Subway, the name most popularly associated with sandwiches is one brand that can be franchised especially if you have plans to enter the F&B market. The initial franchising fees can be higher than others but its ROI would be one of the best and most lucrative ones around.
It has an international branding status and a great menu. Subway has been linked with healthy eating and diet which is the current craze among people these days.
Subway in Malaysia
Among the fast-food franchises in the world, Subway stands among the top. To this extent, Subway is actually the largest where it is operating in more than 110 countries worldwide. Within these countries, Subway is present in more than 44000 locations.
In Malaysia alone, there are almost 200 Subway outlets. If you have been a fan of Subway sandwiches and have the knack to start your own outlet, then this franchise could well be your best business decision.
Considering this business?
Offering fresh and healthy meals, Subway is known for its submarine sandwiches. Besides that, its salads and other snacks are extremely popular with its customers too. This business is one of the most recognized brands in the F&B industry for its simplicity and variety.
Subway’s specialty and signature
It offers 7 subs with fats below 6 grams. This makes Subway’s food to be very healthy which is very much demanded among consumers, especially in the present day. What makes Subway such a successful name among consumers is that there is no cooking involved and it is easy to operate.
If you own an outlet, it makes this very easy because it is small and requires very few manpower. All you need is an area of about 300 square feet and you are ready to go.
It is always in the quality and the concept that customers can customize their sandwiches that make Subway such a hit with their customers.
Weighing in your options
Offering a wide range of Halal sandwiches, Subway can be run from any place within Malaysia. To start this business, the average start-up cost depends largely on your location.
As mentioned, anywhere from 300 square feet would be sufficient and you will need about RM300,000 to start. The larger your space, the higher the cost would be.
To start this business, the franchise fees start from about RM42,000. On top of that, you need to pay 8% royalty from your sales.
This makes franchising Subway one of the lowest in terms of costs and startup capital.
Training and support provided
Once your application is approved, Subway will train you in terms of running your own outlet. This includes buying the right equipment for the business, training of staff and food preparation.
On top of that, you will be trained on operations, cost planning as well as sustaining the business. As this is a franchise business, advertising and promotions are done by the master franchiser.
What do our experts say?
Owning and operating an international fast food brand is often perceived to be very high-cost. Subway changes this and that makes this business one that you can consider which has a strong market catchment and easy to operate.
- Brand Reputation – Very strong and internationally recognized brand.
- Initial Capital – This is on the high side as you need about USD200,000 to start the business.
- Return on Investment – Once the operation starts, it should be very much self-sustaining. You will benefit from the strong customer segment.
- Location – You can operate either in a shopping mall or as a stand-alone shop-lot.
- Customer Segment – Working adults, families.
- Franchise Fees – It starts from USD10,000 which is low considering it is an international brand.
- Royalty Fees – 8%
The Final Word
For an international brand like Subway, this is truly a sound investment considering that it is far lower than the likes of McDonalds’ and other global brands. Remembering that this is one business that does not need a lot of manpower, managing is a lot easier and more efficient.