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Thinking of opening a subway franchise GOOD IDEA OR BAD???

  • 07-03-2009 5:44pm
    #1
    Registered Users, Registered Users 2 Posts: 115 ✭✭


    Hi im thinking of opening up a subway franchise in a large town with llittle competion where i know a commercial property is going for rent for 250euro a week.What im concerned about is that i have no experience in this field but i think by putting in hard work and dedicatiion i should be ok.Roughly a franchise costs about 100000euro.but with these economic times are people going to fork out over 6euro for a sub l when they can get a roll for 3euro elsewhere.


Comments

  • Registered Users, Registered Users 2 Posts: 4,546 ✭✭✭An Ri rua


    DecTipp wrote: »
    Hi im thinking of opening up a subway franchise in a large town with llittle competition where i know a commercial property is going for rent for 250euro a week.What im concerned about is that i have no experience in this field but i think by putting in hard work and dedicatiion i should be ok.Roughly a franchise costs about 100000euro.but with these economic times are people going to fork out over 6euro for a sub l when they can get a roll for 3euro elsewhere.

    Maybe take a trip up to Athlone and have a chat with Tony who owns 2 that I know of. He opened one on the bridge on Athlone (hard for parking though) and another nearer to the students down at AIT.

    Great franchise, long overdue in Ireland when it really started to push a few years ago. The training in the States makes up for your lack of knowledge .Never worry about that. The McDs in Blackrock was started by 2 ex stockbrokers who knew real, sustainable wealth when they saw it :-)

    YOur question is the key point, will people sustain a €6 hit for a quality sandwich or indeed, might they just not have the €3; the way things are going. That is key. Given a choice, people are flocking to Subway. Athlone, Mullingar and now Tullamore are examples. But the €6 price-point is now the only issue in town. Rents will be that cheap. And cheaper. Dublin has a 25% vacancy rate already for offices. Retail units will be decimated. The new development in Navan has not taken off at all, IIRC.

    Remember the early 90s? That's when sandwich man started going around Mullingar industrial estates on a bicycle to begin with. Folks thought he was daft, he proved them wrong and grew. You would be joining a GREAT franchise. But timing is everything.

    Hope that helps. Its a route I applied for and considered. Capital being my stumbling block.

    Best wishes


  • Closed Accounts Posts: 10,898 ✭✭✭✭seanybiker


    if you open it can i have a job .


  • Registered Users, Registered Users 2 Posts: 1,835 ✭✭✭CamperMan


    Subway sandwiches are nice, but I always go for the "sub of the day", cheaper!!, I have seen a few Subway shops very quiet over the past couple of months and I am talking about lunch time here!!, maybe people are really cutting back and taking a pack lunch to work!


  • Closed Accounts Posts: 123 ✭✭NiallMH


    Of course they will , people need to eat and as long as theyre not goin over the pric of a hot dinner there happy . .
    -And think of food like cookies that prob fork in a good bit aswell . .
    -Cheap rent aswell so why not?


  • Registered Users, Registered Users 2 Posts: 19,049 ✭✭✭✭murphaph


    You will of course need planning permission for fast food use if the property doesn't already have it. You can't just change a premises from a clothes shop (for example) to a Subway unless it happens to have planning permisssion already on it which allows fast food.


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  • Registered Users, Registered Users 2 Posts: 2,428 ✭✭✭GiftofGab


    I heard fast food restraurants are making quite a profit in this climate. People are eating fast food instead of more expensive restraurants


  • Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    All I know is the last time I was in a Subway at lunch time the queue was out the door.


  • Closed Accounts Posts: 81 ✭✭SouthKerry


    A lot of people are going off Subway big time, the meat is plastic garabage and its very expensive, people have seen in the media what is going into making the meat for subway pure trash, i personally know a lot of mums who would use subway before for there kids but will not anymore. You can get better quality sandwiches and rools in your local shop for half the price so a lot of people are not going to Subway anymore.

    If you want to open a franchise why not look at other American sandwich companies that have not yet reached Ireland.


  • Registered Users, Registered Users 2 Posts: 3,282 ✭✭✭Bandara


    All I know is the last time I was in a Subway at lunch time the queue was out the door.

    Of course it was, its lunchtime.

    Its the rest of the time thats the problem.


    OP there have been several detailed threads on Subway here in the last 6 months, I've made my own experiences of dealing with the company and my own opinions on them very clear.

    Do a search for them, you might find it useful.


  • Closed Accounts Posts: 1,388 ✭✭✭delllat


    most convenience store delis have reduced the prices of their rolls and subway are still charging 6.49

    this along with their low quality ingredienst and their standards of would be enough to stop me eating it as regularly as i used to


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  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭betonit


    why not just open your own fastfood place. Forget about paying a franchise fee. If the food is good and in a good place you dont need the subway name. Call it something subs. You'll have to sell alot of €6 subs to get your 100k back. I think FF franchises are over-rated, if a place has passing trade, no matter what franchise it is or not, if the food is good theyll go in there (for most people).


  • Closed Accounts Posts: 456 ✭✭sm.org


    betonit wrote: »
    why not just open your own fastfood place. Forget about paying a franchise fee. If the food is good and in a good place you dont need the subway name. Call it something subs. You'll have to sell alot of €6 subs to get your 100k back. I think FF franchises are over-rated, if a place has passing trade, no matter what franchise it is or not, if the food is good theyll go in there (for most people).

    If it was that easy there would be no franchising. But its not and there are very few 100% independent sandwhich/sub shops left.


  • Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    SouthKerry wrote: »
    the meat is plastic garabage

    I agree. I will only eat a veggie sub as the meat is horrendous.

    If I had 100k to spare, instead of opening a subway franchise I would open a really nice sandwich/soup shop. Think of a cross between soup dragon (Capel Street in Dublin 1) and Munchies on Exchequer Street.


  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭betonit


    sm.org wrote: »
    If it was that easy there would be no franchising. But its not and there are very few 100% independent sandwhich/sub shops left.


    Didnt say it was easy. I think if there is a fast food outlet in a good place it doent matter what it is, as long as its good. You could do alot more with a 100k in getting a place started up and promoted. Most people go into fast food places because they are convenient (fast food), if they were walking past "johnnys chips" would it stop them going in at least once? if that same place was McDs or subW would it be more or less busy? the original poster said there was little competition which is a golden opp to establish an independant operation and would have much more flexiblity on what to sell.


  • Registered Users, Registered Users 2 Posts: 3,282 ✭✭✭Bandara


    betonit wrote: »
    Didnt say it was easy. I think if there is a fast food outlet in a good place it doent matter what it is, as long as its good. You could do alot more with a 100k in getting a place started up and promoted. Most people go into fast food places because they are convenient (fast food), if they were walking past "johnnys chips" would it stop them going in at least once? if that same place was McDs or subW would it be more or less busy? the original poster said there was little competition which is a golden opp to establish an independant operation and would have much more flexiblity on what to sell.

    Have to disagree strongly.

    I would never dream of going into Johnny chips etc, At the low level of convenience food I'd never take the chance that what I get will be crap or not. I also don't want the hassle of trying to figure out what they sell or what to order.

    I just want to walk in order exactly what I know they do and I want to know exactly how its going to taste. The amount of Johnny Chips that fail is huge, you get the odd few that make it but if you think of independant sandwich shops in the city center for example they are very very few that stood the test of time. People churn them out as examples that it can be done, but they forget to mention the other 9 attempts that went to the wall.

    as an aside, its virtually impossible to get a unit in a good location as you suggest. You will be up against the Subways / Burger Kings etc and a landlord will take them and their ten year lease (company guaranteed) over you every single day of the week.


  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭betonit


    im basing te "johnny chips" route on the fact the poster said theres is little competition and am therefore questioning spend 100k on buying a franchise.
    Assuming the location is right (good passing trade) if the food is good people will visit at least once... Just offering an alternative to spending 100k on a franchise. In todays world borrowing 100k and making repayments if the economy gets worse there wont be many buying €6 subs. If the competition is strong then defo the name is worth gold but with a few players its worth considering the smaller start up route..


  • Registered Users, Registered Users 2 Posts: 3,282 ✭✭✭Bandara


    betonit wrote: »
    im basing te "johnny chips" route on the fact the poster said theres is little competition and am therefore questioning spend 100k on buying a franchise.
    Assuming the location is right (good passing trade) if the food is good people will visit at least once... Just offering an alternative to spending 100k on a franchise. In todays world borrowing 100k and making repayments if the economy gets worse there wont be many buying €6 subs. If the competition is strong then defo the name is worth gold but with a few players its worth considering the smaller start up route..

    Hi bentonit,

    I fully understand your logic but my big fear would be once the location is deemed successful your then going to have to contend with one (or more) of these big chains opening up right beside you and undercutting the hell out of you until you go bust (i.s the Starbucks clustering tactics)

    Also I'd venture that your not going to have much change left out of 100 k anyway even if you go the indy route, setup costs, legals, stock equipment, and some cash to get you over the first few months when your trying to establish yourself, you'll have little or nothing left from 100k


  • Registered Users, Registered Users 2 Posts: 1,130 ✭✭✭The Apprentice


    Hi


    I personally believe depending on location a franchise is a great way or an opener into getting into business. Everyone seems to hate working for the "man" but dont like to get there lips wet. Most seem to mill along choosing the safe option with security attached .. i know i do !
    Franchise options always have the security of opening a business knowing that u have the backing of and advice to those questions that normally you would have to find out yourself the easy way or the hard way.
    Franchise will always offer u great help in setting up your business on there successful business model.. they will tell u straight up if ure pissing against the wind with the idea in regards to your location, average footfall per day, projected profits.

    What is going to seperate u from the masses is going that pair of nuts and saying .. YES im gonna ****ing do this or break my spine trying thats really what seperates an entrepreneur from a dreamer. Someone that gives the bank a call, someone that gives the time and effort into researching is it viable to making me money for the rest of my life


    Something i could suggest is doing a bit more research.
    How much profit are the other subways making on average a day ?
    How many rolls are they selling to break even without a profit ?
    How much staff costs are per week im assuming u will work this yourself ?
    How much heating , lighting, water rates and electricity are a month ?

    Footfall per hour on a given day in the area? If ure other subway in co louth has a pop of 10,000 people in a town centre has an average footfall of 150 per hour with a 10% actually coming into purchase something.
    15 people spending €5 which is roughly €75 which is an average hours takings.
    IM assuming 9 - 6pm 9hrsx 75 is €675 On average per day.. But there will be days u wont make that we are in recessionary times and people might like the idea of paying 3 clams for a 6 clam product BUT beware people are making sandwhiches for work.

    €1 sandwich made from home
    €3 Subway half roll
    €4 Full roll everywhere else.


    Is there any hospitals or shopping centres or builders or schools to boost footfall.
    How Much are your food costs obviously subway is a pretty cheap product to produce but the sales much match up or ure 100k down the swanny with that 15k savings u have.
    And remember all profits 8% goes back to subway.

    These questions u must answer yourself people on the board cant help u there.

    And again research research research.. brain storm all day long and write down those answers to the questions because u will be asked again and again

    Cheers Appy


  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭betonit


    fair enough i wouldnt do it but theres alot for it.

    out of interest have approached subway about this. I cant imagine you'll get much more for 100k than the name. I know other fasf food franchises you pay the franchise fee and theyll set you up with all the equipment etc but this is leased to you on top of the fee, they can also arrange finance ie lend you start-up costs. So theyll make easier for you to startup but is costs. Is the 100k the fee, does it range fromm 100k up? Just watch out for the xtras. They would also have criteria on the premises like they wouldnt give to you if it wasnt up to their standard (which is fair enough protect their image etc) but getting up to their standard could be costly.

    As the last Poster said research the market but make sure there are no surprises. No point having a good market and crippled with expenses.
    Im not being negative but its a business and you need to look at this stuff.


  • Registered Users, Registered Users 2 Posts: 3,282 ✭✭✭Bandara


    betonit wrote: »
    fair enough i wouldnt do it but theres alot for it.

    out of interest have approached subway about this. I cant imagine you'll get much more for 100k than the name. I know other fasf food franchises you pay the franchise fee and theyll set you up with all the equipment etc but this is leased to you on top of the fee, they can also arrange finance ie lend you start-up costs. So theyll make easier for you to startup but is costs. Is the 100k the fee, does it range fromm 100k up? Just watch out for the xtras. They would also have criteria on the premises like they wouldnt give to you if it wasnt up to their standard (which is fair enough protect their image etc) but getting up to their standard could be costly.

    As the last Poster said research the market but make sure there are no surprises. No point having a good market and crippled with expenses.
    Im not being negative but its a business and you need to look at this stuff.

    to be fair to them the complete package is about 120k thats everything, equipment, training, legals, fees etc etc Other than key money (if any) this amount will have you open and trading.

    I went very far down the road with them the middle of last year, to say they are utter ar$eholes to deal with is an understatement.


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  • Registered Users, Registered Users 2 Posts: 66 ✭✭tuxedo


    Its not always about the name, its the quality of the food & service you provide!!

    if you are always striding to be the best in both and establish a bit of a name for yourself your getting there.

    subway is a great option but look at the money side of it and what you could do with that money to invest back into your company!!

    come up with a catchy name too, submarine etc.

    dave


  • Closed Accounts Posts: 90 ✭✭itsonlyme


    DecTipp wrote: »
    Hi im thinking of opening up a subway franchise in a large town with llittle competion where i know a commercial property is going for rent for 250euro a week.What im concerned about is that i have no experience in this field but i think by putting in hard work and dedicatiion i should be ok.Roughly a franchise costs about 100000euro.but with these economic times are people going to fork out over 6euro for a sub l when they can get a roll for 3euro elsewhere.

    DecTipp, I know a good bit about Franchising and the Food Business in Ireland.

    If I were you I would start small, in the current climate, by opening a coffee shop/sandwich bar under your own name. See what sales you can generate in your area "with little competition".

    You would fit out the unit for about 25% of the cost of a franchised unit. With a franchised unit you could spend anything from 150k to 250k fitting out a unit as you have to purchase everything from ovens to chopping boards from their preferred suppliers. Running costs are a quite high in a food operation so you will have to bear that in mind. ESB and Waste disposal in this kind of business will be very high on an annual basis. This year alone waste costs are up about 30% on last year in some counties/cities.

    By operating as an unaffilated franchised sandwich bar you are getting a feel for your market and its potential. This way you get to see what sales and profits you can command and if the business is worth upgrading to a franchise unit.

    If the business doesnt pay it way initially you have minimum loss as an unbranded franchised unit.

    On the "I have no experience" front alone my advice to you would be.....

    Forget about this business because this is a type of business that requires you to be a hands-on operator. With respect to you there is alot more to "Just making a sandwich".

    The EHO in your area will not be very impressed either if you have no previous food service experience.


  • Closed Accounts Posts: 7 aljune


    good idea? ya maybe i love subway... depends where you are putting it!! Some places der is loads and o0ther place not enuf?? What region you planning on puttin it?? But we the training in the states you will learn what you need to and as lonh as you are dedicated you shud b ok!!
    Best of luck:)


  • Registered Users, Registered Users 2 Posts: 842 ✭✭✭dumbyearbook


    Great post there itsonlyme.

    OP do lots of research if you are willing to spend 100K or whatever you should be in the car for 70 hours for two weeks seeing as many and as much of this business as possible before you dream of putting a hand in your pocket.

    Also Subway in the USA screwed totally their franchisees with clauses which required expansion to a set number of stores within a certain time period, not sure if it applies here, I cant help think of that everytime I step into one.

    Most of the aforementioned people were poor afrcian americans who 'wanted to make it' - i seriously doubt if such conditions apply here though from looking around nationally it seems that the subway franchise owners nearly always open more stores, galway is one example there is another above, this could have been soley based on their own decsion in pursuit of profit but i dunno :confused:

    Spend the 100K on class furniture and fittings an develop your own 'brand' ! Subway imo will go the way of McD's in 3-5 yrs time people will associate it with junk food - but yet still buy more of it (even where there are warnings in their ads) which is a key point when the world turned on McDonalds - Health wise ethics wise business wise, they got a bloody expensive new ad campaign made in Ireland and spent Millions on 'I'm lovin it' - Subway spend a bit on their ads here but its all generic and terrible, just my two cents.

    Then again if your gut tells you to do it and the $$££ adds up - go for it, note what was posted above food businesses are like pubs - running these types of businesses on the basis of thinking ' i'd love to run a pub' (which lots of people used to say) and being up to your neck every weekend are two way different things. Also get your own legal advice on all of it.


  • Registered Users, Registered Users 2 Posts: 93 ✭✭Bellies


    Hi DecTipp, send off for an information pack. One thing that I have noticed is that there is 8 current stores (Subway) for sale between Mayo, Galway and in LetterKenny, (in the current info pack) one thing that's abit dodge is why are they selling these now? Can anyone comment on this?


  • Closed Accounts Posts: 64 ✭✭fiscalstudent


    Have to disagree strongly.

    I would never dream of going into Johnny chips etc, At the low level of convenience food I'd never take the chance that what I get will be crap or not. I also don't want the hassle of trying to figure out what they sell or what to order.

    I just want to walk in order exactly what I know they do and I want to know exactly how its going to taste. The amount of Johnny Chips that fail is huge, you get the odd few that make it but if you think of independant sandwich shops in the city center for example they are very very few that stood the test of time. People churn them out as examples that it can be done, but they forget to mention the other 9 attempts that went to the wall.


    Pretty much sums up what I was going to say, I think there is a much bigger risk in trying to start an independent store rather than simply setting up a franchise. This is why franchises are so popular in the first place. I would never go to a random cafe that I knew nothing of if Subway was an option.

    ___________________________
    www.fiscalstudent.com


  • Registered Users, Registered Users 2 Posts: 2,285 ✭✭✭tfitzgerald


    i'd say go for it if the place is kept clean and the subs halfway decent i think you will do well best of luck


  • Closed Accounts Posts: 456 ✭✭sm.org


    Personally I think if you're planning on opening in a small/medium size rural town like say Tipp town,Thurlus or Carrick you'd be better of burning the money , at least it would keep you warm for ten minutes.

    I dont think subway has anywhere near the presence/identity in rural area's that it enjoys in the cities/commuter towns.


  • Closed Accounts Posts: 186 ✭✭gags89


    are you allowed expand your subway into a delivery business? I know they do the catering giant subs and platters etc, but just say an office rings in lunch orders, or even just like the normal take away model?


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  • Closed Accounts Posts: 90 ✭✭itsonlyme


    Bellies wrote: »
    Hi DecTipp, send off for an information pack. One thing that I have noticed is that there is 8 current stores (Subway) for sale between Mayo, Galway and in LetterKenny, (in the current info pack) one thing that's abit dodge is why are they selling these now? Can anyone comment on this?


    Bellies, I can tell you this is not just the case with Subway. Its main competitor, O'Brien Sandwich Bars, are in a similar situation with several franchises "for sale" and some are very unfortunately closed down as I type this reply.

    There is are many reasons for this, namely but primarily, high and unsustainable rents in this current economic market in certain locations with landords unwilling to review downward premiums and more importantly that the entire "sandwich market" has collapased as many people now a bringing a "packed lunch" to work in both urban and rural areas. The main convenience store groups ,CENTRA, LONDIS, SPAR, are reporting that store hot food and fresh food deli sales are down on average 20% to 30% in shops.

    With respect If you or anyone else are thinking of buying/leasing/setting up a franchise I wouldnt be sending off for a sales brouchure. Only contact the franchisor when you have done the following, as I set out below........

    My advice for you is to go out and visit at least 8 to 10 of these franchises in various locations similar to your own area where you want to set up shop and ring the store and make an appointment to meet the franchisee and talk to him/her about

    the concept of the brand,
    the positives/negatives of being with the brand,
    trading in this current environment,
    set up costs and amount of investment on your part including the amount of unborrowed capital you will need,
    leasing costs,
    store fit out costs,
    operating costs,
    wages costs,
    gross margin potential,
    waste/shrinkage levels and

    find out what sales figure you need to do on a weekly basis to break-even.


  • Registered Users, Registered Users 2 Posts: 350 ✭✭amybabes


    Agree with above post.... deli sales are down, this is due to the fact that it was construction workers who drove sales and made the breakfast roll a best seller during the celtic tiger era. my bf used spend about fifteen euro a day between breakfast roll, tea, paper, chocolate, crisps, sandwich at lunch etc. now he is bringing lunch from home! alot of the topaz petrol stations are doing great offers.....chicken baguette, crisps and bottle of water for 2.99, its now the era of special offers.
    I can only see subway doing well in cities and commuter towns, as someone already mentioned. coming from near enough a rural town in south tipp which has seen abra kebabra close down, and another chipper in the last few months....its not the ideal climate to be opening an expensive franchise.

    Quiznos sub is a much nicer franchise.....i havent seen too many of them in ireland but they are more popular than subway in the states i think. subs are more substantial, and the fillings seem fresher etc.


  • Closed Accounts Posts: 20,739 ✭✭✭✭starbelgrade


    SouthKerry wrote: »

    If you want to open a franchise why not look at other American sandwich companies that have not yet reached Ireland.

    Surely that defeats the whole idea of buying into a well known, established brand in the hope of chipping into their success?


  • Closed Accounts Posts: 20,739 ✭✭✭✭starbelgrade


    amybabes wrote: »
    my bf used spend about fifteen euro a day between breakfast roll, tea, paper, chocolate, crisps, sandwich at lunch etc. .

    I would seriously worry about his health with a diet like that.

    Personally, I never understood why people would pay through the nose for a badly made roll from a deli or fast food joint when you can make a lunch for yourself in about 2 mins while you're making the dinner.

    I ate a Subway once when I was on holidays - that was enough.


  • Registered Users, Registered Users 2 Posts: 350 ✭✭amybabes


    he hasnt a pick on him though!! he eats like a horse and cant put on weight.

    im not a huge subway fan myself...its d smell of the place thats the most offputting!


  • Closed Accounts Posts: 20,739 ✭✭✭✭starbelgrade


    amybabes wrote: »
    he hasnt a pick on him though!! he eats like a horse and cant put on weight.

    im not a huge subway fan myself...its d smell of the place thats the most offputting!

    He's eating the wrong foods - with his work, he's physically active, but eating a heap of carbohyrates that break down really quickly, instead of the slow burn carbohyrdates you get in the likes of brown rice, beans & pulses.... plus he's filling himself full of sugars & salt - it's not the amount you eat, but the quality of food that you eat, that keeps you healthy...

    Which brings me back onto the subject of the thread - Subway, which has got to be one of the most unhealthy places I've ever been in!


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  • Closed Accounts Posts: 6,414 ✭✭✭kraggy


    One of the subway shops in Galway closed down a couple of months ago.

    People are really turning off the food.

    I find it disgusting myself.


  • Closed Accounts Posts: 20,739 ✭✭✭✭starbelgrade


    kraggy wrote: »
    One of the subway shops in Galway closed down a couple of months ago.

    People are really turning off the food.

    I find it disgusting myself.

    Subway should go on Rodge & Podge's list of "Useless Sh*te We Didn't Need Anyway & Won't Really Miss."


  • Posts: 0 [Deleted User]


    amybabes wrote: »
    he hasnt a pick on him though!! he eats like a horse and cant put on weight.

    im not a huge subway fan myself...its d smell of the place thats the most offputting!

    Skinny-fat syndrome! Tell him to watch himself because he may be skinny yet his arteries are definitely feeling it!!!

    Didn't come in here to have a go at your bf's diet so carry on!

    I did come in to have a go at Subway - their food is utter CRAP and so full of saturated fats. You may think I'm just a gym rat (and you're right) but more and more people are turning to fitness/more concerned with what they eat.

    I think Subway is just a phase, people will get sick of it after a while (sales will drop), I've had a Subway a couple of times (hungover sundays) in the Dun Laoghaire one and it's always spotless and reasonably quick but the variety is boring and small and the food is just prosthetic and disgustingly fake not to mention so over priced, there has got to be at least a 300% mark up on those prices. Wasn't that busy last time I was there either and I passed it 4 times a week at different times since my gym was next door to it!

    On a side note, anyone who can eat a footlong meatball sub and not get stomach cramps for the rest of the day - You're Superman so fair play.


  • Closed Accounts Posts: 20,739 ✭✭✭✭starbelgrade


    Skinny-fat syndrome! Tell him to watch himself because he may be skinny yet his arteries are definitely feeling it!!!

    Didn't come in here to have a go at your bf's diet so carry on!

    I did come in to have a go at Subway - their food is utter CRAP and so full of saturated fats. You may think I'm just a gym rat (and you're right) but more and more people are turning to fitness/more concerned with what they eat.

    I think Subway is just a phase, people will get sick of it after a while (sales will drop), I've had a Subway a couple of times (hungover sundays) in the Dun Laoghaire one and it's always spotless and reasonably quick but the variety is boring and small and the food is just prosthetic and disgustingly fake not to mention so over priced, there has got to be at least a 300% mark up on those prices. Wasn't that busy last time I was there either and I passed it 4 times a week at different times since my gym was next door to it!

    On a side note, anyone who can eat a footlong meatball sub and not get stomach cramps for the rest of the day - You're Superman so fair play.

    I'm not a gym rat but I agree with everything you say - being a food rat*, I know that you can knock out a pizza for two from scratch for under €2.

    * = Newly invented despisable words, like "recessionista" :p


  • Registered Users, Registered Users 2 Posts: 4,632 ✭✭✭maninasia


    Pretty much sums up what I was going to say, I think there is a much bigger risk in trying to start an independent store rather than simply setting up a franchise. This is why franchises are so popular in the first place. I would never go to a random cafe that I knew nothing of if Subway was an option.

    ___________________________
    www.fiscalstudent.com

    I'd say you are looking at 100,000 to 200,000 to setup a franchise of Subway. That's a lot of cash. You need to pay the franchise fee every year too right?
    I've lived in a recessionary country for years and I'd be wary of spending that amount at the start, things go into deflationary spirals and that money will look like a lot more after a year or two! (to give you an idea of deflation Ireland will face go to a UK job site, write in your job description and see how much they are getting paid...ouch).
    I think good food will win out in the medium term and people will get more demanding. O'Briens and many operators were overcharging, the customers bucked at this. But there should be a space there now where 'value' and 'quality' will win. Where I live I get Subways often and I usually go for the Subway value deal (which is priced at 1/3 of Ireland, folks back home are still paying top dollar for everything), but if there was an independent deli with better quality at the same price as regular Subway I woud go there. I don't like to eat crap with my food either - coke, crisps, cookies.

    You've got to think why are people going into Subway when they wouldn't go into an independent place, then counteract that if it is feasible. Show people you have great deals going, professional graphics of the food if neccessary. Word of mouth will win out in a town for sure. Some of the customers are in a different bracket so it is not always worthwhile or possible to compete directly.

    You've got to think of it like this, if there is a Subway everywhere soon that becomes boring too, you can try doing better quality stuff, home made soups, teas etc. People are getting fatter and fatter and that is from processed foods. Keep it to simple food but more home-made stuff. It depends on the customer traffic in that area of course and your own motivation.

    It also depends on the location, a lot of through traffic or a residential area. If residential area or near a supermarket, town centre you could open a nice tea and coffee shop..
    As franchises go Subway is not a bad one but it is really fast food at the end of the day. Business is business so take your pick of the options.


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  • Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    gags89 wrote: »
    are you allowed expand your subway into a delivery business? I know they do the catering giant subs and platters etc, but just say an office rings in lunch orders, or even just like the normal take away model?
    Well they (not all) deliver in N. America sooo...


  • Closed Accounts Posts: 5,538 ✭✭✭niceirishfella


    If ye all think Deli business is going down the pan, wait till next month when the new tax rates kick in.
    I'd sooner flush my cash down the jacks than open a subway or the likes.


  • Registered Users, Registered Users 2 Posts: 842 ✭✭✭dumbyearbook


    Subway are definitely not able to compete with the offers that are out there (these are dublin but still relevant) in Spar Dawson St. Chiken Fillet roll and Crips and water was like 3.50 last time i was there , Londis Stephens Green BLT/Chicken Fillet roll @ 1.67 or with wedges 2.50 !

    Subway in the sticks is a bad idea at present it would seem theres no way people will buy into it they are still selling in Dublin CC but must be less $$ coming in, the most 'local' Subway I have seen is in Ballybofey Co. Donegal, which would compare with a Tipp store OP if thats what you are still looking for. That said its opposite a very popular Shopping centre which attracts people from all over the NW.


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