Posted by: akauliya February 18, 2013
Opening a Subway Restaurant, Please suggest
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Here it goes: first take a subway test. U have to pass it. Pass mark 80%. Questions include math and English both. After you pass the exam you apply for the franchise license. It costs you 15000. Then you have a choice either to buy a operating store or a brand new store. Buying an operating store is easy and hassle free. It also is less risky in which loan approvals are highly probable required you have a good credit score.Building your own store will cost you between 160000 to 225000 in which you pay as the construction goes on. So you will be spending that money within the construction time span. You DONOT have to pay that money at once. You pay your vendors as construction continues.it will approximately take 4 months to open the store once you decide your store location. Banks may not be that generous in this case because it is highly risky.The only liquid cash you need is approximately 15000 that will probably be able to keep your business in operation for first two months. That is your total cost including the liquid cash will be approximately 200000 dollars.
About profits
Your food cost will be between 28 to 35%. Labor is 20%,rent and utilities will be around 20%. So total cost will be between 70-75%. So a decent location should gross around 7000 dollars a week which should generate 1400 dollars a week(net) which will be 72000 a year that is 35-40% return on investment.
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