SubwayOwner.com

Making money in any business is totally dependent on how you operate it. I have seen Subway owners flourish while others have failed. What drives the two apart is how well they can manage their costs.

So how much money can a Subway Franchise Make ? It all depends on you, how many hours are you willing to work, how well can you manage your business and the most important part of course is very dependent on your sales volume. Lets take a look at some criteria that will determine what you can expect to make in your Subway Franchise.

        You – It alls starts with you, this is perhaps the most difficult area to assess because its hard for us to look in the mirror and be a good judge of ourselves. But this is a very important step because you really need to do a profile on yourself to see if you can meet or exceed the expectations of what a Subway Franchise needs to be. For starters you need to work, there is no way around this. If your looking at just buying a Subway Restaurant but are unwilling to commit the time to operate it then your chances of success are fairly slim. There are several reasons for this but the most important one has to do with the fact that your overall costs decrease sharply the more you work. When you first start out there are going to be high costs that you simply cant control and you need to offset what you can to make ends meet. Labor typically is the first step in this category so if your willing to commit to 40 to 50 hours work weeks then your well on your way.

Can you manage a Subway Restaurant ? Once again a very valid question that you need to ask yourself. If you worked in a food related business in the past ( and I don't mean when you were a teen working at McDonald's) then chances are that operating a Subway Restaurant will come naturally to you. If however you have no background in this field then there is going to be a steep learning curve that you will need to master before jump in head first. Its worth noting however that Subway Corporate requires that you pass a 2 week training course before you can even get your Franchise. Its my experience however these 2 weeks are not enough for you to learn everything. For example I worked as a regular employee for two months in the very store that I intended to purchase just to get the extra experience.

        Sales and Operations – I have seen way to many people purchase low priced low level stores with the expectation to make a good living. This however never turns out well because its the very volume in sales that you need in order to make a good living. I think low volume stores are only a good investment as a second or third store and only after you have had good success in marketing and increasing sales.

So what can your incomes realistically be on a average volume Subway Restaurant ? I'm making an assumption that you at least purchase a store that has attend sales in the 300 to 400 thousand yearly mark. Most Subway Franchises with these sales can expect to make 30 to 40 thousand dollars a year early on. Considering that the average pay of cycle on a Subway Restaurant is about five to seven years you need to be able to survive on this income for at least that time period. By and large your loan payment is a big expenditure and once eliminated your income level should rise considerably. On a Restaurant with sales in the $8500 to $10000 mark a week you as the owner should easily be able to put at least $1000 of that in your pocket although that figure is going to be closer to $1500 a week or more.

Its worth noting however that you need to have realistic expectations. Ill use a friend of mine Bob as a example. For the last 14 years he worked as a Transit Employee making close to $50,000 a year. Not a bad income however he hoped to open a Subway Restaurant and after looking at what was available settled on a Non Traditional Location.

A Non Traditional location is typically a Subway Restaurant located in a Mall or Gas station. Bob felt that this was ideal for him because it was close to where he lived and it was a small enough operation that would allow him to get his feet wet and not kill himself in the process. What he didn't consider however is that Subway just like any other Fast Food operation is a nicle and dime business. This store only averaged around $200,000 a year and his investment was close to $80,000. Bob went against my advice and purchased the store but had a horrible time making ends meet. The reason is simply that you need the volume, sure his labor costs and operating costs were low but for the 50 hours that he worked a week his income was half of what mine was for the same hours worked. So the moral of the story is that if your going to commit to this sort of investment you really need a store that has at least $350,000 a year in sales volume. This is not to say that Gas station locations don't work but they work better as a second or third store as a future investment and not a initial one.

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