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 Subway shop revenue?

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BillVol

  • Total Posts: 106
  • Joined: 8/2/2005
  • Location: Chattanooga, TN
Subway shop revenue? Thu, 03/2/06 9:44 PM (permalink)
Does anybody know how much money a Subway takes in each day? A good shop? And average shop? A bad shop?

I asked our local Subway and was told they sell 300 sandwiches a day. If you multiply that times $6 or $7 (including chips and drink), that comes out to around $1800 per day.

I wonder also, in this segment of the restaurant industry, what the profit margin is. When all expenses are paid, how much of that $1800 does the owner put in his/her pocket?
 
#1
    UncleVic

    • Total Posts: 6025
    • Joined: 10/14/2003
    • Location: West Palm Beach, FL
    • Roadfood Insider
    RE: Subway shop revenue? Thu, 03/2/06 11:45 PM (permalink)
    Should move this to the Restaurant Professionals Forum...
     
    #2
      stevencarry

      • Total Posts: 359
      • Joined: 2/18/2006
      • Location: San Rafael, CA
      RE: Subway shop revenue? Thu, 03/2/06 11:51 PM (permalink)
      I agree with Uncle, there you get more action, But I do know around here each franchisee owns 4 or 5 so maybe just one is not that profitable but who knows
       
      #3
        GCD1962

        • Total Posts: 66
        • Joined: 9/13/2006
        • Location: new canaan, CT
        RE: Subway shop revenue? Thu, 09/14/06 10:49 PM (permalink)
        Subway charges a smaller franchise fee than most, but then, I believe takes a higher percentage of the gross - around 8%
         
        #4
          anselmo1

          • Total Posts: 126
          • Joined: 2/1/2004
          • Location: Amherst, NY
          RE: Subway shop revenue? Fri, 09/22/06 11:30 PM (permalink)
          I talked with an owner of a Subway store in a high traffic area. He told me he is lucky to break even and that is why so many have changes in ownership. He told me that he has to be there all the time as the biggest problem is employee theft. He told me it wasn't worth the headaches and it was the biggest mistake he ever made. Subway provides local support to a degree but very little national support in the Sunday coupon section.

          Well, at least he was being honest with me. He also told me that the franchise owner across from the University is the busiest store in the area. He told me that store makes a very small profit. In addition, there has been an influx of Quiznos in the area that has taken some of the business away. All that I know about that chain is they opened 6 stores in my area and closed five of them.
           
          #5
            ann peeples

            • Total Posts: 8317
            • Joined: 5/21/2006
            • Location: West Allis, Wisconsin
            RE: Subway shop revenue? Fri, 09/22/06 11:41 PM (permalink)
            I am a manager at Cousins sub shop in Milwaukee.I know what it costs to buy a franchise and I know what it costs to buy a Subway.Big difference is corporate support.I can buy a Subway(I have looked into all i am speaking of...)but Subway really doesnt have the support of the parent company.Also, Subways way of cutting dollars is way different than Cousins.Dont want to bad mouth anyone.All I know is I bake bread 2x a day,slice fresh meat and cheeses fresh everyday, and MY vegetables are really freah at my store.The owners love me and I represent what it is all about........
             
            #6
              ScreenBear

              • Total Posts: 1503
              • Joined: 9/18/2005
              • Location: Westfield, NJ
              RE: Subway shop revenue? Fri, 09/22/06 11:49 PM (permalink)
              I find it hard to believe that operators of the largest fast food franchise in America are all just about breaking even. Don't you?

              By now, the word would have gotten out, and folks would have stopped buying these franchises a long time ago. I've every confidence that the majority of Subways are profit-making concerns.

              Additionally, I don't think I'd want to frequent a restaurant whose owner is crying the blues. The negativism is a turn-off, and I am then also wary of the freshness of the product where the owner self admittedly reports poor sales.

              Winners like winners. Tell me your place is doing good and I think to myself, "this must be the place."

              The Bear
               
              #7
                ann peeples

                • Total Posts: 8317
                • Joined: 5/21/2006
                • Location: West Allis, Wisconsin
                RE: Subway shop revenue? Fri, 09/22/06 11:57 PM (permalink)
                As they are all franchises, profit is different from every one..It is not that hard to believe-number manipulation is the American way.
                 
                #8
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