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whats the average income of a subway restaurant owner?

    • 2 posts
    January 22, 2012 12:16 PM EST

    To Mrfranchiseman,

    and everyone else.

    Thank you for all the great info on this topic.  I presently live in philippines, there are 13 stores in the entire country.  I am considering opening a franchise here, the few stores i have been to here are less than 500 square feet and rent on them is typically about 1500 dollars a month.  Payroll is a joke here running about 10 dollars a day per employee.  However, the two sites i have looked at, both want 8 percent of gross revenue as well as rent.   So am thinking that offsets the cheap labor cost.  Also it appears the 5 dollar promo doesnt apply here however they do run daily promo's, assuming those are to rid themself of stock near end date.  The culture of fast food here is different than i have ever seen anywhere, shopping malls will have three to five starbucks and two or three kfc's in the same mall. the store i most recently visited had 20 customers come in 15 minute period at 8 pm on a friday night in a low foot traffic area of a mall annex.  I am working up a proposal based on an average of 100 customers a day and after payouts it seems the profit would be minimal.  However i do not know exact food costs and working on a basis of 30 percent, 16 percent to subway and the mall, 10 percent to wages, 25 percent to utilities, equipment, lease.  Does this sound like i am on the right track?  That would leave about 20 percent for profit and items i am overlooking.  Again thanks for all the info here and have a great day.

    • 34 posts
    May 8, 2012 4:44 AM EDT

    By reading all the posts and and the answer of the Subway Owner I have got many ideas for opening my new restaurant. Thank you all.Cool

    • 1 posts
    March 5, 2008 5:34 PM EST
    I am looking into subway franchise.  I am looking for the bottom line.   Sounds like an opportunity for me.  Do you usually lease a building or purchase a building?  What is the average size building needed?   How much is an average lease per mo?  I am sure this is different according to size of building and its location.  I feel that about 1200-1300 sq feet is enough.
    This seems to be a great thread
    • 1 posts
    August 15, 2008 10:11 AM EDT
    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? 
    • 3 posts
    July 28, 2006 10:08 PM EDT
    I am curious to know what is the average profit a subway restaurant owner would make monthly? Or if you know anyone who owns a subway, how much do they make monthly?
     Remeber I am not asking for the exact price.. so please don`t say depends on location. I just want a rough estimate.

    • 3 posts
    August 21, 2006 12:28 AM EDT
    Subway owner.. thanks for your reply you were very helpful. You have gave me more information than all my research and questions I posted on various forums put together.

    Do you have an email or screen name I can contact you on if you have time to give me more advice..
    • 1 posts
    December 9, 2011 11:08 AM EST

    mrfranchiseman  thanks for all your info on this board.....very good. 


    Am I missing something?  If you had a gross of say..$300k and cleared 20% that's $60k.  If the store cost $200k    that's a 30% return on capital.  Iknow there art owners earnings considerations, but from an investment standpoint this is excellent is it not?


    YOu advocate buying an exisitng unit as  your first store.  But aren't those more likley than not to be problem, low gross units.....a tough way to start?

    • 1 posts
    September 23, 2007 7:02 AM EDT
    If you really need figures check the Barnes & Dunstable Reference or Hoovers in your local libraries. B&D is free information for the gathering. There many ways to find out income freely as well as marketing demografically etc. There is just leg work and it can`t always be found  on the internet for free. But a good local college library usually has all that info. Just go to the information or reference desk. No disrepect to anyone! I find that online anyone can just through out figures and info they have collected offline or info I already had.
    • 619 posts
    July 29, 2006 11:38 AM EDT
    Take a look at Starbucks... There`s one on every corner. I don`t own one, but they all seem to be making money...

    ScrapBizKim... I agree with you. I was just being facetious.

    Vincent Wilcox (a.k.a. KRAKR)
    My band: Letters Make Words

    • 619 posts
    August 17, 2006 7:14 PM EDT
    I was just trying to illustrate that the each make money even though they are on top of each other... Also, I did mention I was being facetious... with a big old smiley too. 

    Vincent Wilcox (a.k.a. KRAKR)
    My band: Letters Make Words

    • 1 posts
    June 7, 2012 7:26 AM EDT

    When someone says: "I am making 15% profit"

    this is after they pay the royalty fee, right?

    Lets say the average profit margin is 15%, if you still need to pay the 12,5% (royalty+advertising) , you are having around 2,5% net profit, which is not a good business investment

    can someone clear this for me?


    • 1 posts
    July 1, 2011 7:30 PM EDT

    Mr. Franchiseman:

    I am willing to explore Subway franchise, i currently have aroung $90k in cash, but my net worth is aroung $120K. I am currently employed making around $90k a year, but i need to start my own business.   I am hardworker and could dedicate 30hrs a week to this, in addition my regular job but i need your advice on investing this money on a franchise or trying something else, i dont want to spend all my savings on something either risky or that will not be able to run as my background is not related to food business.  You mention english and math are tested, no problem as i am engineer but my english is not perfect as i am a legal inmigrant.  Please your advice or tell me if i should call you or email.  thx and expect good guidelines from someone knowledgeable as you in this matter.

    • 1 posts
    October 10, 2008 8:00 AM EDT
    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
    • 1 posts
    May 25, 2013 9:58 PM EDT

    Hi MrFranchiseman


    I see that you give a lot of good advice on starting Subway franchises and you suggest to everyone to contact you personally. Do you offer this advice free or is there a coaching fee? Because I have been interested in starting my own business for the past 3 years and have been doing quite a lot of my own research because everyone else makes you pay and Subway seems to be a good investment for hard workers with the entrepreneurial spirit. Let me know.


    Thanks in advance

    • 55 posts
    May 29, 2014 8:32 PM EDT
    I have been absent off this forum for a while and busy with life as you all are. But just wanted to mention that Subway wants to open 8000 more stores in USA if they can. They can and will!
    Talk about Saturation from the franchisee perspective!......big debate going on.
    It is time for some Subway owners to sell and cash out some of their portfolio. I am already seeing some movement in the market, but they are usually the least performing in their portfolio. To be expected.
    Great time for first time buyers looking for a decent job and getting ready to pounce on new opportunities as they come along. They will all sell someday.....

    Over the years I also wandered what people buy or do if they cannot buy a Subway or other franchise, and found an amazing solution. And it is free of all the franchise headaches I have heard over the past 20 years, yet it operates like a franchise with no limits. Subway is matured and getting to be a tired brand , or so I am told. They are even doing $4 subs in a few areas........

    This post was edited by mrfranchiseman at May 29, 2014 8:35 PM EDT
  • October 11, 2014 11:09 PM EDT

    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%)
    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!
    This post was edited by subwayfranchisee at October 11, 2014 11:15 PM EDT
    • 1 posts
    December 17, 2014 9:34 AM EST
    Great info Albert, thanks.
    • 1 posts
    January 12, 2015 1:29 PM EST
    Hi Biagitec,
    I found a post from you regarding your interest to get into the franchise business. I have a similar interest to step back and venture out of the corp world to become a franchisee.

    Did you get into the franchise world? Did you try Subway?
    • 55 posts
    April 16, 2015 7:33 PM EDT
    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!

    • 1 posts
    October 23, 2015 7:15 AM EDT
    Could somebody explain me why Subway is not implant in Bangladesh?

    What are the reasons?

    Thank you.