Sandwich chain restaurants are a solution for individuals in search of a quick, affordable and healthy meal. While chain sandwich shops offer the traditional meatball and club sandwiches, they also offer vegetarian and “healthy” sandwich choices for health conscience clientele.

Business entrepreneurs find deli chain restaurants to be a desirable investment because a lot of the unknown that faces and worries entrepreneurs is not a factor with franchises. Franchises come with an established reputation regarding their food and service that helps alleviate some of the pressure of building a client base. Another benefit of franchises is that the entrepreneur receives guidance every step of the way, which reduces room for error resulting in increased cost. Entrepreneurs also need to consider these sandwich chains basics:

1. Identify which sandwich franchises are available in your geographic area of interest.

2. Identify a location to open your deli chain.

3. Identify and secure the necessary financing.

Action Steps
The best contacts and resources to help you get it done

Explore the growth opportunities of national sandwich chains in your area

Identifying which deli chains are looking to expand in your area will enable you to narrow your selections and focus on those delicatessen chains most suitable to you.

I recommend: Franchise Opportunities and Franchise Direct provide overviews of delicatessen chain restaurants, where franchise opportunities exist, amount of capital required to invest, agreement terms and the sandwich chains basics you will receive in terms of training and other operating procedures.

Obtain the financing needed to invest in your deli chain franchise.

Most individuals will need to secure capital to open their franchise. When calculating how much money you need to secure in your loan, remember to include the other costs associated with starting your franchise such as kitchen equipment, tables, chairs, registers and HVAC systems.

I recommend: Wells Fargo has Restaurant Finance Specialists that can work you with to secure the loans you need to get your business off the ground and provide banking services to you when your business in operation. The size of franchise you are investing in affects the type of financing you can receive. Financing includes the Wells Fargo Small Business Administration (SBA), Wells Fargo Foothill Restaurant Finance and Wells Fargo Bank Restaurant Finance.

Purchase an existing sandwich shop that is for sale by the owner.

Purchasing an existing sandwich shop that is in operation can be beneficial because not only do you get a sense of income potential, but you also acquire trained staff.

I recommend: Businessesforsale.com and BizBuySell allow you to query established sandwich shops that are for sale by location and price range. Query results provide information regarding the business such as the year the business was established, number of employees, income potential, the reason why the establishment is for sale and a link to contact the seller.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Contact the Office of Economic Development or Planning Department for the jurisdiction you are interested in locating your business to see if there are any incentives to locate within that area. If your site location is located within a redevelopment area or if you are going to contribute to the local economy by employing a certain number of individuals, these departments may expedite the plan reviews and inspections pertaining to your project and allow you to begin operations sooner.

Sandwich chains are located in cities all over the country. Their menus offer a variety of tasty meals including club sandwiches, Rubens and hamburgers. People like them because they can get a prepared meal for a reasonable price without having to prepare it themselves.

Cash in on deli chain restaurants by opening your own in your city. Large conglomerates own these chains and franchise them out, so get the scoop on start up costs and other regulations. Decide if you will run it yourself or hire a management team. Look for the following when deciding on franchise terms for sandwich chains:

1. Decide which national sandwich chains are right for you.

Normal 0 MicrosoftInternetExplorer4 2. Decide how much you want to spend on your sandwich shop chain.

3. Determine other requirements to see if deli chains are right for you.

Action Steps
The best contacts and resources to help you get it done

Check availability and pricing for local chain sandwich shops

Not every franchise has openings in your area. Once you have decided on a chain, contact them to find out if you can open a store in your area. If they have no need in your local area, they will send you a list of close areas that need a local restaurant. You can also decide on a restaurant chain based on total price or down payment needed. You can check your state to see which restaurant chains have openings.

I recommend: Quiznos offers franchise opportunities across the country. Check the qualifications before proceeding with the application to own a franchise. Subway offers franchise opportunities both new and ones that previous owners are selling. Check the requirements and proceed with the application process.

Ask the sandwich franchises about initial investment

Initial investments for restaurant chains is usually high however, some cost less than others cost. Before you decide, find out exactly what monetary commitments you will need to make upfront. Remember also, that the initial investment for the franchise fee only covers the franchise itself and you will still need working capital for such expenses as electricity, phone and payroll.

I recommend: Atlantic City Sub Shops requires a franchise fee of $15,000 with a five percent royalty fee. You need $120,000 in liquid assets and $300,000 to go into business with them. Back Yard Burgers lets you buy in with a franchise fee of $25,000 and four percent royalty fee. You need $200,000 in liquid assets and $500,000 net worth.

Open sandwich chain restaurants for immediate business

When you open a chain store, you are cashing in on the name of the franchise. People know that whether your store is in Maine or California they will get the same menu and service and they stop at a familiar place. This is why you buy a franchise but the down side is there are tight regulations on franchises. You will get your operating schedule, menu and décor from the company. If you fail to meet your obligations, which usually include buying all of your supplies from them, you will lose your franchise.

I recommend: Franchise Business lists available restaurant franchises and the requirements to maintain them. Check carefully before you invest. Franchise Gator tells you what franchises are currently available in all categories of restaurant chains. Choose your interest and check requirements, such as hours of operation.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Franchises have many rules so be sure you know what operating hours you must keep and other rules you must follow for your sandwich chains and franchises. If you fail to meet the terms of the contract you signed, you can lose your franchise and pay penalties to the franchise company.

Sandwich chains education and training is mandatory and the national chain franchise provides this in most cases. This training is usually included in the price and includes how to run the sandwich shop according to the particular chain's way of doing business. This will detail how to make the sandwich, exact portions of meats and other ingredients and customer service expectations.

If you have not run a sandwich shop before you may consider taking additional courses before opening your shop. Although, the chain training is thorough, it is not a complete guide to the food business. Consider the following for guidelines for sandwich chains education and training:

1. Go to the chain sandwich shops' training to learn their particular rules.

2. Brush up on food preparation for deli chain restaurants before starting your new endeavor.

3. Learn the local food sanitation laws for deli chains and provide tasty sandwiches for your patrons.

Action Steps
The best contacts and resources to help you get it done

Sign up and attend a training seminar provided by the sandwich shop chain

The franchise you buy should offer training for their particular ways of doing business. Training addresses food preparation, management, cash handling and customer service, and the company gives direction as to the expectations for each of these categories.

I recommend: Blimpie Subs and Salads offers one week trainings at their headquarters and two-week trainings at the franchise location. Take advantage of this training for the best results with your franchise. Subway offers seminars to potential franchise owners detailing both general and particular information about how to run the sandwich shop in your area.

Take a class in restaurant management prior to opening day of sub sandwich chains

Local colleges offer restaurant management courses, and some are offered online as well. Make sure you know the food business well before opening your doors to the public.

I recommend: Stratford Career Institute offers an online course in hotel and restaurant management. Take this course to learn the fundamentals of operating a sandwich franchise. Software Hypermart provides an interesting article addressing training and education for sandwich shop owners. Universal Class offers an online class in restaurant management. Learn at your own pace before opening your sandwich shop. Education Portal offers courses in food preparation and offers a program to obtain a bachelor of food marketing degree.

Get acquainted with sandwich recipes for delicatessen chains

Although the franchise company presets the sandwich menus, explore new recipe ideas. Present these ideas in the ongoing training or management meetings as additional menu choices. Learn diversity to keep the menu interesting.

I recommend: Roadway Diner offers links to sites with food preparation techniques. Use these resources for advanced self-training. Check the recipe links for novel ideas for new sandwich offerings. Soft Look Up offers a sandwich recipe ebook with delicious sandwich recipes. Try some of their recipes or add a twist of your own to the mix. Breadtopia offers bread making recipes with pictures of how the bread should look and complete recipes to try.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Sandwich chain restaurants have strict rules about their franchises, so acquaint yourself with the hours of operation and other rules before purchasing the franchise.

If you are looking to buy or start a sandwich chain, you need to be savvy about marketing and the financial outlook. Know what customers are buying and what kinds of sandwiches are most popular. Do your homework before you invest any significant funds into a purchase or a start-up. Be sure it appeals to consumers and is branded properly for its main clientele.

Many customers choose sandwich chains because they provide quick and easy meals. Health-conscious consumers will look for products that are more nutritious and lower in trans fat. Eco-conscious consumers often look for sandwich chains that have green practices. Consider these factors too when you are deciding to buy or open your sandwich chain.

Action Steps
The best contacts and resources to help you get it done

Franchise

Most sandwich chains offer franchise opportunities. Advantages of a franchise are that the parent company usually provides the business plan and advertising, establishes the brand, and buys supplies and uniforms in bulk.

I recommend: Franchising.com discusses the basics of franchising.

Trans fats

With many people concerned about their health, sandwich chains need to consider the amount of trans fat in their offerings. Trans fats are found in hydrogenated, or solid, vegetable shortenings. They are particularly dangerous because they increase bad (LDL) cholesterol and decrease the good (HDL) cholesterol.

I recommend: The Mayo Foundation for Medical Education and Research explains what trans fats are and why they're bad for your health. USA TODAY discusses some of the actions sandwich chains are taking to reduce trans fats.

Branding

Branding is key to sandwich chain sales. By establishing a certain image in a customer's mind, chains can ensure that customers will continue to come into their stores. A brand gives customers certain expectations when they enter the chain, and each store in the chain needs to maintain that image.

I recommend: AllBusiness.com presents the results of a study on chain restaurant branding.

Sustainability

Many sandwich chains are eco-conscious. Sustainability means more than just offering organic menu items. Many chains have developed a planned approach to conserving resources and reducing their non-recyclable waste.

I recommend: Chain Leader presents suggestions for how food businesses can go green.

Outsourcing partnership

One trend in the sandwich chain industry is developing an outsourcing partnership. A sandwich chain partners with a store, a college, or other company to increase both businesses. The store benefits by having an in-house sandwich shop without the expensive overhead and staffing issues. In return, the sandwich chain gains a built-in clientele and a place to do business.

I recommend: Funding Universe presents a business plan to show how a smaller franchise sandwich shop can compete with large fast-food chains by developing unique relationships with other established businesses.

Repositioning

Repositioning is a marketing strategy that changes aspects of a product or brand in order to change market position and alter consumer perceptions. Many sandwich chains reposition themselves by offering trendier menu items or altering their look and advertising to attract new customers.

I recommend: IMEC defines strategic repositioning and explains how it is beneficial.