Table of Contents
Subway Franchise Cost
Subway Franchise cost 90,00,000 Rupees as an initial investment. The minimum area required to open a Subway is 350 Square Feets. The Royalty charged in Subway is 8%+GST. The advertisement fee charged by the franchise is 4.5%+GST. A minimum of 8 employees are required to start the franchise.
Subway Cost for Franchise Fee
Subway Franchise Fee cost only 6,50,000 Rupees. Subway has the most affordable franchise fee according to its brand name.
The brand name of subway always helps in generating more sales on the delivery website as well as the in-store preference of a customer.
Subway Cost for Machinery and Equipments
Subway Cost for Machinery and Equipments is 50 Lakh Rupees. Machinery improves the quality of the outlet. It helps in preparing food quickly with a Standardized procedure.
Subway Cost for Interior
The Subway Cost for Interior is 20 Lakhs Rupees. It comprises of the Branding, Hoardings (Signage), Interior, Furniture and Exterior of the Outlet.
It is very affordable to open a Subway in a food court because it will save the Interior Investment.
Subway Cost for Other Expenditure
Subway Franchise cost 10 Lakhs for all the Other Expenditures that will incur in the beginning.
The expenditures includes Insurance, Licenses, Marketing, Inventory charges, Working Capital, Advance Rent, Training Cost, Accounting, Legal Charges, and Other major expenditures.
Subway Franchise Profit
We will analyze Subway Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 10,00,000 Rupees i.e. 33,333 Rupees per day.
|Gross Sales||10,00,000 Rupees|
|Cost of material @35% Approx||(3,50,000) Rupees|
|Electricity and Water Supply||(40,000) Rupees|
|Salary of Workers and their Expenses||(1,20,000) Rupees|
|Royalty and Advertisement Fee @12.5%+GST||(120,000) Rupees|
|Transportation Cost||(60,000) Rupees|
|Aggregator Commission (Zomato, Swiggy)||(60,000) Rupees|
|Other Expenses||(40,000) Rupees|
|Net Profit||100,000 Rupees|
We can conclude that the Profit Margin of the Subway Franchise is 10% for the Sales of 10,00,000 Rupees. The outlet may suffer less profit in the initial days but Sandwiches will gain high popularity eventually and will have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 12 Lakh Rupees per month and the profit margin will be 20% on Sales or 2,40,000 Rupees as profit. The brand name of the company helps in increasing online sales from Zomato and Swiggy.
Location plays a very crucial factor in determining the success rate of a franchise along with food quality and service.
The location should have a very high footfall. It should be in the main market of that area.
You can open the outlet nearby colleges, corporates, or any place where young people love to have Sandwiches.
Subway Franchise Review
Subway is one of the best franchises in India in comparison to its brand name and affordablility.
However, High Royalty and Advertisement Fee will bw charged from the franchise. But the online sales and support system of Subway is well organized that will definately drive great results even from the initial level.
Subway is among the top 5 food franchises in India along with Dominos, Pizza Hut Mcdonalds and KFC.
The product line of Subway is very unique as it offers sandwich (or Subs) with the personalized touch of the customer. In a sense, You are customizing your own meal in Subway.
How to Subway Franchise?
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