Subway Franchise in India: Cost, Profit & Process [Feb’24]

A fan-favorite from every ethnicity all over the globe, Subway has managed to make its way into the hearts of all kinds of people including our desi blood. Subway is known all over the world for their incredible mouth- watering, foot long subs and we Indians are no strangers to them either.

Let’s briefly analyze if investing in a Subway Franchise in India is a fruitful venture.

The recently bought, leading sandwich QSR chain, Subway is valued at a whopping $9 Bn (approx). This provides a great opportunity to invest in such a well- established and big name brand. 

Hence, the right time to invest in a leading and globally-renowned QSR  sandwich chain, like Subway, is NOW!

 

Beginning of Subway

It’ll seem beyond belief but Subway owes its origination to science! The story is set in 1965, where a young, 17-years old boy, named Fred DeLuca was stuck in a pickle (pun intended)  on how to pay for his college education. Due to helplessness he turned to a family friend, Dr. Peter Buck who was employed in the energy sector as a nuclear physicist for advice.

According to the New York Times, Dr. Peter Buck remembered a famous sub shop from the days of his youth, and suggested to Fred DeLuca that a sub shop of the same sort might make up to be a good business venture. Dr. Peter Buck further helped Fred by seeding his business venture with a sum of $1,000 as a loan. 

Originally, they named their business venture, ‘Pete’s Super Submarines’ which was opened in Bridgeport, CT. But soon after, a new problem arised regarding the name, as the customers often misheard it.  Fred and Dr. Peter Buck were quick to resolve this issue and shortened the name to our beloved, ‘Subway’.

On the opening day of Pete’s Super Submarines, they managed to get sold out of their signature item which was the foot-long sub sandwich, priced at mere 69 cents. 

 

 

Read More: Vending Machine Price List in India

 

Subway Outlets

By 1966, the partners formed an association, namely, ‘Doctor’s Associates’ which was a reference to Dr. Peter Buck’s PhD and Fred’s then dream to become a doctor. The Doctor’s Associates was the holding company for Subway’s assets.

Lacking any franchise advisers or experts, in 1974, the partners set out to franchise Subway locations. With no prior experience, they aimed to set up 32 Subway outlets far from home.

But due to their good fortune and hard work, they managed to set up 200 Subway outlets by 1982 with a goal to reach 5,000 Subway outlets by 1994.  

One of the main reasons for Subway’s rapid growth was the low construction costs and a minimal $5,000 franchise fee. A program was also initiated by them to provide cash incentives to franchisees who supported their fellow franchises and opened new Subway outlets. 

They managed to surpass their goal by a large amount, reaching 5,144 Subway outlets by 1990. 

As of February, 2023 Subway has an estimated number of 36,592 outlets in more than 100 countries, almost all of which are independently owned and operated by a network of franchisees. 

 

Launch of Subway in India

Subway blessed the Indian market with its presence in the year 2001, with its first outlet in the capital city of New Delhi in Saket. 

According to a source, as of September, 2023, Subway owns a whopping number of 579 Subway outlets in India with Mumbai owning the most number of Subway locations, 95 outlets, which makes up for 16% of all the Subway outlets present in India.

 

Subway Menu

Subway in India offers a wide variety of both Non-  Vegetarian and Vegetarian salads, breakfast items, wraps and their popular sub sandwiches in accordance to every taste. 

The length of the subs can be customized to either be 15cm or 30cm (foot long) with veg starting from INR 145 for a 15 cm and INR 350 for a foot long whereas the non-veg price range stands at INR 185 for 15 cm and INR 440 for a foot long.

A combo can also be customized at a mere price of INR 270 for a veg combo and INR 320 for a non-veg combo consisting of a 15 cm sub sandwich, a drink and a cookie or chips. A simple sum of INR 70 can also be charged to add a 400 ml drink and a cookie or chips to make a meal. 

Salad starts at a pricing of INR 195.

 

Reasons to Choose Subway Franchise in India

  • Subway has been continuously ranked as the No. 1 franchise business.
  • Subway QSR is ranked second to McDonald’s as the world’s largest Quick-Service Restaurants chain.
  • Subway is a big- named global brand.
  • Subway is a proven business with minimal start-up costs.
  • Subway franchises have flexible floor plans.
  • Subway franchises have simple operations.
  • Subway provides both local and national support.
  • Subway provides regional and national advertising.
  • Subway also provides a two-week training program.
  • The training is provided for both the staff and the owner.
  • Design support and store development assistance is also provided by Subway.
  • Construction guidance and lease negotiations are also available.
  • Best and fastest growing business.

 

Subway Franchise in India Cost & ROI

 

ESSENTIALS  COST & OTHER REQUIREMENTS
Franchise Cost INR 6 L- 11.9 L
Franchise Fee INR 6.5 L 
Outlet Interiors INR 6 L- 8 L 
Advertising & Royalty Fee 3.5% – 8%
Minimum Investment INR 24 L -30 L
Equipment INR 30 L – 40 L
Minimum Area Requirements 170 sq. ft (food-court)

MIN. 350 sq. ft. (non food-court)

Inventory INR 1.2 L – 1.7 L
Anticipated Profit OR Return On Investment Not less than 40% – 50%
No. of Personnel Required MIN. 8 people

 

Listed above is a thorough estimated breakdown of the total cost and other requirements of establishing a Subway Franchise in India.

The above mentioned data might change in accordance to the location, footfall, outlet type etc.

According to the data provided, the minimum investment required for a Subway franchise is INR 24 L – 30 L.

The cost of a Subway franchise stands between INR 6 L – 11.9 L with the franchise fee standing at INR 6.5 L. 

The advertising and royalty fee for a Subway franchise are 3.5%- 8%.

The anticipated profits or ROI should be not less than 40% – 50% where one can expect a range of 30% – 45% profit in the time range of 24 to 30 months.

 

Subway Franchise in India Profit Margin

Subway, although being a non-Indian global brand, has still managed to capture every Indian’s attention since its establishment in India in the year 2001.

Subway India with its very carefully curated menu, infused with the Indian touch has managed to create its much-deserved space in the Indian sandwich market.

While the profit is completely location, state of market, neighboring community, footfall, outlet type etc dependent, the franchisee can expect to incur an estimated profit ranging from 30% – 45% in the time range of 24 to 30 months.

 

Steps to Apply for a Subway Franchise in India

 

STEP 1: Appeal for a franchise brochure.

STEP 2: Fill out the Subway Franchise application.

STEP 3: Submit your carefully filled out Subway Franchise application.

STEP 4: A meeting will be set up with the local development agent.

STEP 5: Review the disclosure document.

STEP 6: Local research will be conducted.

STEP 7:  Securement of finances will be carried out.

STEP 8: Go through your franchise agreement attentively and sign it.

STEP 9: Attend the provided training.

STEP 10: Scouting and selection of location.

STEP 11: Build your restaurant.

STEP 12: Commemorate the opening of your very own Subway franchise.

 

NOTES: The average time for the opening of a Subway outlet ranges from 6 to 7 months.

 

Subway Franchise Provisions

 

  • Before Store- Opening
  • Site Selection- Aid and guidance will be provided in the evaluation of the location for the business.
  • Decoration- Subway aims towards providing an experience full of warmth to its consumers, hence they always try to integrate a warm and a natural building look in its outlets. The decor generally consists of stone, clay, brick etc.

(The cost of construction and installation in the outlet is at your sole expense).

 

  • Restaurant/Store Design- Location specific floor plans will be provided to the franchisee for the Subway outlet.
  • Training- The franchise manager or owner can participate in a two-week training program offered by the brand.
  • Ordering Equipment- Guidance will be provided by the Subway team for the ordering of the equipment to help in a timely delivery.

 

 

After Store- Opening

  • Field Support- Local representatives will help you initiate operational matters.
  • Operations Manual- An extremely detailed manual will be provided by the Subway team to aid run the business.
  • Franchise Services- A coordinator will be provided to help you in every step necessary, and they’ll always be just a call or email away.
  • Continuing Education- Consistent DVDs, voice-mails, newsletters etc are available for every necessary step.
  • Technical Support- Exceptionals support systems are present for franchisees. Technical support is present both before and after the store opening.
  • Research & Development- The Subway franchise’s product development team, baking specialists, nutritionist staff, executive chefs etc are constantly striving to incur changes to the food and menu to make it better.

 

Eligibility Criteria for a Subway Franchise

 

Subway is a globally renowned big- named brand. It is the leading sandwich QSR chain and hence requires its future owners to tick a few criterions, including-

  • Commitment towards the business and keeping up Subway’s well established brand name.
  • Should possess an entrepreneurial spirit.
  • Should be a people’s person (friendly). 
  • Should be open to learning.
  • Should be accepting of challenges.

 

Documents Required to Own a Subway Franchise

A number of documents or certificates are required to own your very own Subway franchise, the list is given below-

  1. GST Registration
  2. Business Registration Certificate
  3. Trade License 
  4. Eat House License
  5. FSSAI Registration
  6. Shop and Establishment Registration
  7. No Objection Certification 

 

Afterword

Success is guaranteed with every opening of a new Subway Franchise. Subway is a renowned and well-established, global brand, with people from all over the world fond of its tasty sub sandwiches and scrumptious salads. Hence, it is a no- brainer and an exceptionally smart choice to invest in a Subway Franchise at the earliest!

 

Frequently Asked Questions (FAQs)

 

What is the cost of a Subway franchise in India?

The cost of a Subway Franchise in India stands at INR 6 L – 11.9 L.

 

Is Subway India profitable?

The anticipated profits or ROI should be not less than 40% – 50% where one can expect a range of 30% – 45% profit in the time range of 24 to 30 months. Hence, owning a Subway franchise in India is profitable.

 

Is Subway successful in India?

Subway has been continuously ranked as the No. 1 franchise business and Subway QSR is ranked second to McDonald’s as the world’s largest Quick-Service Restaurants chain. Looking at these great recognitions and the whopping number of 579 Subway outlets in India, Subway is definitely successful in India.

 

Who is the partner of Subway in India?

Subway has inked a master franchisee agreement with EverStone Group, which means Subway has appointed the private equity firm Everstone Group as the master franchisee for India, Sri Lanka and Bangladesh.

 

Who is the new owner of Subway?

Roark Capital has bought Subway and hence is the new owner of Subway.

 

Who manages Subway in India?

Subway has inked a master franchisee agreement with EverStone Group, which means Subway has appointed the private equity firm Everstone Group as the master franchisee for India, Sri Lanka and Bangladesh.

 

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