Subway opening a shop in Hawick

BellaMiller · #11 (**permalink**) 31-03-2008, 17:30

Quote:

Originally Posted by Indizine

I think the thing to note about Subway is that they do have a taste all of their own. I love my regular favourite subway, and the same fillings wouldn't taste the same from anywhere else of course. However I do also occasionally buy other sandwiches but if a subway happens to be nearby I will pay the extra for it. But as you say they are expensive and not something people might pay £3 for every other day. I think they can probably afford to take the risk and trial it but not at their own expense!

I just have to ask what the taste is ?

I'm a Pret girl myself and have never been ever tempted to buy a subway sandwich - sorry I know I'm wandering off the topic somewhat....

admagic · #12 (**permalink**) 01-04-2008, 09:40

Quote:

Originally Posted by saracen

Today i was told Subway are opening a shop in Hawick Scottish Borders.
Apparently they are aiming on opening 2010 shops by 2010.

About Hawick - the town has a population of approx 14000, it is unfortunately
quite high in unemployment and many businesses have or are about to close due to the economic climate.

I operate a busy sandwich/baguette outlet in the town which i took over in august 07 plus it was struggling at the time but we have slowly turned it around.

My shop is a franchise.

What i was wondering is, no one will pay subway prices so why would they take approx 100k for the franchise from someone then a further 12.5 monthly management fee.

Example,
I sell 6 inch baguettes, any fillings with any amount of toppings - £1.10
I sell 12 inch baguettes, any fillings with any amounts of toppings - £1.60.

These baguettes are stuffed full with no hidden costs. All freshly baked as we go and all fillings are freshly made each morning and midday.

Hawick people have little money to spare but enough to purchase from us as what we give is near classed as a meal rather than a snack due to the amount we fill them. Likewise with out fresh morning rolls, baked tattie, paninis, sandwiches etc etc...

So why would subway tell a potential franchisee to part with 100k to buy into their business and 12.5. % man fee per month and take out a city orientated business deep in the Scottish Borders.

I thought i had nerves of steel but wow, whoever is going into hawick , mate i salute you.

Most franchises are at best overpriced and at worst they are scams.
And heres an ex franchisee talking.

What the hapless franchisee doesnt realise is he is too late into that franchise - and most of the great sites have already gone. IMHO Subway has already peaked - the problem is too many people will see the success of the franchise on national scale, and assume it will work anywhere - which clearly it wont!

Subway wont give a stuff...because they will make money regardless of whether the franchisee makes money or not.

And You have a big advantage...over the franchisee.

He is tied to a menu and a price structure. SO the rope that should pull him up will hang him. I have first hand experience of that in another sector.

For all that , you will need to promote specials directly against subway that highlight the difference between you and them.

toronto · #13 (**permalink**) 15-04-2008, 23:50

Quote:

Originally Posted by Pixels Ink

I'm maybe being blind, I can see it says one has opened in St Andrews and Aberdeen but not Dundee

Dundee store opening very soon so watch this space

toronto · #14 (**permalink**) 15-04-2008, 23:55

Quote:

Originally Posted by admagic

Most franchises are at best overpriced and at worst they are scams.
And heres an ex franchisee talking.

What the hapless franchisee doesnt realise is he is too late into that franchise - and most of the great sites have already gone. IMHO Subway has already peaked - the problem is too many people will see the success of the franchise on national scale, and assume it will work anywhere - which clearly it wont!

Subway wont give a stuff...because they will make money regardless of whether the franchisee makes money or not.

And You have a big advantage...over the franchisee.

He is tied to a menu and a price structure. SO the rope that should pull him up will hang him. I have first hand experience of that in another sector.

For all that , you will need to promote specials directly against subway that highlight the difference between you and them.

I think you are probably right in most cases in that the franchise owners hands can be tied. But the franchise in question is very flexible eg. daily specials, much broader range of fillings, and other snacks on offer as well as baguettes etc which are essential as no one wants to have a sandwich every day for lunch.... there are other snacks on offer, which subway dont do.

toronto · #15 (**permalink**) 16-04-2008, 00:00

Quote:

Originally Posted by saracen

one on the reserve list to open this year

Dundee store will be open soon and yes Pixels Ink you will love the food that our company has to offer

toronto · #16 (**permalink**) 16-04-2008, 00:05

Quote:

Originally Posted by saracen

Today i was told Subway are opening a shop in Hawick Scottish Borders.
Apparently they are aiming on opening 2010 shops by 2010.

About Hawick - the town has a population of approx 14000, it is unfortunately
quite high in unemployment and many businesses have or are about to close due to the economic climate.

I operate a busy sandwich/baguette outlet in the town which i took over in august 07 plus it was struggling at the time but we have slowly turned it around.

My shop is a franchise.

What i was wondering is, no one will pay subway prices so why would they take approx 100k for the franchise from someone then a further 12.5 monthly management fee.

Example,
I sell 6 inch baguettes, any fillings with any amount of toppings - £1.10
I sell 12 inch baguettes, any fillings with any amounts of toppings - £1.60.

These baguettes are stuffed full with no hidden costs. All freshly baked as we go and all fillings are freshly made each morning and midday.

Hawick people have little money to spare but enough to purchase from us as what we give is near classed as a meal rather than a snack due to the amount we fill them. Likewise with out fresh morning rolls, baked tattie, paninis, sandwiches etc etc...

So why would subway tell a potential franchisee to part with 100k to buy into their business and 12.5. % man fee per month and take out a city orientated business deep in the Scottish Borders.

I thought i had nerves of steel but wow, whoever is going into hawick , mate i salute you.

Saracen i think the best thing that can happen to BE in Hawick is for the subway to open there.... i personally think the best place to open BE is right next to a subway..... we always get there customers

saracen · #17 (**permalink**) 16-04-2008, 18:42

Quote:

Originally Posted by toronto

Saracen i think the best thing that can happen to BE in Hawick is for the subway to open there.... i personally think the best place to open BE is right next to a subway..... we always get there customers

Where is your shop located ?

I believe this is very true regarding opening a BE next to Subway.
For what i've been informed most of the BE's that open next to subway have indeed put severe pressure on subway.

As for opening a subway in Hawick, i find that suicide for the franchisor. There is no money in Hawick, certainly not for subway prices.
I get informed regularly with some of the contractors who are carrying out shop work for them.
They know themselves it wont work in Hawick, however they are happy to do the work, take the money and run !

I cant wait to see subway compete with my business and with the local bakers, most who have been established for many many years in the Town.

Hawick people are "aye been" and i guarantee ( i know this is being indexed ) they will not pay any more money than they need to.
Even with subways booklet's of offers or tv promotions - which if you read the T' & C's is actually not a rosey as portrayed.

When you purchase from BE, what you ask for is what you get and then some.

Example, customer asks for a 12 inch baguette with coronation chicken, chinese chicken, mozz cheese and salad ( tomato, cucumber and lettuce )
BE price - £1.60. Subway price - bank loan required !

toronto · #18 (**permalink**) 16-04-2008, 23:37

Quote:

Originally Posted by saracen

Where is your shop located ?

I believe this is very true regarding opening a BE next to Subway.
For what i've been informed most of the BE's that open next to subway have indeed put severe pressure on subway.

As for opening a subway in Hawick, i find that suicide for the franchisor. There is no money in Hawick, certainly not for subway prices.
I get informed regularly with some of the contractors who are carrying out shop work for them.
They know themselves it wont work in Hawick, however they are happy to do the work, take the money and run !

I cant wait to see subway compete with my business and with the local bakers, most who have been established for many many years in the Town.

Hawick people are "aye been" and i guarantee ( i know this is being indexed ) they will not pay any more money than they need to.
Even with subways booklet's of offers or tv promotions - which if you read the T' & C's is actually not a rosey as portrayed.

When you purchase from BE, what you ask for is what you get and then some.

Example, customer asks for a 12 inch baguette with coronation chicken, chinese chicken, mozz cheese and salad ( tomato, cucumber and lettuce )
BE price - £1.60. Subway price - bank loan required !

Im opening a new BE in East Kilbride hopefully within the next 2 months. I have also reserved Dundee, where i am working on securing a site. Subway is at saturation point... dont get me wrong i still feel they have a good product, but that is there USP - the product, whereas BE USP is the price. Yes people will try subway but how many people are willing to spend the best part of a fiver on a sandwich and a drink at lunch time?? As it happens i met the owner of BE in Byers Rd in Glasgow today and he has 4 ex subway employees... good idea if you want to find out exactly how your competitors work

toronto · #19 (**permalink**) 16-04-2008, 23:45

Even with subways booklet's of offers or tv promotions - which if you read the T' & C's is actually not a rosey as portrayed.

I know someone who has a subway in Ayrshire, and has recently reserved an area with BE. He assures me that subways booklet of offers is more hassle than its worth , and a number of franchisee's have expressed shock at how much there stock buying has went up with no real benfit to the business. Eg. franchisee's pay subway 8 pc loyalty plus 4.5pc advertising fee... why on earth are they taking 4.5pc if the franchisee has to give away free subs with a drink???

saracen · #20 (**permalink**) 17-04-2008, 04:59

Good points

The fastest growing franchise is BE. Hats off to Billy & Robin for all their efforts.
They are very genuine ppl and always on the front line plus just a phone call away.

Subway emphasises they have a good product. However, BRAKES supply the majority of their products.

I've had a Brakes rep in to see my twice as they are keen to supply BE, they see the massive potential with BE. Im sure Brakes quality is good but their prices are - hmmm very expensive.

Best wishes with EK and Dundee, stick to the business model and you cant go wrong