Benn Farrawell is a SUBWAY franchisee with 3 stores. He’s previously owned 5 stores and has closed & relocated two. A single unit operator for 2 years, Benn made a big bet on franchising and opened the two extra stores after finding success with a single store in Kempsey.
He’s estimated the cost of setting up a new SUBWAY at $275,000
The numbers he’s paying attention to are around wage cost and customer service. In franchising, food costs, prices and quality are fixed, as are overheads like your lease and utilities. The only lever you can pull is to bring wages cost down, or boosting customer service to get more units out the door faster.
Around labor costs, Benn is paying attention to sales and units per hour, productivity, and wage % to turnover. His experience in franchising suggests that labor should run at 26 to 30%, with a productivity to 10 to 12 units per hour as an average figure.
Benn’s piece of advice is to believe in yourself. Know that you can do what you’re setting out to do, and eliminate any self-doubt.
Benn suggests to get in touch with other franchisees in your brand and in related businesses (even your competitors!).
He is chairman of the Australasian Association of Subway Franchisees (AASF) where you can get in touch with franchisees and meet more high-performing Subway franchisees. There’s a heap of checklists that you can get when signing up as a member which are really handy for new franchisees.
Staff make or break your business in franchising. Benn has delegated the rostering to his store managers, and he has his area manager coach the store managers when they don’t meet the targets for labor cost % and productivity he sets. Time & attendance is another big time saver for Benn. He has his staff clock in and out on a tablet using a PIN.
PreppyLabel is another automated system Benn uses to keep a handle on food safety.
Get in touch with Ben at firstname.lastname@example.org