I want to open up either a subway restaurant or a coffee franchise. Is this a good idea?
I’ve been wanting to open up a small business but not sure which.
If I do decide on which one I’m planning on working at a similar place for 3 to 6 months since I don’t have any restaurant/ coffe shop experience.
I heard Subway can go out of business easily and it’s a very hard work physically.
Is this true?
I have a friend here in Dubai that owns about 10 subways on franchise basis. He says he has to open quite a few in order to make reasonable profit because the profit per restaurant is small. You also need to use subway’s furniture and decor materials, their fridges, cookers, displays, posters, etc. and this all comes at a higher price than the market but the agreement is you HAVE to buy from them only, so you have a higher setup cost than would otherwise be possible.
On the other hand, a coffee shop would be a much better idea since the costs are minimal and the profits much better.even franchises still make more sense than food joints because u can still sell snacks n cakes n brownies at a coffeeshop n make a killer on very low cost. This has actually been my plan once I move down to Toronto in 2 years from now.
Good luck with your investment!
I have a friend here in Dubai that owns about 10 subways on franchise basis. He says he has to open quite a few in order to make reasonable profit because the profit per restaurant is small. You also need to use subway’s furniture and decor materials, their fridges, cookers, displays, posters, etc. and this all comes at a higher price than the market but the agreement is you HAVE to buy from them only, so you have a higher setup cost than would otherwise be possible.
On the other hand, a coffee shop would be a much better idea since the costs are minimal and the profits much better.even franchises still make more sense than food joints because u can still sell snacks n cakes n brownies at a coffeeshop n make a killer on very low cost. This has actually been my plan once I move down to Toronto in 2 years from now.
Good luck with your investment!
References :
Pick up the latest copy of Entrepreneur magazine which lists many hot new franchises. I personally have steered away from a franchise because they take a chunk of your gross (not net) income and cash flow before you even get paid. So if you have experience, passion, and most importantly persistence – then go open what you want. If you lack in stick to itness, then don’t open anything. If you only lack experience, then find a franchise that fits your personality and they will give you experience and expertise in exchange for the money you give them.
References :
I’ve looked into Subway a little bit and was turned off with them because of the % you pay of your profits. It was the highest I’ve seen of any franchise. They do very well from what I can tell though.
So do coffee shops, but I don’t know anything about that.
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