You have a mind for business and ambitions to start a sandwich shop; in fact, you’ve been dreaming of becoming a business owner and challenging yourself as a leader and an entrepreneur. Knowing how to open a sandwich shop is a specific skill that takes research and careful planning. So, where should you begin? What are the basic steps involved in opening a sandwich shop, cost and time included?
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How to Start a Sandwich Business?
In this article, we dive into the world of sandwich shop franchises and walk you through the steps you’ll take during your journey through becoming an investor in a top sandwich franchise like Yampa Sandwich Co.
We give you answers to questions like “How much does it cost to start a sandwich shop?” And you’ll learn about the ins and outs of franchising, including what to look for when searching for your ideal brand.
If you’ve been wondering how to open a sandwich shop, you’ve come to the right place! We’ve got the details to help make your experience a smooth and easy one.
When it comes to franchising, there are many different restaurant models to choose from – and the sandwich shop industry is no exception. In fact, this industry is booming, and with good reason. Who doesn’t love a good sandwich? They’re portable, healthy, and offer endless possibilities in terms of creative flavor combinations. Without further due, let’s begin!
1. Find a Good Franchise Fit
When you set out to learn how to open a sandwich shop, especially one under a franchise brand, sharing common cultural, personal, and business philosophies with the franchisor is an essential element. You’re going to work closely with the franchisor and will represent them on the local level, and you need to ensure that you can stand behind the brand.
Finances are a key factor as well—your capital demands and reserves must meet the requirements put forth by the franchisor. For a sandwich franchise, an investor will generally need to be prepared for an initial investment of $295,570 to $540,350, depending on the franchisor and situation.
Do your research to make sure you and the franchisor are a good fit. Go over the Franchise Disclosure Document carefully to determine the franchising fees, responsibilities, requirements, and other guidelines.
Find out as much as you can about the franchisor’s business practices, and look at the culture they foster in their sandwich shops. Pay a visit to a few of them to see if you and the franchisor have similar ideas of how to open a sandwich shop and keep customers and staff happy.
2. Take Part in Discovery Day
After you determine how to open a sandwich shop by finding a few franchises that match your philosophical approach and financial capabilities, you can take a closer look at your preferred brand(s). The best opportunity to do so is during the franchisors’ Discovery Days.
Discovery Day is an event held by a franchisor ready to recruit qualified investors. During Discovery Day, you personally attend a day of meetings with key players such as the support team and even company executives and founders to get a granular view of the franchise’s operations and how you might fit in the picture.
A Discovery Day allows you to meet with a group of like-minded professionals. It’s also an opportunity for the franchisor to get to know you and determine your suitability for their organization, so it’s important to put your best foot forward during the process. Doing so gives you a better chance at finding a franchisor that lets you operate the kind of sandwich shop you are seeking.
3. Sign Your Franchise Agreement and Secure Funding
We’ve discovered how research and Discovery Day play important roles in the process in determining how to open a sandwich shop and the crucial step of finding the right franchisor. Now, if you are selected to join the franchise system and you agree there is a good fit, you can move on to signing the agreement and getting funding to turn your shop into reality.
By the time you sign your franchise agreement, you and the franchisor have already spent time together and are comfortable with the arrangement. Make sure the agreement matches the expected terms, and you’ll be set to sign.
For funding, you’ll likely have several options, some of which can be laid out by the franchisor. Depending on your franchisor’s agreement, you might be able to secure an SBA loan, a traditional bank loan, a 401(k) rollover for business startups, or another method, once you have allocated any existing liquid capital you have to help fund the venture.
4. Find a Location and Build Your Site
You’ve surely heard the old business saying that “location is everything,” and it’s as true today as it was when the first storefront sign went up. When you set out to find out how to open a sandwich shop franchise, you will learn early on that your store needs to be in a spot that effectively attracts your customer base.
Connect with local real estate specialists and conduct market research to find the most likely locations to start a busy sandwich shop. Your franchisor might have a network of real estate professionals to aid in this step, or at least some recommended site specifications you can use as part of your selection process.
Once you find the ideal location, you can begin your build-out. Once again, the franchisor will probably have a role in this stage of the process. They might even have an exclusive architect that you can employ for drawing up construction plans.
You’ve completed the selection and build-out process. Now, you can hire and train your staff, and open your sandwich shop!
How Much does it Cost to Open a Sandwich Shop?
We would be averaging the total cost of opening a Generic Sandwich Shop Restaurant at $200.000.
However, this may vary from state to state and also based on the business opportunity you’re looking to initiate. We highly recommend speaking to the sellers of the business or franchise to get specific numbers.
General costs would look like this:
- Registering a business in the United States: $750
- Marketing and Advertisement expenses: $2.500-$3.000
- Licenses and permits to comply with the law, as well as the accountant services: $3000
- Average rent cost for 12 months: $50.000
- Average operational costs for 3 months (salaries and overall bills): $30.000
- All the inventory needed to run a sandwich shop: $30.000
- Cost of equipment (cash register, security, ventilation, fridge, cutlery, containers, etc.): $20.000
- Website average costs: $1.000
Operations for a new sandwich shop are relatively straightforward, with most of the upfront costs coming from renting space. You’ll also need to buy supplies like lettuce and other salad items in large quantities before opening so that they’re ready when customers want them!
When it comes time to hire employees (or outsource), remember that their wages should be paid hourly rather than piece-rate based because this will save money down the long line – not just now but during any bumps along the growth trajectory as well.
However, there may be some unique costs associated with running this type of business that are difficult to foresee at first glance.
These include things like insurance packages specific only towards restaurants (zoning laws) where you live can also affect your operating profit margin if they restrict what kind of food items may enter into production.
Now that you have a good idea about where to invest your startup capital, let’s take another look at those areas.
How Much Does a Yampa Sandwich Franchise Cost?
The total initial investment necessary to begin a Yampa Sandwich Franchise ranges from $295,750 to $527,900 for a single location. This includes a $25,000 initial franchise fee. As with any new venture, it’s important to have adequate capital to fund the initial business growth stages.
Yampa Sandwich Co. Shows You the Right Way to Open a Sandwich Shop
Now that you’ve done your research, found and signed with a franchisor, located and built out your shop, and prepared your staff, you’re ready to go. Learning how to open a sandwich shop can be an exciting and rewarding experience, if you find a franchisor that is there to help you grow the way Yampa Sandwich Co. does.
Yampa Sandwich Co. has served Steamboat Springs and other Colorado locations for decades, and we’re ready to expand our business. Our model is one that puts the customer first and places a premium on atmosphere, quality ingredients, and a sandwich menu with a distinct Colorado vibe. We’re looking for sharp, dedicated investors with a passion for doing quality work to come along with us as we grow.
Find out more about the Yampa Sandwich Franchise Co. approach, and see if you might be an ideal fit for a franchise with us. It could be the best move you ever make!