 

In the past, business owners were able to predict how much profit they would make for their company. 

 

They could predict it by looking at the market and how much demand there is for a product or service.

 

The future of business is uncertain as we move further into the digital age. 

 

This is because businesses need to be more adaptable and responsive to changes in need and market.

 

Location and Rentals

 

Location: Location is important because it affects the cost of labour and the cost of operating a business. It also affects the quality of life for employees and customers.

 

Rentals: The rent is the main component that determines how much profit a business can make. Renters are willing to pay more for nicer accommodations, which means that businesses need to be careful about what they charge for accommodations and where they locate their locations.

 

Ways to Increase Profit in a Subway Franchise

 

Although when you get a franchise, the parent company usually share exclusive insider tips to increase your profit.

 

However, as a food franchise owner, it is important to know how you can increase your profit yourself.

 

Here are some of the ways that you can increase your profits:

 

• Increase your revenue through the use of technology.
• Reduce operating costs by automating as much as possible.
• Increase customer satisfaction by increasing brand awareness, customer loyalty, and customer retention.

 

There are many reasons that Subway has decided to go ahead with franchising its business in India. 

 

One reason is the increasing population of people who want to eat healthy food at affordable prices. 

 

Another reason is that there are more opportunities for growth here than in any other country in the world.