When I started in this business I had a hard time making a profit, a topic that I’ve written about before. My contractor made a profit, the equipment manufacturers made a profit, my landlord made a profit, my lender made a profit, my food distributor made a profit, my accountant made a profit, the franchisor made a profit, even my employees were making three times more per hour worked than I was. After everyone else got their money each month, I didn’t have enough left over to live on.
Because my store had a low sales volume, the 80 hours a week I worked didn’t help me make a profit, they just kept me barely above my break even. That was, at least, before the long winter when the population in our tourist town was cut in half. After one year I ended up taking on another job in order to survive.
I used to go to franchisee meetings, too embarrassed to let anyone know I was broke, hoping to learn something that would help me. Unfortunately the help wasn’t there and after awhile I stopped going to meetings. It was too depressing. I know now that I was not the only one struggling, but at the time it seemed that way.
I struggled for three years and nearly went bankrupt before finally turning the corner. Heading into my third full summer season, I decided to quit working elsewhere and come back into my store full time with a heavy focus on the following areas: Customer Service, Sales and Marketing, Store Operations, and Cost Controls.
First, I stopped giving free employee meals and went to free fountain drinks, 50% off sandwiches, and full price for misc. items. Next I installed a camera system. Within a week of having the camera my manager quit and my sales took a jump. At the same time I decided that since I couldn’t get enough customers to come in, I needed to take my food to the customers, so I began delivering breakfast sandwiches to workers of a large employer in the area who had a 10am break each day. This idea added $30k to my annual sales. Inside the store, every customer got the royal treatment as me and my crew focused on being friendly, worked to increase speed and efficiency, and kept the store sparkling clean.
By the end of that pivotal summer, my quality of service had improved, my productivity was up, my sales were up, my costs were down, and I had finally found the profit in my business.
Today I’m attending franchisee meetings again, but I’m no longer struggling, embarrassed or depressed. However, I wonder how many franchisees in attendance are. I even attended Subway’s annual Convention this past year for the first time. My hope for the future is that by having the opportunity to present at these meetings I’ll be able to reach those who are still struggling.
If you are struggling to find the profit in your subway franchise, I want you to know that I have been through the fire and made it to the other side, and now I’ve come back to get you. Contact me!
Here’s to your Success!
Coach Morse
Good reading Coach.
Your manager left after you installed the camera, was it fear of getting caught for theft (cash or supplies) or lack of supervision which scared him to leave?
Hi Vijay, thanks for your question.
To this day I’m not sure why he left. I wasn’t suspicious of him at the time, so when he quit it came as a shock. My best guess is that he was stealing and feared getting caught.
Do you have a camera system in your store?