Subway Franchise India (Cost, Profit & Application Process)

Subway Franchise India: If a person shares a love for sandwiches and healthy food and has money to invest in a sandwich company, then they have come to the right place. Today, sandwiches are one of the most widely consumed food items around the world. There are different variations of it in all parts of the world. But one cannot talk about sandwiches without mentioning the name ‘Subway’. After being in the food service business for more than 50 years, Subway is one of the most popular brands, not just in terms of sandwiches, but in general today. Fresh, delicious sandwiches or ‘subs’ as they are called, are made right in front of the customers where every topping and sauce is chosen by the customer which gives the food a personalised touch. These are just some of the qualities of the company that makes the public fall in love with it.

About the Company:

Subway is an American privately-held restaurant franchise that is known for making submarine sandwiches or ‘subs’ and salads. As of October 2019, the company has restaurants in more than 42,000 locations in more than 100 countries and is on the list of the fastest-growing companies in the world.

The company was started by Fred DeLuca and Dr. Peter Buck in the city of Bridgeport, the USA in 1965. Subway consistently finds a mention in the Top 500 Franchise list released by Entrepreneur magazine. In the year 2015, Subway was also awarded 3rd rank on the list of Top Global Franchises and ranked 1st on the list of Fastest-Growing Franchises. The growth of the company has been so astonishing that at the end of 2010, the company had a thousand more restaurants than McDonald’s.

Products Range:

The product that Subway is famous for is the submarine sandwich or the ‘sub’. Other than that, a lot of other products are also sold by a company like salads, wraps, paninis, muffins, doughnuts, cookies, etc. Preparing a sandwich does not take a lot of time or effort as there is frying or grilling involved. The sandwich consists of fresh and healthy ingredients that are cut in front of the customer’s eyes.

Subway has also made efforts to cater to the Indian public by innovating and making changes to its menu. Dishes like Paneer Tikka, Aloo Patty and Veggie Patty have been introduced by the company which has become quite popular among the customers.

Subway Franchise in India:

Subway has had a ton of success in India. The company opened its first restaurant in the country in 2001, in Saket, New Delhi. Since then, the company has grown a lot and gained a huge amount of customer base. As of 217, the company had more than 600 outlets in more than 70 cities in the country. The cities include Coimbatore, Chennai, Kolkata, Himachal Pradesh, Delhi, Mumbai, Pondicherry, Uttar Pradesh, Ahmedabad, Jharkhand, Bihar, etc. The company also aims to increase the number of Subway outlets to 1,000 in the next two years.

Respecting the different religions of people in India, Subway decided to not sell products containing beef or pork. The company also opened its first all-vegetarian outlet in 2012 on Lovely Professional University’s campus in Punjab. 

Considering the brand value, the high quality of food and the loyal customer base that Subway brings to the table, it is a very good investment choice for an individual. There are a lot of benefits and services provided by Subway to an individual if he or she decides to be associated with the company.

The duration of the Subway franchise agreement is 20 years after the agreement can be renewed. The company provides national and regional support and advertising along with a two-week training program. The learning for the owner of the franchise and the staff is an ongoing process. Assistance in regards to store development, design and construction are also provided by the company. Subway also helps the owner of the franchise in cases of lease negotiations.

Subway Franchise Requirements:

As is the case with any other franchise, an individual wanting to own a Subway franchise has to fulfill certain requirements. The first requirement that an individual needs to fulfill in order to get a Subway dealership is related to the area or space of the outlet. The area of the outlet depends on whether the outlet is in a food court area or not. If the outlet is in a food court, the required area comes to about 170 square feet. In case the outlet is not located in a food court, the area required to set up a Subway franchise is around 350 square feet. The outlet also needs to be in a prominent location as the earnings and profits of an outlet depend a lot on the location where it is situated.

The second requirement is related to the staff of the outlet. The minimum number of workers required to run a Subway franchise outlet is 8. Training of the employees, as well as the owner, is a must. They are required to go through a two-week intensive training program.

Subway Franchise Cost in India:

The one question that every investor has in mind while looking for companies to invest in is how much will it cost him or her to own a franchise of that company. The investment amount required to acquire a Subway dealership can range from INR 53,90,000 to INR 89,10,000. The amount includes the initial franchise fees which an owner of a Subway franchise has to pay to the company and it comes around to 6.5 lakh rupees.

An individual also has to pay a royalty to the company which comes to 8 percent of net sales (gross sales minus the sales tax). Another expense that a franchisee has to incur is that of advertising.  4.5 percent of the net sales have to be paid by the franchisee as advertising fees to the company.

Subway Franchise Profit and ROI:

According to information available on the internet, a profit of 70,000 rupees can be earned per month by running a Subway franchise and the franchisee can recover the entire amount invested in 5 to 6 years of setting up the franchise. A return on investment of 40 to 50 percent can also be expected from the Subway outlet.

Subway Franchise Application Process:

Subway has a provision that contains all the information related to opening up a franchise. A person interested in investing in Subway should get the brochure and give it a thorough read. After that, he or she has to fill out the application form and submit it to Subway.

If the applicant gets selected by the company, he or she will meet with a local Development Agent who will not only help the individual with the application form but will also assist the franchisee in different aspects as he or she tries to set up the franchise. Then, a franchise agreement has to be signed by the individual. The individual, along with his or her staff, has to go through a two-week training program. After which the location for the outlet is secured and then, at last, is the grand opening of the restaurant.

What is the profit margin in Subway?

The average estimates indeed suggest that opening a Subway franchise in a busy location in India can bring in Rs. 20 lacs per month in revenue. However, this is the gross income and not the average profit that you can earn from the franchise.

Although we don’t have an exact number or figure known regarding the income that one can generate. But, it is believed that the net profit that you can earn from the annual gross income is about 7.5%, which is a pretty decent income.

The number might vary and could be more or less depending on the location of your Subway and the kind of revenue you are bringing in.

Got some questions? Refer to the official Subway Franchising FAQs.

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FAQs Regarding Subway Franchise in India:

1. How to get Subway franchise in India?

Answer: One has to get a Subway brochure which contains all the information related to franchising. Then, fill out the application form and submit it. After which the individual will be assigned a local development agent who will assist the franchisee in setting up the store.

2. How much does a Subway franchise cost in India?

Answer: Setting up a Subway franchise will cost an investor 53.9 lakh to 89.1 lakh rupees. It will also include a franchise fee of 6.5 lakh rupees. Advertising and royalty fees will also have to be paid by the franchisee to the company.

3. What is the average time taken in opening a Subway franchise?

Answer: A Subway franchise takes about 7 months to open on average.

4. What is the required area or outlet space for a Subway outlet?

Answer: The required area or space depends on whether the outlet is in a food court or not. In a food court, the required area is 170 square feet. If the outlet is not in a food court, then an area of 350 square feet is required. A minimum of 8 working personnel is required to run a Subway store.

5. Do we need to pay royalty to the company?

Answer: Yes. A royalty fee has to be paid by the franchisee to the company which equates to 8 percent of the net sales of the store. Along with that, an advertising fee also has to be paid which is 4.5 percent of the net sales.

6. Is it profitable to buy a Subway franchise?

If you are thinking of buying a food franchise, you cannot go wrong with Subway. The company has been growing exponentially year after year. A person stands to earn a monthly profit of 70,000 rupees from a Subway outlet.

7. What is the expected return on investment on a Subway franchise?

A Subway franchise owner stands to earn a return of investment of about 40 to 50 percent.

8. How long will it take to earn back the investment amount from a Subway outlet?

It usually takes an investor 5 to 6 years to earn back the amount he or she invested in setting up the Subway franchise.

9. Is Subway a global brand?

Yes, Subway is popular all over the world. THe company has a presence in more than 42,000 different locations in more than 100 countries.

10. How much does a Subway owner make in India?

If you are considering opening a Subway franchise in India and have been wondering how much a Subway owner in India makes, a good month can bring in Rs. 20 lac and above.

11. What are the average sales of Subway in India?

On average, the average sales of Subway in India vary from one place to the other. However, when it comes to the revenue from the franchise model, it can easily be between Rs. 15-20 lacs every month.

12. What is the minimum area for a Subway?

If you want to open a Subway franchise in India, you need a minimum space of 170-350 sq ft to qualify for the franchise, so keep that into consideration.

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Final Words:

Subway, with its delicious and customizable food options, has made a place for itself in the Indian food market. Look around and you will see a Subway store near you. And goals like reaching 1,000 outlets in the country are an indicator that Subway is on an express train to success. And if an individual has the money and will to invest in a franchise, Subway is a great option. So, it was all about the Subway franchise in India. If you got any queries, feel free to comment down.