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Franchise Sandwich Shop Business Plan

Start your own franchise sandwich shop business plan

Franchise Sub Shop

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The purpose of this business plan is to secure additional, long-term funding to open a QSR (Quick Service Retail) franchise in Ashland, Oregon. The owners of the company are willing to invest $30,000, and assume over $110,000 in short-term liability to secure the funding for inventory, and early operations. The SBA 504 loan we seek is in the amount of $200,000, and if approved, will be amortized to 10 years.

The franchiser, “The Sub Shop Corp.,” is one of the fastest growing franchises in North America. Sales last year topped $800,000,000. The chain is positioned somewhere between traditional fast food restaurants, and sit-down restaurants. This segment of the market is attuned to the health benefits of their eating habits, are more conscious of their buying habits than the general population, and more importantly, they have higher incomes and are willing to pay more for a better fast food choice. Our goal is to be that choice in the Ashland Metro area.

To succeed with our goal, and to encourage a healthy lifestyle, we will sponsor local sporting events, and give 3% of profits to local charities. We will build roots into the community. We will also market our products with local businesses, the famous Shakespearean Festival, to local hotels, and offer catering services through local party supply stores and through close ties to local hotel managers and executives. 

Our primary goal for this plan is that it help us secure this $200,000 SBA loan. Once we have done that, our goal will be to build value for our constituents, ourselves, our employees, our customers, and the community. We see these goals as being consistent with the goals the SBA expects of itself and its guarantors.

1.1 Objectives

Our first objective is to open the Franchise restaurant four months from the day that our site is confirmed by the realtor.  Our site was confirmed in April, therefore our goal is to be up and running by August.  Our P&L and Balance Sheet all begin in August.  Start-up costs between April and August may be found in the Start-up Summary Section.

The Sub Shop will turn a profit by the beginning of our second fiscal year of operations.

We will pay down our $200,000 SBA loan to $180,000 by the end of year one.

Repeat customers will constitute 70% of our overall business by the end of year one. We will track customer habits and loyalty through a local marketing research firm, and publish the results of these findings to our employees once a quarter.

Net Profit for year one will be 21%.

1.2 Mission

Our mission is to bring to market the tastiest and healthiest fast food in Ashland, at a slight cost premium over other fast food restaurants.   Our high standards of quality and cleanliness will establish our reputation as the cleanest fast food restaurant in Ashland. 

Our community is as important to us as making a profit. We will devote 2% of profits to a local women’s shelter, and 1% to a local environmental conservation fund. This company is founded on the concept that good works and good deeds not only serve the needs of the community, but will also keep our company healthy and committed to the success of its customers.

1.3 Keys to Success

The most important key to success is our location. It is very important that our location live up to our expectations, and is convenient to as many potential customers as possible. As stipulated by the franchise agreement, our “Type A – Profile 1” location must contain a minimum of 6,000 customers within a four block radius (or five minute walk time). The pedestrian traffic must be adequate and the lunch habits of the customers must be conducive to eating out.  

Another key to success lies with our ability to execute our plan. If we neglect one or more aspects of our plan, whether that is our numbers, our employees, our cleaning and food standards, or our commitment to customers, we will not succeed and thrive.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

“The Sub Shop” Corporation franchises, and sometimes owns and operates quick-service Italian-style sub sandwich shops called, appropriately, “The Sub Shop” subs.

The Sub Shop’s upscale concept fits a niche between fast food and fine dining–offering the customer the best benefits of both segments.  The company provides the convenience of fast food with rapid response times, affordability, as well as carry-out and home meal replacement options.  The Sub Shop also offers a fresher and tastier alternative to typical fried fast food products such as hamburgers and french fries.

The Sub Shop’s concept was born in the kitchen of a popular Italian sit-down restaurant called Gianni’s.  The goal of the original owner was to provide great Italian food in a clean, urban environment, and at a reasonable price.  After two years as Gianni’s, the owner changed the name to The Sub Shop and began selling subs and soup to go.  In 1993, the company expanded to two stores and sales tripled.  Financing was secured in December of 1993, and the company became a local Franchise, then a national Franchise.  Now with 53 stores in 23 states and four countries, The Sub Shop has taken the Fast Food segment by storm by producing a better product than its competitors, and at a moderately low price.

2.1 Company Ownership

Ninety-seven percent of the restaurant belongs to Walsh and Walsh LLC. The company was formed in Oregon in 1995, and is owned by Jack William Walsh and his father Luke Walsh. Luke owns 77% and Jack owns 30% of Walsh and Walsh LLC.  The remaining 3% is held by Lisa McKewan, Store Manager.

2.2 Start-up Summary

The start-up table shows a summary of our overall start-up costs. The highest initial outlay is for the franchise fee. This is required to launch the franchise. After paying our Franchise fee, our only liability to the franchise will be the 7% cost of sales, and 2.2% advertising charge. Normally the franchise fee would be paid in interest accruing installments, but we decided to forego this to keep the books as clean as possible and to reduce the possibility of a “parent/child” conflict between our company and the constituents.

Cash requirements for start-up are $19,700, and most of this will sit in a zero interest bearing, highly liquid bank account.  The first month our change in accounts payable will top $61,000, so we need this $19,700 in case sales are not what we expected. If sales are 30% off projected, this $19,700 will help us gather enough cash to pay off our accounts payable within 30 days. The principles will invest a combined $30,000 to start-up the franchise. We expect that the majority of this will be paid back to the owners within two years of operations, in the form of dividends. This investment makes up over 8% of the total start-up requirements for the company. The remainder consists of one $65,000 short-term interest bearing, unsecured personal loan, one $15,980 interest-free “First Card Visa” 0% promotional loan, and a $200,000 long-term loan guaranteed by the SBA 504 program. The term of the expected loan is 10 years.

The SBA loan that we are seeking will be secured via the pre-appraised market value of the land and property, as well as the improvements to be made on the property through 2001. The estimated net market value of the property following all improvements is approximately $320,000.

2.3 Company Locations and Facilities

The company will be located between Oak St. and Water St. on Highway 99 in Ashland, Oregon.   It is the busiest shopping district in Ashland, and is very close to world famous Lithia Park, also a bustling tourist destination.  The building will be decorated like many of the merchants along this thoroughfare; as would befit a former 19th century gold-mining town.

We will offer a large variety of Submarine sandwiches, salads, soups, chili, chips, cookies, and sodas. The sandwiches are made with The Sub Shop’s unique sweet mustard sauce and each loaf of bread is made fresh daily. The bread is toasted for every order and the soups are made daily.

3.1 Product Description

All of our sandwiches are available for customization. In addition, customers will love the fresh, toasted bread, and the freshly sliced meats and cheeses. 

Below is a short list of some of the subs we will market, the rest of the products are broken down by unit sales in the sales forecast table:

German Snack: Italian Salami, Bologna, Roast Beef, Tomato, Onion, Bell Pepper, Cheese, Vinegar & Oil and Salt & Pepper upon request.

Swiss Delight: Cheeses (3), Tomato, Onion, Bell Pepper, Cheese, Vinegar & Oil and Salt & Pepper upon request.

Spanish Conqueror: Cheeses (2), White Meat Chicken, Jalapeno Sauce, Tomato, Onion, Bell Pepper, Conqueror & Oil and Salt & Pepper upon request.

American Suburban: PB&J.

American Urban: Tofu, Onions, Tomatoes, Cucumber, Carrot, and two Cheeses.

American Traditional: Angus Beef, American Cheese, Lettuce, Tomato, with a 1/4 slice Kosher Pickle.

3.2 Competitive Comparison

Our competition consists of on-campus sandwich shops, fast food restaurants, and downtown eateries. There are three SubSub Sandwich shops in the Ashland metro area, and 10 fast food restaurants. Our competition will be fierce, but our specialized sub sandwiches will set us apart from the competition, as will our focus on healthy, yet tasty fast food. SubSub has emphasized the benefits of their healthy sandwiches, yet their sandwich bread is often tasteless and stale, they don’t toast their bread, they don’t use a special sauce, and their production facilities are rarely clean enough to make dining in their restaurant an appetizing venture.

The other fast food restaurants in Ashland will offer a more serious challenge: How do we position ourselves so that people know food is both healthy AND tasty. Many people who eat fast food burgers and fries are not concerned with the health benefits of such activities, but rather, the way the food tastes. To be competitive, our sales literature and promotions will make it clear that our products are tastier than any greasy hamburger, yet will provide a fun, guilt-free eating experience.

3.3 Sales Literature

Our sales literature consists of menus supplied by The Sub Shop and custom flyers designed in-house. The custom flyers will offer catering prices, explain the difference between our lunch specials and those of our competitors, and show our hours of operation. We will place the catering and lunch service flyers strategically near Oregon Shakespearean theatre events, park events, with local businesses, and in Jackson County community centers.

3.4 Sourcing

The Sub Shop Corp. will provide the supplies necessary for operation. Due to bulk buying by The Sub Shop Corp., and our standardized franchise-based supply line, our purchasing costs will be 10% below similar costs incurred by a non-Franchise restaurant and our payment days average 45 instead of the industry median of 30 days. 

To maintain a conservative financial perspective, we have not built this 10% discount into our cost of goods in the Profit and Loss Statement. We have calculated cost of goods as a flat 35% of sales, an average for our industry. We will update these amounts with real figures once we have three months of purchase history. We expect to revise our sourcing costs down by at least 10% in November.

3.5 Technology

We will take advantage of the latest technology in order to speed our business processes and develop more efficient operations. In planning for the launch, we have purchased three copies of Business Plan Pro software. Each principle has been given a segment of the plan to work on. Jack is in charge of writing all franchise-specific topics, Luke is in charge of generating and explaining the numbers, and Susan is responsible for all operations-specific topics. Each person synchronizes their machine with the secureplan.com secure server, making the most recent version of the business plan available at all times on the Web.

In addition to using technology to establish the business model and methodology, we also use technology for day-to-day operations. The Sub Shop Corp. supplies us with the latest in ordering equipment, including a merchant credit and debit card account, number verification, inventory management software and timeclock (HR) software. Each employee is given a cell phone for personal use, and in exchange for this relatively inexpensive benefit, they are expected to work flexible hours, and respond when called in to replace an employee that is sick, or otherwise not available for their shift.  

Technology is also used for routine maintenance and sustainable operations. The company uses only biodegradable soaps and cleaning supplies, and encourages all employees and customers to recycle plastic, glass, and cardboard items. We view these options in sustainability as being tied directly to advances in technology. For instance, as wind and solar power become available through the local utility, we will opt to source through those options.

3.6 Future Products

The product mix is determined by corporate (biodegradable).  Future product suggestions are welcome by corporate, and if approved, may become part of the product mix.

Market Analysis Summary how to do a market analysis for your business plan.">

Our market consists of both tourists, downtown workers, and students from Southern Oregon University.   Over 362,000 tourists visit Ashland each year–100,000 for the Shakespearean Festival and 262,000 for other recreational/shopping activities. Tourist make up the largest segment of our target market, at about 85% of the total market for our products.  There are about 18,000 people living and working in Ashland.  If we can convince just 15% of those people to buy our sandwiches twice a month, we’ll sell 65,000 sandwiches to that market alone in 2001.  Add that amount to 20% of all tourists to the Ashland area, and those two segments alone will buy 138,000 meals.

In addition, demographics have shifted in recent years from traditional households (two parents with children) to more non-traditional households; as a result, many adults feel they have less free time.  Consumers report that they are eating out more often in order to free up time normally spent cooking, and use that time to enjoy their families and to take advantage of other leisure activities. 

From the Ashland Chamber of Commerce: Ashland (pop. 18,560) has built its economy on a resource base of timber, favorable climate, attractive landscape, cultural attractions, a well-educated labor force and education. In addition, Ashland’s location off Interstate 5 and the Southern Pacific Railroad, and its proximity to the Rogue Valley International-Medford Airport, give it market access that is more favorable than usual for a rural town. To offset the risk that comes with dependence on one economic sector, the City of Ashland and the Chamber of Commerce encourage the diversification of markets. Establishment of light manufacturing firms with value-added components, sophisticated services catering to a geographically dispersed clientele, and retailing targeted to local residents are especially encouraged. The Oregon Shakespeare Festival attracts more than 100,000 visitors annually. And because Ashland is considered a “destination” city, an additional 258,427 people visit here for its other attractions such as recreation, shopping and sightseeing. Ashland, while widely known for the nine-month Shakespeare Festival, is also the location of the only federally funded wildlife forensics lab and research facility in the country. Southern Oregon University plays a large part in Ashland’s economic health, with approximately 5,130 students, 576 faculty, 207 staff, 26 temps and 691 student employees.

The City of Ashland’s population over the last four years has averaged 1.4% growth and is not expected to deviate from that rate The City of Ashland’s “official population projections” show a 19,995 population projection for the year 2,005. Over the 10-year period 1995-2005, a total of 2,010 new residents to Ashland are expected. The City of Ashland’s average household size is 2.22 (1990) persons per unit (12) compared to the average household size of 2.34 in 1980.

4.1 Market Segmentation

The largest market  is tourists.  Our next largest target market consists of downtown workers.   Weekend shoppers and students who work or visit downtown make up the remaining two percent of the total market.

4.2 Target Market Segment Strategy

Downtown Workers: We will target downtown workers through local businesses, advertising, event sponsorship, and word of mouth advertising.

Students: Ashland has a seasonal student population of around 4,700. We expect to reach students through campus activities and marketing, as well as by sponsoring special student events.

Tourists: Over 100,000 tourists will visit the Oregon Shakespearean Festival in 2001. Approximately 262,000 people will visit Ashland for it’s premier recreational activities. We will reach tourists at the time they visit Ashland. Most tourists aren’t thinking, “Where am I going to find good, inexpensive lunches?” when they plan their trips because they know fast food venues are abundant everywhere in America. The strategy will be to stand out from the other venues available on the street, and letting people know our food is relatively inexpensive, but without degrading the premium ambience of shopping in Downtown Ashland.

Weekend Shoppers: Weekend shoppers come from Medford to shop for clothes, gifts, and crafts in downtown Ashland. Over 40,000 people live and work in Medford, and we predict that at least 8% of those people will at some point shop in Downtown Ashland.

4.2.1 Market Needs

There are two market needs we are attempting to fill.  First, there’s a need for a fast food restaurant that produces tasty fast food, at a low cost, in a clean environment.   There are many people, considered in the traditional sense to be “Middle Class” and above who will not set foot inside a fast food restaurant due to a) the restaurant’s lack of cleanliness and b) the relative poverty and despair displayed by the people working in these fast food  restaurants. 

To fill the needs of these customers, we will market products that appeal to their healthy lifestyles, their taste buds, and their sense of “place.”  In addition, our food line, tables, floors, and counters will be cleaned constantly throughout the day, and we will maintain a very high standard of cleanliness.

4.2.2 Market Trends

The market for fast food is becoming more demanding. While fast food chains such as D-Lite and others in the mid-1980s failed in their attempt to market low calorie fast food, since the 90’s, some companies have found that healthy fast food pays off. Garden burgers have become prevalent at many fast food restaurants, and even some fast food burger franchises are beginning to offer gardenburgers, and other soy alternatives.  

While marketing fast food only as “healthy” would be corporate suicide, there is a trend towards quality in both food and ambiance. As mentioned in the Market Needs topic, many people are heading for restaurants that offer fast food at a slightly higher price, but at a much higher quality, and delivered by employees who do not feel degraded or otherwise fatalistic about their role at work. While the latter issue may be debated by intellectuals in Management 410 B-school courses or  readers of the current bestselling book, “Fast Food Nation,” the fact remains that American society will continue to want more for less. If we pursue the niche of customers that reside between the bargain-hunters and the spendthrifts, and of those, the ones that are repulsed by standard fast food practices, lack of cleanliness, and the total lack ambiance inherent to most fast food restaurants, we will do a brisk business. 

Consumers spend about 46% of their food budget on eating out.

4.2.3 Market Growth

The National Restaurant Association predicts that the QSR market will grow slightly slower than the overall market for food services. This is due to reduced discretionary income, and recessionary economic pressures in 2000 and 2001. The overall growth rate in the fast food business is expected to be 4.4% in 2001. Growth in catering services is expected to be at around 6.5%. Based on the fact that only about 20% of our sales will be generated from catering services, and that our franchise resides in the QSR sub-market of the fast food market, a slower growing market during a recession, we have pegged our overall market growth rate at a weighted 4.82%.  However, because of the faster than average growth of the Ashland area, and the increase in tourism in Jackson County over the last few years, we have estimated that our potential customer base will grow at a healthy 8.57% clip.

4.3 Industry Analysis

Food service industry sales will reach an estimated $30 billion in 2010, or over 3% of Gross Domestic Product.  Within this industry, the QSR (Quick Service Restaurant) segment represents over 2/3 of total traffic and over half of restaurant sales.  QSRs are defined by the industry primarily based upon menu item, with the burger and pizza sub-segments accounting for over half of total QSR sales.  QSR sales are estimated to reach $15 billion by 2010.

4.3.1 Industry Participants

The industry is composed of several large brand-name restaurants, and a large number of local fast food chains. Depending on where you look in any given year, 4-5 new fast food outlets may open and close their doors. The industry is always changing and is a highly competitive arena where staying power and customer loyalty is difficult to acquire. The participants in the Ashland market include Burger King, McDonald’s, Taco Bell, Taco Time. In the QSR market, Blimpie, Subway, and several local sub-shops are industry participants most likely to compete directly with The Sub Shop.

4.3.2 Distribution Patterns

We distribute our products direct to customers, both through retail and through our catering service. We don’t rely on a channel of resellers or distributors to get our products into the hands of consumers.

4.3.3 Competition and Buying Patterns

The fast-food business is based largely on the impulsive choice of consumers. Many people buy their business lunch, lunch, or family dinners at a fast food restaurant, and those fast food restaurants offer not necessarily the best selection, but the most reliable menu and the fastest order completion time. Customers will try other fast food restaurants, and shop around, but the majority of their fast food purchases are from one of their favorite fast food or QSR restaurants. Our goal is to capture those customers, and to build loyalty to the product through purchase punch cards, consistent daily specials, and a direct mail list.

4.3.4 Main Competitors

Our main competitors are the major national fast food franchises.  SubSub is our largest competitor, with 12,868 franchises in the U.S. alone.  

SubSub licenses franchises throughout the nation, and offers two locations in the Ashland Metro area. McDonald’s only has one store in the Ashland area. 

SubSub contributes to the growth in our market by advocating for healthy eating habits via online, TV, and radio advertising. They are our largest competitor, yet they also contribute to the nationwide growth of the healthy food segment of this market. We can count on them to bring people into our stores, and will target their local operations through direct mail flyers that offer specials to customer that bring in their SubSub 10-sandwich punch cards.

Strategy and Implementation Summary

Our #1 strategy is to focus on our customer experience. Our success hinges on whether customers receive what we promise them, and are pleased enough to come back for more. Our KISS (Keep it Simple Stupid) approach will be successful only if we don’t distract ourselves from the core business of making good sandwiches fast, and of treating the customers as if they are special. 

As with any business model in the new millennium, we must adapt our strategy to the customer and market trends, while maintaining consistency of brand and message. This is a challenge for any business in any industry because the nature of business will always, and has always determined that the best strategy with the most resources behind it will survive. This millennium has proved to be very successful in growing this market, and of supporting it’s franchises.

5.1 Strategy Pyramid

5.2 value proposition.

Our value proposition is that we offer high-quality, healthy fast food at a reasonable price. Our facilities are clean and our food is tastier than that of our competitors. The ambiance of our facilities contribute to customers’ desire to eat their meals in a comfortable, healthy environment.

5.3 Competitive Edge

We have a competitive edge in regards to the overall quality and differentiation of our products, and in the cleanliness and ambiance of our seating area. Our sandwiches, soups, etc. are all of the finest quality, and have been refined through taste-tests sponsored by The Sub Shop Corporate. Our seating area will be clean, the murals and prints on the wall will feature airy Italian landscape and European lifestyle motifs. The walls will be painted a rich yellow color, the tables and chairs are a rich walnut color, and the floor will consist of high-quality tile. 

We will differentiate our food from SubSub’s in regards to taste, quality of bread and contents, attentiveness to customers, and overall experience. We will build off of SubSub’s national marketing strategy so that we gain from their conversion of burger eaters to sandwich eaters, but alternately prove that we are more responsive to customers and offer better fare than SubSub franchises.

5.4 Marketing Strategy

Our Marketing Strategy is to reach the largest amount of tourists, residents, and students for the least amount of money.  

Our strategy will focus on three solid points:

• Building customer loyalty.
• Extending the franchise brand locally.
• Develop local word-of-mouth advertising (buzz).

5.4.1 Positioning Statement

For people looking for a fast, friendly, and tasty lunch, we produce a quick meal.  Our seating area will be clean and the overall ambiance of the place will be pleasing to the senses.  The food will be good and the service, friendly and fast.

5.4.2 Pricing Strategy

Our pricing strategy is different for different customers. Prices to retail customers will be fixed by the chairs, and based on a relative cost of living indicator. Retail prices will be competitive at about $6 for the average meal. This is about 30% above McDonald’s and Burger King prices, but only about 15% above the average price of a SubSub sandwich. Customers are simply willing to pay more for healthy, flavorful food served in a clean, comfortable environment.

Our highest margins will come from our catering services and large sub products. We will focus on expanding this segment of the market as soon and as aggressively as possible.

5.4.3 Promotion Strategy

The chairs will promote our products on the national level. In order to reach our local customers, and build loyalty, we will offer special mid-day promotions, sponsor local community events, advertise in the local classified paper, and our President will become a leading figure and spokesman in the community.

Our strategy is to focus on promoting the business through local PR efforts, rather than paid advertising.

5.4.4 Distribution Strategy

We plan to distribute our products direct to customers, without the use of a separate channel of distributors.

5.4.5 Marketing Programs

Our marketing programs will include customer-centric appeals to switch from the competition, build loyalty, provide cost value to the customers, and build word of mouth marketing.

Here’s a list of the sales and marketing programs we intend to implement within the next 15 months:

• Five daily in-store regular specials, at least 15% off one particular sandwich item.
• A direct mail coupon offering 50% off your first sandwich when you bring in a stamped SubSub card and sign up for our coupon mailing list.
• High profile sponsorship of two local sporting or charity events.
• 20% off a menu item when you bring in your Oregon Shakespeare festival ticket stub.
• Free delivery to any of the local hotels (market only through hotels), and offer to pay hotels a slotting fee.

We may institute more programs as we see fit. This list of programs is aggressive when compared to the local marketing done by our competitors, so this should give us an early advantage as long as we can keep cash balance and sales numbers up.

5.5 Milestones

The following table shows important milestones for the franchise Sub Shop.

5.6 Sales Strategy

Our sales strategy will be to reach the largest amount of Jackson county residents and tourists with consistent value-added incentives to purchase our products and visit our restaurant. In this industry, and especially as a franchise, our marketing programs are almost indistinguishable from our sales programs. The indistinguishable handles a lot of the national and regional marketing, and we just pay our fee to have it done. Our flexibility will lie in our ability to push the boundaries of freedom the indistinguishable has given us, and to take advantage of opportunities to differentiate ourselves on sales by sale level.

5.6.1 Sales Programs

5.6.2 sales forecast.

The majority of our revenue will be generated through medium subs and cookies/desserts. The breakdown by product is below.

5.7 Strategic Alliances

The fast-food business is based largely on the impulsive choice of consumers. Many people buy their business lunch, lunch, or family dinners at a fast food restaurant, and those fast food restaurants offer not necessarily the best selection, but the most reliable menu and the fastest order completion time. Customers will try other fast food restaurants, and shop around, but the majority of their fast food purchases are made through one retailer. Our goal is to capture those customers, and to build loyalty to the product through purchase punch cards, consistent daily specials, and a direct mail list.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Our managers are also owners. We want our managers to take a personal stake in the success of the company, and for that reason we have given them a share of any profits they generate. 

Specific information about each manager is available in the following plan topics.

6.1 Personnel Plan

Most of our employees will come from the University of Southern Oregon in Ashland. They will be part-time students and will not need healthcare benefits or 401K benefits. This will hold our payroll burden to less than 8% of total payroll.

The store will hold an annual rafting trip and picnic on the Illinois River each summer. This “team building” exercise will come out of the marketing budget. Please see the Profit and Loss table for details.

Our employees will be respected, and will wear a company polo or sweatshirt, not a tight-fitting, artificial fiber, company-mandated jumpsuit. Our employees will be paid more (in salary & benefits) than employees at most other fast food restaurants will be given tuition reimbursements, thereby making them more empowered, and more content workers. In this way, we will meet the needs of our market, and differentiate our company from the myriad of fast food behemoths, who’s primary goal is to churn out worthless, tasteless food in a degraded facility and by degraded employees.

6.2 Organizational Structure

The organizational structure is very flat. While it’s important that our manager on duty is clearly in charge, we will not belittle our employees through rankism that disempowers them from taking initiative. Our manage on duty will have the final say regarding all decisions, yet we have trained her to teach the employees how to react to customer issues on their own and respond based on their knowledge of company policy, and when that fails them, their common sense. Fortunately all of the people we have lined up for our open positions appear to have an abundant supply of common sense.

6.3 Management Team

The management team has a combined 30 years of experience in the food service industry, with 15 years of delicatessen experience. 

Luke Walsh, the owner, owned and managed a deli in downtown Portland, OR for 15 years. During this period, he turned the deli into a full-service convenience mart, added a dining area, and increase the menu from 10 items when launched, to over 100 items prior to his exit from the company. Luke sold the company to a husband/wife entrepreneur team in 1994 for $2 million, and has been living off personal investments and other ventures for the last seven years. Luke received his MBA from Portland State University in 1998, and earned his BA in finance from the University of Oregon in 1989. 

Lisa McKewan, Store Manager, has a BA in Psychology, and worked for over 15 years as manager of the The Greentree Restaurant in Ashland. This restaurant is known for its friendly waitstaff, diverse and award-winning menu, outdoor seating, and excellent service. Lisa turned The Greentree Restaurant from a small, 600 sq. ft deli, to a full-service restaurant. She helped the owners find investors, and helped write the marketing and business expansion plan. She managed the day-to-day operations of the business, trained and hired all waitstaff, set the menu, and managed all advertising spending.  Lisa will assume the Store Manager position in title, a step down for her, but in exchange for being flexible in this regard, she will receive 4% ownership in the company. Once the owner has moved out of day-to-day operations, presumably around year three of operations, Lisa will receive another 2% of the company as stipulated by her employment contract.

6.4 Management Team Gaps

The only gap we face is the fact that none of us have run a franchise business. Since both Lisa and Luke have experience running a sole proprietorship, and non-franchised restaurant, our experience will more than compensate for the increased “hand-holding” that comes with owning a franchise.

Due to the limited number of people managing the restaurant, our goals may not be met if we were to lose a manager or owner. We have drawn up a legal contingency plan with a $1 million policy on the owner to prevent this from disrupting the business. We have also allowed for a cash balance that would allow for a recruitment bonus to another Store Manager if Lisa were to leave for any reason.

Financial Plan investor-ready personnel plan .">

Our financial plan is available in the following chapters. Our numbers are based on past experience, knowledge of the industry, growth expectations for the fast food sector nationwide, and common sense.

7.1 Long-term Plan

Our long-term plan includes expansion into the Medford market in year two, followed by healthy dividend payouts in years three through five. Our goal is to build a business out of two franchises, and run each franchise as a profit center for the purpose of building wealth for employees, the community, and the Walsh family.

7.2 Important Assumptions

The SBA 504 loan program stipulates that loans for the purpose of purchasing and improving small business real estate will not exceed 7.5%. The loan is pegged to the 10 year treasury note +1.7%. The current rate for the US Treasury Note is 5.13%, so our estimated long-term loan rate will be about 7%.

The tax rate includes the Oregon State Revenue Tax, currently at 6.6% of NET revenue. We have prorated the assumptive state tax rate to 4.6% due to the fact that this tax is levied on NET revenue, not GROSS. The Federal tax rate average for our net revenue is expected to average 31%. Thus, or assumed total tax rate for this table is 37.6%.

7.3 Key Financial Indicators

The following chart shows the projected benchmarks.

7.4 Break-even Analysis

Our break-even analysis is based on a rough estimate of fixed costs. We predict average fixed costs to include the cost to lease the building, equipment leases, and various other equipment costs and fees. Our variable costs include the cost of labor, food inventory, and other product-related costs. Our variable cost estimate is $1.14 per unit, although that number may be revised as we review our actuals in the coming months.  

Our monthly break-even unit sales are 12,754. This includes units other than sandwiches, such as cookies, soda, chips and other add-ons. The basis for this break-even point is an average of entrees (sandwiches) and add-ons. The average per unit revenue is $3.26.

7.5 Projected Profit and Loss

The following table is the projected profit and loss for franchise Sub Shop.

7.6 Projected Cash Flow

The following chart and table shows the projected cash flow.

7.7 Projected Balance Sheet

The following table is the projected balance sheet for the franchise Sub Shop.

7.8 Business Ratios

Our ratios table shows industry numbers for SIC 5812, Eating Places. The SIC industry averages are generic and do not reflect our precise numbers.

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How to Write a Sandwich Shop Business Plan: A 4 Step Guide

Writing a detailed sandwich shop business plan is essential to getting your sandwich business off to a great start. Here’s what it should include.

Step 1: The Importance of a Business Plan

Opening a sandwich shop has the potential to be a fulfilling and rewarding business opportunity, provided you have a solid plan in place. Before you get into the specifics, it’s crucial to understand your purpose.

A business plan serves as a roadmap for your venture, outlining your goals, strategies, timelines, and financial projections. In addition to being a financial plan, it also helps you define your target audience, identify competitors and your strategy to compete against them, and formulate a clear business vision for your sandwich shop. Every potential franchisee should start their business journey by conducting significant due diligence, including reviewing the franchise disclosure document (“FDD”) and speaking with franchisees of the brand they are considering. Being equipped with a carefully considered and thorough business plan that captures your goals and financial projections can also be a valuable tool in your due diligence process.

Step 2: Attracting Investors and Securing Financing

While franchisors typically do not request nor review your detailed business plan or projections as part of the initial franchise qualification process, investors and lenders will often require a well-crafted business plan to evaluate the potential of your sandwich shop business. A comprehensive plan will help you to showcase and demonstrate your understanding of the market, your business acumen, your competitive advantage, and the overall potential viability of your business.

Step 3: Unique Aspects of a Sandwich Shop Business Plan

While sandwich shops share some similarities with other business plans, there are certain elements that make them unique. Consider including the following in your plan:

• Highlight the variety of sandwiches, sides, beverages, and other offerings you’ll include on your menu. Describe your pricing strategy, figuring in ingredient costs, competition, and target market preferences.
• Evaluate potential real estate and site locations for your sandwich shop. Consider foot and automobile traffic, accessibility, competition, and proximity to offices, schools, other retail establishments and residential areas. Real estate brokers can help identify opportunities and assess potential lease or purchase options.
• Outline your sourcing strategy for ingredients and other products, emphasizing quality and consistency. Describe how you’ll manage inventory to minimize waste, ensure freshness, and control costs.
• Detail your staffing strategy, including the number of employees required, their roles and responsibilities, and the hiring and training process. Discuss your training programs to ensure consistent product quality and exceptional customer service.

Step 4: Essential Components of Your Business Plan

Every sandwich shop business plan should include:

• A concise overview of your sandwich business, including your mission statement, business concept, target market, and financial goals.
• An analysis of the local sandwich market, including trends and competitors. Explain how your shop will stand out amidst other sandwich shops.
• Define your legal structure (sole proprietorship, partnership, LLC, etc.) and outline the necessary permits, licenses, and regulations applicable to your business.
• Describe your marketing efforts. Include strategies for brand positioning, social media presence, customer loyalty programs, and collaborations with local businesses.
• Detail the day-to-day operations of your shop, including hours, staff schedules, food preparation processes, and customer service protocols. Address potential challenges and viable solutions.
• Present a financial forecast, including startup costs, revenue projections, expense breakdowns, and profit margins. Include a timeline for breaking even and achieving profitability. Typical business plans have a worst-case financial model, a mostly likely projection and best-case scenario projection.  Utilize Item 19 in the FDD provided by the franchisor as an integral part of this financial model.  The model should also include a detailed monthly cash flow analysis to help you determine ongoing working capital needs.

A comprehensive business plan is essential to navigate the competitive landscape of the sandwich industry, and many sub shop owners choose franchising as an integral part of their overall business strategy.

Benefits of Owning a Sandwich Franchise with Penn Station East Coast Subs

Owning a Penn Station East Coast Subs franchise offers several advantages over starting a sandwich business from scratch. Right out of the gate, you’ll own a business dedicated to premium ingredients, outstanding customer service, and operational excellence. Our craveable menu, established brand and reputation have earned us a loyal customer base.  The National Restaurant Association estimates that 30 percent of restaurants fail the first year.  The Penn Station concept has been in existence since the mid 80’s, so the brand has longevity and has withstood the test of time.

Our award-winning four-week franchisee training program will equip you with knowledge to run your Penn Station location. Our support includes site selection, construction, information technology, marketing, and operations. After completing Penn Station’s steps to ownership, you’ll be ready to bring the quality food and exceptional service we’re known for to your customers.

We’ve got more franchise opportunities than ever as we expand into new markets. There’s never been a better time to own a Penn Station East Coast Subs franchise. To learn more, request information today!

The offer of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain jurisdictions require registration prior to the offer or sale of a franchise. We only offer franchises in jurisdictions where we are registered or are exempt from registration. Penn Station, Inc. 1226 US Highway 50, Milford, OH 45150. Penn-Station.com

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How to Write a Business Plan For a Deli / Sandwich Shop

• January 3, 2023
• Food & Beverage

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your deli or sandwich shop, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your deli. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a deli?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for a deli?

Provide a precise and high-level summary of every section that you have included in the business plan of your deli. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : start by introducing your deli, where it is located, the products you will sell, and the pricing strategy you want to implement. Mention what sets you apart from other businesses. For example, you may focus on recipes of the Pacific Northwest cuisine that no other deli in the area offers.
• Market analysis : summarize the market where you will operate and provide a brief about your target market , target audience, spending capability, etc. Also give certain data points about the deli / sandwich shop industry in the area where you want to operate (size and growth), as well as an overview of the main competitors, etc.
• People : introduce your deli’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, mention how the company will be structured (management roles and reporting lines)
• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Deli Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Deli Business Overview

In this segment of the business plan, you will provide details about the deli.

You must answer here some important questions that potential investors and lenders often ask about your business and operations. Here are some examples of questions you must answer:

• What is the rationale behind your opening a deli today?
• Where will you open your deli and why did you select that location?
• What type of food products will you sell through your deli?
• Will you specialize in a specific type of cuisine and offer different recipes?
• What will be your pricing strategy and why?
• What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind starting a deli today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have worked as a chef in a popular kosher deli for 5 years and now you want to open your own deli.

Is there a certain problem (or perhaps, a set of problems) that your deli will try to solve when it comes into existence? For example, there may be an increasing Jewish population in your area and not a single deli offers kosher cuisine. Your deli will serve those people and all others interested in kosher cuisine.

But that’s not all! The market must be suitable for a business to exist and thrive. For instance, if you are trying to open a kosher deli in a location where the Jewish population is only 10% of the entire population, it might not be a very good idea, especially if the rest of the population is not interested in kosher cuisine. 

Similarly, may open a deli with regular offerings like fast cold or hot sandwiches & salads along with a few specific recipes of a certain type of cuisine to cover three types of markets:

• Businesses requiring food for business meetings 
• Workers in the downtown area looking for walk-in good food
• People looking for take-out food to enjoy with families 

b) Business Model

This section of the Business Overview should explain the model you want to adopt for your deli. For example:

• Will you buy an existing deli and remodel it, or will you start a new one from scratch?
• Where will your deli be located, and which markets or target audience will you capture?
• What type of deli will you open (sit-in, takeout, truck, etc.)?
• What type of foods will you focus on?
• How will you price your food items and why?

What are the different formats of deli & sandwich shops?

Delis can have different formats. If you are focusing on a specific format or if you want to combine multiple formats in one, describe that. Here is a quick list of usual formats for Deli:

• Strictly Takeout : These delis do not have any sitting arrangement. People come and order at the counter and take the food and leave. They enjoy the food somewhere else.
• Sit-in Delis : These delis have sitting arrangements and people can come and enjoy breakfast or lunch. They may even order food to enjoy somewhere else (such as, with family).
• Trucks : These are essentially food trucks offering sandwiches, burgers, etc.

c) Products

The food products you want to sell through your Deli will depend on what you want to sell. For example, if you want to open a kosher deli, you will possibly be selling food that conforms to Jewish dietary laws. There are many types of foods that you can sell such as:

• Cold cut meats
• Pickled vegetables, etc.
• Pre-packaged cold drinks
• Shrimp, tuna, etc.
• Sliced cheese
• Tea & coffee

You may sell a lot of different food items. You don’t need to mention everything. Just name a few important ones and the specialties, if any.

d) Pricing Strategy

This is where you will provide an overview of your pricing strategy. For instance, you may charge higher than your competitors because you may be using exotic ingredients sourced from certain countries.

Similarly, you may decide to charge lower for certain items than your competitors because you may be sourcing raw materials in bulk at a lower price because of your scale of operations. This discounted pricing allows you to offer a lower price for the end products.

Pricing table

While it may not be possible to provide a proper pricing table for all products that you will offer, it is still a great idea to provide a table that gives an overview of your pricing structure.

You can provide an average price based on categories. For instance, you can do something like this:

• Sausages: $2.00 to $4.80
• Cold cut meat: $3.25 to $17.25

Pricing will always depend on the type of product (for example, beet, chicken, pork, turkey, etc., will all be of different prices), the complexity of the preparation, quantity, and more factors. 

However, don’t go into extreme details because potential investors are not interested in the nitty-gritty of your pricing. They just need the big picture to assess the profitability, because they will tie your pricing strategy with your financial projections later on.

e) Company Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own?

3. Deli Market Overview

A complete understanding of the market where you want to operate is important for the success of your business. That’s also something you must showcase in your business plan.

For example, if you intend to sell non-vegetarian food items in a location with a very high percentage of vegetarians, you will not make enough profits. Similarly, if you are trying to sell expensive food to people in a location where average income is rather low, that won’t work.

Therefore, you must cover here 3 important areas:

• Industry Size & Growth : how big is the deli industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition Overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer Analysis : who is your target audience? What type of food products will you sell? Do they prefer delis that are operational 24 hours? What is their average bill size per visit? How frequently do they visit a deli?

a) Deli Industry Size & Growth

How big is the deli industry in the us.

According to GlobeNewswire , the market size of chilled & deli food in the US was $40 billion in 2021, and is estimated to reach $108 billion by 2026 with a CAGR of 22%.

How big is the deli industry in your area?

After getting a clear picture of the deli industry in the US as a whole, narrow down to your location. It’s very likely that you won’t find the number anywhere (at least not for free).

In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:

Assuming that there were 100,000 deli shops in the US in 2021 that collectively made $40 billion, the average annual turnover of each shop was $400,000. Therefore, if the location where you will operate has a total of 40 deli shops, the deli industry in the area is worth about $16 million.

How fast is the deli industry growing in your area?

What about the location where you want to open your deli shop? US national averages can be a great addition to your business plan, yet they don’t necessarily help to assess the deli industry where you want to open your store.

For example, the industry might be growing in the US, but declining in your region for a number of reasons (businesses shutting down due to losses, etc.).

As you likely won’t find this information online, you can instead rely on the number of delis in the location to calculate the average growth rate of the industry in your area.

For example, if the region had only 33 delis in 2020 and 40 in 2021, you can assume that the average annual growth rate of the deli industry in the area is 21%, in line with the estimated US national average.

b) Deli Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their business model, the products they sell, their marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, you may consider physically visiting your competitors without revealing your business intentions) and create a comparative table summarizing their service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

Deli SWOT analysis

SWOT stands for Strength, Weakness, Opportunities, and Threats. This analysis will help lenders and investors better understand how you compare vs. competitors as well as the overall risk and reward profile of your business.

Here is a sample that you can use as a reference:

• Strengths : 5 years of experience as a chef in a popular kosher deli in New York
• Weaknesses : Startup cost, no initial brand reputation
• Opportunities : Increasing working class population who have no time to cook and prefer to buy prepared food; businesses opting for phone-in lunch during office/business meetings
• Threats : Popular brands like Canter’s Deli, Stopsky’s Delicatessen, Zingerman’s, etc. are opening shops rapidly

c) Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience.

Some important points that you must include in your customer analysis include:

• Do they prefer prepared or unprepared food?
• How much do they spend at a deli shop per month?
• What is their average order size per visit?
• Do they prefer sit-in or takeout delis?
• What types of food do they generally want to eat at a deli?

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

What is your Unique Selling Proposition (USP)?

• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do deli businesses use?

A few marketing channels that deli businesses typically use are:

• Social media content
• Flyers & pamphlets
• Word-of-mouth

It is not necessary to use all channels. Instead, you can start by focusing on a few of them, and include other marketing strategies later.

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Authentic : you may offer an authentic kosher deli and not a kosher-style deli 
• Meat variety : you may offer more types of cured and uncured meat (pork, beef, turkey, ostrich, chicken, etc.) vs. competitors
• Pricing : you may have cheaper products vs. competitors
• Location : your store may be located on a busy street or next to a corporate center or a school for example

5. Management & People

You must address two things here:

• The management team and their experience/track record
• The organizational structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your deli business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the deli you are proposing. If they have specialized training and experience (such as a professional culinary degree, years of experience as head chef, etc.), add that information.

Organization Structure

Even if you haven’t already hired a deli clerk, cooks, serving staff, manager/shift leader, and other relevant staff members, you must provide a flowchart of the organizational structure defining hierarchy and reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a deli.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your sandwich shop is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new store, add a new location to your deli / sandwich shop chain, etc.)
• The 5-year financial projections of your deli / sandwich shop

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a deli, startup costs are all the expenses you incur before you start making sales. These expenses typically are:

• The acquisition of the real estate (if you buy)
• The lease deposit (if you rent)
• The renovation and equipment costs
• License & permits, business insurance, etc.

Of course, the startup costs depend on a number of factors, like the number of stores you plan to open, their size, the quality of the design and equipment, etc.

For example, it costs anywhere from $54,500 – $141,500 to start a standard 1,000 sq. ft. deli with 4 full time employees .

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a deli, read our article here .

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model in the business plan of your deli or sandwich shop.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 10%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers / orders over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Capex (cost to renovate / build your store, furniture and equipment, etc.)

When projecting your financials, make sure to sensitize sales volume (customers), pricing as well as the expenses (inventory, salaries, etc.). Indeed, a small change in these assumptions may have a significant impact on your revenues, and most importantly, your profits.

7. Use of Funds

This is the last section of the business plan of your deli or sandwich. Now that we have explained what your business model is, your menu and the products you sell, how you attract new customers, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for a deli or sandwich shop should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the COGS (inventory)? Or will it cover mostly the cost for acquiring the real estate and renovations?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Sandwich Shop Business Plan Template

Written by Dave Lavinsky

Sandwich Shop Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their sandwich shop businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a sandwich shop business plan template step-by-step so you can create your own business plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your sandwich shop business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a sandwich shop business, or grow your existing sandwich shop business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your sandwich shop business in order to improve your chances of success. Your sandwich shop business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Sandwich Shop Businesses

With regards to funding, the main sources of funding for a sandwich shop business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional sandwich shop business plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Personal savings is the other most common form of funding for a sandwich shop business. Venture capitalists will usually not fund a sandwich shop business. They might consider funding a sandwich shop business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.  With that said, personal savings and bank loans are the most common funding paths for sandwich shop businesses.

Finish Your Business Plan Today!

How to write a business plan for a sandwich shop.

If you want to start a sandwich shop business or expand your current one, you need a business plan. The sandwich shop business plan template below details what should be included in each key section of your business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your business plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of sandwich shop business you are operating and the status. For example, are you a startup, do you have a sandwich shop business that you would like to grow, or are you operating a chain of sandwich shop businesses?

Next, provide an overview of each of the subsequent sections of your sandwich shop business plan. For example, give a brief overview of the food industry. Discuss the type of sandwich shop business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of sandwich shop business you are operating.

For example, you might operate one of the following types of sandwich shop businesses:

• Sub Sandwich Shop : this type of sandwich shop business focuses on offering sandwiches with a variety of meats, cheese and fixings (lettuce, tomato, etc.), allowing the customer to customize their own.
• Specialty Sandwich Shop: this type of business focuses on sandwiches with specific and set ingredients. Sandwich selections usually include hot and cold options hot and cold options and can include options like California Club, Philly Cheesesteak or a Fresh Mozzarella Panini
• Food Truck: this type of sandwich shop business serves a selection of sandwich options from a food truck.  The truck often travels throughout a specific city or town throughout the day or week.

In addition to explaining the type of sandwich shop business you will operate, the Company Analysis section of your sandwich shop business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, amount of monthly revenue, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the food industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your business plan, you achieve just that.

The following questions should be answered in the industry analysis section of your sandwich shop business plan:

• How big is the industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your sandwich shop business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your sandwich shop business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: working professionals, families, teenagers and businesses.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of sandwich shop business you operate. Clearly, individuals looking for a quick meal would respond to different marketing promotions than a large corporate event in need of catering, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most sandwich shop businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis section of your sandwich shop business plan should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other sandwich shop businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes restaurants, fast food establishments and grocery stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other sandwich shop businesses with which you compete. Most likely, your direct competitors will be sandwich shops located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of sandwiches do they sell?
• What is their pricing?
• What are their weaknesses?
• Do they deliver?
• Do they offer other things such as chips, drinks, sweets, etc.?
• Do they offer a rewards program for returning customers?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you serve specific sandwiches or give the customer the option to create their own?
• Will you offer a rewards program for returning customers?
• Will you offer delivery?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your sandwich shop business plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a sandwich shop, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of sandwich shop company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to a sandwich shop, will you offer a catering service for large group events?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your sandwich shop company. Document your location and mention how the location will impact your success. For example, is your sandwich shop business located in a busy retail district, shopping plaza, mall, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your sandwich shop marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your sandwich shop business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your sandwich shop business, including counting inventory, restocking/order inventory, making sandwiches, fulfilling online orders and shop maintenance.

Long-term goals are the milestones you hope to achieve. These could include reaching $X in revenue or expanding your sandwich shop to another location.  

Management Team

To demonstrate your sandwich shop business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing sandwich shop businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing restaurants or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you restock your inventory once per week or twice per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your sandwich shop business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a sandwich shop business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your business plan along with any supporting documents that make your plan more compelling. For example, you might include your sandwich shop location lease or blueprints of the shop’s interior design plan.  

Putting together a business plan for your sandwich shop is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the sandwich shop industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful sandwich shop business.  

Sandwich Shop Business Plan FAQs

What is the easiest way to complete my sandwich shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Sandwich Shop Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of sandwich shop you are operating and the status; for example, are you a startup, do you have a sandwich shop that you would like to grow, or are you operating a chain of sandwich shops?

Don’t you wish there was a faster, easier way to finish your Sandwich Shop business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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8 Tips for Building a Business Plan for a Successful Sandwich Franchise

Are you joining the food service industry by starting a sandwich franchise unit? If so, you’ll need to create a business plan. These documents are often long and complicated, and there are several extra factors you should consider if you’re launching a sandwich shop. Here’s our dedicated guide to writing a business plan for a sandwich franchise unit.

Before we get into the business plan tips, let’s pause to take a closer look at the industry as a whole. Brits get through more than 11 billion sandwiches every year - and over 3.5 billion come from shops and cafes. 

Individually, we consume around 18,300 sandwiches in our lifetime, at a cost of over £48,300 (Heinz). But when we buy them over the counter, we tend to part with around £2.07, so the industry benefits from £7.8 billion throughout the year. It’s clear Brits love sandwiches, and joining the sector could be a wise move.

How to write a business plan for a sandwich franchise 

Here are eight top tips for crafting a sandwich franchise unit business plan: 

1. Diversify

Whether you choose a franchise with a wide product range or develop a diverse offering in line with your franchisor’s operational model, you must be able to satisfy many consumers. There are several factors to consider here. 

Firstly, you may want to sell both hot and cold sandwiches, particularly during the colder months. Secondly, you should aim to cater to common diets and lifestyle choices, with plenty of vegetarian and vegan options, for example. And unless you’re part of a healthy sandwich franchise, you could try to include indulgent options too. 

You could also boost your revenue by making sure there are a few common favourites, such as tuna and sweetcorn or ham and cheese sandwiches. Adding drinks and snacks will also help you increase your income, as many people will grab something to accompany their sandwich on the way to the till.

2. Plan to occupy a high-footfall location 

Most sandwich franchises offer convenient food options for people on the go, so it’s no good setting up in an out-of-town location without a regular stream of foot traffic. Consider the factors you need from your location before you start your property hunt. 

Often, having other shops or attractions nearby can help increase the number of spontaneous visits to your store and boost your revenue.

3. Find ways to downsize 

In your plan, aim to minimise the amount of space you need; the smaller your sandwich shop, the less rent you’ll pay and the easier it’ll be to reach your break-even point. Of course, having a good amount of room for customers to make their orders and sit down is desirable, but you can reduce the total footprint of your store by having a small kitchen.

Luckily, sandwich franchises are perfectly positioned to occupy small properties. Depending on your business model, you may only need one or two staff members and basic equipment, such as a toaster, hob, fridge and freezer. 

>> Read more:

• Why Is a Business Plan Important?
• 4 Reasons Why You Should Take the Time to Create a Business Plan For Your Franchise
• The Key Elements of a Successful Franchise Business Plan

4. Research permits and licences

As a food retailer, you’ll probably have to get some specific licences for your business in order to operate lawfully. The ones you need will depend on the location of your site and the type of products and services you provide, so research the regulations in your sector and region. 

This step is key; fail to complete it before you open your doors, and you could find yourself in trouble with the law.

5. Adopt a forward-thinking mindset

The food industry is evolving rapidly, and business owners must be able to keep up if they’re to continue providing value to their customers. Although the franchisor will be in control of the wider franchise’s development, franchisees can make small adjustments to reflect consumer demand. 

For instance, you could demonstrate your support for Britain’s move towards sustainability by using ethically sourced ingredients or ‘meatless meat’. Alternatively, you might like to get on board with food trends to entice customers. 

6. Pick customer-friendly opening hours

Adjusting your opening hours to make sure you’re in business during times of high demand is crucial. Depending on the stipulations in your franchise agreement, you may be able to choose your own working times or pick them from a set schedule.

To work out when demand for your sandwich shop is likely to peak, consider your customer demographic and location. For instance, if there are lots of offices in the nearby area and you sell sandwiches ‘to go’, you should keep your doors open at lunchtime and after 5pm. 

• 7 Advantages of Running a Sandwich Franchise
• The Original Fast Food: Our Top Three Sandwich Franchises
• Top 3 Sandwich Franchises in the UK

7. Consider providing extra services 

The Covid-19 pandemic showed us how important it is to be able to provide collection and delivery services. If your franchisor allows, consider giving customers the chance to order ahead by creating an online portal with the facility to accept payments.

You could safeguard your business even further by choosing to operate a mobile vehicle. Not only will you save on property rental costs, but you’ll also be able to travel to the places consumers gather throughout the day. 

8. Plan your social media strategies 

These days, social media plays a crucial role for most businesses. By creating your own profiles, you’ll be able to attract, retain and interact with customers - and prove you’re a fun business owner with your finger on the pulse.

If your franchisor gives permission for you to establish a social media presence, try to set up profiles on the main platforms: Facebook, Twitter and Instagram. You could post high-quality pictures of your sandwiches, promote any offers you’re running or launch competitions for exciting prizes.

Join the food service industry 

Franchising can offer a great return on investment - and there’s a huge range of franchises to explore if you want to become your own boss. Take a look at our top sandwich franchises or browse the investment opportunities in the wider food industry to get started.

Alice Tuffery , Point Franchise ©

>> Read more articles on the Sandwich sector

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How to create a sandwich shop business plan.

MAPPING IT OUT

Writing a sandwich shop business plan doesn’t have to be an overwhelming process. Once you have identified a few key factors and goals, with a little creativity and dedication, it basically writes itself.

While there is no particular set length for a business plan, keep in mind that it’s best to keep it concise and engaging while relaying as much information as possible to give potential lenders or investors confidence in your vision.

You want to accentuate the positive while acknowledging any challenges your business may encounter, and how you will address them along the way. A huge benefit of owning your business as a franchisee is the fact that a lot of the research and legwork has already been done for you.

The franchise disclosure document (FDD) provided by the franchisor will offer you a lot of crucial information to help you complete your plan, including the brand’s background, description of the target market, competitive advantages, marketing plans, and a layout of your startup and ongoing costs.

WHAT TO INCLUDE

• COMPANY DESCRIPTION . If you are working with a franchise, a lot of helpful information for this portion can be found in Item 1 of the company’s FDD. Here is where you provide a general overview of your sandwich shop’s back story and outlook, including the products or services you intend to offer.
• PRODUCTS AND/OR SERVICES DESCRIPTION . Here you can go into further detail about what exactly will make your restaurant unique from other sandwich shops. As the first and best grilled cheese sandwich franchise in the United States, Tom & Chee stands above its competitors in an immediate and impactful way.
• MARKET ANALYSIS . Here is where you can assure your investors or lenders that you have done your homework and have chosen a franchise model that will be a smashing success. Refer to Item 12 in the franchisor’s FDD to inform the territory description of your local target market. Address the size and potential of your market to forecast how your sandwich shop will fit into the mix. Include information like experts’ forecasts, demographic factors, and statistics on the prospective competition.
• MANAGERIAL STRUCTURE . Address how your restaurant will run on a day-to-day basis. Including you, as the owner — who will be responsible for making things happen? Detail all levels of operations and detail all prior relevant business experience to imbue lenders’ confidence in your future success.
• MARKETING PLAN . This is the section where you reveal your plan for attracting and maintaining customers. Item 11 of your franchisor’s FDD will give you an overview of their marketing and advertising system—another massive advantage to investing in an established brand .
• FUNDING AND FUTURE FINANCIALS . Time to talk money and get really honest about what you need, provide a larger picture about your financial situation, and provide realistic projections about returns on investments and loan repayments. Your franchisor can provide a great deal of help here, through Items 5 and 19 of the FDD, as well as general counsel through the startup process. While many franchisors can’t provide you with precise projections of future earnings, you can get a strong sense of what to expect for your business.
• APPENDIX . While this isn’t a required part of the business plan, it offers you the opportunity to include any further information that may enhance your presentation, including press releases, awards, and franchisee testimonials. Give your readers a final taste of what possibilities are in store with your sandwich shop.

TOM & CHEE GETS YOU THERE

The process of getting your business up and running is long and intensive, and Tom & Chee is the perfect example of why franchising is the way to go! Tom & Chee has been an award-winning brand in the $23 billion sandwich industry since 2009 and provides its owners with top-notch marketing, training, and ongoing operational support from the day they come on board.

Working with first-time restauranteurs and seasoned owners alike, Tom & Chee welcomes franchisees into the brand family just as they welcome customers to tuck into a warm and delicious meal. To find out more about how Tom & Chee can make your sandwich restaurant dreams a reality, visit here .

Related Posts

• What Is a Tom & Chee Franchise?
• The Tom & Chee Franchise Story
• How Is Tom & Chee Franchise Different
• What Are My Startup Costs?
• Tom & Chee’s Training & Support
• What Makes A Great Tom & Chee Location
• How Tom & Chee Marketing Builds Business
• Growth in Available Markets
• Meet The Tom & Chee Executive Team
• Tom & Chee Franchise Reviews
• Tom & Chee Awards
• Frequently Asked Questions
• Request information

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How to Start a Profitable Sandwich Shop Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a sandwich shop business plan., 3. develop a sandwich shop brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for sandwich shop., 6. open a business bank account and secure funding as needed., 7. set pricing for sandwich shop services., 8. acquire sandwich shop equipment and supplies., 9. obtain business insurance for sandwich shop, if required., 10. begin marketing your sandwich shop services., 11. expand your sandwich shop business..

Performing a market analysis is a crucial step when planning to start a sandwich shop business. It helps you understand the competitive landscape, identify your target audience, and determine the demand for your product. Here's how you can approach this vital phase:

• Analyze the local demographic data to understand the population size, age distribution, income levels, and eating habits to ensure there's a market for your sandwiches.
• Research existing sandwich shops and competitors in the area to assess their offerings, pricing, strengths, and weaknesses, and identify any gaps in the market you could fill.
• Identify your unique selling proposition (USP) that will differentiate your sandwich shop from others. This could be unique flavors, healthy options, locally sourced ingredients, or exceptional customer service.
• Survey potential customers for their preferences and feedback about what they look for in a sandwich shop, including menu options, price points, and location convenience.
• Examine the economic trends affecting the food industry such as fluctuations in food costs and consumer spending habits, to forecast the potential growth of your sandwich shop.

Are sandwich shop businesses profitable?

It depends on several factors, such as location, menu selections, pricing, marketing efforts, and more. Generally speaking, sandwich shop businesses can be very profitable if all the factors are managed and balanced correctly.

Creating a comprehensive business plan is a crucial step in setting up a successful sandwich shop. This document will guide your strategic decisions, help you understand your market, and be essential when seeking funding. Consider the following key points when drafting your sandwich shop business plan:

• Executive Summary: Offer a brief overview of your business concept, the products you’ll serve, and the unique selling points that differentiate your shop from competitors.
• Market Analysis: Research and detail your target market, customer demographics, and an analysis of your competitors.
• Marketing Plan: Describe how you intend to attract and retain customers, your branding strategy, and your chosen promotional channels.
• Operations Plan: Outline the day-to-day running of your shop, including suppliers, equipment, staffing, and location logistics.
• Financial Projections: Provide an estimate of startup costs, projected income, and expenses. Include a break-even analysis and cash flow projections.
• Risk Assessment: Identify potential risks to your business and how you plan to mitigate them.

How does a sandwich shop business make money?

A sandwich shop business makes money by providing customers with a quality product they can trust. This can be done through excellent customer service and marketing to a target audience. For example, a sandwich shop business could target health-conscious individuals who are looking for quick and convenient meal options. Offering organic, locally produced ingredients and highlighting being vegan or vegetarian friendly would help attract these customers. By catering to this market, the sandwich shop business can create a strong customer base and make a profit.

Developing a brand for your sandwich shop is crucial as it differentiates your business from competitors and establishes a connection with your customers. Your brand encompasses your shop's identity, values, and the experience you promise to your customers. Here are some key steps to consider:

• Define Your Brand Personality: Decide on the voice and tone of your brand. Are you fun and quirky, or classic and traditional? Your brand's personality will inform your design choices and customer interactions.
• Choose a Memorable Name: The name of your sandwich shop should be distinctive and memorable, reflecting your brand's personality and the type of food you serve.
• Create a Striking Logo: Design a logo that captures the essence of your brand and is easily recognizable. This will be a vital component of your shop's signage, packaging, and marketing materials.
• Develop a Color Scheme: Select colors that reflect the mood and atmosphere of your brand. These will be used throughout your shop and in marketing materials.
• Define Your Unique Selling Proposition (USP): What makes your sandwich shop unique? Your USP should be a central part of your branding and can relate to ingredients, sandwich names, or the dining experience.
• Craft a Consistent Experience: Ensure that everything from your shop's decor to the uniforms and packaging is aligned with your brand to provide a cohesive customer experience.

How to come up with a name for your sandwich shop business?

The name you choose for your sandwich shop business should reflect the type of food, atmosphere, and brand you want to convey. Consider brainstorming ideas by writing down words that come to mind when thinking about your business and the type of sandwiches you offer. Try to think of creative combinations of words that may represent both the food and the overall vibe you want customers to receive. Additionally, check online databases and make sure your desired name isn't already taken. Finally, get feedback from family, friends, and colleagues on which name resonates with them the most. By following these steps, you can come up with a memorable and unique name for your sandwich shop business.

Formalizing your business registration is an important step in legitimizing your sandwich shop and ensuring compliance with local, state, and federal regulations. This process can vary depending on your location, but there are some common steps to follow. Here's a guide to help you through the process:

• Choose a Business Structure: Determine whether an LLC, corporation, sole proprietorship, or partnership is the best fit for your business needs.
• Register Your Business Name: Select a unique name and check its availability. Register it with the appropriate state authority, usually the Secretary of State's office.
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
• Register for State Taxes: Depending on your state, you may need to register for sales tax, unemployment insurance, and state income taxes.
• Acquire Permits and Licenses: Check with your city or county for required local business licenses, health department permits, and any other specific permits related to food services.
• File for Incorporation (if applicable): If you’ve chosen a corporation or LLC, file the necessary articles of incorporation or organization with your state.

Resources to help get you started:

Explore crucial resources designed for sandwich shop entrepreneurs to gain insights into market trends, operational excellence, and strategies for business expansion:

• National Restaurant Association (NRA) : Offers comprehensive reports and insights into the food service industry, including trends and forecasts that are relevant to sandwich shops. - https://www.restaurant.org
• QSR Magazine : Provides news, articles, and reports specifically focusing on the quick service restaurant sector, ideal for fast-casual sandwich shop insights. - https://www.qsrmagazine.com
• Fast Casual : Offers in-depth articles, white papers, webinars, and industry reports tailored to the fast-casual dining sector, including sandwich shops. - https://www.fastcasual.com
• Restaurant Business Online : Features strategies, trends, and tips on running a successful restaurant business, with resources that apply to sandwich shop operations. - https://www.restaurantbusinessonline.com
• Food Service Director : Provides information about menu innovation, management, and operation strategies, helping sandwich shop owners enhance customer experience. - https://www.foodservicedirector.com

When starting a sandwich shop, it is crucial to ensure compliance with all local, state, and federal regulations. Failure to acquire the necessary licenses and permits can lead to serious legal issues and can halt your business operations. Here's a guide to understanding the types of licenses and permits you may need:

• Business License: Obtain a general business license from your city or county government to legally operate your sandwich shop.
• Food Service License: Apply for a food service license from the local health department, which may require an inspection of your establishment.
• Employer Identification Number (EIN): If you have employees, you'll need an EIN from the IRS for tax purposes.
• Sales Tax Permit: Register for a sales tax permit to collect sales tax on the sandwiches and other items you sell.
• Sign Permit: If you plan to put up any signage, check with local zoning laws and obtain the necessary sign permit.
• Building Health Permit: If you're constructing a new building or altering an existing one, a building permit and a health permit for construction are usually required.
• Alcohol License: If you intend to serve beer, wine, or spirits, you'll need to apply for an alcohol license, which can be a complex process depending on your location.

What licenses and permits are needed to run a sandwich shop business?

To run a sandwich shop business, you will likely need licenses and permits such as a food service license, a retail food establishment license, a sales tax permit, and a business license. Depending on the size and location of your business, you may also need additional permits such as an occupancy permit, health department permits, signage permits, electrical and plumbing permits, alcohol service permits, and zoning permits.

Before you can start crafting your delicious sandwiches for the public, it's crucial to have your financial infrastructure in place. Opening a business bank account separates your personal and business finances, helping you keep track of expenses and revenues efficiently. Additionally, securing the necessary funding will ensure that you have the capital needed to launch and sustain your sandwich shop until it becomes profitable. Here's how to tackle this step:

• Shop around for banks that offer business accounts with low fees and good customer service. Consider also the convenience of their locations and online banking services.
• Prepare the necessary documents, such as your business license, EIN, ownership agreements, and personal identification, to open your business bank account.
• Explore different funding options, including small business loans, lines of credit, investors, or crowdfunding, based on what suits your business plan and financial needs.
• Develop a solid business plan to present to potential lenders or investors, demonstrating the viability and profitability of your sandwich shop.
• Consider reaching out to local small business development centers or financial advisors for guidance on securing funding tailored to your business.

Setting the right pricing for your sandwich shop is crucial in attracting customers and ensuring profitability. Consider the cost of ingredients, labor, overhead expenses, and your target market's spending habits. Below are key points to guide you in setting your prices:

• Cost-Plus Pricing: Calculate the total cost of making each sandwich, including ingredients, labor, and overhead, then add a markup percentage to ensure a profit.
• Competitive Analysis: Research prices at competing sandwich shops to ensure your prices are in line with what customers expect to pay in your area.
• Value Perception: Set prices that reflect the quality and uniqueness of your sandwiches. Higher prices may be justified if your products are gourmet or use premium ingredients.
• Dynamic Pricing: Consider offering specials, discounts for bulk orders, or a loyalty program to keep customers coming back.
• Menu Tiering: Offer a range of sandwiches from budget-friendly to premium options to cater to different customer segments.
• Psychological Pricing: Use prices that end in .99 or .95 to make the cost seem lower than round numbers.
• Regular Reviews: Regularly assess your pricing strategy to ensure it meets changes in the market, cost fluctuations, and your business goals.

What does it cost to start a sandwich shop business?

Initiating a sandwich shop business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $29500 for launching such an business. Please note, not all of these costs may be necessary to start up your sandwich shop business.

To ensure your sandwich shop operates efficiently from day one, investing in the right equipment and supplies is crucial. You'll need a variety of tools and appliances to prepare, store, and sell your sandwiches. Below is a list of essential items to get you started:

• Commercial Refrigerators: To keep your ingredients fresh and drinks chilled.
• Sandwich Prep Tables: With built-in cutting boards and refrigerated compartments for easy access to toppings.
• Bread Oven/Toaster: For baking fresh bread and toasting sandwiches to perfection.
• Meat Slicer: To slice deli meats and cheeses with precision.
• Food Processor: For quickly chopping veggies or making spreads.
• Panini Press: If offering hot sandwiches, a press is essential for that perfect melt and crisp.
• Utensils and Cutlery: Knives, spatulas, and other utensils for preparing and serving sandwiches.
• Disposable Items: Napkins, cups, sandwich wrappers/paper, and take-out containers for service.
• Point of Sale System: For processing transactions and tracking sales.
• Shelving and Storage: To organize your back-of-house and keep everything within reach.
• Safety Equipment: Including first-aid kits, fire extinguishers, and sanitation supplies.

List of software, tools and supplies needed to start a sandwich shop business:

• Commercial Refrigerator (~$2,500)
• Kitchen Cutlery and Utensils (~$60)
• Food Prep Table ($200-$500)
• Commercial Food Processor ($250-$400)
• Food Warehousing and Delivery Software (~$30/month)
• Point of Sales System (~$600 - $2,000)
• Business Accounting Software ($35 - $100/month)
• Website Builder Software (~$20/month)
• Supply Ordering Software (Free or up to ~$250/month)
• Cleaning Supplies (~$30)

Securing the right business insurance is an essential step in safeguarding your sandwich shop against potential risks and liabilities. It's important to research and understand the types of coverage that will best suit your business needs. Here's a quick guide to help you navigate the process:

• Consult with a licensed insurance agent who specializes in restaurant or small business coverage. They can provide customized advice for your specific situation.
• Consider general liability insurance to protect against customer injuries, property damage, and advertising injury claims.
• Look into property insurance to cover your shop's equipment, inventory, and premises in case of fire, theft, or other damages.
• Assess the need for workers' compensation insurance if you plan to hire employees, as it is mandatory in most states to cover medical costs and lost wages for work-related injuries.
• Explore business interruption insurance to help cover lost income if your shop has to close temporarily due to a covered loss.
• Don't overlook food spoilage and contamination insurance, which can be vital for a sandwich shop that relies on fresh ingredients.
• Review and compare policy quotes from multiple insurers to ensure you are getting comprehensive coverage at a competitive price.

Now that your sandwich shop is ready to welcome customers, it's time to spread the word and attract a crowd. A solid marketing strategy is crucial to introduce your delectable offerings to the community and build a loyal following. Here are some effective tactics to kickstart your marketing efforts:

• Develop a strong brand identity: Create a memorable logo, choose a consistent color scheme, and develop a voice for your brand that resonates with your target audience.
• Launch a user-friendly website: Ensure your website includes your menu, location, hours, and a story about your shop. Consider integrating an online ordering system to facilitate takeout and delivery.
• Utilize social media: Post mouth-watering photos, run promotions, and engage with your community on platforms like Instagram, Facebook, and Twitter to build a following.
• Partner with food delivery apps: Reach a wider audience by registering with popular food delivery services in your area.
• Offer opening specials: Attract initial customers with grand opening discounts, loyalty programs, or a free side with purchase deals.
• Engage in local networking: Participate in community events, support local causes, and collaborate with other businesses to increase visibility.
• Collect customer feedback: Encourage reviews and use the feedback to improve your offerings and service, which can also serve as a powerful marketing tool.

As your sandwich shop gains popularity and establishes a strong customer base, it's time to think about expansion. This growth phase is crucial and can take many forms, from opening new locations to diversifying your menu. Here are some key strategies to consider when expanding your sandwich shop business:

• Open New Locations: Research high-traffic areas with a demand for your offerings and consider the logistics of running multiple sites.
• Franchising: Develop a franchising model to allow others to open their own sandwich shops under your brand, which can rapidly increase your market presence.
• Diversify Your Menu: Introduce new and innovative sandwich options or complementary items like soups and salads to attract a wider customer base.
• Enhance Your Catering Service: Offer catering for events and businesses to increase revenue streams beyond the shop's physical location.
• Invest in Marketing: Boost your marketing efforts to raise brand awareness, targeting both digital platforms and local community events.
• Adopt Technology: Implement online ordering, a mobile app, or a loyalty program to enhance customer experience and streamline operations.

Sandwich Shop Business Plan Template

Written by Dave Lavinsky

Sandwich Shop Business Plan

You’ve come to the right place to create your Sandwich Shop business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Sandwich Shops.

Below is a template to help you create each section of your Sandwich Shop business plan.

Executive Summary

Business overview.

The Brown Bag Sandwich Shop is a startup business located in Fort Lauderdale, Florida. The company is founded by Stacy Grimes, a chef who has years of experience at preparing exciting and delicious meals for hundreds of clients during the ten years she was employed at a popular restaurant in the city.

Nancy holds a degree from the Culinary Institute of America degree in culinary education. Her experience, in addition to ten years as a senior chef in a local restaurant, includes a cooking experience at the James Beard House with well-known master chefs. She has an affinity for fresh, local and organic foods that can be built into reasonably-priced, nourishing meals that are totally enjoyable. This affinity led to her decision to launch The Brown Bag Sandwich Shop in the heart of Fort Lauderdale on Las Olas Boulevard.

Product Offering

The following are the services that The Brown Bag Sandwich Shop will provide:

• Fresh meals that are served in-house or artfully packed into a “brown bag”
• Locally sourced, organic ingredients
• Restaurant artwork that demonstrates the fun and beauty of food
• Nutritional information offered with every meal
• “Grandma’s Kitchen” comfort food menu offerings
• Light, bright and airy restaurant environment
• Reasonably-priced meals and menu offerings

Customer Focus

The Brown Bag Sandwich Shop will target residents of Fort Lauderdale. The Brown Bag Sandwich Shop will also target food lovers who seek organic, locally-sourced ingredients. The Brown Bag Sandwich Shop will target professionals who seek portable lunches that are delicious and reasonably-priced. The Brown Bag Sandwich Shop will focus on professional groups within the city who are seeking catering services for events.

Management Team

The Brown Bag Sandwich Shop will be owned and operated by Stacy Grimes. She recruited two of her associates from her years of restaurant experience; Tommy Einstein, a sous chef associate who will take the role of Senior Chef in the Brown Bag Sandwich Shop, and Candace Livingstone, a former assistant restaurant manager, who will take the role of Restaurant Manager.

Tommy Einstein, a former sous chef associate, will take the role of Senior Chef in the Brown Bag Sandwich Shop. His background includes six years as a sous chef in a large restaurant in Fort Lauderdale that specializes in fresh seafood and organic ingredients.

Candace Livingstone, a former assistant restaurant manager, who will take the role of Restaurant Manager, specializes in the administration and operational side of the restaurant business. Her background includes a degree in business administration from the University of Florida.

Success Factors

The Brown Bag Sandwich Shop will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of The Brown Bag Sandwich Shop
• The Brown Bag Sandwich Shop offers the most reasonably-priced organic, locally-sourced, and delicious meal choices.

Financial Highlights

The Brown Bag Sandwich Shop is seeking $200,000 in debt financing to launch its The Brown Bag Sandwich Shop. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for The Brown Bag Sandwich Shop.

Company Overview

Who is the brown bag sandwich shop.

The Brown Bag Sandwich Shop is a newly established, full-service sandwich shop restaurant in Fort Lauderdale, Florida. The Brown Bag Sandwich Shop will offer the most delicious, cost-effective, and nutritious meals in Fort Lauderdale and the surrounding communities. The Brown Bag Sandwich Shop will provide a comprehensive menu of meal choices that range from naturally fresh gourmet to hometown favorites for a variety of customers and their taste preferences. Their full-service approach includes a comprehensive array of menu choices.

  The Brown Bag Sandwich Shop will be able to serve every meal with a high level of professionality. The team of professionals are highly qualified and experienced in The Brown Bag Sandwich Shop and are eager to meet the requests of their clients. The Brown Bag Sandwich Shop removes all headaches and issues of those who are seeking naturally delicious, fresh, and organic food choices. The Brown Bag Sandwich Shop creates the solution for every diner seeking nutritious meals, prepared with foods that will support optimal health overall.

The Brown Bag Sandwich Shop History

The Brown Bag Sandwich Shop is owned and operated by Stacy Grimes, a chef who has years of experience at preparing exciting and delicious meals for hundreds of clients during the ten years she was employed at a popular restaurant in the city. Nancy holds a degree from the Culinary Institute of America in culinary education. Her experience, in addition to ten years as a senior chef in a local restaurant, includes a cooking experience at the James Beard House with well-known master chefs. She has an affinity for fresh, local and organic foods that can be built into reasonably-priced, nourishing meals that are totally enjoyable. This affinity led to her decision to launch The Brown Bag Sandwich Shop in the heart of Fort Lauderdale on Las Olas Boulevard.

Since incorporation, The Brown Bag Sandwich Shop has achieved the following milestones:

• Registered The Brown Bag Sandwich Shop, LLC to transact business in the state of Florida.
• Has a contract in place for the restaurant office and staff lounge that will occupy 10,000 square feet.
• Reached out to numerous former restaurant clients and associates to spread the word of the launch of the restaurant.
• Began recruiting a staff of ten, including office personnel to work at The Brown Bag Sandwich Shop.

The Brown Bag Sandwich Shop Services

The following will be the services The Brown Bag Sandwich Shop will provide:

Industry Analysis

The organic restaurant industry is expected to grow over the next five years to over $123 billion. The growth will be driven by an increased awareness of choosing organic ingredients and meals. The growth will be driven by a growing interest in healthful, nutritious meals. The growth will be driven by an increase of consumers who seek organic meals. The growth will be driven by an increase of consumers who seek portable meals for consumption any time of day. The growth will be driven by a continued interest in eating meals that are considered “good-for-you comfort foods.” Costs will likely be reduced as locally-sourced, organic ingredients become more readily available and can move into the mainstream of the American diet.

Customer Analysis

Demographic profile of target market, customer segmentation.

The Brown Bag Sandwich Shop will primarily target the following customer profiles:

• Residents of Fort Lauderdale, Florida
• Diners seeking organic, locally-sourced ingredients and nutritious meals
• Diners seeking healthful “comfort foods” at reasonable prices
• Professionals seeking catering sources for events

Competitive Analysis

Direct and indirect competitors.

The Brown Bag Sandwich Shop will face competition from other companies with similar business profiles. A description of each competitor company is below.

My Backyard Garden

My Backyard Garden specializes in locally-sourced, nutritious meals for breakfast and lunch. The restaurant serves up to 24 customers at a time, focusing on the quality of meals served versus speed of service. Fresh brewed coffee, homemade pastries and other gourmet foods are offered, along with hearty vegetarian and vegan selections. The restaurant is open from 6 am to 11 am, serving customers breakfast and lunch specialties.

My Backyard Garden is owned and operated by Dennis and Carolyn Deiner, both experienced chefs who together have twenty years of restaurant experience and who focus on vegetarian and vegan specialties. They have been in business for six years and are seeking a franchise agreement to launch their restaurant into a national chain.

The Lunch Bunch

The Lunch Bunch is located in a suburb about fifteen miles from Fort Lauderdale. The restaurant opens at 11 am and serves lunch until 3 pm on a 5-day-a-week basis. The owner is Katrina Vorhees, a former waitperson at a large restaurant in the suburb area, who served luncheon meals for five years at her place of former employment. The Lunch Bunch is a favorite place for lunch by the residents of the area, who frequently walk to the restaurant for lunchtime meals.

The Lunch Bunch serves “American fare” meals that exemplify those of childhood years, such as “Grilled Peanut Butter with Honey” and “Toasted Ham on Rye” sandwiches. Customers also enjoy the homemade desserts that complement the entrees, such as “Homemade Ice Cream Sandwich” and the favorite “Hot Lava Cupcakes.”

Fresh Bites Sandwich Shop

Fresh Bites Sandwich Shop is a two-year old lunch restaurant located in Fort Lauderdale, Florida. The shop holds up to 15 customers at a time, while focusing on fresh ingredients in every meal served. Fresh Bites Sandwich Shop is owned and operated by Tami Goodson, a former assistant restaurant manager for eleven years who is now launching this small lunch spot in a retail mall environment.

Fresh Bites Sandwich Shop will offer simple meals based on known preferences of the residents of Fort Lauderdale. This will include favorites such as Cuban sandwiches and other specialties that are beloved of Floridians. The sandwich shop will focus on fast service and lunchtime meals that can be quickly prepared and served to maximize the number of customers who can be served during the lunchtime hours.

Competitive Advantage

The Brown Bag Sandwich Shop will be able to offer the following advantages over their competition:

• The Brown Bag Sandwich Shop offers the most reasonably-priced organic, locally-sourced, and delicious meal choices

Marketing Plan

Brand & value proposition.

The Brown Bag Sandwich Shop will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide an array of delicious meals while offering excellent service.
• Reasonable pricing for organic, locally-sourced meal options.

Promotions Strategy

The promotions strategy for The Brown Bag Sandwich Shop is as follows:

Word of Mouth/Referrals

Stacy Grimes has built up an extensive list of contacts over the years by providing exceptional service and expertise for her clients. Clients from her former restaurant will follow her to her new company and help spread the word of The Brown Bag Sandwich Shop.

Professional Associations and Networking

The Brown Bag Sandwich Shop will extensively network through community and city organizations and professional groups, offering the potential of catering services. Discounts and packages will be offered for various functions and events, particularly during the first six months of business.

Print Advertising

A direct mail brochure will be sent to every resident in the Fort Lauderdale area, offering information regarding the launch of the shop and discounts on purchases during the first three months of business.

Website/SEO Marketing

The Brown Bag Sandwich Shop will fully utilize their website. The website will be well organized, informative, and list all the menu items that The Brown Bag Sandwich Shop provides. The website will also list their contact information and list their available meals that can be delivered. The website will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “sandwich shop company” or “lunch place near me”, The Brown Bag Sandwich Shop will be listed at the top of the search results.

The pricing of The Brown Bag Sandwich Shop will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their meals and services.

Operations Plan

The following will be the operations plan for The Brown Bag Sandwich Shop. Operation Functions:

• Stacy Grimes will be the Owner and President of the company. She will oversee all staff and manage client relations. She has spent the past year recruiting the following staff:
• Candace Livingstone will take on the role of Restaurant Manager, who will manage the administration and operational side of the restaurant.
• Tommy Einstein who will take on the role of Senior Chef in the sandwich shop, overseeing meal preparation, menu creation and overseeing wait staff.

Milestones:

The Brown Bag Sandwich Shop will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the The Brown Bag Sandwich Shop
• 6/1/202X – Finalize referrals for The Brown Bag Sandwich Shop
• 6/15/202X – Begin networking at community and association events
• 6/22/202X – Begin moving into The Brown Bag Sandwich Shop office
• 7/1/202X – The Brown Bag Sandwich Shop opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for The Brown Bag Sandwich Shop are the fees they will charge to customers for the meals and services they provide.

The cost drivers will be the overhead costs required in order to staff The Brown Bag Sandwich Shop. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

The Brown Bag Sandwich Shop is seeking $200,000 in debt financing to launch its sandwich shop. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print flyers and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 1,500
• Average Revenue per Month: $75,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, sandwich shop business plan faqs, what is a sandwich shop business plan.

A sandwich shop business plan is a plan to start and/or grow your sandwich shop business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Sandwich Shop business plan using our Sandwich Shop Business Plan Template here .

What are the Main Types of Sandwich Shop Businesses? 

There are a number of different kinds of sandwich shop businesses , some examples include: Sub Sandwich Shop, Specialty Sandwich Shop, and Food Truck.

How Do You Get Funding for Your Sandwich Shop Business Plan?

Sandwich Shop businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Sandwich Shop Business?

Starting a sandwich shop business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Sandwich Shop Business Plan - The first step in starting a business is to create a detailed sandwich shop business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your sandwich shop business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your sandwich shop business is in compliance with local laws.

3. Register Your Sandwich Shop Business - Once you have chosen a legal structure, the next step is to register your sandwich shop business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your sandwich shop business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Sandwich Shop Equipment & Supplies - In order to start your sandwich shop business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your sandwich shop business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Home » Food

How to Start a Sandwich Shop Business [Business Plan]

A sandwich shop is a shop where different varieties of sandwiches are made and retailed. A sandwich is a dish consisting of one or more pieces of bread with fillings between them or one slice in the case of an open sandwich. Sandwiches are a common type of lunch food often eaten as part of a packed lunch.

Available statistics show that the sandwich and sub-store franchise sector in the United States was valued at 20.56 billion U.S. dollars in 2020, down from the previous year’s total of 25.12 billion U.S. dollars., the market size was forecast to reach 22.56 billion.

Please note that according to IBIS World, the sandwich and sub-store industry experienced a 3.4% growth from 2014 through 2019. In 2015, the industry grew by 4.3%, and in 2017, the industry experienced a 6.0% growth.

Steps on How to Start a Sandwich Shop Business

Conduct market research.

If you are considering starting a sandwich shop, you need reliable market research to be able to maximize profits from the business. The first step in the market research process for your sandwich shop should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source for information that will help you maximize your business, give you reliable data and clue of what your potential market will be looking for from a sandwich shop, and also help you operate your sandwich shop with less stress and of course, build the business to profitability.

a. Who is the Target Market for Sandwich Shop Business?

If you are thinking of opening a sandwich shop then you should make target demographics all-encompassing. It should include students, migrants, entrepreneurs, tourists, and every adult in the neighborhood where your sandwich shop will be located.

b. Is Sandwich Shop a Profitable Business?

Yes, the sandwich shop business is profitable. Americans eat more than 300 million sandwiches every day – a pretty large amount considering that there are slightly more than 300 million Americans, meaning that each day over 50 percent of Americans eat a sandwich.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to sandwich shops because the sandwich shop is a niche idea in the sandwich and sub-store franchises/restaurant industry.

d. Who are the Major Competitors?

• Jimmy Johns
• Amato’s Sandwich Shop
• Plums Ice Cream & Sandwich Shop
• Super Heroes Sandwich Shop
• J C’s Sandwich Shop
• PJ’s Sandwich Shop
• Riverview Sandwich Shop
• Potbelly Sandwich Shop
• America’s Best Cuban Sandwich
• Sandwiches Unlimited Lunch Box
• B J Sandwich Shop
• Harvey’s Sandwich & Salads
• ThunderCloud Subs
• Henry VIII Sandwich Shop
• S. Sub Base
• Primanti Bros Sandwich Shop
• Milio’s Sandwiches
• Old City Subs Sandwich Shop
• The Lucky Dill Sandwich Shop
• KFC™ Zinger Chicken Sandwich
• D’Angelo Sandwich Shops

e. Are There County or State Regulations or Zoning Laws for Sandwich Shop Business?

Yes, there are county and state regulations and zoning laws for sandwich shops in the United States. Please note that the Food and Drug Administration (FDA) sets the federal Food Code but it doesn’t oversee individual sandwich shops. Instead, the various states use the Food Code as the basis for their food codes. They may adopt its rules, interpret them differently or set their own rules.

It is important to also state that in the United States, you are required to follow your own state’s foodservice code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling restaurants and bars and view the laws that apply in your state.

f. Is There a Franchise for Sandwich Shop Business?

Yes, there are franchise opportunities for a sandwich shop. Here are some of them;

• Jimmy John’s
• Jersey Mike’s Subs
• Firehouse Subs
• Charleys Philly Steaks
• McAlister’s Deli
• Penn Station East Coast Subs
• Which Wich Superior Sandwiches
• Erbert & Gerbert’s Sandwich Shops
• Lennys Grill and Subs
• Goodcents Deli Fresh Subs
• Tubby’s Sub Shop

g. What Do You Need to Start a Sandwich Shop Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop facility
• EIN (Employer Identification Number)/Federal Tax ID Number
• A Corporate Bank Account
• Supplies of ingredients
• Startup Capital

Memorable Sandwich Shop Business Names

• Hunger Zone© Sandwich Shop, Inc.
• Zone Zero® Sandwich Shop, LLC
• Deep Cookers© Sandwich Shop, Inc.
• Lauretta McKenzie® Sandwich Shop, Inc.
• Milky Way™ Sandwich Shop, Inc.
• Francis Highlander™ Sandwich Shop, LLC.
• All Day© Sandwich Shop, LLC
• Donie Silvans® Sandwich Shop, Inc.
• George Finney© Sandwich Shop, Inc.
• Day Fresh© Sandwich Shop, Inc.
• Larry Duncan® Sandwich Shop, LLC
• King Baker® Sandwich Shop, LLC
• Lowey Martins™ Sandwich Shop, LLC
• Benny Blanco© Sandwich Shop, Inc.
• Alex Core® Sandwich Shop, Inc.
• Mouth Full™ Sandwich Shop, Inc.
• Rees Morgan™ Sandwich Shop, Inc.
• Big Bite© Sandwich Shop, Inc.
• Tripple Bites® Sandwich Shop, LLC
• Plaxton Foods™ Sandwich Shop, Inc.

Register Your Business

A. what type of business structure is best for a sandwich shop.

The truth is that there are several options when it comes to the business structure of a sandwich shop, but the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Sandwich Shop Business?

• General Business License
• Health and Safety Permit
• Food Handlers’ License
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections
• A music license if you want to play live, recorded, or streaming music in your sandwich shop
• A dumpster placement permit that specifies where you can put your dumpster outside your sandwich shop

d. What Type of Certification is Needed to Open a Sandwich Shop Business?

You don’t need any certifications to open a sandwich shop business

e. What Documents are Needed to Open a Sandwich Shop Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering opening a sandwich shop, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a sandwich shop business.

There is no clear-cut startup cost for a sandwich shop, but available data shows that the cost of starting a sandwich shop ranges from between $35,000 to $250,000. But if you intend to buy a sandwich shop franchise, then you should know that the average turnkey investment is approximately $350,000.

b. What are the Costs Involved in Starting a Sandwich Shop

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding and Promotions – $1,000.
• Business Consultant Fee – $2,500.
• Insurance – $1,400.
• Rent/Lease – $35,000.
• Other start-up expenses like commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• Start-up Inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $1,750
• Furnishing and Equipping the Shop and Kitchen – $50,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. What Factors Determine the Cost of Opening a Sandwich Shop Business?

• The size of the sandwich shop
• The choice of location
• The required licenses and permits
• The type of facility
• The types of sandwiches and related products retailed in the shop
• The cost of hiring a business consultant and attorney
• The cost for branding, promotion, and marketing
• The cost for furnishing and equipping the sandwich shop
• The cost of insurance
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the sandwich shop business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your sandwich shop, but if you have the required finance, it will pay you to build your facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Sandwich Shop Business?

• Supplies (inventory expenses)
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Shop Manager (Owner) – $45,000 Per Year
• Accountant – $32,630,000 Per Year
• Sandwich Maker – $30,000 Per Year
• Delivery Guys – $28,100 Per Year
• Cleaners – $25,000 Per Year
• Security Guard -$24,000 Per Year

g. How Do You Get Funding to Start a Sandwich Shop Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Big Bite© Sandwich Shop, Inc. is a registered sandwich shop that will be located in one of the busiest business and residential districts in Fort Wayne, Indiana. We have been able to lease a shop facility that is big enough to fit into the kind of sandwich shop we intend launching and the facility is located in a corner piece property directly opposite the largest shopping mall in Fort Wayne, Indiana.

b. Products and Service

• Varieties of Sandwich (Turkey, Veggie Delite, Veggie Patty, Chicken, Chicken Pizzaiola, Chicken Teriyaki, Chicken Tikka, Chipotle Chicken, Ham, Italian B.M.T., Meatball Marinara, Roasted Chicken, Spicy Italian, Steak & Cheese)
• Beverages and water

c. Mission Statement

Our mission is to establish a sandwich shop that will make available a wide variety of sandwiches at affordable prices to the residents of Fort Wayne, Indiana, and other cities in the United States of America where we intend to open chains of sandwich shops.

Vision Statement

Our vision is to build a business that is beyond selling sandwiches.

d. Goals and Objectives

The goals and objectives of a sandwich shop business are to provide a retail outlet where patrons can go to buy or order sandwiches if the shop has delivery options.

e. Organizational Structure

• Shop Manager (Owner)
• Sandwich Makers
• Delivery Guys
• Security Guard

Marketing Plan

A. swot analysis.

• Ideal location for a sandwich shop business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Unique sandwich recipe.
• Reliable and efficient inventory management system.
• Financial constraints may restrict the publicity and branding of the business
• A new business that will be competing with well-established sandwich shops in the city
• Inability to retain our highly experienced employees longer than we want during the teething stage of the business.

Opportunities:

• A rise in the number of sandwich lovers within our market space
• Online market, new services, new technology, and of course the opening of new markets.
• The arrival of a new sandwich shop within our market space
• Economic uncertainty
• Liability problems
• The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

b. How Do Sandwich Shops Make Money?

Sandwich shops make money by selling the following products;

c. Payment Options

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your sandwich shop business by sending introductory letters alongside your brochure to households, schools, socialites, and other key stakeholders throughout the city where your sandwich shop is located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business to give your business an online presence
• Directly market your products
• Join local sandwich shop associations for industry trends and tips
• Provide discount days for your customers
• Advertise our business in community-based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

The price of a sandwich depends on the size and type of sandwich but the median price of a sandwich ranges from $2.5 to as much as $5.

b. How Much Profit Do Sandwich Shop Owners Make a Year?

The profit a sandwich shop owner is expected to make in a year depends on some factors, but Lennys Grill & Subs reports that a free-standing sub shop brings in average gross sales of $657,963 per year.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the sandwich shop
• The location the sandwich shop is covering
• The management style of the sandwich shop
• The business approach of the sandwich shop
• The advertising and marketing strategies adopted by the sandwich shop.
• The number of years the sandwich shop is in business

d. What is the Profit Margin of a Sandwich Shop?

The profit margin of a sandwich shop is not fixed. On average, sandwich shops tend to have an overall profit margin of between 7.5% and 13% annually.

e. What is the Sales Forecast?

Below is the sales forecast of a sandwich shop. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year: $320,000
• Second Fiscal Year: $450,000
• Third Fiscal Year: $600,000

Set Up your Shop 

A. how do you choose a perfect location for a sandwich shop.

• The demography of the location as it relates to people that eat sandwiches regularly
• The demand for sandwiches in the location
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of sandwich shops, and related businesses in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Sandwich Shop?

• New York City, New York
• San Francisco, California
• Washington DC
• Chicago, Illinois
• Dallas-Fort Worth, Texas
• Atlanta, Georgia
• Boston, Massachusetts
• Palm Beach, Florida
• Las Vegas, Nevada
• Los Angeles, California

c. What Equipment is Needed to Operate a Sandwich Shop?

• Industrial Oven
• Dough Cutters
• Dough Scrapers
• Olive oil cans
• Sauce ladles & spoons
• Dough boxes and lids
• Dough box trolleys
• Sauce dispensers
• Sandwich boxes
• Heat-resistant gloves
• Sandwich delivery bag.

Hire Employees

When it comes to hiring employees for a standard sandwich shop, you should make plans to hire a competent shop manager (you can occupy this position), account clerk, sandwich makers, delivery guys, cleaners, and security guard.

Launch the Business Proper

In recent times, no sandwich shop opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party. The bottom line is that with a proper launching of the sandwich shop, you will officially inform people in your city that your sandwich shop is open for business.

a. What Makes a Sandwich Shop Business Successful?

• Choose a good location and shop facility to launch the business
• Make available varieties of sandwiches (give your customers options)
• Throw a party before officially opening the sandwich business
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth marketing to promote your sandwich shop business
• Leverage on all available online and offline platforms to promote your sandwich shop business

b. What Happens During a Typical Day at a Sandwich Shop?

• The shop is open for the day’s work
• The kitchen, ingredients, serving areas, serving wares, chairs, and tables are cleaned and properly arranged
• Walk-in customers are attended to
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Sandwich shop Business?

• Excellent baking and culinary skills
• Excellent customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining skill
• Work experience in a sandwich shop
• Experience in managing people
• Experience in business administration
• Experience in making different types of sandwiches.

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Subway Franchise Business Plan – Starting a Small Sandwich shop

• Subway franchise ownership has continued to rise in popularity

Subway franchise ownership has continued to rise in popularity, and midway through 2024, new sandwich shops are opening up in small towns and larger cities all across America.

Wise offering a subway franchise business plan

• Wise Helps Subway entrepreneurs in starting a small sandwich shop
• Wise writing a subway franchise business plan with help of professional MBA writers

Wisebusinessplans is offering a subway franchise business plan and is in the process of factoring current market projections and regional consumer data to assist Subway franchise owners and other sandwich shop entrepreneurs in garnering a greater market share and more significant future earnings.

“Taking a little time to enjoy a custom-prepared sandwich, made with fresh ingredients, is always a pleasure, whether you are eating lunch alone or with a friend,” said Joseph Ferriolo, Director of Wisebusinessplans. “It is the quality of the ingredients that makes the sandwich worthwhile, and at Wise, we feel that the time and work effort we put into all the custom-crafted subway franchise business plan and services that we offer is also what makes them a quality choice for sandwich shop owners and entrepreneurs.”

Wise Helps Subway entrepreneurs in starting a small sandwich shop

Wisebusinessplans provides state-of-the-art subway franchise business plans for Subway entrepreneurs and sandwich shop businesses that are custom-crafted by MBA-qualified writers and designers.

All Wisebusinessplans are created and designed one at a time, for each particular client, to showcase and highlight the positive ideas and business details that will lead to a more prosperous business future. Wise also offers restaurant-specific services, like menu and business website design .

“Subway franchise owners and sandwich business entrepreneurs can be confident that their business planning needs will be taken seriously and their plans prepared accurately and in a courteous and professional manner when dealing with Wise,’ added Ferriolo.

Wise writing a subway franchise business plan with help of professional MBA writers

Wisebusinessplans, staffed with MBA professional business plan writers , researchers, and financial experts, is a trusted partner for businesses across a broad spectrum of products and services. Our mission is to empower our clients to make the best possible business decisions, boost company performance and facilitate their funding success by laying the groundwork for strong businesses that excite, inspire and retain talented and exceptional employees.

Bonus Tip: Find out different ways how to own a franchise with no money .

The cost of opening a Subway franchise can vary depending on several factors, such as location, size of the restaurant, and equipment requirements. Generally, the initial investment required can range from $116,000 to $263,000, which includes the franchise fee, equipment, leasehold improvements, and other startup costs.

Subway offers extensive support to its franchisees. This includes site selection assistance, training programs, ongoing operational support, marketing and advertising materials, access to proprietary recipes and ingredients, and regular updates on new products and promotions. Franchisees also benefit from a network of experienced franchise owners and the brand’s global recognition.

Yes, Subway welcomes franchisees from diverse backgrounds, including those without prior experience in the restaurant industry. The company provides comprehensive training programs to equip franchisees with the necessary knowledge and skills to run a successful operation. They offer both in-person and online training covering various aspects of running a Subway franchise.

The time it takes to break even and start making a profit with a Subway franchise can vary depending on several factors, such as location, competition, and local market conditions. On average, it can take between 2 to 3 years to reach profitability. However, this timeline is not guaranteed and may differ based on individual circumstances and the effort put into operating the business.

Yes, Subway allows franchisees to own multiple locations, and many successful franchisees have multiple restaurants. However, the opportunity to own multiple franchises may be subject to certain criteria, including financial qualifications, operational experience, and the availability of suitable locations. Franchisees interested in owning multiple franchises should discuss their aspirations with the Subway franchise development team to explore the possibilities.

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Sandwich Shop

Back to All Business Ideas

How to Open a Sandwich Shop

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 2, 2023 Updated on March 13, 2024

Investment range

$43,900 - $88,000

Revenue potential

$273,750 - $547,500 p.a.

Time to build

3 – 6 months

Profit potential

$54,750 - $109,500 p.a.

Industry trend

Who doesn’t love a good sandwich? They’re the perfect lunch, and great any time. If you’re a creative sandwich maker, you could start your own sandwich shop and become the go-to lunch stop in your area. Alternatively, you could open a franchise outlet and become part of the $24 billion sandwich franchise market. 

But before you put the bread in the oven, you’ll need to dig into the business side of things. Fortunately, this handy guide has you covered with all the business information you’ll need to launch a lucrative sandwich shop. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

• Get creative with unique sandwiches
• Good profit potential
• Large potential market
• High startup costs
• Competitive industry

Sandwich shop industry trends

Industry size and growth.

• Industry size and past growth – The U.S. sandwich and sub franchise industry is worth $24.2 billion after declining .7% annually the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/sandwich-sub-store-franchises-united-states/ ))
• Growth forecast – The U.S. sandwich and sub franchise industry is projected to expand by 2.9% in 2023.
• Number of businesses – In 2023, 15,135 sandwich and sub franchise businesses are operating in the U.S.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/sandwich-sub-store-franchises-united-states/ ))
• Number of people employed – In 2023, the U.S. sandwich and sub franchise industry employs 396,817 people.(( https://www.ibisworld.com/industry-statistics/employment/sandwich-sub-store-franchises-united-states/ ))

Trends and challenges

• Globally inspired and vegetarian options are in greater demand.
• Consumers want sustainable, humanely raised, and organic ingredients.
• Sandwich shops are short on staff due to the preference for remote jobs.
• Higher food prices are cutting into profit margins.

Demand hotspots

• Most popular states – The most popular states for sandwich artists are Maine, California, and Oregon. (( https://www.zippia.com/sandwich-artist-jobs/best-states/ ))
• Least popular states – The least popular states for sandwich artists are Colorado, Louisiana, and Alabama.

What kind of people work in sandwich shops?

• Gender –  65% of sandwich artists are female, while 35% are male. (( https://www.zippia.com/sandwich-artist-jobs/demographics/ ))
• Average level of education – The average sandwich maker is high school educated.
• Average age – The average sandwich maker in the US is 36.7 years old.

How much does it cost to start a sandwich shop business?

Startup costs for a sandwich shop range from $45,000 to $90,000. The largest expenses are space rental, equipment, and operating budget. 

You’ll need a handful of items to successfully launch your sandwich shop, including: 

• Meat Slicers • Food Processors • Toasters • Microwaves • Countertop Griddles • Panini Grills • Fryers • Steamers • Refrigerated Display Cases • Hot Food Display Cases (optional)

How much can you earn from a sandwich shop business?

Your sandwich prices will vary, but these calculations assume an average sale per customer of $10. Your profit margin after food and other costs should be around 20%. 

In your first year or two, you could have 75 customers per day, bringing in $273,750 in annual revenue. This would mean close to $55,000 in profit, assuming that 20% margin. 

As you gain traction, you might have 150 customers per day. With annual revenue of $547,500, you’d make a tidy profit of nearly $110,000.

What barriers to entry are there?

There are a few barriers to entry for a sandwich shop. Your biggest challenges will be:

• Funding the startup costs
• Finding a location with high lunch traffic
• Competing with other sandwich shops and franchises

Related Business Ideas

How to Start a Bagel Shop

How to Open a Pizza Shop

How to Open a Deli

Step 2: hone your idea.

Now that you know what’s involved in starting a sandwich shop, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research sandwich shops in your area to examine their products, price points, and customer reviews.

• Make a list of sandwich shops that offer similar products. 
• Review your competitors’ products – their features, pricing, and quality – and marketing strategies
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a gourmet sandwich shop or a sub shop that also offers soup. 

You might consider targeting a niche, such as Asian-inspired sandwiches or hot sandwiches.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Building a mouth-watering sandwich menu for your shop

You’ll want to come up with a creative sandwich menu, depending on the concept you’ve chosen for your shop. In addition to sandwiches, you could also offer soup, chips, drinks, side dishes like macaroni and cheese, add-ons like pickles and yogurt and more. 

How much should you charge for sandwiches?

Most sandwiches cost $5-$8, and prices for other items vary. Be sure to consider your competitors’ prices as well as your costs when pricing your items.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market largely depends on your location. If you’re in an area filled with college students and young professionals, you might zero in on TikTok, Instagram, and LinkedIn. 

Where? Choose a sandwich shop location

You’ll need to rent a space for your sandwich shop, preferably in an area with high traffic for lunch, such as a metro area. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Sandwich Shop Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “sandwiches” or “subs”, boosts SEO
• Name should allow for expansion, for ex: “Global Bites Deli” over “Grilled Goodness Galore”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Sandwich Shop Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Provide a brief summary of your sandwich shop business plan, outlining your goals and objectives.
• Business Overview: Describe the concept of your sandwich shop, its location, and the type of sandwiches and services you’ll offer.
• Product and Services: Detail your sandwich menu, including the variety of sandwiches, sides, and beverages you’ll provide to customers.
• Market Analysis: Analyze the local market for sandwich shops, including customer preferences and potential demand for your offerings.
• Competitive Analysis: Identify existing sandwich shops in your area, highlighting their strengths and weaknesses, and explain how your shop will differentiate itself.
• Sales and Marketing: Outline your strategies for attracting and retaining customers, such as promotions, partnerships, and online presence.
• Management Team: Introduce key team members involved in your sandwich shop, emphasizing their relevant experience and roles.
• Operations Plan: Explain the day-to-day operations of your sandwich shop, from sourcing ingredients to preparing and serving sandwiches.
• Financial Plan: Present financial projections, including startup costs, revenue forecasts, and profit margins for your sandwich shop.
• Appendix: Include supplementary materials, such as sample menus, vendor contracts, or market research data, to support your sandwich shop business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to sandwich shops. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your sandwich shop will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company ( LLC ) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.  Here’s how to form an LLC .
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.  Read how to start a corporation here .
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like  Kickstarter  and  Indiegogo  offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like  Fundable  and  WeFunder  enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a sandwich shop business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Sandwich Shop Business Licenses and Permits

Starting a sandwich shop business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You’ll need to check with your state and local governments for health and food service license requirements. You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your sandwich shop business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  Toast , eHopper , or Lavu , to manage your menu, inventory, online pickup orders, and customer loyalty program.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Order To Go”. This can sharply increase purchases. 

Here are some powerful marketing strategies for your future business:

• Loyalty Programs: Implement a loyalty program offering discounts or free items after a certain number of purchases to encourage repeat business.
• Social Media Engagement: Leverage platforms like Instagram and Facebook to share mouthwatering images of your sandwiches, engage with your audience, and run promotions or contests to create buzz.
• Local Partnerships: Collaborate with nearby businesses or offices for catering services, lunch specials, or cross-promotions to tap into local customer networks.
• Creative Menu Specials: Regularly introduce unique and seasonal sandwich specials to entice customers to try something new and share their experience with friends.
• Community Events Sponsorship: Sponsor or participate in local events, sports games, or community gatherings to increase brand visibility and connect with potential customers in person.
• Referral Discounts: Encourage word-of-mouth marketing by offering discounts to customers who refer friends, family, or colleagues to your sandwich shop.
• Student and Employee Discounts: Establish partnerships with local schools or businesses to offer special discounts to students or employees, creating a consistent customer base.
• Online Reviews Management: Monitor and respond to online reviews on platforms like Yelp or Google, demonstrating your commitment to customer satisfaction and building a positive online reputation.
• Themed Nights or Days: Introduce themed nights or days (e.g., “Taco Tuesday” or “Healthy Thursday”) to attract different customer segments and create a sense of anticipation.
• Catering Packages: Develop catering packages for events, meetings, and parties, promoting your sandwich shop as a convenient and tasty option for group gatherings.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your sandwich shop meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your sandwich shop could be:

• Globally-inspired sandwiches to allow your tastebuds to travel
• Vegetarian sandwiches and soups to fit your lifestyle
• Need to grab and go? Gourmet sandwiches served fast

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a sandwich shop business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in sandwich shops for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in sandwich shops. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a sandwich shop business include:

• Counter Clerk – take orders, customer service
• Sandwich Maker – prepare sandwiches and other foods
• General Manager – scheduling, inventory management, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Opening a sandwich shop could be a fun way to put your creative culinary skills to work, as well as a lucrative business opportunity. If your shop does well, you could expand to new locations in your area, or start a franchise and become the next Jersey Mike!

You’ve done your business due diligence, so now you’re ready to put on your apron and get your soon-to-be successful sandwich shop up and running.

• Sandwich Shop Business FAQs

A sandwich shop can be very profitable. You just need a great location and some creative sandwich options.

A single-location sandwich shop could grow by expanding their products to include soups or side items. It can also grow by expanding to different locations or creating a sandwich shop franchise.

A sandwich shop is best started as a full-time business. It takes a lot of time, work, and dedication to be successful.

Creatively-designed fresh sandwiches are always popular, but you could also offer soups and side dishes. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Sandwich Shop Name
• Create a Sandwich Shop Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Sandwich Shop Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Start Making Money!

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How to Open a Sandwich Shop

Last Updated: December 16, 2023 Approved

This article was co-authored by Miri Rodriguez and by wikiHow staff writer, Janice Tieperman . Miri Rodriguez is a Business Brand Consultant and the Owner & CEO of Be Mindful Be Happy. She has been coaching business and individual brands for over 15 years in the areas of career development, personal development, branding, and storytelling for impact. She is the best-selling author of the award-winning book Brand Storytelling. She holds a Master’s degree in Integrated Communications and Marketing from Georgetown University and various certifications including Copyrighting, Technical Writing, Design Thinking, Six Sigma, and Prosci Change Management. There are 21 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 12 testimonials and 100% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 321,086 times.

Sandwich shops are a great way to share your love of food with your community, but it can be tricky to get the ball rolling. It’s important to be fully prepared before jumping into the restaurant industry, especially if you plan on building your business from scratch. Although a successful sandwich shop can be a great source of money, it can cost tens of thousands of dollars to get your new business off the ground. With the proper preparation and planning, you can put your best foot forward as you open your new sandwich shop!

Laying the Basic Groundwork

• For instance, if there are a lot of sub shops in your area, you might want to focus on selling clubs or diner-style sandwiches.

• Some franchise stores cost several hundred thousand dollars to own and run, which costs more than starting your own business from scratch.
• For instance, it costs at least $84,000 to start a Subway store, and over $325,000 to start a Jimmy John’s Gourmet Sandwiches store. [2] X Research source

• If you’d like to save money, see if you can find any interested friends or family members to join you in starting your own business.

• If you choose a location in the middle of nowhere, you won’t make as much money.

• For instance, you can name your shop something “Denise’s Deli” or “Fresh Meats, Eats, and Treats.”
• Once you think of a business name, register or trademark the name so your name is legally protected.

Planning out the Logistics

• Generally, a business plan starts with an executive summary, then includes a company description, market analysis, organizational structure, a section on products and services, a discussion on marketing and sales, funding requests, and an appendix.
• Double-check your document to make sure there are no errors.
• Your funding request needs to include everything you’ll need to keep your shop up and running. This includes items like industrial appliances, cabinets, uniforms, paper supplies, cups, food prep tools, bread, meats, toppings, employee wages, and more.

• Don’t be disappointed if the bank rejects your offer. You can always reach out to independent investors, or use a crowd-funding website to raise money for your shop!

• An LLC is probably the best option for a small business, like a sandwich shop you’re opening up on your own. If you’re opening your shop with someone else, consider registering as a limited partnership instead.
• If you’re registering as an LLC, you’ll need to submit different articles of organization as well as an LLC operating agreement. If you’re registering as a limited partnership, you’ll need an official certificate and a written agreement.

• Double-check your region’s websites to see what type of tax ID numbers you need.
• Different countries have different policies for starting new businesses. For further support, visit your country or region’s website to get more information.

• Your state or local region will likely have more specific permits and licenses that you’ll need to apply for. For instance, you’ll need to get a Temporary Seller’s Permit, which will eventually become a Seller’s Permit for the state or region you’re in. [11] X Research source
• For instance, if you plan on selling beer or wine coolers at your sandwich shop, you’ll need a separate alcohol license.
• If you plan on playing music in your shop, you’ll need a music license. [12] X Research source
• Some government websites will help walk you through the process of which specific licenses you’ll need. [13] X Trustworthy Source Official UK government website Official website for the public sector of the UK government Go to source

• A separate bank account protects you from paying for business expenses out of your own pocket.

• Your store will need to be up-to-code before you can get the certificate.
• You have to pay a fee to get your CO, which can cost several hundred dollars. In some areas, you’ll also have to pay an extra fee to comply with certain building codes. [16] X Research source

• Once your sandwich shop gets off the ground, you may want to re-examine your policies over the next few years.

Choosing a Menu

• For instance, if you offer halal foods, you can feature different types of falafel sandwiches. If you offer vegan sandwiches, offer food with veggies, tofu, and other naturally-sourced protein.
• You may want to look at neighboring sandwich shops and see what kinds of food they’re selling. However, note that some larger franchises may have trademarked sandwiches and recipes that you can’t sell or use in your own shop.

• For instance, you might want to offer kosher and halal options on your menu, like beef.
• You may also want to have gluten-free bread on hand.

• For instance, you can offer mayo, vinegar, honey mustard, and barbecue sauce as possible sauces.
• You can have tomatoes, lettuce, onions, spinach, jalapeño peppers, and other veggies available.

• For instance, if you’re trying to open a healthy sandwich shop, you can sell a variety of fruit juices and smoothies.
• If you’re opening a small, on-the-go sandwich shop, you can offer bottled sodas and water that customers can grab while paying.

• Selling different side dishes and desserts can really help your shop stand apart from the crowd.

• For example, you can design a summer menu with light, refreshing sandwiches or a winter menu with hot sandwiches.

• For instance, a 6 in (15 cm) sub can be priced around $4 with 3 toppings included. You can then charge extra toppings for $0.50 to $1.00.

Getting the Shop Ready for Business

• Don’t be afraid to ask for help! It can be difficult to install industrial-sized equipment on your own, and it might be easier and safer to ask a professional to help you install your appliances.

• For example, you can get your food ingredients from a wholesale distributor, along with other food manufacturers. You can also take advantage of local suppliers and markets to give you your ingredients.
• Look for supply companies that can provide you with napkins, cups, utensils, and other necessary supplies.

• For instance, you can dedicate ⅔ of your shop to customer seating, and make the other ⅓ a prep and storage space for your supplies.
• Check that there’s enough room for you and several employees to move around comfortably between your storage space and the food prep area.

• For instance, you can set up bright lights and paint the walls in a warm orange or red tone to provide an enticing environment for your customers.
• If you’re focused on serving Italian food, decorate your shop with colors from the Italian flag.

• For instance, you can post something like: “Tyrone’s Wraps is looking for part-time help on the weekends. This position requires good people skills, quick thinking, and the ability to lift up to 20 lb (9.1 kg). Any interested parties can visit the store directly or submit an application online.”

• It may help to hire employees who have experience in the service industry.

• For instance, if you use the same knife to slice your meats and cheeses, you may cause an issue for someone who’s lactose intolerant.

• For instance, if you open at 8 AM, you’ll probably want to start prepping at 6 AM.

• You can delegate cleaning tasks to your employees, if needed.

Marketing Your Business

• If it’s possible, buy a website domain to match the name of your business. This helps give you a cohesive brand identity. [36] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source

• Link to your website on your social media so customers can see your menu.

• Contests and events can help drum up new business for your sandwich shop.
• As a requirement for entering the contest, ask participants to follow you on social media.

• You can use programs like Google AdWords to figure out what your customer base is most interested in.
• Purchase “sponsored posts” on social media to help promote your business.

• For instance, you can try using Campaigner or Constant Contact to spread the word about your shop.

Expert Q&A

• Evaluate your own fitness levels before you commit to opening a sandwich shop. Managing a shop involves a lot of standing and running around, which may not be feasible for some people. [42] X Research source Thanks Helpful 0 Not Helpful 0
• You may want to download some accounting software so you can keep track of your expenses. [43] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source Thanks Helpful 0 Not Helpful 0
• Before opening your own sandwich shop, consider applying for a part-time job at a local sandwich franchise. This can help get some insights into how a sandwich shop works. Thanks Helpful 0 Not Helpful 0

• Many sandwich shops struggle to make a profit after opening. Think about how much you’re willing to risk before you invest a lot in a new business. [44] X Research source Thanks Helpful 0 Not Helpful 0
• Customer support can be fickle, and can often make or break how successful a sandwich shop is. Do your best to meet your customers’ needs, no matter how far-fetched. A bad online review can chip away at your store’s credibility. [45] X Research source Thanks Helpful 0 Not Helpful 0

You Might Also Like

Expert Interview

Thanks for reading our article! If you'd like to learn more about starting a business, check out our in-depth interview with Miri Rodriguez .

• ↑ https://howtostartanllc.com/business-ideas/sub-shop
• ↑ https://www.entrepreneur.com/slideshow/219444#2
• ↑ https://bizfluent.com/info-8160678-restaurant-preopening-checklist.html
• ↑ https://www.sba.gov/business-guide/launch-your-business/choose-your-business-name
• ↑ https://www.sba.gov/business-guide/plan-your-business/fund-your-business
• ↑ https://www.sba.gov/business-guide/launch-your-business/register-your-business
• ↑ https://www.sba.gov/business-guide/launch-your-business/get-federal-state-tax-id-numbers
• ↑ https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
• ↑ https://www.cdtfa.ca.gov/services/permits-licenses.htm
• ↑ https://www.gov.uk/licence-finder/sectors
• ↑ https://www.sba.gov/business-guide/launch-your-business/open-business-bank-account
• ↑ https://dallascityhall.com/departments/sustainabledevelopment/buildinginspection/Pages/certificate_occupancy.aspx
• ↑ https://www.sba.gov/business-guide/launch-your-business/get-business-insurance
• ↑ https://www.rapidformations.co.uk/blog/rapid-guide-opening-sandwich-shop/
• ↑ https://www.nisbets.co.uk/how-to-open-a-sandwich-shop
• ↑ https://www.entrepreneur.com/article/233383
• ↑ https://www.roomsketcher.com/floor-plan-gallery/restaurant/coffee-shop-floor-plans/
• ↑ https://bizfluent.com/how-10000688-decorate-sandwich-shop.html
• ↑ https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2018/01/23/small-business-marketing-101/#24cf8bdb45ff
• ↑ https://www.entrepreneur.com/article/286171
• ↑ https://www.entrepreneur.com/slideshow/299864#2

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Sandwich Shop Business Plan Template

APR.03, 2019

Do you want to start sandwich shop business plan?

Do you want to start a sandwich shop.

Well, the business is trendy and can surely help you in making a considerable profit, provided that you manage to overcome the huge competition ahead of you. To strive among the well-known names in this and the related businesses, you have to come up either with unique ideas or a real strategy for the business location. In any case, the first step will be to plan your business. So, if you need guidance regarding how to open sandwich shop , you can take help from this sample business plan of a sandwich business startup named, ‘Dallas Grills’.

Executive Summary

2.1 the business.

Dallas Grills will be owned by Helena Walters, located in Dallas. It will basically a sandwich shop offering a variety of subs, burgers, and salads, with the facility of sitting inside, as well as buy and take away.

2.2 Management

Sandwich businesses need a defined plan to manage things like buying fresh and quality ingredients, preparing sandwiches and advertising to take the audience attention. In her sandwich shop business plan , Helena has decided to supervise the task of preparing eatables by herself and to hire a manager to manage operations other than preparation of food items.

2.3 Customers

Fortunately, we’ll be having our customers of every age group, living near our shop, working in the offices near us, students and passersby. In this sandwich shop business plan example , we, later on, will express the ways and competitive edges we’ll adopt to gain these customers.

2.4 Target of the Company

Company Summary

3.1 company owner.

Helena Walters has diplomas in various kitchen related services from the International Culinary Center. She has worked for one year in a restaurant and has gained enough fame because of the dexterity she has.

3.2 Why the Business is being started

Helena is starting this business to present and enhance her skills in the food industry while making considerable earnings.

3.3 How the Business will be started

The services provided by Dallas Grills are enlisted with a little detail in this burger house business plan .

• Variety of sandwiches including Bacon Sandwich, Cheese Sandwich, Grilled Cheese Sandwich, Tuna Sandwich, Clam Roll Sandwich, Club Sandwich, Patty Melt Sandwich, Italian Hero Sandwich, Breakfast Sandwich, and Cheese Steak Sandwich.
• Ham Burger and Onion Smashed Burger
• Soft Drinks

Our customers can enjoy our quality and delicious product while sitting inside the cafe or by taking away with them. They can also order us online to avail our home delivery services.

Marketing Analysis of Bookkeeper Business

Before starting up a sandwich business , it is very important to study the demographics of the market in which you will be serving, especially if you are setting up a sandwich bar in a big city. As there are many big names in the food business which have completely established by the course of time.

So, you must be careful that you are choosing a place with no or at least fewer restaurants. So, your success story for a sandwich bar depends upon the effectiveness of your sandwich shop business plan . To make an effective hamburger business plan , make sure that you are having this task done by a professional marketing analyst.

UK Start-Up Visa Business Plan

5.1 marketing segmentation.

5.2.2 Students and Employees: The second biggest category of our target customers will comprise of the people who are either studying in the educational institutes near us or are working in a nearby office. We expect them to visit our shop in their lunchtime solo or with friends and have a great time while filling their appetite.

5.2.3 Local Residents: Despite being located in the commercial zone; we are not still far away from the residential community. So, the last category of our target customers will be the community living near to us. They are not only expected to come to our shop but also to avail our home delivery services. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our target is to be the best and most renown sandwich center in whole Dallas. We also expect to open another branch within three years of the launch. Moreover, we aim at earning a profit margin of $10k per month by the end of the first year.

5.4 Product Pricing

Our prices are almost the same as our competitors as maintaining the quality of our products would not be possible if we have to compromise on prices. We believe that after trying our services for the first time, our customers will not mind spending cash over quality services.

Great service

Great service. Good turnaround time and quality work. Thanks!

After making the sandwich marketing plan , the next step is to create a strategy to target the identified customers. When you are starting your sandwich stand business , people don’t know about you in the initial stages. So, you have to identify the ways in your sandwich restaurant business plan  through which you can gain customers. Very big names and fully established businesses will be there in our competition. Thus, Dallas Grills has come up with superb competitive edges and advertisement plan. You can take help from it even when you are looking for small sandwich shop business plan .

6.1 Competitive Analysis

Our biggest competitive advantage is our location. We are located in the commercial zone, nearer to educational institutions, residential community and above all linked with the streets which are thronged up with passersby even in early mornings and late nights. Secondly, we’ll have a comfortable place to sit for our customers from where they can also see us preparing sandwiches for them. Our taste will be unique and people who will try our services for one time will surely come to us for the second time. Lastly, we’ll offer a home delivery service by receiving online payment through our website.

6.2 Sales Strategy

To advertise our services:

• We’ll have large billboards outside our cafe demonstrating our delicious foods while increasing the appetite of spectators
• We’ll carry out a campaign on social media through the pictures of our cafe, our foods, and the feedback of our customers
• We’ll be offering a 35% discount for the first two days of our launch
• We’ll send our delicious sandwiches to various companies and businesses located near us to get introduced

6.3 Sales Forecast

6.4 Sales Monthly

6.5 sales yearly, personnel plan.

In this sandwich shop business plan , the staff, Dallas Grills will need is enlisted with a little detail. If you are starting a sandwich shop  or a proper restaurant you can take help from it.

7.1 Company Staff

To ensure the proper quality and taste which Helena want to introduce through her sandwich bar, she has decided to supervise the food preparatory tasks by herself. Other staff which she’ll hire is as follows:

• 1 Manager to manage overall operations of Dallas Grills
• 4 Chefs to make sandwiches, burgers, and salads
• 3 Waiters to serve and to perform packaging service
• 1 Cashier to receive cash from the people
• 1 Accountant to maintain financial records
• 2 Drivers to perform home delivery services
• 2 Cleaners to clean the dishes and facility
• 2 Sales Executives responsible for advertising restaurant
• 1 IT Expert to manage Dallas Grills’ website and social site

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

Financial Plan

Although starting a sandwich shop doesn’t require a large investment group for a business plan , but still, the financial plan should not be ignored in starting a sandwich shop business plan . Your financial plan should envisage how you will be able to earn the expected profits and how you will be able to achieve your financial goals within the time period set by you.

8.1 Important Assumptions

 8.2 brake-even analysis,   8.3 projected profit and loss, 8.3.1 profit monthly 8.3.2 profit yearly 8.3.3 gross margin monthly 8.3.4 gross margin yearly 8.4 projected cash flow, 8.5 projected balance sheet,   8.6 business ratios.

Download Sandwich Shop Business Plan Sample in pdf

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OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Bring Something Different to the Table by Opening a Sandwich Franchise

Jan 20, 2018 | Blog

The idea of owning your own business is appealing, and it doesn’t have to be incredibly difficult to make it happen. Consider investing in a sandwich franchise, where you can enjoy all the benefits of being your own boss — a flexible schedule and the power to take charge — and still get help from industry experts. When you join a system, you have the benefit of their expertise as you make your franchise sandwich shop business plan and build up your business.

Keep reading to learn why you should invest in a sandwich franchise, as well as a few tips to help you succeed.

Why Invest in a Sandwich Franchise

In the immortal words of Tina Fey’s character Liz Lemon on the hit TV show 30 Rock , “All of humankind has one thing in common: the sandwich.”

Sandwiches are a popular food choice because they are healthier than typical fast food, but still as convenient as the drive-thru. Owning a sandwich franchise lets you serve delicious food to hungry people in your community, putting smiles on their faces when they are about to dig into a delicious meal.

Additionally, it goes without saying that owning a franchise gives you the independence of owning a business and being your own boss. This kind of freedom is made even better when you consider all the perks of joining a franchise system, including an established brand name, proven delicious products, and so much more . Franchisees get support from a network of people who know the industry and the brand; more importantly, the network knows how to help people succeed in business.

2 Tips for Making It

We are the first to say that owning a franchise sandwich shop is a lot of work, so this is not a career to be taken on lightly. Make sure to prepare yourself to operate your business by following these tips.

#1 — Have a Solid Plan

Before you embark on any business, you need to have a solid business plan in place. A franchise sandwich shop business plan should include goals and how you will measure them so that you can be actively working toward your success. In addition, things like cost and income projections will set expectations for your business, and then you can reevaluate your plan periodically to see how your actual numbers compare to the projections.

#2 — Choose the Right Partner

There are a variety of sandwich franchise opportunities out there, so it is important to choose the right brand to invest in. Find a brand that has unique menu offerings, a commitment to quality and value , and a network with a proven track record of supporting franchise owners. The right franchise partner is critical to your success — even the best franchise sandwich shop business plan will struggle to succeed without support from an experienced brand.

Jon Smith Subs is famous for our delicious sandwiches, huge portions, fresh ingredients, and now our outstanding franchise opportunity. With the help of United Franchise Group , we have the training and support system in place to complement our amazing brand and set up new franchisees to succeed.

Learn more about our opportunity.

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• Hidden * Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua & Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Caribbean Cayman Islands Central African Republic Chad Chile China Colombia Comoros Congo Cook Islands Costa Rica Cote dIvoire (Ivory Coast) Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Federated States of Micronesia Fiji Finland France French Guiana French Polynesia Gabon Gambia Gaza Strip and West Bank Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Moldova Monaco Mongolia Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria North Cyprus North Korea Northern Mariana Islands Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Pierre and Miquelon Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Korea Spain Sri Lanka St Lucia St. Kitts & Nevis St. Vincent & the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Togo Tonga Trinidad & Tobago Tunisia Turkey Turkmenistan Turks & Caicos Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United States Virgin Islands Uruguay USA Uzbekistan Vanuatu Venezuela Vietnam West Bank and Gaza Strip Western Sahara Yemen Zaire Zambia Zimbabwe State  
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