Whats the average income of a subway restaurant owner?

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  • mrfranchisemanmrfranchiseman subscriber Posts: 0 Member
    In 2015 I have started to see many marginally profitable stores on the market. By that I mean stores with owner cash flows less that $30,000 for their own pocket after all expenses.
    Sales have taken a tumble in the market in general, by between 5 and 15% as competition heats up and they went off track with their advertising message. Expect new subs, less discounting and even better quality ingredients perhaps for "deluxe" subs where they can get a higher price. Same bread!
    So with more stores for sale you can get in at a better price perhaps. Snap up the best ones Please!

    mrfranchiseman
  • MonicMonic subscriber Posts: 0
    Could somebody explain me why Subway is not implant in Bangladesh?

    What are the reasons?

    Thank you.
  • IBO1IBO1 subscriber Posts: 0
    <blockquote><strong><a href="/community/profile/aspun">aspun</a> said:</strong><br />&#160;$ 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 &amp; 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.
    <div style="display: none"><editID>aspun</editID><editDate>3/27/2009 10:52 PM</editDate></div></blockquote><br />
  • IBO1IBO1 subscriber Posts: 0
    I have personally reviewed many businesses over the years one thing i have learned is first when someone says something negative it is usually an underlying reason from your point of view it sounds like a disgruntle employee one your spelling is child like at best and secondly your figures don't even add up my best guess is you have been struggling with Math and English since the third grade please go on jeopardy and buy a clue before you post here again were people are researching real business not to here from an angry former employee who likely got fired for not cleaning the bathroom after his shift
  • IBO1IBO1 subscriber Posts: 0
    <blockquote><strong><a href="/community/profile/subwayfranchisee">subwayfranchisee</a> said:</strong><br />Inquirer,


    I own 3 franchises in the United States and my break down is this:

    Food-33% (lowest store 30% highest store 33%)
    Labor-22% (lowest store 19% highest store 22%)
    Rent-9% (lowest store 3% highest store 9%)
    Subway-12.5%
    Utilities/Misc-8.5%
    Profit-15% (lowest store 15% highest store 22%)

    I highly suggest keeping your food/labor 55% or less and rent less than 10% to maximize profits. Mrfranchiseman and SubwayOwner have the most accurate posts on this site. I would also suggest financing your equipment instead of leasing. The average subway lease comes out to +20% interest where as a traditional loan would be in the 5-8% range. Hope this helps! </blockquote><br />
  • IBO1IBO1 subscriber Posts: 0
    Now these are figures are what people are looking for its not inflated nor low balled it shows an avrage view of what a store makes and what you could do to make your own store make
  • mrfranchisemanmrfranchiseman subscriber Posts: 0 Member
    <blockquote><strong><a href="/community/profile/IBO1">IBO1</a> said:</strong><br />Now these are figures are what people are looking for its not inflated nor low balled it shows an avrage view of what a store makes and what you could do to make your own store make </blockquote><br />


    OBOI is having a hard time with Subway it seems.

    Here is what is going as of Dec 2015

    Subway stores are still profitable in general, but some of the marginal stores have become terrible and will close or change hands for very little money. That is life-things change
    Sales are down by 5-20% in various stores for many reasons.
    Saturation, poorly run stores, media coverage of negative Subway events,
    maturity of the brand, and so on. Therefore, store values are down too.
    That is why it is a great time to buy a decent store as owners are willing to sell now but who were not willing before.
    There are many disgruntled owners with many stories of unfair practices.
    But owners must take responsibility for saturation. Nobody forced you to build stores so close to each other; you chose to do so by your own calculations, risk analysis and greed. Corporate only approved it because they win every time you buy or build a franchise even if it fails. It is a game and you are a willing participant. Now it's time for a market correction, so take a deep breath and things will work out in the long run. I need not go on and on. Nobody listens anyway even with my accumulated 28 years of wisdom and insights into the Subway brand, as an Owner, Development Agent, and franchise broker. Anyone who really has an open mind, is a listener and has some courage, get in touch with me at www.mrfranchiseman.com

    Goodluck everyone!
  • ShirlinShirlin subscriber Posts: 0
    Hi there. This was very valuable information. To those who left comments and are franchise owners, I have a question. Would you be open to providing me with a financial statement showing what an average Subway store makes per year? I'm currently in the process of a divorce and my ex husband is claiming on his taxes and in his financial statements that he's making $900/year. He is trying to cheat me out of getting anything out of the store and getting this financial statement would really help prove that his numbers don't add up. If you have any other thoughts/suggestions, I'm open to it. Thank you so much in advance for any help!
  • jmenjmen subscriber Posts: 1 Member
    I own three Subway restaurants.  I don`t want to make anyone mad, but some things posted here are either wrong or misleading.  First off, I have been involved with Subway for 17 years, since 1989, and it is a good company. 
    The average store in the US does a little shy of $8,000/week.  So for easy round numbers lets say the average store does $400k/year.  It is relatively easy to pull 20% profit if you keep an eye on the business.  I averaged 22.63% for the first quarter this year and I was in my stores an average of 10 hours or less per week so 20% is not that hard.  But for the following estimate, lets use 20% average profit.
    If you have a store that is merely average you should profit in the ballpark of $80k/yr.
    Now lets say you were lucky enough to get a great location and you store does $15k/week (the area I am in has several stores that do this and much more in sales so it is very possible), well you should be making in excess of $150k per year.
    Now, one or two stores are not going to make you a multi-millionaire, but you can make a comfortable living without much of a time investment.
    Now lets switch gears.  I`m not sure what article in Entrepeneur Magazine said Subway was rated one of the worst franchises?  I would love to see a link to this article?  Entrepeneur Magazine rated Subway the #1 franchise in their Franchise 500 for 2006.  This was the 14th year Subway was rated #1.
    Yes, Subway franchisees must purchase the food from one distributor, not from "the parent company".  These prices are not "inflated".  Infact, it`s just the opposite.  IPC (Independent Purchasing Cooperative) was formed to negotiate prices and ensures all foods/supplies meet "Gold Standard" qualities.  Some food distributors don`t want Subway`s business because the pricing leaves so little room for distributor profits.  With over 26,000 stores we have tremendous buying power.
    If you purchase a subway you do not have the rights to a certain territory.  Subway does not have "regional managers", but does have "development agents" a.k.a. "DA".  Development agents` "sole mission in life" is not just to open new stores.  Yes, as their company given titles suggest they do focus on developing their given markets/territories.  There have been some unhappy franchisees when stores were opened close to their existing store and sales were negatively impacted.  However, this is not the norm.  It depends on the DA.  Most DAs are very conscious of their existing franchisees.  DAs have contracts with Subway`s parent company, Doctor`s Associates Incorporated.  Per their contracts, they must maintain a certain level of sales average in the market.  Therefore, they can`t just go putting Subways on every corner to meet the development numbers they need.  They have to be smart in their development.
    If you are considering Subway, talk to existing franchisees in the area  and ask about their satisfaction with the DA of that area.  Development Agents are also expected to ensure franchisees are operating within company guidelines by having field reps that inspect stores monthly.  They do much more than just open stores.
    Again, I`m not writing this to offend anyone who posted above.  I just want to make sure that anyone considering Subway has accurate information.  I hope this helps. 
  • Ryan O'BlenessRyan O'Bleness Birmingham, Mich. administrator Posts: 1,135 Site Admin
    Just an FYI, everybody. Subway recently signed a cooperative agreement ensuring fair pay for its workers, and making sure its franchisees comply with all current labor laws. Subway voluntarily did this, kudos!

    If you are thinking about franchising a Subway resturant, this is important information to know, and you should make sure you are in compliance with all laws, agreements and regulations.

    You can read more from Joel Libava, The Franchise King, below. Libava is a former guest on the StartupNation Radio show, and an expert on franchising:

    https://www.thefranchiseking.com/business-news-subway-signs-cooperative-agreement
    Ryan O'Bleness
    Community Manager
    StartupNation, LLC
  • FutureBownerFutureBowner subscriber Posts: 1 Member
    I have been doing some research on opening a subway and this thread has been amazing. I recently just spoke with a franchisee that is looking to sell his store in the area and move to a larger city where his son attends school. The good thing about this location is it's on a military installation, it's the only subway and I can get the store with everything in it for well under 200k. After sitting with him he profits about 9k a month. With the only overhead not including food and 12.5 to subway, rent and light bill. I understand it maybe tuff doing this in the city as subways are everywhere. But this subway is one of two places to eat on post. Any thoughts, suggestions, concerns are welcomed. Thank you 
  • Ryan O'BlenessRyan O'Bleness Birmingham, Mich. administrator Posts: 1,135 Site Admin
    edited June 2017
    @FutureBowner, seems like a profitable venture, and that you won't have a ton of competition.  

    I would make sure you get an estimate for food costs as well, though, since the food business is tough in terms of profit margins. 
    Ryan O'Bleness
    Community Manager
    StartupNation, LLC
  • samlukesamluke subscriber Posts: 2 Member
    subway franchise business is in trash now, most of the franchisee are trying to get out of this business. There are so many subway restaurants are on sales with less than 1/3 of the original price and still no one is buying them, despite the competition from the other brand like chipotle, jimmy johns etc, subway will hide a very important fact, it's about it's franchisees. Subway is the financial predator, I would say it’s the 21st century slavery. Subway will exploit you and squeeze you till they can get a single dollar from you and throw you in the trash at the end. They have made the lease and other compliance rules so that the franchisee can never be in compliance and it’s a win-win situation for the subway and can throw you out anytime. It has come so far by exploiting so many poor franchisee and advocates itself as a healthy option and environmental friendly, it’s all crap. It’s going towards quiznos path. There are so many subway stores are on sales with 1/3 of the original price and yet no one is buying them. The best way to fight with subway is by not renewing the lease contract when time comes because these days once a store is closed, it’s never going to come back so subway can’t keep collecting it’s royalties by exploiting us. DO NOT own subway franchisee.
  • Ryan O'BlenessRyan O'Bleness Birmingham, Mich. administrator Posts: 1,135 Site Admin
    @samluke, well that's an interesting perspective. I assume you're speaking from experience? If so, that's good to know. The franchising business can be tough, so it's good to let potential owners know the struggles and red tape of owning a store like Subway. Thanks for your valuable take! 
    Ryan O'Bleness
    Community Manager
    StartupNation, LLC
  • samlukesamluke subscriber Posts: 2 Member
    @Ryan O Bleness, yes I own three subway locations and I am counting every single day to sell all my stores. Subway is the biggest problem in Franchise business, it's franchise agreement and lease are the worse among all, it will make you it's slave once you sign the lease and agreement. We will see some massive store closures within 3-5 yrs from now. It does not make any sense that it exploits its franchise owners so bad and advocates as the healthy alternate and environmental friendly. This house of card must fall.
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