Subway Franchise Good Option for First Business

Promise Udoh, Reporter

Owning a franchise is better than a start-up business.

The ease of starting a franchise and the assistance from the home company is what makes franchises a better bet than starting a business from scratch. Subway is one of the largest franchises in the United States and perhaps the easiest according to Jigar Patel.

The Subway branch located at Hershey, PA is run by Jigar Patel. Patel said that the franchise has been on and going for about 4 years now. His experience running a franchise is a lot difference with running a non franchise.

“Most times the cost to open a franchise really depends on the location of the store,” he said.

The location determines the cost of the franchise, so is the distance from the owners residence to the store. He said that the store was purchased for $250,000-$300,000 because of its locality. He also added that acquiring a franchise was the best alternative because it’s easy to run and manage. Products are made in the same quality across the country, and goods are delivered once a week to every franchise.

Patel, known as a small businessman in Dauphin County first began doing business in is early 20’s. The first store he managed was Turkey Hill. Based on his experience with other convenient stores, he said that running a franchise is the most affordable business to go into. Of course you have to buy essential items and tools and also make the store hygienic, but having a good quality food that taste the same in other Subway restaurants attracts customers to buy the food regularly.

“An excellent attributive food captivates more consumers,” Patel said

As of 2017, a recent website Statista stated that Subway is the most third selling franchise in the U.S. This statistic shows a list of the top 10 valuable brand stores. McDonald’s being the top chain franchise, and Burger King being the lowest. The site adds that McDonald’s grossed $97,723, leaving other restaurants at its lowest. Starbucks earned $44,230 while Subway ended up with $21,713.

These companies run restaurants where customers buy and pay food in the store (maybe online) and off the counter. Some certain reasons Patel chose to manage a franchise is because of the minimum wage. Alternatively, by law, the average minimum wage in Pennsylvania is $7.25. The store’s management can choose to either keep to that or increase the rate.

“The profitability of individual companies depends on efficient operations and effective marketing,” said Patel.

He added that although running a franchise would require a certain amount of employees, he merely prefers keeping track and record of business and successes. Whereas, at a convenient store, the manager purchases products from different companies and starting up business would require more than owning a franchise.

The franchise primarily purveys sandwiches and salads. In 2017, there were approximately 45,000 stores in more than 100 countries. Subway, originally named Pete’s Subway became the fastest growing food chain in 2002.

According to Subway Story, the store was founded by Peter Buck in accordance with his friend Fred Deluca who retroactively loaned money from him to pursue his college dream in becoming a medical doctor. Later, Buck encouraged him to go ahead in setting up a restaurant which now becomes one of the most highest quality food selling industry world wide.

Although Subway is categorized under a fast food chain, most people believe it is healthier than other fast food restaurants. The person famous for losing weight eating only Subway sandwiches Jared Fogle said on LA Times that he was merely a regular college student at Indiana University that weighed 425 pounds.

Then, at the age of 20 he was unable to walk across the campus or make friends. One day he decided to start eating only Subway sandwiches day-to-day because that was the only closest restaurant nearby. 11 months later, he dropped 245 pounds, which is more than half his body weight.

For decades now, the company has spent a better time promoting Fogle with commercials, combining him with famous people and help partnering with health initiatives to reduce the rate of obesity among kids.

“You know you’ve made it when shows like South Park start parodying you,” said Fogle.

Klay Petel cleans tables on Monday, April 30, 2018. Petel cleans tables to maintain healthy environment. (Broadcaster/Promise Udoh)