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.
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!
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Every 3rd shop along the high street in Hawick is empty, businesses are moving 12 miles to Galashiels which is the hub of the Borders and hosts many big brand names. Now i could understand subway going there as its an affluent area.
Overall subway coming to the town will be great for my business, perhaps not for the other baguette shop which is already under massive pressure due to my shop.
Beanscene came to Hawick last summer, they charge in the region of £3.95 for a panini, they sell approx 5 a week according to the manager who buys his paninis from me.
They sell mugs of coffee at £2.50 a shot, my 16oz cup of expresso sells at £1.10, most of the beanscene staff buy their coffee and food from my shop which is just along the street from them.
I purchase my food supplies from the same company as Subway.
I feel for their new franchisee
Coffee has turned into one of those lifestyle products where you "have" to pay a lot of money to get a decent cup.
Note the "have", it's just the same as Tesco's being perceived as "cheaper" than the local shops. For the core mainstay products (those not on big promotion every week) then your local shop is usually the same price or sometimes even cheaper. It's just that Tescos have the perception.
The power of branding, eh?
I agree with you though about the choice of Hawick. I have been hearing stories of the opposite, that they are looking to close franchises. Is there an "out of town" site around, the new subways I seen round here are all out at out of town shopping centres, next to supermarkets etc.
I wish your shop was in Dundee Your prices sound amazing for what you give people.
My brother was assistant manager of a Subway in Glasgow, if you'd heard the horror stories he told me about food management and hygiene you just wouldn't buy anything from Subway!
My brother quit and is now studying music at University.
All this talk of food and me just started back on Weight Watchers again yesterday after 3 months of eating rubbish!
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Boxby, there is no out of town shopping parks in Hawick. There is one 12 miles away in Galashiels.
Money really is tight here in Hawick, many unemployed. Some customers count out pennies hoping they have enough for a baguette, and im talking about our 6 inch baguettes selling at £1.10
Hawick doesnt have a great deal of Tourist trade, most of my customers are workies who purchase their lunch then jump into their van and away they go.
Subway requires a huge footfall, they wont get that in Hawick, not a hope in h*ll.
Im a Borders man born and bred, Whoever the person is that took out a Subway franchise paying over 100k then 12.5% man fee per month obviously isnt a Borders person. If they have handed their money over then they've already shot themselves in the foot. But then where does the blame lie for taking that kind of money off someone who believes they will make their riches in this Town.
Pixels - ink, i believe there is a B/E going to Dundee, i'll find out for you but when it does arrive i promise you will love our products offered by the company.
We also sell gorgeous Salad Boxes made up in front of your eyes with the combinations you want, like wise with our fruit boxes ( seasonal) We cater for all diets whether your on a lo cal diet, perhaps a see food diet ( eat what you want ) and even a vegatarian diet, we have it covered.
Just to highlight another fact, my company introduced Sweet Honey Chilli Chicken to the menu long before Subway did, they caught on then advertised it for their sub of the Day. lmao.