Any experiese with Subway fast food franchise ?

[evan12]

I keep reading different opinion about it , some people think it is the best investment they ever done , and some think it is the fast way to be suffering and broke.
The reason I am interested it is cheap franchise compared to other successful chains.

 

[Fzatf]

I keep reading different opinion about it , some people think it is the best investment they ever done , and some think it is the fast way to be suffering and broke.
The reason I am interested it is cheap franchise compared to other successful chains.

Have no experience on this one but subway restaurants get regular traffic where a foot long sandwich will run you 7 bucks or more. Job is relatively easy so you only have to cover minimum wage employees.

 

[Spaz]

Subway is a known brand - that works in your favor.

1st find a location where you intend to set up the business since it will make or break these kind of investment.

Then do a simple SWOT analysis on the location - number of people in surrounding area, type of potential customers, who r ur competitors, potential growth - expected income, etc.

If it doesn't look good, survey another location, repeat/cycle the process until you get better odds then you can start planning in earnest to open an outlet.

 

[Bible_Belt]

Subway just closed something like one third of their franchises. They are cheap because they give them out to anyone. They also stopped making food deliveries twice a week, screwing the franchise owners. "Eat Fresh" is a joke, because now that brown lettuce is up to 6 days old. They have more competition today and an outdated business model. I wouldn't want anything to do with Subway as an investment.

 

[Spaz]

Subway just closed something like one third of their franchises. They are cheap because they give them out to anyone. They also stopped making food deliveries twice a week, screwing the franchise owners. "Eat Fresh" is a joke, because now that brown lettuce is up to 6 days old. They have more competition today and an outdated business model. I wouldn't want anything to do with Subway as an investment.

Any sizeable company will close outlets - it's called pruning.

Even StarBucks does it.

Who hasn't?

 

[switch7]

Any sizeable company will close outlets - it's called pruning.

Even StarBucks does it.

Who hasn't?

pruning = closing 1 third of all outlets?

 

[Spaz]

pruning = closing 1 third of all outlets?

Was it this year alone or its an continuous effort down the years ?

I've closed down plenty of my smaller branches when it doesn't make money and opening up in better areas.

Demographic changes over time in a particular location - business model could be an issue but I don't think so as Subway seems to be thriving elsewhere.

 

[evan12]

1st find a location where you intend to set up the business since it will make or break these kind of investment.

it is franchise responsibility to choose and approve the location as they claim their extensive experience allow them to know there is the best place to start , however , owners compaling that Subway is choosing restaurants locations too close to each others , which increase the competition between owners on the same customers .

They are cheap because they give them out to anyone

I heard some owners saying they are cheap to be in , but the on going fees are high , they lease the equipment to reduce startup fees , however you keep paying for these equipment, which is like another rent.
and to my knowledge it is the only big name that doesnt have difficult screening to start a franchise , as long as you have the money needed you will get one , unlike McDonald and TimHorotns when they have wait list and interviews that not everyone can pass even if money was there.

 

[Spaz]

it is franchise responsibility to choose and approve the location as they claim their extensive experience allow them to know there is the best place to start , however , owners compaling that Subway is choosing restaurants locations too close to each others , which increase the competition between owners on the same customers .

I heard some owners saying they are cheap to be in , but the on going fees are high , they lease the equipment to reduce startup fees , however you keep paying for these equipment, which is like another rent.
and to my knowledge it is the only big name that doesnt have difficult screening to start a franchise , as long as you have the money needed you will get one , unlike McDonald and TimHorotns when they have wait list and interviews that not everyone can pass even if money was there.

I also heard that you can choose from a list of preselected locations - they did their due diligence based on their SWOT and so should you.

Again location is everything. Your negotiation skills comes into play to get the best possible deal as nothing is actually fix in business.

 

[switch7]

OP this may be of interest for you:

https://www.bloomberg.com/news/arti...-s-store-closings-while-building-global-reach

 

[speed dawg]

I think Subway is an old, out-dated brand. There are new sub shops now that are better that people prefer. Seems like the best survival mechanism for them is to be inside a store, airport, hospital, etc. The stand-alone ones don't seem to have the same appeal.

If you're into sandwiches I'd look into Jimmy John's or Lenny's or something like that.