Chain of Custody Featured: Subway

In this new segment, we take our readers into the world of lunchroom franchise chains. According to the trade magazine Franchise+, there are thirty coffee bars and lunchrooms in the Netherlands, of which you can manage one yourself as an entrepreneur. If you join a chain, you may not be able to create the lunch room of your dreams, but on the other hand it offers many advantages. The costs that must be allowed to bear the name of a particular chain vary. That’s why we highlight a chain of ownership every month. This month you will get to know everything about what you own Tunnel to manage.

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Subway is an American multinational chain of mainly ‘subs’ as they call sandwiches in the US. The idea is that the guest can choose his sub, salad or wrap himself, so he can choose the size, toppings, sauces and type of bread. Subway’s recipe, in its own words, strikes a balance between affordability, nutritious choices, and indulgence. According to the company, this ensures that the offer attracts a large target group. The chain’s team of experts watches food trends and develops new products and flavors. They say they are constantly innovating and delighting their guests with amazing new products.

Origin and development

We have to go back to the sixties to build the subway. In 1965, Fred DeLuca was looking for a way to finance his medical education. A family friend suggested opening a submarine sandwich restaurant. That friend became Peter Buck and Fred’s partner. The first restaurant opened in 1965 in Bridgeport, Connecticut. A plan soon emerged to open 32 lunchrooms within a decade. In 1974, operating 16 businesses across Connecticut, they decided to franchise when they were unable to reach their goal of 32 businesses in time. As a result, the company grew into the largest chain it is today. By the end of 2010, it had become the world’s largest fast food chain with 33,749 locations. Today there are more than 44,000 in 111 countries, 187 of which are in the Netherlands. The first tunnel in the Netherlands opened in Eindhoven in 2000. On September 14, 2015, founder Fred DeLuca died of leukemia at the age of 67. At that time he was succeeded by his sister Suzanne Greco. He ultimately did not return to medical school.

numbers

You don’t just become a subway owner. It requires liquid assets, along with a lot of motivation to set up your own company. The owner’s license costs 15,000 euros. Thereafter, royalties are 8 percent of net revenue and 4.5 percent of net revenue for the chain’s national marketing fund. The investment for each tunnel varies based on size, equipment and the need or not to renovate the site. The investment is at least 150,000 euros, including 15,000 euros for the license. Applicant has to contribute one third of the total investment in shares.

specialties

According to the multinationals, the main advantages you can enjoy as a tunnel owner are brand, organization, team and product. The company claims that it is known worldwide and has a huge fan base. Since 2007, the sandwich chain has been in Entrepreneur magazine’s top five hundred best American franchise chains. In 2012, it was in second place. It also ranked second in the ‘Fastest Growing Franchise’ and ‘World Franchise’ lists. As an owner, you benefit from this reputation. According to the franchisee, consumers know what the brand stands for and are familiar with high quality and franchisees benefit from the knowledge, processes and network within the system.

The multinational company offers various training opportunities to owners and their teams and the benefits of central purchasing through a non-profit purchasing system. There is also a national marketing fund where marketing experts work with a select group of owners and there is continuous investment in innovation in the system.

In addition to global fame, as a franchisee you will also be supported locally. A business development agent from your region supports and advises you as an entrepreneur through personal contact. Head office is also supportive.

Entrepreneur Profile

As a subway owner you do the purchasing and administration, and you manage and motivate employees. Of course you have to be passionate enough to prepare the sandwiches yourself. When things go well, the chain will give you the opportunity to grow and open more restaurants. As a regional specialist, the Development Agency helps entrepreneurs with this. Through various training courses you will be ready to work according to the subway system. However, you should possess the following qualities: enthusiasm for the brand, enjoyment of interacting with people, business acumen, sense of responsibility and willingness to actively participate in the restaurant.

This article, among others, was written on October 28, 2022 based on Subway’s website.

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