Subway/Quiznos related business question:

hobojojo

hello,

have an idea for a business thats very similar to subway, quizno sub, begal factory, itsabagel, o'briens etc. it would be set up similar to these places, as in you get food to go (though i realise that you can sit down in some o'briens and some subways).... and also it would specialize in a type of food i.e. o'briens do sambos, itsabagel do begals, subway do subs, etc.

so take nassau st in dublin city centre. how many subs do subways sell a day do you reckon in their nassau st branch? similarly how many bagels you think bagel factory sell on dawson street? just looking for ball park figures here.

my idea is for a place very similar to the above outlets in setup and design, but selling a food item that's currently not catered for in dublin, but is very popular abroad and i think it would be very popular here. iv done some ballpark calculations based on premises rent, wages and ingredients costs, and have worked out an approx amount of say 'sandwiches' i would need to sell per week/per day to break even.

also, i know dawson/nassau st rea would be massive rent, im just using the branches of subway and begal factory as an example as i know its a very popular street for lunching around for both college students and workers alike.

perhaps somebody has worked in subway or does their accounts and could give me a ball park figure? calculated estimates welcome too.

cheers

brian

Bandara

Subway Nassau St apparently does about of 17000-20000 a week, at 70% margin, of which they should be retaining about 9 or 10%

it's by a country mile the busiest subway in Ireland and has always been so

I was told these figures by subway Belfast about a year ago, may be bullsh1t though

Definitely not a business to get into IMO, in fact it's s disaster in that industry at the minute.

hobojojo

i can imagine it is the busiest. have you any idea what an average subway in dublin city centre would do in a week? no less than 10,00 id say.

subway is a booming business at the moment, the prices are fantastic, in fact they are and have been rolling out extensively through the recession. all the other places i mentioned (bagel factory, quiznos, o'briens) are all failing at the moment as the have priced themselves out of the market in my opinion. i'v heard of many o'briens closing and the bagel factory on dawson st shut about 2 months ago.....


when you say 70% margin you mean their retail price is 70% over the ingredients cost right? then after wages, labour and franchise ownership/subscription payments the franchisee (spelling) would take 9-10% ?



my model has about 50% markup, which is realistic and could be lowered. and also it would be priced to sell in these hard time, and i think very attractive the the average punted, in terms of value and quality of food. but i do take you point into account about many places im talking about going closing up branches recently

Bandara

hobojojo wrote: »

i can imagine it is the busiest. have you any idea what an average subway in dublin city centre would do in a week? no less than 10,00 id say.

subway is a booming business at the moment, the prices are fantastic, in fact they are and have been rolling out extensively through the recession. all the other places i mentioned (bagel factory, quiznos, o'briens) are all failing at the moment as the have priced themselves out of the market in my opinion. i'v heard of many o'briens closing and the bagel factory on dawson st shut about 2 months ago.....


when you say 70% margin you mean their retail price is 70% over the ingredients cost right? then after wages, labour and franchise ownership/subscription payments the franchisee (spelling) would take 9-10% ?



my model has about 50% markup, which is realistic and could be lowered. and also it would be priced to sell in these hard time, and i think very attractive the the average punted, in terms of value and quality of food. but i do take you point into account about many places im talking about going closing up branches recently

With respect, I have to strongly disagree with you here.

They are suffering extremely badly. concerning your model, you are basing yourself against an international household name when you are going to be in reality just another sandwich/bagel shop etc (I do not mean this as a disparaging comment)

I would be very careful not to look at the earnings of a Subway store with their primetime tv ads, expertise, promotions etc etc and think you can acheive close to that without taking a HUGE risk.

In my own humble opinion, and its an area I've long been involved in, I think your absolutely off your rocker if you are thinking of opening a coffee shop or sandwich shop or crepe shop ete etc of any description in the current market. And so will your bank manager.


edit:

"when you say 70% margin you mean their retail price is 70% over the ingredients cost right? then after wages, labour and franchise ownership/subscription payments the franchisee (spelling) would take 9-10% ?"

Its very worrying that you need to ask this, its the very basic fundamental of business to understand margin. Your model at 50% or lower is going to make money how?

Why don't you post up the retail price of the product your plannign to sell (no need to say what it is) and then list here your costs as you see them and your projected earnings.

I'm quite worried for you that you starting a business that it is impossible to make money in. 50% margin is extremely low in a single product food business.

I know my post might p!ss you off but I think you might do yourself a big favour to post up a financial on here and have the various people here look at it for you. The poster Yellow sheep is very strong in this kind of area - you should pm him to have a look as well.

Either way, god luck with it.

Regards
HT