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whats the average income of a subway restaurant owner?

    • 1 posts
    January 27, 2008 8:09 PM EST
    I am interested in starting a subway and would love to talk to you about your best advise.
    • 1 posts
    July 2, 2011 6:06 AM EDT

    Hello Im Edwin,20 from chicago i been working in fast food for 3 years. Dunkin Donuts ,Mcdanolds ,I really want to open a Subway cause I know how to run a store/shift people want a clean store and friendly fast service .And i want good income Im saving up I need like $150,000 one day when I open my Subway i going to work. Really hard cause i know is risky bussiness it not easy but if you work hard and do research it will work out .

    To do list

    Money $150,000

    find a good location

    work hard

    If i had a Subway that make's like $40,000 i have to save $30,000 the rest to pay bill/Employe's

    • 1 posts
    December 29, 2009 3:49 PM EST

    I am interested in opening a subway franchise in South Florida.

    My friend and I will be opening up this as a partnership.  Is there any money to be made off of one location with two people sharing the proceeds?

    As owners are we able to draw a salary from working in the location?  What is the average salary to be earned?

    Do you suggest opening a new Subway or purchase an existing location?

    What advise could you give to someone looking to change careers and starting up a new business?

    Thank you all for your help.

    • 54 posts
    January 20, 2009 7:14 AM EST
    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
    • 54 posts
    January 24, 2009 3:28 PM EST
    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
    • 54 posts
    January 28, 2009 6:28 AM EST
    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
    • 54 posts
    January 28, 2009 6:31 AM EST
    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
    • 54 posts
    February 16, 2009 7:42 AM EST
    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

    • 54 posts
    March 9, 2009 1:18 PM EDT
    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
    • 54 posts
    March 23, 2009 7:58 AM EDT
    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

    • 54 posts
    March 23, 2009 8:04 AM EDT
    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
    • 54 posts
    March 29, 2009 6:41 AM EDT
    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
     
     
    • 54 posts
    June 23, 2009 11:23 AM EDT
    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 
    • 54 posts
    July 24, 2009 12:36 PM EDT

    Your math and business model are wrong

    $8000 IN SALES IS NOT 1600 SUBS.

    MRFRANCHISEMAN.COM

    • 54 posts
    July 27, 2009 12:47 PM EDT

    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

    • 54 posts
    January 3, 2013 11:49 AM EST

     

    Seriously looking into buying into a Subway franchise in Los Angeles area but was hesitant until reading the above posts.  Thank you all for the wealth of information.  Does anyone have any further words of wisdom? 



    • 54 posts
    January 3, 2013 11:52 AM EST

     

     

    Seriously looking into buying into a Subway franchise in Los Angeles area but was hesitant until reading the above posts.  Thank you all for the wealth of information.  Does anyone have any further words of wisdom? 



     I work with buyers all over USA, CAN and the rest of the world....15 countries so far.

    My advice is similiar to all USA inquiries; I happen to be based in the Los Angeles area

     

    mrfranchiseman.com

    • 54 posts
    February 26, 2010 12:57 PM EST

    You are on the right track.....but you should consider that, as an example, the first 100 customers pay for all the fixed expenses and get you to reach break-even, then the additional customers over 100 start to contribute to your profit at a much higher rate. In the case of Subway, it is between 40 and 45% of the sales over break-even

    So for those who did not follow, it is called Contribution Margin and incremental sales are worth a fortune at the 45% level

     

    Fayaz Karim, Subway specialist with mrfranchiseman.com, 22 years at it! 

    • 54 posts
    March 27, 2010 11:23 AM EDT

    Subway absentee owner...min hours for owner...

    Subway expects all owners to work in their store and take full responsibility, so expect 40-50 hours a week, until you find that great employee you can depend on and/or get lazy, then you can slack off a little and run it by the numbers with minmum attention. That is how most people got to become multi-unit owners. Better make sure employee training is first rate since you are dealing with food safety.......

    I have 22 years with the Subway brand, mrfranchiseman.com

     

     

    • 54 posts
    May 10, 2010 7:53 AM EDT

    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.

    • 54 posts
    May 18, 2010 10:46 AM EDT

    Jobsearcher, you need some more serious information such as:

    SALES and trends(Get his COMBO report)

    Total monthly rental burden

    Length of lease and terms

    Min wage in that State

    From this I can usually calculate his cash flow and the price you should pay as I have a huge database of information to work from and do this for a living on a daily basis.

    You say sounds like a good deal? I cannot say anything as there are no facts to work from.

     

    mrfranchiseman, 949-253-4610

     

    • 54 posts
    June 1, 2010 9:14 AM EDT

    As a Subway transfer specialist asisting buyers and sellers, I have heard many variations of this criteria. They need a high net worth because they would like you to be able to grow within the franchise after buying your first one This will take money, so they want to make sure you can afford your second or third one; they are not so inclined towards single purchasers. We can debate this if you care to call me

     

    Mrfranchiseman, 949-253-4610

    • 54 posts
    June 14, 2010 8:26 AM EDT

    Tracy,

     

    IRRELEVANT link to these posts.................

     

    Mrfranchisman.com

    • 54 posts
    July 7, 2010 2:10 PM EDT

    Response to nevadascul and jenncug above

    You actually do not need, should not need 400k to cover negative cash flow for one year; if you are projecting that bleed rate, do not buy that store. If you are not sure of the projected cash flow based on Sales and Rent, contact me , as others have done, to find a reliable projection of actual cash flow and buy the store at a reasonable price. Most people get rich on Subway with 2 or 3 stores or more, not on one store. For new prospective owners-you can usually buy only one store at a time.

    mrfranchiseman.com, Subway specialist

    949-253-4610

    • 54 posts
    September 14, 2010 10:53 AM EDT

    Anyone needing Subway information can contact me. I have the latest cash flows and valuations...fayaz@mrfranchiseman.com