In August 1965, Fred DeLuca opened the world’s first SUBWAY® restaurant in Bridgeport, Connecticut. Starting off with a loan of $1,000 from his friend and business partner Dr Peter Buck, little did Fred realise that his venture would one day become the world’s largest submarine sandwich restaurant chain with 44,806 restaurants operating in 112 countries, at present. SUBWAY® changed the food landscape by becoming the leading choice for people seeking quick, fresh and nutritious meals that the whole family can enjoy.
After inaugurating their first restaurant, the duo set a goal of having 32 stores open in 10 years. Fred soon learnt the basics of running a business, as well as the importance of:
These early lessons continue to serve as the foundation for successful SUBWAY® restaurants around the world. By 1974, they operated 16 submarine sandwich shops throughout Connecticut and began franchising in 1974, launching the SUBWAY® brand into a period of remarkable growth which continues to this day.
From the beginning, Fred had a clear vision for the future of the SUBWAY® brand. As we continue to grow, we are guided by his passion for delighting customers by serving delicious, made-to-order sandwiches.
SUBWAY® came to India in 2001, having opened the first restaurant in New Delhi. Today SUBWAY® is present in more than 70 Indian cities with 560+ restaurants completely owned and operated by the brand’s franchisees in India. SUBWAY® has customised its menu to suit the Indian palate and has a number of delicious menu options to choose from including newly introduced snacking product SubWraps!
SUBWAY® offers a great opportunity to entrepreneurs looking at associating with the brand. With a low start-up cost and complete support in terms of training and business mentorship to new franchisees, SUBWAY®’s business model is worth investing into.
SUBWAY®’s franchise model enables the franchisor to expand the restaurant chain by selling the intellectual property rights of the brand to franchisees; the franchisees in turn operate their businesses under the guidance of the franchisor thus leading to mutual benefit.
The company provides training and support through its world headquarters in Milford, Connecticut, USA and five regional offices and various country offices across the globe. In India, SUBWAY® provides training to franchisees from the New Delhi office which has a training centre and a professional trainer to impart training.
Investment: Starting at Rupees 45 lakh
Area: 250-2,000 sq. ft/restaurant
Breakeven (in months and years) and return-on-investment (in percentage): SUBWAY® offers franchisees flexibility in terms of location and size of restaurant. These factors determine the break-even point and the ROI.
Preferred location: any location meeting the company's standards can be utilised.
Royalty fee: SUBWAY® franchisees pay 12.5% every week (gross sales minus sales tax); 8% of this goes towards franchise royalties and 4.5% towards advertising.
SUBWAY® is a registered trademark of Subway IP Inc.© 2016 Subway IP Inc.