Whats the average income of a subway restaurant owner?

TWh1946

I`m trying to figure out how much to put in by budget for my own outreach advertising (nothing fancy). Is there any rule of thumb as to how much (percentage) I should expect in a return on an advertising effort? For instance, I`ve heard that 15% is a good number (invest $100 and get $115), is that true?It seems like a low number to me. Any experience out there? 

zaurbekz

Hello,
 
I`m form Kazakhstan and starting a Subway-Quiznos type fast food restaurant in here. we already rent the concession 135 sq meters.
 
What we need now is the expertize and the recipes of those franchise restaurants.
We will be willing to pay for your advise and pay for your trip to Kazakhstan.
The most crucial things for us:
 
1) Detailed recipes of subs
2) Specification of equipment
3) Any other details
4) marketing suggestions
  
Rich3/20/2009 7:16 PM

mrfranchiseman

Whoever is still reading this OLD POST, if you own a Subway you cannot own a competing brand. Your spouse can , and other members of your family, etc.
 
Subway went through the same growing pains as Quizno`s has been and is going through; high food costs, long hours, low sales, cannibalisation and more. The difference is that  the investment was lower, so debt service was less burdensome and so was the rent, so they made it , barely. As the loans were paid off, they could breath and opened more stores or they bought out others for pennies on the dollar. Q is in a similar situation today.
 
Rich3/20/2009 7:16 PM

mrfranchiseman

tobeornottobe
 
35% is not going to happen in your Subway
Let this be a due diligence warning to all potential Subway buyers
 
for mor Subway information, go to www.mrfranchiseman.com

leitedd

is the 20-25 percent profit before or after taxes?

mrfranchiseman

My understanding is that Walmart is a Captive audience and hardly affects outside stores. You rarely go to a Walmart for Subway when there is one on the street more convenient. But when you are at Walmart and make a food decision, you will eat right there and not go to the street for other food. This is what I hear from my Subway clients: let us see what Subway owners say
 
mrfranchiseman.com

mrfranchiseman

My 12-18% and your 20-25% is before taxes. It is Cash Flow for owner`s benefit and before debt service too.
 
Try my new Profit Calculator on www.mrfranchiseman.com

sonup

mrfranchiseman is doing their marketing and try to scare you guys.
Telling you truth that you can make 20% profit there is no doubt on that.
i have subway since 14 years and not even single year i made less then 23% profit.
i don`t know how come this 12-18% come up.
 
 

mrfranchiseman

SONUP,
I have no doubt you earn 23%, it is possible , but it is rare. The original thread Q was can it be 35%, and I find that is not possible, at least I have never seen it. I see many Subway Financials and Subway Combo reports from around the country and the world, so I am answering everyone; I believe you may be answering some folks in USA-perhaps you can clarify your answer.
"Scaring you guys".....if the truth scares you, so be it. I hope it enlightens you though and prevents you from making a mistake, then I have rendered a useful service. 90% of Subway owners will not agree with your 23% as being applicable to their stores and their experience
Thank goodness we can both express our opinions..
mrfranchiseman for franchise cash flow information and Subway related matters

DecideNOW

Hi,
 
We are pursuing to start a subway store in south  cal.
Can you tell us about your experience with subway profits in this uncertain times?
 
Very much apprecite your response.
 
rita

mrfranchiseman

Glad to help Rita.
 
In 2008 Subway had the highest sales years ever, despite the recession.
 
I am also in So Cal, and have my Subway roots here(22 years)
 
I know I can help you with valuable information, if you care to e mail me , go to my website, or call me. I eat, drink, breathe, dream, and work  Subway.
 
Fayaz Karim

www.mrfranchiseman.com, 949-253-4610

Rich

Fayaz,
 
to help people understand what you are referencing in helpful comments you post in this thread, may i recommend that you use the "Quote button in the upper righthand corner of any previous comment. that way, people will understand the context of your comments.
 
thanks for contributing valuable content to the forums - and remember, whenever possible, include the valuable content here so people don`t have to go clicking all over the internet. this also applies to self-promotion driving people to your site in many of your posts (which have now been edited to fit within the rules of our forums.) please feel free to use the signature (which you can set up in your profile) to provide a consitent link to your site. you can also visit this thread to learn about linking your signature: http://www.startupnation.com/forums/388/1/1

mrfranchiseman

Fayaz, to help people understand what you are referencing in helpful comments you post in this thread, may i recommend that you use the "Quote button in the upper righthand corner of any previous comment. that way, people will understand the context of your comments. thanks for contributing valuable content to the forums - and remember, whenever possible, include the valuable content here so people don`t have to go clicking all over the internet. this also applies to self-promotion driving people to your site in many of your posts (which have now been edited to fit within the rules of our forums.) please feel free to use the signature (which you can set up in your profile) to provide a consitent link to your site. you can also visit this thread to learn about linking your signature: http://www.startupnation.com/forums/388/1/1

mrfranchiseman

Thank you Rich, I will try to become more familiar with the buttons on this site"
 
If you actually personally visit my website you will know why I have a hard time answering everyone on this site without referring to my own site from time to time. There is just too much to answer every blog on every site, when most questions are vague, repetitive and require basic education. Better to visit my library of Subway and Extreme Pita information than for me to deliver it in bits and pieces to everyone, everyday; but at least I show you the Library !!
 
mrfranchiseman

aspun

Before you dream of being a owner of subway location talk to five existing location owners if three say it is a good company to join then jump in otherwise think thrice.My friend you will loose your shirt with subway. I know people who took SBA loans, Second mortgages on their houses with in a year they closed doors. Filed bankruptcy. Only person makes money will be your DA & company.Main reason from last couple of years Subway is selling a Foot Long 12``
sandwich for $5. Think about it how someone can make money feeding two people for  five dollers.Weekly $8000=190 subs how much you can make each sub one doller. So pay all your expense out of $190. Rent,utilities,payroll, taxes extra extra extra.Good Luck you need it BK.