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    Business plan


    Executive Summary

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    The purpose of this business plan is to secure open Subway franchise in Southall, London.

    The owner of the company is willing to invest 200,000 to secure the funding for inventory,

    and early operations.

    The franchiser, "Subway." is one of the fastest growing franchises in United Kingdom. The

    chain will be positioned somewhere between traditional fast food restaurants, and sit-

    down restaurants. This segment of the market is attuned to the health benefits of their

    eating habits, are more conscious of their buying habits than the general population, and

    more importantly, they have higher incomes and are willing to pay more for a better Healthy

    fast food choice. The prime aim of the business is to focus upon the freshness and

    customer satisfaction, which creates an exceptional Subway experience.

    To succeed with our goal, and to encourage a healthy lifestyle, we will sponsor local

    sporting events, and give 3% of profits to local charities. We will build roots into the

    community. We will also market our products with local businesses, the famous

    Shakespearean Festival, to local hotels, and offer catering services through local party

    supply stores and through close ties to local hotel managers and executives. Our goal will

    be to build value for our constituents, ourselves, our employees, our customers, and the


    Details of owner

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    Name: ===========

    Position/main responsibilities: Director

    Experience and knowledge of fast food industry: Expert

    Key skills brought to the business: Critical Thinking, Persuasion and Effective


    Business experience and any training undertaken: Five years Experience in the Fast

    food Industries.

    Academic/professional qualifications: Master of Business Administration in marketing

    Most recent salary: 1, 2000.00 per year

    Business Overview


    My first objective is to open the Franchise restaurant four months from the day that my site

    is confirmed by the realtor. My site was confirmed in January,2013, therefore our goal is to

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    be up and running by June,2013. The P&L and Balance Sheet all begin in June. Start-up

    costs between will be found in the Start-up Summary Section. The Business will turn a profit

    by the beginning of our second fiscal year of operations. Repeat customers will constitute

    70% of our overall business by the end of year one. We will track customer habits and

    loyalty through a local marketing research firm, and publish the results of these findings to

    our employees once a quarter.


    Mission is to bring to market the tastiest and healthiest fast food in Southall, at a slight cost

    premium over other fast food restaurants. The high standards of quality and

    cleanliness will establish business reputation as the cleanest fast food restaurant inSouthall. The community is as important to us as making a profit. This company is founded

    on the concept that good works and good deeds not only serve the needs of the community,

    but will also keep the company healthy and committed to the success of its customers.

    Keys to Success

    The most important key to success is our location. It is very important that our location live

    up to our expectations, and is convenient to as many potential customers as possible.

    Another key to success lies with the ability to execute plan. If we neglect one or more

    aspects of our plan, whether that is our numbers, our employees, our cleaning and food

    standards, or our commitment to customers, we will not succeed and thrive.

    Company Information

    Company Summary

    The Subway brand is the largest specialist sandwich provider in the UK & Ireland, with more

    than 1,500 stores. Worldwide, the SUBWAY brand has more than 38,000 stores in 100

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    countries. Stores offer customers a delicious range of Subs made right in front of them on

    freshly baked bread - just the way they want it. The Subway franchisees benefit from

    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.

    The Subway brand's franchise system has widespread appeal. The low investment, simple

    operation and unparalleled support make it an attractive proposition for entrepreneurs

    across the world. The company provides the convenience of fast food with rapid response

    times, affordability, as well as carry-out and home meal replacement options.

    Start-up Summary

    Graphical presentation

    Business Strategy


    Our prime strategy is to focus on our customer experience. Our success hinges on whethercustomers receive what we promise them, and are pleased enough to come back for more.

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    Our KISS (Keep it Simple & Smart) approach will be successful only if we don't distract

    ourselves from the core business of making good sub fast, and of treating the customers as

    if they are special. As with any business model in the new millennium, we must adapt our

    strategy to the customer and market trends, while maintaining consistency of brand and

    message. This is a challenge for any business in any industry because the nature of

    business will always, and has always determined that the best strategy with the most

    resources behind it will survive. This millennium has proved to be very successful in growing

    this market, and of supporting it's franchises.

    Value Proposition

    Our value proposition is that we offer high-quality, healthy fast food at a reasonable price.

    The business facilities are clean and our food is tastier than that of our competitors. The

    ambiance of our facilities will contribute to customers' desire to eat their meals in a

    comfortable, healthy environment.

    Competitive Edge

    We have a competitive edge in regards to the overall quality and differentiation of our

    products, and in the cleanliness and ambiance of our seating area. Our sandwiches are all

    of the finest quality, and have been refined through taste-tests sponsored by The Sub

    way Corporate. We will differentiate our food from our competitors in regards to taste,

    quality of bread and contents, attentiveness to customers, and overall experience. We gain

    from their conversion of burger eaters to sandwich eaters, but alternately prove that we are

    more responsive to customers and offer better fare than other franchises.

    Strategic Alliances

    The fast-food business is based largely on the impulsive choice of consumers. Many people

    buy their business lunch, lunch, or family dinners at a fast food restaurant, and those fast

    food restaurants offer not necessarily the best selection, but the most reliable menu and the

    fastest order completion time. Customers will try other fast food restaurants, and shop

    around, but the majority of their fast food purchases are made through one retailer. Our goal

    is to capture those customers, and to build loyalty to the product through purchase punch

    cards, consistent daily specials, and a direct mail list.

    Marketing Strategy


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    Our Marketing Strategy is to reach the largest amount of tourists residents, and students for

    the least amount of money.

    Our strategy will focus on three solid points:

    To develop customer loyalty

    To extend the franchise brand locally.

    Develop local word-of-mouth advertising (buzz).

    Pricing Strategy

    Our pricing strategy is different for different customers. Prices to retail customers will be

    fixed by the chairs, and based on a relative cost of living indicator. Retail prices will be

    competitive at about 6 for the average meal. This is about 30% above McDonald's and

    Burger King prices, Customers are simply willing to pay more for healthy, flavorful food

    served in a clean, comfortable environment.

    Promotion Strategy The chairs will promote our products on the national level. In order to

    reach our local customers, and build loyalty, we will offer special mid-day promotions,

    sponsor local community events, advertise in the local classified paper, and our President

    will become a leading figure and spokesman in the community.

    Distribution Strategy

    We plan to distribute our products direct to customers, without the use of a separate

    channel of distributors.

    Sales Strategy

    Our sales strategy will be to reach the largest amount of Jackson county residents and

    tourists with consistent value-added incentives to purchase our products and visit our

    restaurant. In this industry, and especially as a franchise, our marketing programs are

    almost indistinguishable from our sales programs. The indistinguishable handles a lot of the

    national and regional marketing, and we just pay our fee to have it done. Our flexibility will

    lie in our ability to push the boundaries of freedom the indistinguishable has given us, and to

    take advantage of opportunities to differentiate ourselves on sales by sale level.

    Personnel Plan

    The human resource management is considered to be an important part in every

    organisation. In context of Subway franchise it is essential for the company to recruit and

    develop skilled workforce to serve the customers in the best possible way. In the initial

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    stage the business will employ three time employees working 20 hours per week at 7 pound

    per hour. it is important for fast food outlet to recruit and develop skilful work force in its

    initial stage to serve the customers in an efficient manners by operating the business in an

    efficient manner. The business owned and managed by Sawkat. He is a business graduate

    from Cardiff Metropolitan University. As part career development he served for a well-known

    car fast food as Shift manager for the last 5 years. Therefore it can be observed that the

    owner of the business has the skills and expertise in the area of business. In addition to it is

    also important for the business to establish a customer friendly environment that when any

    hands to retain the existing customers and to bring new customer group. Therefore the

    business has future plan to provide training and development opportunity for the employees.

    As a result it would develop good organisational skills among the workforce to serve the

    customers and to attend the organisational objective of the business.

    Payroll plan

    Year 1 Year 2 Year 3 Year 4 Year 5

    Store Manager 26,000 26,000 26,000 26,000 26,000

    Part-time employee 12500 12500 12500 12500 12500

    Part-time employee 12500 12500 12500 12500 12500

    Part-time employee 12500 12500 12500 12500 12500

    Financial Plan

    The financial part is considered to be an important determinant during the establishment of

    new franchise business proposal. The projected financial plan will enhance the company to

    develop and expand its business. At present in UK the fast food industries are in a

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    competitive position. Therefore it is important for subway to focus upon the estimated

    financial plan to establish itself in the leading position.

    Projected cash flow statement (Appendix A)

    The projected cash flow statement indicates the overall cash inflow in ABC car rental

    agency during the next 3 years. It is considered as the inflow of cash in the business. On

    the other hand the cash spending and bill payments are the projected cash out flows of the


    Projected, profit and loss account (Appendix B)

    The prime objective of profit and loss account is to focus upon the overall income and

    expenditure of the business. In this stage in context of business the profit and loss account

    demonstrates the income of the company in form of sales revenue.

    Projected balance sheet: (Appendix C)

    The projected balance sheet reflects the overall financial condition and performance of the

    business. From the balance sheet of business it is observed that the company is reflecting a

    favourable financial position from the start up of the business.

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    Year 1 Year 2 Year 3

    Cash Received

    Cash from Operations

    Cash Sales76818 186100 370000

    Subtotal Cash from Operations76818 186100 370000

    Additional Cash Received

    Sales Tax 0 0 0

    New Current Borrowing 0 0 0

    New Other Liabilities (interest-free) 0 0 0

    New Long-term Liabilities 0 0 0

    Sales of Other Current Assets 0 0 0

    Sales of Long-term Assets 0 0 0

    New Investment Received 0 0 0

    Subtotal Cash Received76818 186100 370000

    Expenditures Year 1 Year 2 Year 3

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    Cash flow Statement

    Projected, profit and loss account (Appendix B)

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    Year 1 Year 2 Year 3

    Sales 76818 186100 370000

    Direct Cost of Sales 20653 41300 82600

    Other Costs of Sales 0 0 0

    Total Cost of Sales 20653 41300 82600

    Gross Margin 56255 144800 287400


    Payroll 63500 63500 63500

    Marketing/Promotion 10,000 10,000 10,000

    Depreciation 0 0 0

    Rent 30,000 30,000 30,000

    Utilities 2,550 2,550 2,550

    Total OperatingExpenses

    106050 106050 106050

    Profit Before Interestand Taxes

    (49795) 38750 181350

    EBITDA (49795)) 185913 617326

    Interest Expense 0 0 0

    Taxes Incurred 0 0 0

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    Projected balance sheet: (Appendix C)


    Current Assets

    Cash 157705 225750 355350

    Other CurrentAssets

    0 0 0

    Total CurrentAssets

    157705 225750 355350

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    Long-term Assets

    Long-term Assets 0 0 0


    0 0 0

    Total Long-termAssets

    0 0 0

    Total Assets 22000 190000 210000

    Liabilities andCapital

    Year 1 Year 2 Year 3

    Current Liabilities

    Accounts Payable 9500 11000 16000

    Current Borrowing 0 0 0

    Other CurrentLiabilities

    0 0 0

    Subtotal CurrentLiabilities

    9500 11000 16000


    Liabilities 0 0 0

    Total Liabilities 9500 11000 16000

    Paid-in Capital 200,000 200,000 200000

    Retained Earnings (20000) (35000) (42000)

    Earnings (49795) 38750 181350

    Total Capital 148205 214750 339350

    Total Liabilitiesand Capital

    157705 225750 355350