Subway Business Plan Template

Do you want to start Subways business?

Do you want to start a Subway business? Subway is one of the most famous American privately held fast food restaurant franchises whose core product is the sub – submarine sandwich. In addition to that, Subway also sells salads, paninis, and baked items like doughnuts, muffins, etc.

Subway is one of the biggest food chains in the world and opening a Subway franchise is undoubtedly an extremely profitable venture. In case, you don’t know how to start Subway business franchise, the first thing you must do is to create a detailed business plan covering all business requirements. Your business plan is the most important thing that can earn you a Subway franchise among other applicants. For writing an effective business plan, we are providing the business plan for a startup Subway franchise located in Hillsborough, California.

Executive Summary

2.1 The Business

The Subway franchise, located in Hillsborough, California, will be bought and owned by Harry Jacob. Jacob is a well-known franchisee who has been in this business for the past 10 years. He is currently running three franchises of notable restaurants in California.

2.2 Management

Jacob has more than 10 years’ experience in operating franchises of famous food chains. For his new venture, he has made an incredible Subway business model  in which the main emphasis is made on the franchise’s management since it is the key deciding factor of the success of any startup. Jacob will hire a small team which will be trained for one month before onboarding.

2.3 Customers

Our target market will the residential community based in Hillsborough along with the non-residents – people who don’t live near us but have come to the area for any purpose.

2.4 Target of the Company

Our business targets are as follows:

Company Summary

3.1 Company Owner

Harry Jacob will be the owner of the new Subway franchise in Hillsborough, California. Jacob is a well-known franchisee who has been in this business for the past 10 years. He is currently running three franchises of notable restaurants in California.

3.2 Why the Business is being started

Jacob has been in the food franchising business for a decade and is now looking forward to expanding his business by adding another promising franchise to his ownership. Considering that Subway has performed really well in more than a hundred countries with its over 45,000 stores, Jacob is willing to invest what’s needed for availing the incredible Subway business opportunities.

3.3 How the Business will be started

For starting the franchise, a 2-storey restaurant building will be procured on lease in Hillsborough. After getting the business registered by the tax authorities, Jacob will purchase furniture, machines, material, and crockery. The costs for startup are as follows:

The startup requirements are as follows:

Services for customers

The success of a food restaurant greatly depends on the quality and nutrition of the food products. Subway is the world top franchise restaurant and for buying their franchise, you have to provide the same services with the same quality. If you don’t know what services are provided by a Subway restaurant, you can take help from this   sample business plan for Subway franchise.

Initially, we will provide the following nutritional products:

• Sandwiches: Black Forest Ham, Chicken & Bacon Ranch Melt, Meatball Marinara, Oven Roasted Chicken, Roast Beef, Rotisserie-Style Chicken, Steak & Cheese, Subway Club®, Classic Tuna & Turkey Breast
• Signature Wraps: Black Forest Ham, Steak & Cheese, Subway Club®, Classic Tuna & Turkey Breast
• Salads
• Drinks

We’ll provide dine-in, takeaway & free-delivery service to our customers.

Marketing Analysis of Subways business

The most important component of the Subway business plans is the marketing plan which can only be developed after an accurate market analysis. Before creating your Subway business plan, you must analyze whether the market you are going to choose has demand for your business or not. While developing your Subway franchise business plan, you should also keep in mind that several people will be sharing the same business in the same locality. If you are planning to start a Subway franchise business, you can take help from this Subway sample business plan or any other Subway business plan sample  available online.

5.1 Marketing Trends

Before starting a Subway franchise, it is good to have a solid understanding of the market positioning of the Subway brand. Subway is the world’s second-largest food franchise after Wendy’s. As of 2017, Subway had more than 45,000 stores in about 112 countries and was generating more than $422,000 on average annually.

The number of Subway locations has been increasing day-by-day which indicates the popularity of this food chain. The situation is no different in the United States, where sub sandwiches are one of the most popular fast foods, especially among the teenagers.

5.2 Marketing Segmentation

Our primary target market will the residential community based in Hillsborough. Our experts have identified the following segmentation of our target market:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Residents: Our primary target market will the residential community based in Hillsborough. American people love Subway sandwiches especially the children and teenagers so we hope to have a lot of sales from the residents living near us.

5.2.2 Non-Residents: Our secondary market will be non-residents or the people who don’t live in our vicinity but have come to the area for any purpose. This group might include the tourists and the people who work near us. Considering the high name of Subway, we expect these people to stop by us for having a bite of our sandwiches.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our business targets are:

• To become the best Subway franchise as well as the most trusted food restaurant in Hillsborough
• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with the earned profits by the end of the first year

5.4 Product Pricing

Product pricing is an important factor which decides the future of a new business. Considering our strategic location and our famous brand name, we don’t need to keep our prices low. We will follow the standard Subway prices, according to which 6-inch sandwich will cost $3.5 and footlong will cost $6.5, exclusive of tax.

Strategy

Sales strategy is also an important component of Subways business plan  since it determines how you will attract your customers toward you.

6.1 Competitive Analysis

A startup business can never survive if it doesn’t have anything special and different about it that’s why you must devise your Subways business plan keeping in view your competitive aspects. Our biggest competitive advantage is our brand which is well-known for its quality and taste. Moreover, our second competitive aspect will be the value, we give to our customers. Our workers will be friendly and available to the customers. We’ll highly entertain any complaint received against any of our products or workers through social media or any other channel to retain our brand image.

6.2 Sales Strategy

• We will advertise our franchise on social and mass media in compliance with the standards of franchise requirements
• We will give away free sandwiches to first 100 customers in the first 3 days of our startup
• We will give discounts and gifts during the first month of startup to promote sales

6.3 Sales Forecast

6.4 Sales Monthly

6.5 Sales Yearly

Personnel plan

The personnel plan describes the number and type of staff needed for your startup. It’s also very important and must be properly developed before you plan your Subway business strategy services. The personnel plan of our Subway franchise is as follows:

7.1 Company Staff

We will initially hire the following staff:

• 1 Manager for managing overall operations
• 2 Cashiers for keeping records
• 4 Waiters/Assistants
• 10 Cooks for preparing sandwiches
• 5 Drivers for home delivery
• 4 Cleaners
• 2 Security Guards

7.2 Average Salary of Employees

Financial Plan

The final thing to do before starting your Subway franchise business is to develop a detailed financial plan covering all costs and expenses. The financial plan describes all expenses required for the startup as well as how these expenses will be covered by your earned revenues. The financial plan is an important component of business plan Subway franchise  so make sure to develop it with great care.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Subway Business Plan Sample in pdf

OGScapital writer specializes business plan themes such as fast food restaurant business plan, organic restaurant business plan, fine dining restaurant business plan, business plan for seafood restaurant, pizzeria business plan and many other business plans.