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Whats the average income of a subway restaurant owner?
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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
What are the reasons?
Thank you.
<div style="display: none"><editID>aspun</editID><editDate>3/27/2009 10:52 PM</editDate></div></blockquote><br />
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 />
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!
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
Community Manager
StartupNation, LLC
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.
Community Manager
StartupNation, LLC
Community Manager
StartupNation, LLC