India’s quick-service restaurant (QSR) sector is witnessing rapid growth, with the market valued at USD 25.01 billion in 2023, driven by increasing urbanization, rising disposable incomes, and evolving consumer preferences. In this environment, Subway, the global sandwich giant, has carved a unique niche for itself in the Indian market by offering fresh, customizable, and nutritious alternatives to fast food. With over 850 outlets spread across 160+ cities, Subway has become one of the most favourable options for entrepreneurs keen to tap into India’s booming foodservice industry.
In this blog, we provide a detailed overview of the Subway franchise in India, benefits of opening a Subway Franchise, investment requirements, profit potential, operational support, and steps to get started.
What is Subway, and How Did it Enter India?
Subway is a globally recognized fast-food chain that is known for its freshly made sandwiches, salads, and healthy meal options. It was founded in 1965 in the United States by Fred DeLuca and Dr. Peter Buck.Subway made its entry into the Indian market in 2001 with its first outlet in New Delhi. At the time, the concept of submarine sandwiches was new to Indian consumers. It introduced vegetarian options, localized flavors, and maintained strict food safety standards, which helped build trust and acceptance among Indian customers.
The brand expanded in India primarily through its franchise model, which became the cornerstone of its growth strategy. Entrepreneurs across various Indian cities were drawn to the opportunity due to Subway’s global brand presence, structured operational systems, and relatively low investment compared to other international quick-service restaurant (QSR) brands.
Why Choose a Subway Franchise in India?
1. Established Global Brand:
Subway is one of the most recognized quick-service restaurant (QSR) brands globally. Subway operates in over 100 countries. In 2024, John Chidsey, Global CEO of Subway, announced that Subway is planning to double its store count in India. The announcement has paved the way for entrepreneurs to choose a subway franchise in India.
2. Consumer-Driven Concept:
Subway’s “Eat Fresh” positioning appeals to health-conscious Indian consumers. It gives customized sandwiches with a variety of breads, proteins, and toppings that cater to local tastes and dietary preferences, including vegetarian, vegan, and low-fat options. This gives Subway a competitive edge in a market increasingly focused on nutrition and wellness.
3. Proven Business Model:
Subway provides franchisees with a tried-and-tested operational model. Entrepreneurs don’t have to build everything from scratch, which makes it ideal for both first-time business owners and seasoned investors.
4. Comprehensive Franchise Support:
Subway ensures its franchise partners receive extensive support before and after launch:
- Training: Franchisees undergo an in-depth training program covering food safety, store management, inventory control, and customer service.
- Marketing Support: National and regional advertising campaigns, promotional materials, and seasonal offers help build visibility and customer engagement.
- Operations & Supply Chain: Subway connects franchisees with approved vendors for ingredients, packaging, and kitchen equipment.
- Sustainability and Innovation: Subway is committed to sustainability, which is why it uses biodegradable paper and wrappers to wrap the food.
Subway Franchise Investment Requirements in India
Setting up a Subway outlet in India involves several cost components. Here’s an overview:
- Franchise Fee: ₹6.5 lakhs to ₹8.5 lakhs (non-refundable)
- Store Setup (Interior Design, Kitchen Equipment, Fixtures): ₹25 lakhs to ₹35 lakhs
- Location Rent (Monthly): ₹ 50,000 to ₹ 2 lakhs (depending on area)
- Working Capital: ₹ 2 lakhs to ₹ 5 lakhs
- Other Expenses (Licenses, Utilities, Signage): ₹ 1 lakh to ₹ 3 lakhs
Total Investment Range: ₹ 35 lakhs to ₹ 50 lakhs
Ongoing Charges
- Royalty Fee: 8% of gross monthly sales
- Advertising & Marketing Fee: 4.5% of gross monthly sales
Profit Potential and Return on Investment (ROI)
Profitability depends on multiple variables, including store location, size, foot traffic, competition, and operational efficiency. Here’s a rough estimate:
- Monthly Sales: ₹ 10 lakhs to ₹ 15 lakhs
- Average Net Profit Margin: 15% to 25%
- Monthly Net Profit: ₹ 1.5 lakhs to ₹ 3 lakhs
- Break-Even Timeline: 24 to 36 months
Profitability is mostly higher in metro cities and commercial areas with dense footfall, such as malls, tech parks, subway and metro stations, high streets, etc. Subway also offers kiosk and express models, which require lower capital and can generate a quicker return on investment (ROI).
Types of Franchise Formats Available
1. Traditional Store Format
- Full-service outlets
- Located in malls, commercial centers, or high-traffic areas
- Area Required: 600–1000 sq. ft.
2. Non-Traditional/Kiosk Format
- Compact, quick-serve setups in food courts, airports, colleges, etc.
- Area Required: 250–500 sq. ft.
3. Express Model
- Minimal setup for small spaces
- Ideal for Tier-2/Tier-3 towns or convenience locations
How to Apply for a Subway Franchise in India?
Follow the step-by-step guide to open a Subway Franchise in India:
- Submit an Online Inquiry: Visit the official Subway website or franchise portal and fill in your basic details such as name, location preference, and financial capacity.
- Initial Evaluation: The franchise development team will assess your background, experience, location preferences, and investment readiness.
- Franchise Disclosure Document (FDD): If shortlisted, Subway will provide an FDD detailing the obligations, business model, fee structure, and legal terms.
- Sign the Franchise Agreement: Upon mutual agreement, you will sign a franchise agreement. The standard franchise agreement term for Subway in India is 20 years. The agreement is renewable upon completion of the term
- Location Finalization & Site Approval: You can collaborate with Subway’s site evaluation team to identify a suitable location that meets the brand’s criteria. Store
- Setup and Training: Subway provides assistance in store design, equipment installation, and staff training.
- Open your store and start operations with continued support on marketing and performance.
Things to Keep in Mind When Starting a Subway Franchise in India
1. Understand the Total Investment
Before you begin, make sure you have a clear idea of how much money you need for your franchise business. Apart from the franchise fee, you will need funds for the shop setup, equipment, staff salaries, rent, and other daily expenses.
2. Pick a Good Location
The success of your outlet depends a lot on where it is located. Try to choose a place with high footfall, like near colleges, offices, markets, or shopping malls.
3. Get All the Licenses
To run a food business in India, you must get several licenses, such as:
- FSSAI food license
- GST registration
- Fire safety NOC
- Local municipal trade license
- Check with local authorities to avoid legal issues later.
4. Hire the Right People
According to reports, nearly 70% of consumers are willing to spend more with companies that provide excellent service. Remember, your staff will represent your business. Hire people who are polite, clean, and fast learners. Ensure they are well-trained, particularly in food safety and customer service. A strong team can significantly enhance your brand reputation.
5. Know the Local Market
What people eat in North India might be different from what people eat in South India. So, try to understand the local taste and eating habits. Subway allows some customization, so use that to your advantage by offering popular Indian Flavors.
6. Use Subway’s Support
Subway offers support in training, store design, marketing, and logistics. Make full use of the help they provide. They also keep updating their menu and strategies, so stay involved in their programs and network.
Conclusion
For investors and business owners looking to get into the quickly growing QSR sector, Subway’s franchising potential in India is a compelling offer. With its widely recognized brand, robust support network, adaptable shop designs, and commitment to adapting to changing health trends, Subway presents a less risky and potentially lucrative business opportunity. Success, however, depends on the choice of location, dedication to excellence, and persistent client interaction.
