Subway Franchise Cost In India

About

Subway was the brainchild of a 17-year old boy named Fred DeLuca who opened the first store in Bridgeport, Connecticut in the United States of America.

Only nine years later, the franchise was born with the Wallingford store, in 1974. Since then Subway has gone on to become the largest single-brand restaurant chain and the largest restaurant operator in the world.

Today, Subway outlet are around 43,000 in the world spread across 110 countries. Subway entered the Indian market in 2001 and boasts having  over 600 restaurants across 68 Indian states.

The brand’s dominance is largely attributed to its food quality and flexibility, both with taste and the franchise model. On top of that, the franchise for Subway also includes support from the brand itself.

It includes support in marketing, intelligent personnel training programs and active Subway franchise headquarters in India. 

Subway is an excellent brand to make your first leap into the franchise business. It is very accommodating. Within a couple of months, you can be earning good profits if you take care of a few things.

The location is an important factor with Subway to gauge performance. If you are able to procure a decent location, both traditional or otherwise, Subway will grant you permission to open a franchised restaurant.

The only catch is that you are able to meet other criteria, including access, size and previous experience in certain cases.

The other requirements include manpower required and capital required. When it comes to manpower, a total of 8-10 employees are needed to run a store successfully.

As per the capital requirement, we will discuss that in detail in the following sections. For now, we can suffice to say that Subway offers some of the most competitive franchise investment rates in the market.

Given its worldwide popularity and reputation, it is a total no-brainer.

Steps to open a subway franchise

The first thing that you need to do in order to be able to open a franchise restaurant with Subway is to know their business model and be able to emulate it.

Let us have a look at what makes someone eligible to be able to apply for a subway franchise. 

• Do you have prior experience?
  
  If you are someone with some kind of a background or experience in the food business, you already have earned extra points towards scoring a franchise restaurant in Subway.
  
  Having said that, not having prior experience is not a death knell with Subway. You can still open and run a successful business.
  
  

• Do you have enough capital?
  
  As long as you have enough capital to pay the fee to open the franchise and to pay for the material costs, you are good to go. The material costs are largely divided into three main categories; space, manpower and product.
  
  

• Are you willing to learn?
  
  The Subway franchise model requires on-Job training, not only for the employees but also for the entrepreneur herself.
  
  Therefore, it is important that everyone involved be open to learning and growing with the restaurant. Even if you are someone with years of prior experience, it is important to be able to follow the training guidelines and have faith in the business model and its products.

If the answers to most of these questions are positive, then you are ready to open your Subway franchise. Next, it is time to discuss the various responsibilities involved in opening a franchise restaurant.  

• The first step is paying the initial Subway franchise fee which is a little over six lac Indian rupees.

• Once you have done that, you must procure a location that is in agreement to Subway’s location policy. 

• Next, the location must be made fit to be made into a restaurant. This includes installing equipment, taking care of the interiors and finishing up on the decor and lighting.

• Once the place is ready, it is time to start hiring and have a team that is ready and trained to start operations.

• Once the restaurant starts operations, pay 12.5% of the gross sales, every week. This 12.5% does not include taxes.

Why choose Subway as a franchise

When it comes to size, Subway comes second only to McDonald’s as the largest restaurant chain in the world. It does not have any real competition in the market in its particular segment.

Since it offers mostly freshly assembled salads and subway sandwiches, all made to order, according to the particular customer’s taste, it stands out.

What happens when you give total flexibility to the person, as far as the recipe is concerned, you cater to a much wider audience and their personal tastes in a way other restaurants cannot.

This is also the reason why Subway is one of the fastest growing franchises in India. Since Subway offers the complete package, from support to training and flexible requirements, opening a franchise becomes much easier.

Having said that, they do have very strict and stringent rules when it comes to quality and that is why they have been able to consistently climb the ladder to success.

Is Subway a profitable franchise?

The short answer to this is yes. However, there are a few criteria that need to be taken care of before you can deem your Subway franchise a success.

If you do it right, your Subway franchise can be making you up to INR 20 Lacs per month. Looking at the global figures, the franchise model of Subway is far more successful than an average global franchise.

Where others are able to make a mere 7.5% of their annual sales in franchise earnings, Subway is able to do much more.

Speaking in figures, Subway earns around $422,000 on average annually, as compared to the $31,000 of its competitors.

Since the upfront franchise fees of Subway are much lower than its market competition like McDonalds, it is easy to open and start earning money through Subway.

It is important to note that it does take around 12.5% of the weekly profit, however, 4% of it goes towards marketing costs.

That way, the marketing is covered and you do not have to worry about that. As long as your particular restaurant offers high quality, fresh food and has competent manpower, you should succeed.

Investment required

The investment required to get yourself a Subway franchise can be divided into three major parts. These include the franchise cost, land cost and equipment cost. All of this can account up to anywhere around INR 30 to 40 Lacs.

This cost can be brought down by a considerable sum if you own the land/property on which you plan to build the restaurant. Exorbitant rental rates are considered a bottleneck by franchise owners all over the world and India is no exception.

When you do not have to pay anyone for simply being situated in a place, it helps you save up a lot of money and increases your profits.

The franchise fee for opening Subway is estimated to be around INR 4.5 Lacs if it is your first restaurant. However, if you already have a Subway franchise, your next franchise fee would only be INR 2.25 Lacs.

The running cost of a Subway franchise can be considered to be around INR 1 Lacs. On average, Subway franchise owners in India are able to make anywhere between 40 to 50% in profits, making it a highly profitable proposition.

Step by step guide for applying for subway franchise

Applying for a Subway franchise is easier than you think. All you need to know is how to use the computer and what to do with the form once you have it.

Even if you do not have information pertaining to a certain part of the process, Subway will help you along the way. Here is a stepwise guide of how to get subway franchise in India and how to ask for help.

• Step 1:

  Go to the official Subway website. Here is the link to the official Subway website. You can reach the website by simply clicking on it. - HERE 

• Step 2:

  Once you are on the website, you will find a downloadable application form for applying for a Subway franchise in India. Download the form before you can start filling it. The link to the form has been provided below. HERE 

• Step 3:

  Make sure to enter all the details in the application form truthfully and completely. 

• Step 4:

  Once the form is filled, you need to mail the form to the Subway office, India. Details of the address have been provided in the sections below. 

• Step 5:

  If you have questions or doubts about the process or your particular information, you can call the Subway franchise office. Their number is 022 4976 3134.

Support offered to Subway franchisee in India

When it comes to support, Subway is an excellent restaurant chain. They have a detailed catalogue that includes all the ways in which it helps franchise owners excel in their venture.

Let us take a deep dive into all the ways Subway will help you in your endeavour. 

• Training: Subway offers regular training to all its employees. It also includes compulsory training for the staff and franchise owner before the restaurant is launched.
  
  After that, periodic training is held to keep the team up to date with the food safety regulations, train them about the latest recipes and procedures, including other things.
  
  
• Design: Subway offers assistance with the design of the restaurant itself. The layout of every franchise restaurant is provided by Subway and the owner must adhere to it.
  
  This ensures uniformity and makes sure that the customers get exactly what they are expecting. Apart from that, the decor is also standardised for the same reasons.
  
  The owner bears the cost of the decor but the materials and design is provided by the company.
  
  
• Equipment: Subway offers assistance with everything from installation to vendor listing.
  
  When it comes to buying equipment, it provides proper guidance so that you are geared up for success, no matter what your background and current situation.
  
• Location: Proper evaluations are done to ensure that the location of your proposed restaurant is conducive to business.
  
  This is an important benchmark that the location must meet and can be a great way to gauge whether opening up a certain type of a restaurant in a particular area is viable or not.
  
  
• Operations: Once the restaurant is up and running, proper field support is offered by Subway.
  
  A field support agent, franchise coordinator and research and development team offer continuous support throughout operations.
  
  
• Marketing: Franchise owners get access to world class marketing and advertising solutions when they team up with Subway.

Contact details for Subway office, India

• Physical address:  Subway Systems India Pvt Ltd.B 11/1, Okhla Industrial Area, Phase II, New Delhi -110020
  
  
• Telephone Numbers:  011 41754035, 011 41708082.
  
  
• Email ID: sa_development@subway.com 

Conclusion

If you are someone planning to open a Subway franchise, then you can reach out to Subway’s India office through the information provided above.

In general, opening a Subway franchise restaurant can be a very lucrative business and can help you grow your capital quickly. There are a few criteria that you must meet before you are able to open a restaurant.

Once you clear that restaurant, Subway helps you walk the rest of the way to success. There are many modules designed to engineer your success, so you can ease your mind on that front.

I hope you liked our article on subway franchise cost in India , if you have any comments or suggestions do share them in the comments below.

Frequently Asked Questions (FAQs)

Q1. Is the Subway franchise profitable in India?

Yes, Subway is considered to be a profitable franchise in India. On average, franchise owners make 40 to 50% in profit.

The weekly cut of Subway is 12.5% which includes around 4% that goes into the marketing costs for the brand/restaurant so you do not have to worry about it.

The success of Subway as a franchise is also given to their excellent support model. They offer support not only during the operations of the restaurant but also before that.

Q2. How much does it cost to open a Subway in India?

You can expect to be spending anything upwards of Rs. 25 Lacs for your subway franchise. The franchise fees in themselves are around 6 Lacs and the running costs are around 1 Lac a month.

You are required to have a staff of 8 people which includes Sandwich artists, managers, bakers and more. The salaries of all of these employees is also paid by the franchise owner.

If you own the land/property in which you plan to open the franchise, you can save a considerable sum which would otherwise go to rent.

Q3. Is Subway a profitable franchise?  

Yes, Subway is a profitable franchise. If you have access to the right location, have prior experience in the food industry and have followed the instructions provided by Subway, your chances to succeed increase manifold.

The most successful Subway restaurants are also earning anywhere around 20 Lacs per month through Subway. The fact that Subway is growing rapidly in India also helps push the progress.