Why subway is the best food franchise in India 2024?

on Nov 13, 2023 | 16805 views

Written By: Yukta Palekar

This guide will provide you with all the information you need to open a Subway franchise in India.

About Subway Franchise in India

Subway, a global franchise with 39 thousand branches, is a powerful and competitive brand that attracts many franchisees. With 353 franchises in India, Subway's franchise numbers are constantly increasing. 

The quick-serve restaurant sector offers lower investments and simpler operations, making it an attractive option for franchisees. Subway's success can be attributed to its warm heart and warm sandwiches, which have made it a success. 

With around 600+ franchises in the country, leveraging a well-established business with a clear vision and ideas is an unmissable opportunity. Join fellow franchisees and earn a lucrative monthly income by exploring Subway franchise opportunities in India. This guide provides all the necessary knowledge to own a Subway franchise in India.

How It All Started in India

Subway, a fast-food chain founded in 1965, opened its first restaurant in India in 2001 in New Delhi. Due to Hindu beliefs, Subway does not serve beef products in India. However, the country's large number of vegetarians has led to an extensive range of vegetarian options. 

There were 591 Subway outlets in 68 Indian cities as of January 2017. In 2012, Subway opened its first all-vegetarian outlet on the campus of Lovely Professional University in Jalandhar, Punjab. In 2013, Subway opened its second all-vegetarian outlet in Paldi, Ahmedabad, offering Jain food. 

The company's unique selling point is its non-fried, vegetable-garnished, and healthier options, unlike other fast-food chains. The company's goal is to become the market leader in non-traditional branded fast food.

Also read: Subway plans global expansion of around 4000 units

Why is the Subway franchise so popular in India?

Subway's success in India can be attributed to its strategic reinvention, which includes launching new menu offerings and simpler ordering methods, marking the brand's biggest strategic shakeup in its two decades in the country.

Owning a Subway Franchise in India

Initial Investment:

  • Plan for an initial investment ranging from INR 30–40 lakhs, covering franchise fees, outlet setup, equipment, security, freight, inventory, insurance, advertising, and lease expenses.

Profit Expectations:

  • Expect a moderate profit with a return on investment (ROI) of 3–4%.
  • Be prepared for a 7–10-year timeframe to recoup your initial investment.

Revenue Growth:

  • Subway has seen significant revenue growth, averaging around 12% annually over the last five years.

Royalties and licensing fees:

  • Determine the percentage of profit derived from royalties or licensing fees by subtracting all other costs from the total net income.

Competition in the Fast-Food Industry:

  • Recognize that established chains like McDonald's, KFC, Pizza Hut, and Domino's face competition from newer entrants like Burger King, Subway, and Red Mango in India's fast-food industry.

Understanding Industry Trends:

  • Stay updated on industry trends to adapt and remain competitive.

Location Matters:

  • Choose a strategic location accessible by foot, car, and public transportation to attract a diverse customer base.

Effective Marketing:

  • Utilize social media and online tools for marketing and promotion, considering the digital-savvy population in India.

Manage costs efficiently:

  • Control operating costs to maximize profitability, especially in a competitive market.

Long-Term Strategy:

  • Prepare for a mid-term perspective, as it may take time to see substantial returns on your investment.

Potential for Success:

  • Owning a Subway franchise in India offers an attractive business opportunity with reasonable initial costs and potential for financial success.

Remember that success in the fast-food industry requires a combination of careful planning, adaptation to market dynamics, and effective management to achieve long-term profitability and success.

Steps to Obtain a Subway Franchise in India

Application Submission:

  • Visit the official Subway website and complete the franchise application form.
  • For inquiries, contact franchise bazar.

Meet with Field Development Agent:

  • Arrange a meeting with a Subway field development agent to gain insights into the franchise process.

Market Research:

  • Conduct thorough market research to identify the ideal location and target customer base for your Subway franchise.

Financial Planning:

  • List available sources of finance to cover initial investment and operational costs.

Franchise Fee Payment:

  • Pay the franchise fee as per Subway's requirements to formalize the franchise agreement.

Training Completion:

  • Undergo training provided by Subway India to ensure compliance with their operational standards.

  • Achieve a minimum score of 80% in web-based training to qualify for the franchise agreement.

Store Setup:

  • Begin the process of building your Subway franchise store from the ground up.

  • Select a strategic location, such as a busy marketplace or near offices, to maximize foot traffic.

What is the profitability of an Indian Subway franchise?

Subway, a popular chain in India, has gained popularity due to its uniqueness and customizable sandwiches. The company's focus on using high-quality ingredients and promoting healthy options has led to increased customer satisfaction. 

Subway franchisees can expect to make INR 20 lakhs or more monthly if they choose the right location and have a unique selling point.

Subway has been a leader in the food sector since 1965, adhering to Indian religious sentiments by not using pork and beef in their foods. Their variety of vegetarian dishes, including Paneer Tikka, Veggie Patty, and Aloo Patty, caters to regular customers across India.

As an established brand globally, Subway drives the business rather than the sales team, making sales automatic with minimal effort required. The unique items sold attract people because of the quality already established by the brand. 

The quality aspect of Subway products is that it sells products independently without much marketing or sales effort from the franchisee.

To become a successful Subway franchisee in India, one must utilize the strengths of Subway as a selling point and become a standing example for striking a profitable venture with Subway.

Future of Food Franchises in India

The food market is predicted to reach $905.20 billion in sales in 2023, with an annual growth rate of 8.40%.  The market is expected to grow by 5.5% in 2024, with an average volume per person of 410.30kg in 2023.  

In 2022, the Indian food service market is expected to be worth approx. 41 billion US dollars. Quick service restaurants made for a sizable portion of the market. 

In terms of sectors, the unorganized sector dominated the food service industry, despite the organized market's strong year-on-year increase.

Is owning a Subway franchise in India a wise business decision?

Since 1965, Subway has held this top position in the very competitive food restaurant industry by coming a long way. As a franchisee of Subway, you may concentrate on operating your food business instead of overseeing a sales team, as the firm is a well-known brand not just in India but globally. 

Because of the food's distinctiveness, sales happen on their own and basic promotion does not need to be overdone. But, by using your special marketing techniques, you may increase the sales level to substantial volumes.

Because of the excellent standards the firm has set for its meals, people of all ages are drawn to the unique cuisine offered in Subway restaurants. Good food is Subway's main selling feature, which also explains why franchisees do not have to spend a lot of money on marketing or sales to promote their goods. 

To become one of the successful Subway franchisees in India and utilize Subway as your selling point, take advantage of all these benefits and only review the subway franchise application.

Conclusion:

Subway has provided all the necessary information for franchisees to become proud Subway franchisees. 

With this knowledge, franchisees can start a subway franchise in their area, benefiting from the details provided. 

FranchiseBazar offers insights into some of the most grossing food franchise opportunities in India, ensuring success in the fast-food business.

FAQs

Q.1. How much money does an Indian owner of a Subway make? 

The earnings of a Subway restaurant vary depending on the city and region. But the average income for a Subway franchise is about INR 20 lakhs per month.

Q.2. Is India's subway system profitable? 

Sure. The Subway franchise is the best option to invest in because of its strong brand awareness across the nation. It can yield a profit of between 40 and 50 percent if done correctly.

Q.3. Is it a wise business to own Subway?

Certainly, indeed. The ideal company to own is one like Subway, which has a relatively low initial cost and respectively high revenues.

Q.4. What is the Subway franchise fee in India?

In India, the franchise price to become a Subway franchise owner is approximately INR 6,50,000. 

Q.5. In India, how many subways exist?

How many Subway restaurants exist in India? As of September 7, 2023, India has 579 Subway locations. Maharashtra has the most Subway locations in India, with 95 sites, accounting for around 16% of all Subway shops in India.

Q.6. In India, who is Subway's target market?

Subway's marketing campaigns in India, for example, emphasize vegetarian alternatives, whilst those in the Middle East emphasize halal selections. Subway's demographics include individuals of various ages, although the company's core target market is young adults and families.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.

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