Subway France : the profitability of the mono-restaurant model
Subway is one of the few fast-food players where the mono-restaurant model is the dominant one. Unlike McDonald’s, Burger King, or KFC, which often have franchisees operating multiple sites, a typical Subway franchisee operates one restaurant. This particularity structures its economy.
Our Sample
Out of the 35 franchised companies indexed in our database, few deposit complete and usable accounts. The analyzable sample is limited:
| Year | No. of Balance Sheets | Cumulative Revenue | Net Profit |
|---|---|---|---|
| 2024 | 1 | 656 k€ | +3 k€ |
| 2023 | 1 | 672 k€ | +23 k€ |
| 2022 | 1 | 612 k€ | +20 k€ |
| 2021 | 1 | 556 k€ | +36 k€ |
What we deduce from this
1. The unit revenue is low — A Subway typically generates 600 to 700 k€ of annual revenue, which is 3 to 4 times less than a McDonald’s on average. This difference is explained by a lower average ticket (10-12 € vs 12-15 €), the absence of drive-thrus, and less developed delivery.
2. Margins are positive but narrow — Net profit fluctuates around 3-5% of revenue. This is correct for a mono-restaurant, but it means an annual net income of 20 to 35 k€ per site, equivalent to a minimum wage for a franchisee who invests their own work.
3. The model requires multi-site to truly compensate — At 25 k€ of net profit per year, a mono-site Subway franchisee is, in practice, an employee of their own company. To generate a comfortable income, you need to operate 3 to 5 Subways, representing a total investment of 1 to 2 M€.
Sectoral Comparison
| Unit Indicator | Subway | KFC | McDonald’s |
|---|---|---|---|
| Average Revenue / Restaurant | 600-700 k€ | 1,5-2 M€ | 2-3 M€ |
| Initial Investment | 150-250 k€ | 800 k€-1,5 M€ | 1,5-2,5 M€ |
| Personal Contribution Required | 50-100 k€ | 300-500 k€ | 500 k€+ |
| Typical Net Margin | 3-5 % | 3-6 % | 1-3 % |
Subway is therefore a more accessible franchise (entry ticket 5-10 times lower than McDonald’s), but with a unit profitability that plateaus at a lower level.
The issue: delivery commissions
Like all fast-food players, Subway relies on platforms (Uber Eats, Deliveroo, Just Eat) which capture a significant portion of the delivery revenue. For a Subway with a net margin of 4% of total revenue, a platform commission of 30% on delivery revenue divides the margin on this channel by 2.
This is the central issue that Fooderise addresses for Subway franchisees: track profitability by platform, identify disputes to pursue, and optimize the published menu.
To go further
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