Whats the average income of a subway restaurant owner?

aspun

 $ 5 foot long any sandwich you will not make 20% .Maximum you will sell 200 to 300 foot longs if ur doing 10K week.nobody can pay bills making 2-3 hundered dollers. meet exiasting location owners they are crying. I have met a couple who had three locations and closed all with in two years. Lost their home every thing they have .In new Jersey Yogesh Deve DA is crook. Who will built a site in high volume area ,will build the volume .He will sell that location in few months will open another one few blocks away same way sell it again. He has ruined hundered families. Talk to people who own one. It is easy to loose very hard to make. Subway is looser.until they change their price what you can buy in five dollers these days.Who will be loosing YOU YOU & YOU. Subway franchise will always be winner and their DA will make from every location. Do some thing else. It is a useless franchise for operator.
aspun3/27/2009 10:52 PM

mrfranchiseman

Disgusting state of affairs that you are reporting, but also things I have heard before in varying forms. There are unscrupulous DA`s and very ethical ones, and every apple tree can have a rotten apple, but most are good apples.
How much due dligence did these owners do before getting nto Subway?
 
The financials I have seen during and after the $5.00 specials in different parts of the country indicate that despite the $5.00 price and increased food  cost, the increase in traffic made up for it in volume and the store owner made more profit; yes he worked much harder for it, but if there is a residual retention of new customers, the mission is accomplished.
 
Stores in close proximity: everyone knows that going in - there is no territorial protection.
 
Enjoy my website information and contact me for more information BEFORE you buy an existing store or build a new one. Due Diligence!
 
mrfranchiseman
 
 

g4040

To jrhiii,
 
 I am considering opening up a subway. Do you have a email address? If not could you reply to my comment and i will give mine.

g4040

 To sonup,
 
Do u have an email address? Im considering opening up a subway.

Pronse

mrfranchiseman is a Subway owner as per his own words. How does Subway allow its own franchisee to give +/- ive advice to prospected owners?
Wouldn`t they try to control this aspect themselves rather than leaving it to one of their franchisees?
Sounds too fishy to me...Pronse6/21/2009 2:09 PM

mrfranchiseman

mrfranchiseman is a Subway owner as per his own words. How does Subway allow its own franchisee to give +/- ive advice to prospected owners?
Wouldn`t they try to control this aspect themselves rather than leaving it to one of their franchisees?
Sounds too fishy to me...

 
I am a former franchisee and have 22 years insight in this brand. I say what I want and feel, nobody tells me what to say. You are also free to talk to franchisees where you live, and you should. I give the truth if you can handle it.
 
mrfranchiseman, always advising franchisees 

BrenJapp

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.

Where on earth does this math come from? $8000 a week in revenue would be 1600 subs. If we did even the most low-ball number from people regarding a profit of 15%, you`re still looking at $1200 a week or $62,000+ per year.
I can`t believe you took your time to type all that and try to say someone would only make $190 of profit on $8,000 in sales...

mrfranchiseman

Your math and business model are wrong
$8000 IN SALES IS NOT 1600 SUBS.
MRFRANCHISEMAN.COM

mideastflyer

Can you please elaborate on the numbers, Mr. Franchiseman?  I agree that 8,000/5 = 1,600.  Let`s keep it simple for this example and assume that $5 subs are the only source of revenue.
mideastflyer7/27/2009 12:26 PM

mrfranchiseman

If all your subs are $5.00 you will not make much money unless your rent is also ridiculously low or you own your own building
Payroll runs about 20%, Food cost about 30%, Royalties 12.5%
Now pay the Rent and utilities etc-"Operating costs"
Nothing left.....that is why you sell 6 inch subs, drinks and chips etc and have other subs priced at over $5
Your question is rather redundant. We should talk.......949-253-4610

blademcslayne

i stumbled on this post doing some other research, and though it is probably pretty much dead i have to put my 2 cents in here. i am in the deli biz, but am not a Subway or Quiz owner. in fact i am an indie, own more than one location, but that is not important.
everyone of the questions here has to do with what one can make? or how much does X franchise make?
if you get in this biz you will here: your food cost should be x%, labor x%, have to pay x% in royalty/marketing and so on. while these percentages are important, and they REALLY ARE IMPORTANT, they are not the key. i have friend that has a pizza franchise and he is always complaining about his food cost. my response is always, "do you want 30% food cost or net $1mil a year?" and the yahoo always responds i need that 30% food cost.
its not about % its about $. and the questions in the post are about $, but believe it or not you have to use % to get there.
Let's use the $5 sub mentioned a while back. Ok $5 a sub. Here is what you need to consider. 30% for food, 13% for rent, 5% for utilities/insurance, 2% misc expense, 16% employees, 10% taxes (maybe a little much)...that leaves 24%. so of that $5 sub you have $1.20. This is the high number, cut it in half for the low number ($.60)
now what do you want to make a year. lets take a stab at $50k. Thats not much, but in this economy some people would kill for it. so with a little math that is roughly 83,334 total sales or 229 per day...
can you get 229 people in a day. say you are open 10to10, how about 19 an hour.
this is how you need to think about the biz. its not the gross number, or the net number. it is taking your average ticket and putting butts through the door.
but i think like an indie, and if you are looking at a franchise you have to add in the royalty and marketing.
this is business...not money trees.

coolfez

Hi all,

New to this board but doing research on Subways.
Just want to add something to the whole $5 foot long thing, read an article that some owners were pissed off at the company for doing that policy into place since their profit margin was narrower.
However, if you have gone to any subways recently, you will see that only SOME subs are $5. And usually those are the cheaper ones to make. Also, don't think that someone is just going to spend $5 when they go into a subways, they will buy a drink and chips or another side and that can add up too.
Also read an article on how walmart is favoring subways now instead of a McDonald in their stores, the reason being that walmart is trying to improve their image as being more healthy and an internal memo leaked a few years ago about trying to get Walmart employees' more healthy since their healthcare is covered under walmart.

Here is the article: http://articles.moneycentral.msn.com/In ... nalds.aspx

advantage of opening in walmart is not having to maintain ur own restrooms, and having a steady stream of potential customers walking around your subways and seeing your subways. Also you don't have to pay for security.

I am looking to open a subways, hopefully in a couple years when I am finished with college. Has anyone looked into if an absentee owner can own a subways? Like what is the minuim number of hours a week the owner has to be at the store once it is established?

Thank!

mrfranchiseman

Subwayowner, thank you for your positively toned post and facts
Regarding the hours an owner need to work, you are right that Corporate does not mandate anything. However, the DA is expecting your "involvement" when you have only one or two stores. Multi-unit owners have a different management and supervisory structure, so owners spend less time on the line in the store. Since most of the questions here are from people trying to get into their first one, it is appropriate to warn them to expect to work 40-45 hrs a week in the first few months.
Furthermore, if they are to achieve the 20-25% net you have mentioned, that is definitely from an owner operated store putting in lots of hours and with a great low monthly rental factor. Most of the stores I see and sell, are below this 20% figure
Lastly, I agree there are Real Estate deals to be had in this market. The problem in some areas is that new stores are reserved for existing owners, and only a few areas are open to new franchisees, so DA development continues but on a selective basis
mrfranchiseman.

JennCug

I worked at Subway as an assist mgr for 5 years. It seems to me that many asking questions on this board want to make a lot of money and do no work. Subways don't work like that. I know quite a few restaurant owners and when you own a restaurant your leg is basically chained to an anchor. Abstantee ownership with a restaurant doesn't work. Count on living at your Subway.
The franchisee I worked for was in rural VA. He had 4 stores... 3 in small towns of around 3,500 people and one on the side of the interstate. The gross sales in the towns was $200-$300/day. Well, he lost his shirt. The indies that opened after him also closed wtihin 12 months. The location on the side of the interstate was very profitable and is still open.
It is hard work. You have to put up with the public. And they all want something for free. When the franchisee wasn't there the employees (usually 16-ish year olds) would steal the food and money.
I've since moved to Atlanta, GA and got to know a franchisee in a strip mall. He says he's not making much money but it pays his rent and car and he's got food in the ice box. He said he's around the $3,500 net profit monthly (working 60 hrs per week)

nevadascul

One reason for the $400 K net worth might be to ensure you have financial resources enough to carry the store for the first year or two until you get a client base established.