Subway Business Plan

Business Plan Articles

If you are seeking to apply as a candidate to open a Subway location, it is likely that you will need to meet their business plan outline. The review of this outline, combined with several other factors , will be used to determine your eligibility to operate an individual Subway location. Pro Business Plans has worked with many franchise applicants; this article contains information regarding what to include in a Subway business plan and how to be a competitive candidate.

subway business plan

Subway Business Plan

The worst thing you can do in preparing a Subway business plan is answer the questions in a generic fashion. Providing only a holistic understanding and delivering universal responses will land your application in the grey among the myriad of other applicants.

The most effective approach to fulfilling the business plan requirements is to emphasize what is unique about your candidacy on a very specific, yet extremely concise level.

Business Summary

  1. Introduce yourself and include your background.

We have seen many business plans go into great detail in this section by providing large amounts of unnecessary text. Instead of providing a full breakdown on your CV, focus on your key achievements as it relates to running a food & beverage facility. For instance, a note about having 15 years of experience running the food & beverage business unit of a large consulting firm or having experience running three other franchises that are performing profitably.

  1. Describe the opportunities of involvement in the Subway franchise.

This section is focused on what you can deliver as a franchisee including not just the capital, but leveraging your background as it related to running the franchise. There is a great deal of responsibility associated with being granted any degree of licensing for use of the Subway brand. Therefore, a smart candidate will not demonstrate their eagerness to have a greater than desired degree of autonomy over the brand and desire compliance with the company’s brand licensing procedures.

  1. Explain why Subway is a good choice for you.

The nature of this response should not just be generic brand preference, but based upon a well-reasoned conclusion of why the brand will be ideal for the introduction into your target area. For instance, perhaps you analyzed thirty restaurant franchises and determined that Subway was the one that would perform the best given the unique market dynamics.

  1. Explain why you will personally be successful operating a Subway location?

The response to this question should draw upon the relevance of your background and how your experience will contribute to the success of the Subway location. There are several factors that play into successful management of any restaurant that spread across familiarity with food & beverage compliance, administration, finance, and control procedures issued across various levels of management.

  1. Describe why you feel this location will be successful?

A good response to this question would not be holistic in nature, but demonstrated by empirical evidence such that the franchisor naturally arrives at the conclusion to answer this question. Rather than simply stating, there is a growing market, provide unbiased data on why the market has grown and what rate it is growing at. Instead of presenting the fact that the demographics are shifting in your favor and the competition is low, provide a brief analysis of the closest comparable competitor and why the demographics are shifting.


market positioning

Market Positioning

In general, it is good to demonstrate a solid understanding of the market positioning that the Subway brand has. The positioning is focused around providing a wide selection of healthy and high quality sandwiches in convenient locations that are affordable to the mainstream consumer.


team management

Operations

The supply chain for a Subway franchise is heavily integrated with the supply chain of Subway company and the operations process is often set in place for franchise holders to follow. The application should reflect a willingness to follow the company's procedures and operating requirements.


The Competition Section

  1. Discuss all of the actual and potential competitors that your Subway restaurant is likely to face.

Rather than just stating that no Subway franchises are in the area, or no sub shops exist, focus on providing the classification of competitors and the proximity to your location.

For instance, some Subway shops may face competition only from small family owned restaurants in a small town. In others, there may already be intense demand such as New York City, but there is still a sizable market that creates potential. Therefore, it is important to cover all aspects of the restaurant as they relate to the regional market .

  1. Discuss what plans you have for marketing the restaurant.

The marketing strategy should be in-line with the standards of the franchise requirements and can be creative, but should focus on traditional marketing strategies such as mass advertising using Subway provided advertisements. Subway will likely have its own promotional plans, particularly during specials, and any good franchisee will comply to these requirements.

  1. Discuss why you believe this is a good location for a Subway.

This question may be addressed as either an existing location or a new location. If the location is new, it is likely that you will need to provide a justification through market data regarding why the location has potential. In order to demonstrate this, we encourage you to use reliable third-party information. Demonstrate that the market size is large enough to sustain adequate business, yet the demand is unfulfilled by existing competitors.


trade shows

Brand Identity

Franchise applications should demonstate a knowledge and awareness regarding the brand identity of the Subway name and how they can promote it within the compliance standards of the parent company at the local level. Many franchises will provide marketing materials and standard promotions campaigns to completement the branding.


business development

Promotional Strategy

The promotions for Subway are often done at the national level with support at the local level by opting into various sales promotions, discounts, and other activities. Training staff to be courteous and responding to all complaints or issues based on company policy can also assist with reputation management.


Financial Projections

The finances section of the business plan include personal information related to your finances as it relates to the net worth and liquidity requirements for the franchise. This includes a detailed list of your cash assets, copies of six months of bank statements, as well as proof of liquidity or financing to purchase a Subway franchise. There is not much to do in this section aside from ensuring you have all the required documentation organized and compiled in an accurate manner that does not attempt to mislead the franchisor.


revenue projections

Revenue Projections

The revenue estimates for a Subway location may be performed based on the existing sales performance of similar Subway stores or comparable sandwich shops if this is not available. However, Subway will be able to determine their own sales projections based on valid information provided about the location.


budget forecasts

Budget Forecasts

The budget estimates for the franchise are generally outlined in the application and based on the build-out structure for the location. However, the cost of operating a Subway may depend on the specific location, such as variance driven by the rent costs and wage fees from state to state.


What is Included in Our Custom Subway Business Plan?


  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

Speak With An Expert advisor about your plan at (877) 810 - 4172