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Subway ® In Brief

  • Description

    With over 2,500 stores in the UK and Ireland and more than 44,000 stores in over 110 countries, the Subway brand is now the largest quick service food outlet in the world.

  • Business Type

    Food & Drink, Fast Food, Retail

  • Investment Level

    £ 100,000

About Subway ®

Since its inception in 1965, Subway has raced to the top of the fast food industry. The company was started by a 17-year-old business novice, Fred DeLuca, who opened a submarine sandwich shop in Connecticut, USA. By 1974, the pioneer and his investor – Dr Peter Buck – had already opened 16 outlets in the region, beginning a tide of success that continues to this day.

Today, the company represents more than 44,000 shops, making it the world’s largest submarine sandwich chain, operating in 110 countries around the world.

Along with its strong economic business model, Subway is an incredibly forward-thinking brand in terms of health, environment and animal welfare. It has ensured its menu is sourced from ethical suppliers, that its plastic bowls and products are made from 95% recycled bottles, and follows health guidelines such as salt and sugar reduction and calorie labelling to help its customers get a well-balanced meal.

What is a Subway franchise?

Already there are 2,500 Subway outlets in the UK and Ireland, and the company is looking to expand this group, offering new opportunities to ambitious entrepreneurs and food enthusiasts. Subway is a global brand that champions community focus and regional management, so it welcomes energetic individuals to join the team and continue its drive for success.

Opening a franchise with Subway, therefore, means owning your own business and being your own boss, while working inside an existing company framework that is established and well-known to the public.

Becoming a Subway franchisee also allows you direct access to the formulas for the chain’s products and operational systems, and informative publications provided by the company. In addition, you’ll receive ongoing support from the corporate team, including regular evaluations and performance analysis.

How can I start a Subway franchise?

If you choose to start a Subway franchise, the process of setting up really couldn’t be easier. The company are flexible with regard to location and choice of establishment, you can even convert an existing store into a Subway! You will submit a property for consideration; the brand are looking to expand into many different areas, including shopping centres, hospitals, theme parks, universities, large and small urban areas, petrol stations and transport terminals. With such a range of options, it’s up to you to find one that fits your business plan as well as the company’s vision.

Unlike other fast food chains, there is also potential for your franchise to expand to multiple different outlets. This is certainly something to bear in mind if you’re considering a long career in the food industry.

Setting up shop is a challenging process, and you’ll receive help from the Subway development team. Introduced in 2017, the ‘Fresh Forward’ store design is an exciting new vision for restaurant outlets, which in pilot stores has attracted many new customers, and made service more efficient and profitable. Innovation and technology have been employed in this new design to create a customer-focused, ever fresher experience with food.

The company will try to make the process of setting up a franchise as easy as possible, through their impressive support network, you’ll have help and advice from experienced owners every step of the way. This begins with a two week training course at the Subway training centre in Cambridge, from which you have to achieve an 80% mark in the final assessment.

The initial training will prepare you for the job, but following this the company’s own education facility – The University of Subway – offers over 400 online training courses for franchisees and staff. Along the journey you will also be offered advice from a group of 20 experienced regional development agents who know all the details of setting up a franchise. At the UK headquarters in Cambridge, or at your local development office, franchisees are always offered support and mentoring.

Subway owns an organisation specifically to facilitate the purchase of supplies and equipment for franchisees. The Independent Purchasing Company Europe is a non-profit that will ensure you have all the necessary tools to run a shop that meets the high standards set by the company.

How much will I have to invest?

Compared to other fast food brands of this size, the initial investment for a Subway franchise is fairly modest. Though the total cost of setting up a store will vary depending on the size and necessary renovations, the estimated total investment is around £85,570 to £221,240.

This figure includes the franchise fee of £8,500 (this is a one-off payment that allows you to represent the company and use all its trademarks and branding.) The total investment covers property acquisition and conversion, equipment, insurance, supplies, training expenses for staff, and the opening advertisement. The estimate allows for £10,000 to £25,000 in additional funds that is recommended you reserve for the first three months of expenditure on wages, rent and training.

In addition, after the initial investment, you will continue to pay a royalty of 8% of gross sales (after sales tax). And, finally, the Franchising Advertising Fund will be responsible for marketing your outlet, for which you have to pay an annual contribution of 4.5% advertising fee.

I don’t want to open a new outlet, is there an alternative?

There is another option to buy a franchise by purchasing a re-sale store. This is an existing shop owned by a franchisee, so you are able to escape the set up costs. 

Where do I sign up?

Simply use the handy ‘enquire now’ button. You’ll be contacted by your local development office who will guide you through the application process. Through this group you can also get in contact with experienced Subway franchisees who can help you discover if joining the Subway team is the right career choice for you.

They’ll also be able to provide you with experiences of franchisees and the company brochure. These are individuals just like you who began as ambitious entrepreneurs and through franchising with Subway have encountered great success.

 

Interested in this franchise opportunity?

For additional information on Subway ®, simply send us an !

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