New franchise?

[Kevin Hockey]

Exchange of staff would make some staffing issues less of a concern. A mall store would have limited opening hours. And I have an excellent manager, who, if I could convince him, could run both stores quite well.

I overpaid, a lot, for my store, but only found that out later. Starting a new store could balance out that mistake.

By the time the new store opens (whether I have it or not) I will have had the old store for close on three years. I'm spending more time AT the store than IN the store. So I "need" to be there. To make sure that things are run well. That things are tidy and clean, and that all the food is ready for lunch and dinner rush. And to be an extra pair of hands when we're unexpectedly busy.

Weather has a big influence. When it's cold and wet, my business goes down. But the business in a mall store goes up. So there is the potential to balance staffing.

Now where is that coin? Just when I need a tosser I can't find one

There's plenty of Tosser's out there, they're easy to find....

The weather point is a good one, may give you good balance of turnover. Xmas might be another time where one store balances out another.

Starting a new store to "balance out the mistake" first time round isn't good reason Geoff, and I know you do know that. You should do it solely because it is going to be profitable. Besides I have a motto, it's not a mistake when you do it once, just a learning experience. It's a mistake when you do it again and get the same result.

As for staff poaching, you may find staff leave the other store and come to you, it may just be an opportunity.

What support does Subway provide. Have you got someone to talk to, do you get recruitment assistance?

Kev
www.gogecko.com.au

 

[geoffw]

Starting a new store to "balance out the mistake" first time round isn't good reason Geoff, and I know you do know that. You should do it solely because it is going to be profitable. Besides I have a motto, it's not a mistake when you do it once, just a learning experience. It's a mistake when you do it again and get the same result.

No, it's more a "balance out the investment". I paid goodwill for one store. But with a new store, it would be creating goodwill. It's a busier food court than the comparable location in South Canberra, but with a lower rent and a longer lease. But it would be a long hard slog with lots of hours and loots of angst along the way. Besides, I won't be able to put my famous signboard outside a mall location

As for staff poaching, you may find staff leave the other store and come to you, it may just be an opportunity.

However, unlike others, I won't be actively poaching others.

What support does Subway provide. Have you got someone to talk to, do you get recruitment assistance?

Nope. Nothing.

I did get some assistance when I was failing Subway's standards badly (problems inherited from the badly run store before). I had one of their people come to my store for three days to help straighten things out. That was a huge help. Day to day help with big problems is available. But ongoing help with things like recruitment or the like is entirely my responsibility.

I guess it's not quite like gogecko. Your people need well qualified staff. I just need young trainable staff

 

[bene313]

I paid goodwill for one store. But with a new store, it would be creating goodwill.

And successful operation of two stores in the one area would create a LOT of goodwill. In particular, thinking a few years down the track if you were to sell both stores to a single buyer.

I would go with the purchase of the additional store. Or sell up completely and go for the IT job. As someone mentioned earlier, working that many hours as an IT contractor would bring some pretty good dosh.

Guess it depends what your goals / time frame are.

 

[geoffw]

Or sell up completely and go for the IT job. As someone mentioned earlier, working that many hours as an IT contractor would bring some pretty good dosh.

That's a very good point.

At present, I'm earning half of what I used to earn in IT, for twice the hours.

But, in the long term, IT is completely personal exertion.

And a business has the potential to earn without the exertion.

This is what people have mentioned in other threads- the "e-myth".

DaleGG has done this, by setting up a business system which runs without him.

I haven't done this in Subway. But there is certianly the potential to downsize my personal involvement, but probably not to make it completely passive (which is why I got into it in the first place).

 

[wylie]

I know a few tossers

Wylie

 

[yo yo ma]

i dont think that a subway in a westfield mall will conflict with one in the street ( as long as you have reasonable parking ) no matter how agressively the mall one advertises.
i am on the road a lot in my job , i eat subway a lot , but i would never try to find a park in a westfield , go into the mall , and sit in a crowded area to eat it , when i can find one on a main road , pull up out the front , and bingo.
likewise , if i am shopping at a westfield , and i am hungry , i will buy something from the mall , if there is no subway i will buy something else , i wont lose my car park to drive and find one on the street.

I agree. I am a regular visitor to Subway at the shopping centres... I only tend to go to the stand alone stores, if after something quick for dinner. I try to go for the healthier option, so will always go to Sumo-Salad, Subway or a Kebab. Often I will have a reason to go to the shopping centres, so will plan to go around lunch time. This is just on the Sunshine Coast though.
Steve

 

[Les]

G'day Geoff,

All seriousness aside -

Your turn of phrase got to me....

I'm now quite firmly vacillating.

Love it !! Firmly vacillating - that must be quite difficult - a bit like a drummer I once heard who was beating 3/4 time on his bass drum while keeping 4/4 time on his snare drum !! And his tongue was going mad keeping it all together too.

I was astounded back then, and congratulated him on his effort. And I'd lke to congratulate you too, on penning a fresh conundrum. Well done. Could be another "Subway signboard" entry.



Regards,

 

[Altitude]

That's a very good point.

But, in the long term, IT is completely personal exertion.

Geoff,

Do not let this stop you from going back to IT if that's the path you want to travel.

The extra $$ that you get from going back into IT can always be invested wisely to give you passive income.

There are some good managed funds out there giving investors just that, without investors having to lift a finger.

Go with the $ sense, don't drive yourself into the ground. There are only that many hours in a day, you need to optimise that.

There are choices out there.

 

[geoffw]

OK, I've signed on the dotted line.

I have committed myself to opening a new Subway in Belconnen Mall.

For better or for worse.

 

[Twitch]

OK, I've signed on the dotted line.

I have committed myself to opening a new Subway in Belconnen Mall.

For better or for worse.

All the best with your new venture Geoff, I hope it works out well for you and your family.

 

[peteb]

good choice geoff, I think it is the best way forward.

 

[LynnH]

Congratulations, Geoff - hope everything works out beautifully for you!!!

Cheers
LynnH

P.S. Just keep cracking jokes with your customers like you do on the forum, and you'll have 'em coming from all over the ACT!

 

[Sunfish]

Quote:
Originally Posted by Geoffw
I'm now quite firmly vacillating.

I used to think I was indecisive, now I'm not so sure.

 

[Sunfish]

OK, I've signed on the dotted line.

Hope it works well Geoff.

 

[yo yo ma]

I think it will go well with your experience & being able to share resources (incl staff) between the stores... Good Luck mate
Steve

 

[ggumpshots]

Now you can have left over SUBWAY meals for breakfast and Dinner !
good luck mate.

 

[Aimjoy]

Geoff,

Just wanted to add my best wishes for your new venture also.

I know earlier I had advised against this in light of your stated goals but I don't think the decision could be either right or wrong - there are just different outcomes. (as someone else here said). Now you've made the decision I am behind you all the way.

I trust it all goes really well for you and the family.

Cheers,

Aimy

 

[TheCamel]

congrats..

how long till you open ?
i'll make sure to have subway whenever i'm at the mall now, instead of the other crap i end up eating.

i'm even gonna try converting rhiannon a bit more..

(unless im in an oportos mood, sorry )

 

[geoffw]

Thanks for all the support peoples.

how long till you open ?

I think mid November at this stage

(unless im in an oportos mood, sorry )

If it wasn't for the Oportos, Maccas and the rest, Subway would not be able to do anything.

People go for food, and then decide what sort of food they want. The more alternatives, the more likely they will eat in the food court (or, hopefully, just next door to it).

 

[Kristine..]

G'Day Geoff

Good on you - Fortune Favours the Brave and after a while, we can't get any tireder so we may as well press on.

There is no point being in business unless we are really going to be IN BUSINESS.

Two shops is great, the capacity to really grow your clientelle, your staff, the opportunity to roster people more effectively, once you get past the base point it actually gets easier. My Bi-Lo experience, observing the stringency of the supermarket operations model - showed me what, as a small business person in previous incarnations, I had been missing. That's why my business plan is for five shops - the economies of scale are extremely important and you will be dealing with significantly larger volumes of everything which will make your unit price lower, etc etc, you will be less reliant on any individual staff member, and all the other tiny variables which make up the big picture.

By the time you get to your third shop you may even be able to draw a wage for yourself!!!

Best wishes to you and Mrs Geoff. I am sure this will be the turning point for you

Congratulations and a very Well Done!

Kristine