Introduction
It is increasingly difficult for subway franchise owners to make a profit in today’s saturated market. Franchises must turn to new strategies to ensure their success and profitability. But how can Metro franchise owners set themselves apart from the competition?
Recent statistics on the fast food industry are encouraging. According to the data, the share of global fast food sales for the top 10 companies is expected to increase from 2.08% in 2019 to 3.19% in 2024. This indicates that although the market is already saturated, there are still opportunities lucrative for metro franchises.
In this article, we’ll give five actionable strategies that Metro franchise owners can use to increase their sales and profitability. Continue reading to learn more.
Advertise sandwich deals and specials through social media
Leveraging the power of social media is an effective way to reach potential customers and boost sales. Twitter, Facebook and Instagram are some of the most popular avenues for advertising and marketing products and services. As part of an effective Subway franchise strategy to increase sales and profitability, consider running targeted social media campaigns touting sandwich deals and specials.
Tips and tricks
- Determine the best time of day to post your sandwich deals and specials, e.g. morning, afternoon or evening.
- Pull your ads to those in a certain geographic area that may frequent your location.
- Create eye-catching visuals – think photos, videos, infographics and good use of color – to grab attention.
- Include creative description text that incorporates keywords likely to be used by people search.
- Invite customers to engage with you on social media platforms by offering exclusive promotions and discounts.
- Encourage customers to share their best experiences in your franchise (be sure to include appropriate hashtags).
Using social media advertising to promote your Subway specials and franchise offers can have a positive impact on sales. Consumers will be more likely to visit your store if they know about the rewarding offers and discounts available. For example, if your first outdoor ad cost ,000, and it generated 50 new customers, each spending an average of , you would have generated a total of 0 in campaign sales, resulting in a profit of 0 after deducting the Campaign Cost. This is a great example of how social media advertising can have a positive effect on sales and profitability.
Encourage customer loyalty and reward programs
It’s no secret that customer loyalty is critical to the success of any business, and Subway franchises are no exception. Encouraging customers to keep coming back is a great way to improve sales and profitability, and using reward programs and loyalty cards is a great way to do that.
Reward programs and loyalty cards provide customers with additional discounts, freebies, and perks for repeat purchases. These programs entice customers to visit your business more often, encouraging them to return at least once or twice a week. This leads to increased sales, which in turn leads to increased profits. It’s a win-win situation for you and your customers.
Not sure how to get your rewards program off the ground? Start by offering customers the opportunity to earn rewards points for every purchase they make. Once they have earned a certain number of points, they can then redeem them for discounts, special offers and even freebies. This encourages customers to come to your restaurant as often as possible to maximize their rewards.
You can also encourage customer loyalty through promotional campaigns. For example, you can offer customers a free sandwich after a certain number of purchases, or offer a discounted price on a larger purchase. You can even design a loyalty card that will give customers access to exclusive offers and discounts. These tactics encourage customers to return often, leading to higher sales and increased profits.
Let’s take a look at an example: If you offer customers a 10% discount for the 8 purchases they make, and each purchase costs an average of , your customers will make an additional for 8 purchases. That’s in extra profit for 8 customers who sign up for your rewards program. When you take into account the potential additional sales generated by referred customers, the numbers become even more impressive.
Customer loyalty and reward programs are great ways to increase sales and profitability. Encouraging customers to return more often through rewards and discounts helps cultivate a strong customer base, making your Subway franchise a success.
Provide employee incentives for sale at launch
Incentivizing employees to sell can be one of the most powerful strategies for increasing sales and profitability for a Metro franchise. Offering an employee reward system or commission is a great way to encourage resilient selling and increase profits.
Providing incentives to employees has a positive impact on their performance. Performance increases will result in higher sales and increased profits. This can be done through a simple reward system, where employees will be rewarded with a performance-based prize or additional payment for the resilient sale.
Employees can be motivated to make upside sales through recognition, such as employee of the month team awards or missions, or through direct financial incentives. For example, you can provide a commission to employees for the sale initiated or provide a bonus for reaching a certain up-sell goal.
By incentivizing employees to sell, your subway franchise will be able to generate additional revenue from customers and increase profits. A sample calculation to help determine the estimated impact of incentive employees might look like this:
Suppose a Subway franchise has an average daily sale of 0 with 10% upselling. You can provide a 10% commission to employees for upsells above 10%. In this scenario, adding a commission would increase daily sales by 0 to 6. This means an additional in sales per day, and a total of ,520 over a 70-day period due to the employee incentive for resistance selling.
In summary, engaging employees in resistance selling is an effective way to increase sales and profitability for a Metro franchise. Providing rewards or bonuses to employees encourages them to use resilient selling techniques and helps improve the customer experience. Additionally, providing employee incentives is a great way to motivate them and boost performance.
Reinvest in modern equipment for faster customer service
Equipping your subway franchise with modern technology can increase customer loyalty and increase sales revenue. Providing a fast and efficient customer experience with modern equipment, staff can prepare sandwiches quickly and accurately, reducing customer waiting time. Not only does this improve customer satisfaction, but it also pays off for your business in the form of improved sales and profitability.
Adding new equipment is a great way to increase both customer service and revenue. By investing in modern and efficient equipment, customer waiting times are drastically reduced – leading to increased sales. Automated equipment can speed up production; Improved sensor systems can reduce error rates; Customer interfaces in the form of touch screens can simplify ordering and reduce customer confusion.
Calculate the impact
To start, calculate the amount of faster customer service when the upgraded gear is added. Identify customer service issues, request levels, and analyze customer data to see where time is wasted. For example, if customer wait times are measured in minutes, calculate how much time customers can save when modern equipment is added. Divide this time and associated labor costs into improving customer service.
For example, if the customer wait time is reduced from 7 minutes to 3 minutes and the previously used labor costs per hour, the improvement in customer service equals four minutes per customer , multiplied by the cost of labor and divided by 60 minutes . In this case, it would equal saved per customer.
Guiding customers
After implementing new equipment, use signs and encourage customer service employees to notify customers of the change. This can help customers understand the process, appreciate customer service improvements, and easily navigate new technology. If a longer explanation is needed, ask staff to explain the new process and how updated equipment eliminates customer wait times.
Train staff
Once the new equipment is in place, staff should be trained in how to use it. This helps employees understand the technology and create an effective customer service process. Design an orientation program and team building activities to ensure employees are able to properly manage equipment, provide excellent customer service, and increase sales and profitability.
By reinvesting in modern equipment, Metro franchise owners can realize a faster customer service experience and a more profitable end result. Improved customer satisfaction leads to increased sales and, therefore, greater profitability. Investing in the right equipment and training team members can be a very lucrative business.
Partnership with food delivery services
One of the most effective strategies for increasing sales and profitability for your Subway franchise is to partner with food delivery services like UberEATS, Grubhub, Doordash, or Postmates. Partnering with food delivery services can help you expand your reach beyond regular customers, expand your brand visibility, and attract new customers from the delivery company’s large network of customers. Working with food delivery services can also help you reduce pressure on your staff by allowing them to focus on their core tasks such as preparing meals, providing customer service, etc.
Additionally, partnering with a delivery service can also significantly increase your franchise’s sales depending on the size of the delivery service’s network. Customers are increasingly dependent on delivery services because of the convenience they provide. Taking advantage of this trend and partnering with a food delivery service can open up more opportunities to increase sales for your franchise.
Tips and tricks
- Do your research. Before partnering with a delivery service, research the different options available and compare the results to determine which service can provide the best results.
- Offer additional discounts or incentives for people who order from you through the delivery service. This can help you acquire more customers and increase loyalty.
- Focus on creating a high quality experience. Be sure to provide friendly customer service, timely delivery and a pleasant experience to delivery service customers who order from your franchise.
- Advertise your partnership. Make sure your customers are aware of your partnership with the delivery service so they can order directly from you. Try to promote the partnership through various channels such as your website, social media, etc.
Impact on profitability
Partnering with a food delivery service can have a positive impact on the profitability of your Subway franchise. For example, if you partner with a delivery service that charges a 15% commission on every order and you receive 100 orders of .00 each, you can expect to increase your profits by 0.00. This can be a significant and measurable increase in your profits.
So, partnering with food delivery services can be a great way to increase sales and profitability for your Subway franchise. It’s important to do your research, focus on providing quality service, and publicize your partnership to maximize the potential benefits. With the right approach, you can successfully leverage the power of food delivery services to drive more sales and profitability for your business.
Conclusion
In a saturated market like the fast food industry, it is essential for Subway franchise owners to stay competitive and take advantage of every opportunity for success. By implementing the strategies discussed in this article, from rewarding customer loyalty, social media advertising specials, to introducing new sandwich combinations, Subway franchise owners can increase their sales and profitability.
Of course, the success of any business depends on the action franchise owners can take. It is up to them to ensure that their franchises remain competitive and profitable. With some effort and creativity, metro franchise owners can be sure to take their business to the next level.