Without a single doubt, Subway is one of the big players in the sandwich industry, not just in India, but in the entire world. To be precise in the context of the Indian market, well, ever since it opened its first store in New Delhi, in 2001, it has gained much popularity. And yes, over the past decades, there have been more than 570 Subway places spread out among several cities such as Mumbai, Delhi, and others. If you are thinking of starting a fast food business, you might want to take into consideration the fact that Subway is already a superior brand and customers tend to be very fond of their sandwiches, you know? So, let
s go over the Subway franchise cost in India, what’s the profitability of it all, what are the main requirements, and whatnot, shall we?
What is the Cost to Start a Subway Franchise in India?
Sure, a franchise of a brand like Subway will cost you a lot, but how much are we talking about here? Let’s see a total breakdown of just that, shall we?
- Franchise Fee: To start a subway franchise, the owner has to pay a one-time franchise fee of ₹6.5 lakhs.
- Setup Costs: The total of the cost packages will run from ₹24 lakhs to ₹1 crore, you know? And just so you know, the prices consist of various items like furniture, equipment and also travel and advertising costs.
- Equipment Cost: The capital requirement on their side Subway is approximately between ₹30 and 40 lakhs for dishwashers, grinders, and even slicers used during the making of Sandwiches.
- Interior Design: Don’t forget though the requirement to set your franchise location just right, so that it matches the theme set by the Subway itself. And that in itself will cost you around ₹6 to ₹8 lakhs.
- Other Expenses: Your business plan should also account for utilities, as well as the rent, and the salaries of the employees that the business would have.
Franchise Profitability and ROI
When you choose to start a Subway sandwich restaurant, the first thing that pops into your head is the profits, correct us if we are wrong. So, generally speaking, a Subway franchise can reach an average of 30% to 45% worth of profit. After opening your franchise, you can start seeing returns in approximately 2 to 2.5 years, however, this will depend on your restaurant site and its performance. That’s the break-even period we are talking about.
Key Franchise Requirements
Well, let’s say you have the initial capital to spend on a Subway franchise, what’s next? You want to make sure that you are actually eligible for it or not. Here’s what they look for:
Age and Financials: It is a must that you need to be at least 18 years old. Financially though, you should have a net worth of at least ₹1 crore and liquid cash of ₹25 lakhs to invest.
Food Industry Experience: And as always, with any franchise opportunity out there, having some experience in the food business is always a plus.
Commitment: You either need to run the business full-time or hire a reliable manager to take care of it.
How to Apply for a Subway Franchise in India?
If you’re planning to get a Subway franchise, this is easy, and here’s how you should go about it:
- Request Information: Go to Subway’s official website and request a franchise brochure.
- Submit Application: Then you fill out the application form online and submit it.
- Meet the Development Agent: You will meet Subway’s local representative after applying, and you will discuss the next steps, you know?
- Review and Sign the Agreement: You will see the franchise agreement after you are approved, and you will sign it.
- Secure Finances: Ensure that you have the money ready to set up the franchise.
- Training and Setup: Finish the Subway training and set up your store.
NOTE: On paper, it all sounds well and good, but you may get stuck on one or more steps when applying for a franchise cost, and that’s why we came up with this post to help you out. Though, keep in mind that the Subway franchise cost in India is not an absolute number, it can very well change in the future, so make sure you do some of your own due diligence.