Franchising Opportunities

Success in store

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According to the latest NatWest/bfa Franchise Survey, the UK franchise sector further increased its turnover by £600 million in 2010, resulting in an annual turnover of £12.4 billion. Findings from the comprehensive survey also revealed that the franchising industry now employs more than 520,000 people and that 87% of franchisors are planning to expand in the next year. It is clear that franchising remains at the forefront of the UK’s recovery and that the successful business model continues to grow.

As one of the UK’s most popular franchise opportunities, SUBWAY® Stores now has over 1,500 stores in the UK and Ireland and is currently seeking to expand its business and recruit new franchisees nationwide.

SUBWAY® Stores is perfect for those that have had experience running a successful business, or have benefited from a flourishing career. SUBWAY® franchisees can take advantage of operating in a tried and tested system with great training and a solid support structure with aspects such as site selection, leasing, purchasing, marketing and more. This support has proved to be very successful and the fact that over 70% of all new SUBWAY® franchises sold worldwide are sold to existing owners, speaks volumes.

Contributing to the success of SUBWAY® Stores is the fact it continues to keep its concept and operations simple, start up costs low and seeks ambitious franchisees who embrace the entrepreneurial spirit. One such franchisee is Jonathan Kempsey who owns two stores in Hampshire, employing 25 local staff. Jonathan answers our questions on why franchising is for him and offers his advice on becoming a franchisee.

WHY DID YOU DECIDE TO INVEST IN A SUBWAY® FRANCHISE?

Before becoming a franchisee I worked for BT dealing with business point to point data circuits. I was keen to branch out and start my own business and the support offered by the SUBWAY® franchise system made it extremely appealing. Compared to other franchises the start-up costs were far more realistic.

HOW MANY STORES DO YOU HAVE?

I have two stores, either side of the New Forest in Totton and New Milton. The Totton store has year-round consistent sales, with a slight peak in the summer. New Milton has a four-month peak season in the middle of the year due to the local tourism, the other peaks come around the Easter and Christmas school holidays.

HOW HAVE THE CUSTOMERS CHANGED OVER THE YEARS? HOW HAVE YOU ADAPTED TO THESE CHANGES?

I’ve noticed customers are thinking more about what, when and where they spend their hard earned money. The majority of quick service restaurant brands have value offerings, and SUBWAY® Stores is no different. Everyday affordability doesn’t mean the core products have to be discounted consistently. However, the ‘add-on’ products such as drinks and sides can be discounted to form a package that delivers a great deal to the value-focused customer whilst also delivering a good margin for the business.

WHAT CHALLENGES HAVE YOU FACED?

The recession has forced every surviving business in the sector to tighten their belts. I am no different. I make a point of reviewing every cost at least every three months, not just from suppliers but what we as a business are doing. This includes everything from staffing levels, to changing outdated bulbs to energy efficient versions, having certain electrical equipment on power timers, to keep as many of costs under control as possible. The other big challenge has been to not focus on cutting back where the customer is involved. Customers are rightly more selective about where they go, as they have less money available in the current times. My stores must continue to deliver great customer service and a great product every time, to ensure we keep and grow the customer base we have in the New Forest. I’m personally grateful and proud, that so many people choose to spend their money at my establishments.

MY PLANS FOR THE FUTURE

I aim to expand my business to include a third store within the next two years.

WHAT ADVICE WOULD YOU GIVE TO SOMEONE THINKING OF BUYING THEIR FIRST FRANCHISE?

You must be ready to take on a challenge that will not be a change of job, it will be a complete life-change. Sound financial planning is crucial, thinking ahead not just for what the good times can bring – but how to cope with another economic dip should we (hopefully not) as a country have another setback. Having a SUBWAY® store is definitely a hands-on business where people skills are a must – not just for customers but also your staff, after all people buy from people.

WOULD YOU DO IT AGAIN?

Definitely!