SANDWICHES MAKE FOR SUPER SNACK, GREAT PROFIT

Sandwiches remain a popular day-snack, with 61% of consumers eating them at least once a week. With all-day breakfast and between the- meals cravings trending up, most of the QSRs are including sandwiches in their menu. “In fact, we are seeing a rising demand for healthier sandwiches with fresh ingredients. Consumers also prefer customizable menu,” says Ranjit Talwar, Country Director- South Asia, Subway.

BUSINESS MODEL

A sandwich QSR requires 150-1,000 sq. feet area at high footfall locations like malls, high-streets, airports, railway stations, business hubs, educational institutes and hospitals. Startup investment may range from Rs 12-15 lakhs and can go up to Rs 45-84 lakhs in case of a Subway outlet. The startup cost includes interiors at Rs 3-10 lakhs, kitchen equipment worth Rs 3 lakhs that may go up to Rs 30-50 lakhs for a Subway franchise. Roughly Rs 1-1.7 lakhs is required for initial inventory and Rs 3-6.5 lakhs for franchise fee.

For small format sandwich outlet, operational expenses may be in the range of Rs 2-3.75 lakhs per month, which includes rent at Rs 40,000-60,000, salaries of Rs 40,000-50,000 for 3-4 people, monthly royalty of Rs 25,000-55,000, and miscellaneous expenses of Rs 20,000. Expected breakeven is within 18 months led by monthly revenues of Rs 3-6 lakhs and 35-40% margins. In case of a Subway outlet, monthly revenue may go up to Rs 20-25 lakhs.

EXPANSION PLANS

Subway currently operates a chain of about 650 restaurants across 70+ cities in India. “We expect to cross the 700- mark soon. We are also happy to announce our foray into the Jammu and Kashmir territory for development of a Subway franchise network,” shares Talwar. On the other hand, Goli Vada Pav is planning expansion in a clustered way in the top 250 cities of India.

STARTUP COST ` 12-15 lakhs

OPERATIONAL EXPENSES ` 2-3.75 lakhs

MONTHLY REVENUES ` 3-6 lakhs

GROSS PROFITS ` 1-2.25 lakhs

BREAK-EVEN TIME 18 months

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