business plan for a sandwich bar

How to Open a Sandwich Bar Business in 9 Steps: Checklist

By henry sheykin, resources on sandwich bar.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Are you looking to enter the thriving food service industry with a unique concept? Consider starting your own build-your-own sandwich bar with fresh, locally sourced ingredients and a rotating daily special menu. According to recent statistics, the sandwich industry is projected to grow at a steady rate of 2.9% annually, making it a lucrative opportunity for aspiring entrepreneurs.

In our comprehensive guide, we outline 9 essential steps to help you successfully open a sandwich bar business. From concept validation and business planning to supplier partnerships and marketing strategies, we cover everything you need to know to build a solid foundation for your new venture. With the right approach, you can tap into the growing demand for customizable, high-quality sandwich options.

Whether you're a first-time entrepreneur or an experienced business owner, our checklist will provide you with the tools and knowledge needed to launch a successful sandwich bar. By following these steps and incorporating the latest industry trends, you can position your business for long-term growth and sustainability in the competitive food service market.

Concept Validation

Business planning, financial projections, funding acquisition, location scouting.

• Permits and Licenses

Supplier Partnerships

• Store Design and Setup
• Launch and Marketing

9-Steps To Start a Business

Before diving headfirst into opening a Sandwich Bar business, it is essential to validate the concept to ensure there is a market demand for a build-your-own sandwich bar in selected locations. Conducting surveys and focus groups will help you understand customer preferences and the viability of local sourcing for ingredients.

Start by assessing the market demand for a Sandwich Bar in your target locations. This can be done through customer preferences surveys and analyzing the current market trends. Understanding what your potential customers are looking for in a sandwich bar will help you tailor your menu and offerings to meet their needs.

Additionally, conducting focus groups with potential customers can provide valuable insights into what they are looking for in a sandwich bar experience. Ask them about their preferences when it comes to ingredients, customization options, pricing, and overall dining experience.

Tips for Concept Validation:

• Engage with local communities to gather feedback on the idea of a build-your-own sandwich bar.
• Research customer preferences in terms of sandwich fillings, bread types, dietary restrictions, and pricing expectations.
• Consider conducting a pilot test or pop-up event to gauge interest and gather feedback from potential customers.

Furthermore, it is important to assess the viability of sourcing ingredients locally. Customers are increasingly seeking out fresh and locally sourced ingredients, so partnering with local farmers and suppliers can give your Sandwich Bar a competitive edge. Conduct research on the availability of high-quality ingredients in your area and establish relationships with reliable suppliers.

By validating the concept of a build-your-own sandwich bar through market research and customer feedback, you can ensure that your business idea is well-aligned with the needs and preferences of your target market.

Developing a comprehensive business plan for your Sandwich Bar is essential for laying the foundation of your venture. This plan will outline your mission, vision, customer segmentation, competitive analysis, marketing strategies, operational flow, and sustainability practices. It will serve as a roadmap for your business and play a crucial role in securing investors.

When creating your business plan for Sandwich Bar, it's important to clearly define your mission and vision . What is the purpose of your Sandwich Bar and what do you aim to achieve with it? Understanding your mission and vision will guide all your strategic decisions moving forward.

Customer segmentation analysis is another key aspect of your business plan. Identify your target market and understand their preferences, behaviors, and needs. This will help you tailor your menu offerings and marketing strategies to cater to your customers effectively.

Conduct a competitive analysis to understand the landscape of the sandwich bar market. Identify your direct and indirect competitors, analyze their strengths and weaknesses, and determine how you can differentiate your Sandwich Bar to stand out in the market.

Outline your marketing strategies in your business plan. How will you promote your Sandwich Bar to attract customers? Consider social media campaigns, local advertising, partnerships, and promotional discounts to create awareness and drive foot traffic to your establishment.

Define the operational flow of your Sandwich Bar in detail. From sourcing ingredients to preparing sandwiches, serving customers, and managing finances, every aspect of your operations should be outlined to ensure smooth and efficient functioning.

Integrate sustainability practices into your business plan. Consider sourcing locally grown ingredients, implementing waste reduction strategies, and reducing your environmental footprint. Consumers today are increasingly conscious of sustainable practices, and showcasing your commitment to sustainability can attract a loyal customer base.

Tips for developing a comprehensive business plan for Sandwich Bar:

• Consult with industry experts or mentors to gain insights and guidance on creating a solid business plan.
• Involve key stakeholders, such as your team members and suppliers, in the business planning process to ensure alignment and collaboration.
• Regularly review and update your business plan to adapt to changing market conditions and business needs.

Creating detailed financial projections for your Sandwich Bar is crucial in determining its financial viability and understanding the necessary funding required. These projections will help you plan for startup costs, analyze break-even points, forecast profits and losses, and manage cash flow effectively.

When developing your financial projections, consider the following key components:

• Startup Costs: Begin by outlining all the expenses associated with launching your Sandwich Bar. This includes costs for equipment, renovations, permits and licenses, initial inventory, marketing, and any other necessary expenses. Be thorough in your estimation to ensure you have a realistic understanding of the capital needed to start your business.
• Break-Even Analysis: Conduct a break-even analysis to determine the point at which your Sandwich Bar will start to make a profit. This analysis will help you understand how many sandwiches you need to sell to cover your operating costs and begin generating revenue. It is a critical factor in assessing the financial sustainability of your business.
• Profit and Loss Forecast: Develop a detailed profit and loss forecast for your Sandwich Bar to project revenue, expenses, and net income over a specific period, typically the first year of operation. This forecast will help you identify potential challenges and opportunities, allowing you to make informed financial decisions.
• Cash Flow Management: Managing cash flow is essential for the success of your Sandwich Bar. Create a cash flow projection to track the inflow and outflow of cash in your business. This will help you anticipate any cash shortages and plan accordingly to ensure the financial stability of your business.

Financial Projections Tips:

• Consult with a financial advisor or accountant to ensure accuracy in your projections.
• Regularly review and update your financial projections as your Sandwich Bar business grows and evolves.
• Use financial forecasting tools and software to streamline the projection process and improve accuracy.

Securing funding for your Sandwich Bar is a crucial step in bringing your business idea to life. There are various funding options available, including small business loans, venture capital, crowdfunding, and angel investors. Each option comes with its own set of requirements and benefits, so it's essential to explore all avenues to find the best fit for your Sandwich Bar.

Before seeking funding, it's important to have a solid business plan and financial projections in hand. This will not only give potential investors a clear picture of your Sandwich Bar's potential for success but also demonstrate your commitment and professionalism as a business owner.

Here are some tips to consider when exploring funding options for your Sandwich Bar:

Tips for Funding Acquisition:

• Research Funding Options: Take the time to research and understand the various funding options available to you. Consider the pros and cons of each option and determine which aligns best with your business goals.
• Prepare a Strong Pitch: When pitching to potential investors, make sure to have a compelling presentation that highlights the unique value proposition of your Sandwich Bar. Clearly outline your business concept, target market, competitive advantage, and financial projections.
• Build Relationships: Networking is crucial when seeking funding for your Sandwich Bar. Attend industry events, pitch competitions, and investor meetings to connect with potential investors who share your vision for the business.

Whether you decide to pursue a small business loan, seek out venture capital, launch a crowdfunding campaign, or pitch to angel investors, the key is to be prepared and confident in your business idea. With a solid funding strategy in place, you'll be one step closer to opening your own Sandwich Bar and delighting customers with delicious, fresh sandwiches made with locally sourced ingredients.

One of the most critical aspects of starting a successful Sandwich Bar business is finding the right location. The success of your Sandwich Bar will heavily depend on foot traffic and visibility, so it's essential to carefully scout for a strategically located venue that will attract your target customers.

When scouting for a location for your Sandwich Bar, consider factors such as visibility, accessibility, nearby businesses, and demographic suitability. Here are some key tips to guide you through the location scouting process:

Tips for Location Scouting:

• Conduct a thorough analysis of foot traffic in potential locations to ensure a steady flow of customers.
• Look for a location with high visibility, such as a busy street corner or a commercial area with plenty of passersby.
• Consider the accessibility of the location, including parking options and proximity to public transportation.

Additionally, take into account the demographic suitability of the area. Ensure that the location aligns with your target customer demographics and is in an area where your Sandwich Bar concept will resonate well. Consider factors such as nearby office buildings, schools, or residential areas that can bring in a steady stream of customers.

By carefully considering these factors and conducting thorough research during the location scouting process, you can set your Sandwich Bar business up for success from the start.

Permits And Licenses

One of the crucial steps in starting a Sandwich Bar business is securing all the necessary permits and licenses to operate a food service establishment. This includes obtaining health permits, food handler's certifications, and a business operation license.

Health Permits: Before you can start serving food to the public, you must acquire health permits from the local health department. These permits ensure that your Sandwich Bar meets the required sanitation and safety standards to prevent foodborne illnesses.

Food Handler's Certifications: In addition to health permits, it is essential for you and your staff to obtain food handler's certifications. These certifications demonstrate that you have received proper training in food safety and handling procedures, further ensuring the safety of your customers.

Business Operation License: To legally operate a food service establishment, you will need to obtain a business operation license from the local government. This license confirms that you have met all the necessary requirements to run a Sandwich Bar business in your area.

Tips for Obtaining Permits and Licenses:

• Start the permit application process early to avoid any delays in opening your Sandwich Bar.
• Ensure that you have all the required documentation and information ready when applying for permits and licenses.
• Consult with a legal advisor or local business association to ensure that you are complying with all regulations and requirements.

One of the key aspects of running a successful Sandwich Bar is establishing strong relationships with local farmers and suppliers. By sourcing fresh, high-quality ingredients, you can ensure that your sandwiches stand out from the competition and keep customers coming back for more. Here are some essential steps to take when building supplier partnerships for your Sandwich Bar:

• Identify Local Farmers and Suppliers: Begin by researching and reaching out to local farmers and food suppliers in your area. Look for those who can provide you with the freshest produce, meats, cheeses, and other ingredients for your sandwiches.
• Attend farmers markets or food expos to connect with potential suppliers.
• Consider visiting local farms to see firsthand where your ingredients are coming from.
• Don't be afraid to negotiate prices and terms that work for both parties.
• Negotiate Favorable Terms: When establishing partnerships with suppliers, it's essential to negotiate terms that benefit both your Sandwich Bar and the suppliers. This could include pricing, delivery schedules, and minimum order requirements. Aim to create agreements that are sustainable and consistent to ensure a steady supply of ingredients.
• Ensure Sustainability: In today's market, customers are increasingly looking for businesses that prioritize sustainability. By partnering with suppliers who share your commitment to environmental stewardship, you can attract eco-conscious customers and strengthen your brand image.
• Maintain Consistency: Consistency is key in the food industry. Work closely with your suppliers to ensure that you receive the same high-quality ingredients each time you place an order. This will help you maintain the taste and quality of your sandwiches, building trust with your customers.

Store Design And Setup

Designing the layout of your Sandwich Bar is a critical step in creating an inviting space for customers while optimizing your operational efficiency. The design should not only enhance the customer experience but also align with your brand's image and environmental values.

Layout Design: When planning the layout of your Sandwich Bar, consider factors such as flow of traffic, workstations for food preparation, seating arrangements, and display areas for ingredients and menu items. An efficient layout can help streamline your operations and improve service speed.

Equipment Installation: Invest in high-quality equipment that meets the needs of your Sandwich Bar. This includes refrigeration units for storing ingredients, sandwich prep stations, toasters, grills, and POS systems. Properly installed equipment can enhance productivity and ensure smooth daily operations.

Brand Alignment: Choose a design aesthetic that reflects the identity of your Sandwich Bar. Whether it's a modern and minimalistic look or a cozy and rustic feel, the design should resonate with your target audience and create a memorable dining experience.

Environmental Values: Incorporate sustainability practices into your store design by using eco-friendly materials, energy-efficient appliances, and implementing waste reduction strategies. Showcasing your commitment to environmental responsibility can appeal to environmentally-conscious customers and enhance your brand reputation.

Tips for Store Design And Setup:

• Consult with a professional designer to create a functional and visually appealing layout for your Sandwich Bar.
• Invest in equipment that is durable, easy to clean, and meets health and safety standards.
• Showcase your brand's unique personality through creative design elements and decor choices.

Launch And Marketing

After completing all the necessary steps to establish your Sandwich Bar, it's time to focus on launching your business and implementing a robust marketing strategy to attract customers. Here are some key strategies to consider:

One of the most effective ways to create buzz and attract initial customers to your Sandwich Bar is by organizing a launch event. This event can serve as an opportunity to introduce your concept to the community, offer samples of your delicious sandwiches, and generate excitement about your new business.

Tips for a successful launch event:

• Invite local influencers or food bloggers to attend and share their experience on social media.
• Offer special discounts or promotions exclusive to launch event attendees to encourage repeat business.
• Create a visually appealing and engaging setup to showcase your menu and attract attention.

Effective marketing is crucial for the success of your Sandwich Bar. Consider a multi-faceted approach that includes:

• Social Media Campaigns: Utilize platforms like Instagram, Facebook, and Twitter to showcase your sandwiches, engage with customers, and promote special offers.
• Local Advertising: Place ads in local newspapers, magazines, and on community bulletin boards to reach potential customers in your area.
• Partnerships With Local Businesses: Collaborate with nearby businesses, such as coffee shops or gyms, to cross-promote each other and expand your customer base.
• Promotional Discounts or Loyalty Programs: Offer discounts to first-time customers or create a loyalty program to encourage repeat visits and build customer loyalty.

By implementing a well-rounded marketing strategy that includes both online and offline tactics, you can effectively reach your target audience, drive foot traffic to your Sandwich Bar, and build a loyal customer base. These efforts will help ensure the success and growth of your business in the competitive food industry.

Opening a sandwich bar business requires careful planning and execution. By following the 9 steps outlined in this checklist, you can establish a successful build-your-own sandwich bar that offers fresh, locally sourced ingredients and a unique menu. From concept validation to financial projections, funding acquisition, location scouting, permits and licenses, supplier partnerships, store design and setup, and launch and marketing strategies, each step is crucial in ensuring the business's success. By laying a strong foundation and implementing effective strategies, your sandwich bar can thrive in the competitive food service industry.

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• Summer Recipes

Creating a Sandwich Bar on a Budget

Published: Oct 5, 2019 · Modified: Jun 19, 2021 by Jessica Fisher

Offering a sandwich bar for dinner is a great way to feed a crowd on a budget. Here are some tasty ideas to include in your build-your-own sandwich bar. This is a great quick dinner to make any night.

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It’s your turn to host your friends for supper. Whaddya gonna serve?

You could go all out and have your dinner catered. You could spend big bucks on party trays from Costco. You could tear your hair out making all your guests’ favorite foods.

No, thank you.

Luckily, there are lots of great dinner options for serving a crowd on a budget: a Mexican buffet , a pasta feed, a simple roast chicken . These are all well and good, but don’t overlook one of your simplest and more affordable options:

The Sandwich Bar

Sandwiches have been around for a long time, traced back at least 200 years. Originally a gambler’s meal , they have become a staple all around the world.

Sandwiches are among some of my favorite good cheap eats. There are so many ways that you can combine ingredients that there are endless opportunities to make your sandwiches different and unique.

Sandwiches specifically are highly portable, one-dish dinners that please almost anyone, especially picky eaters . And serving a Sandwich Bar allows your guests the freedom to prepare their meal exactly as they want it.

What do you need for a sandwich bar?

A Sandwich Bar is one of the easiest buffets to assemble. At the bare minimum, you’ll need bread or rolls, meat, cheese, lettuce, tomato, and some kinds of spreads.

What goes with deli sandwiches?

Man cannot live on bread (or sandwiches) alone, so be sure to serve a few select side dishes. It doesn’t have to be anything fancy. A trio of a veggie tray , side salad, such as potato salad , and a fruit tray are easy and delicious to go alongside sandwiches.

Of course, you can get more creative with your side dishes, but since you’ll already be setting out a colorful array of ingredients, don’t feel like you have to go hog wild. Okay, add some bacon to the buffet!

How much deli meat do I need per person?

People differ in their preferences as to how meaty a sandwich should be, but as a general rule, plan to have 2 to 3 ounces of deli meat per person. Round up as you do your calculations so that you’ve got a little extra in case folks want seconds.

Your sandwich bar will be so delicious, you know they’ll want to go back for more!

What equipment do you need for a sandwich bar?

You don’t need any special equipment for a sandwich bar other than plates and platters to hold the ingredients and your guests’ creations as well as knives for cutting and spreading.

It is nice to offer folks the option of making grilled sandwiches, so if you have a panini press or an electric griddle, those are nice to set out.

What ingredients to include in your sandwich bar:

Breads for making sandwiches.

Since bread is the foundation of a sandwich, it’s important to have the good stuff. Consider these options:

• baguette 
• sliced sourdough  
• whole wheat focaccia
• Italian sandwich rolls
• homemade hamburger buns  

In most cases, it will cost less if you bake your own bread over buying deluxe bread. The added benefit of fresh baked bread is that your sandwiches will be over the top amazing!

However, bread baking is not for every one or every situation. That’s when shopping at ALDI or Costco can offset this expense. You can also shop the sales at your local grocery store and see if they have coupons as well.

Protein-rich Sandwich Fillings

Next in the sandwich ingredient hierarchy is the protein. It doesn’t have to be pricey. Quality deli meats often start at $10/pound, but there are some tasty work-arounds. Consider some of these options:

• Sliced turkey breast ($3.99/pound at Costco, when you buy the whole breast)
• Grilled chicken ($1.69/pound on sale)
• Grilled tri-tip ($3.99/pound on sale)
• Canned tuna ($0.88/can)
• Hard boiled egg ($0.15 each)
• Sliced cheese ($3.50/pound at Costco)
• Chicken patties  (about $4/batch)

These prices are current as of 10/4/2019, San Diego County.

Sandwich Spreads and Other Fillings

The sandwich spreads and other fillings are where the fun comes in!

Fresh veggies and spreads add richness and flavor. They also show that you’ve put a little more care into the preparation. I try to keep these items prepped and ready to go in a divided plastic container in the fridge, so that sandwiches can be a quick, pick-up meal any day of the week.

Buy these items on sale when you can. Since no sandwich requires a lot of any one of these items, you don’t need to buy a ton for your Sandwich Bar.

Offer a selection of the following:

• Sliced tomatoes
• Shredded or leafed lettuce
• Sliced onion
• Sliced peperoncinis
• Sliced bell pepper
• Sliced cucumbers
• Vinaigrette
• Chipotle Mayonnaise
• Cooked, chopped bacon

Want to put together a fancy Sandwich Bar?

If you want to give the folks at your table a little more direction and possibly have more fun, build your sandwich bar around two or three of these sandwich recipes.

You can lay out all the ingredients in one space to let folks mix and match as they like, but then you can also, post the printed recipes around your buffet so that they can follow a recipe if they want to.

While I love me a $5 footlong sub, I also keep in mind that I can make a ton of sandwiches at home for a fraction of the price. And usually they are tastier than what we would buy in a sandwich shop!

Serving a sandwich bar is a great way to save money .

Sandwich Bar

• cutting board
• bread knife

Ingredients

• 8 slices bread or rolls of your choosing
• ½ lb select deli meats, such as turkey, roast beef, or ham
• ½ lb sliced cheese, such as cheddar, swiss, and provolone
• 1 head lettuce, washed and leafed
• 2 roma tomato sliced
• 1 sweet onion sliced
• 1 batch chipotle mayo
• 1 batch herbed mayonnaise
• assorted condiments, such as mustard, mayo, and butter
• assorted pickles or peppers

Instructions

• Lay out platters of each element and allow diners to assemble their own sandwiches.
• If desired, provide a griddle or panini press for those who want a hot sandwich.

What do YOU include in your sandwich bar?

Reader Interactions

August 23, 2016 at 4:29 pm

BLT’s!

Madame Defarge

August 21, 2015 at 10:46 pm

I’m a vegetarian nowadays. This week for my mother and sister’s birthdays, I’m serving the gathering Toby’s Tofu Pate, which is even better than real egg salad; soy “bacon” (I call it “fake’n”); two kinds of cheese (gotta have some animal protein, I guess), and whole wheat bread–and of course condiments, lettuce, etc. They’re southerners, so i’m considering putting out a jar of pimento cheese as well. If they’re not satisfied they can drive to a fast food joint later. But I want them to feel full and fully fed, and I think this will work. There’s no one in my family who __needs_ _ more white flour, cholesterol, and animal fat in our diet. Oh, yes, and store-bought cake for dessert. For medicinal purposes only. 😉

After noticing frowns and excessive pickiness in certain family members (coughSisterscough) I vowed to NEVER cook for anybody again. I will assemble food, though, and might break down and throw some oven fries on a platter. Or not.

October 06, 2014 at 10:23 am

Where’s a good cheap place to buy all the stuff to make sub’s for a party?

Denise Crowell

February 08, 2024 at 11:35 am

kootenayAnnie

March 21, 2012 at 8:17 pm

Thank You, I had no idea what peperoncinis were! I had thought something like Peperoni, now that would be quite different. Just now I have been making a club house putting out everything and make it yourself ( I just cooked a turkey yesterday and got the fixings I didn’t have so that today was a no cook day for me, and tomorrow – but I will start my turkey soup, and stock, and I think i will use my large muffin tins and make some turkey pot pies.) Yesterday we were having snow and Turkey was so appropriate! LOL.

March 18, 2012 at 9:32 am

What is “peppeoncinis”? I like to make our subs, or french bread for sandwiches. I also make up tuna salad, or egg salad, or left over meat put in the blender ( or food processor) and blended up with some relish and mayo ( I usually use any opened relish I have on hand and i do make my own relishes and can them in the summer). Then provide what I have in the fridge to go with the sandwich or as a side ( Dh , does not like anything veg in the sandwich, but loves coleslaw on the side, so I have that or potatoe salad for him _ and that uses up a lot of leftover potatoes).

March 20, 2012 at 8:58 am

@kootenayAnnie , peperoncinis are Italian pickled peppers, sometimes spicy, depending on what you buy. Love them!

August 08, 2011 at 9:04 pm

We are a family in the minority here I guess. None of us really like cold sandwiches. The only cold sandwich we eat is PB&J (although I prefer it hot and grilled!). I like all the pieces of a cold sandwich and tend to eat them all separately if I am somewhere serving cold sandwiches (like a baby shower or something). My 4 year old does this too. Weird I know. We all just prefer hot sandwiches!

December 22, 2016 at 4:44 am

I’ve hosted a Sandwich Bar gathering before, I too like hot sandwiches so I decided to do all the ingredients of a cold sandwich and offer my guests my Panini press and toaster oven. I was surprised to see that I was pretty much the only one that wanted a hot sandwich. something about all that melted cheese! Yum! We are hosting another one, this time for our gender reveal party and we will do the same thing. 🙂 I think people liked having control over what they used for their sandwiches.

Jessica Fisher

December 22, 2016 at 9:09 am

Great party idea to pull out the panini press!

August 07, 2011 at 9:58 am

I always have stuff on hand for a quick set up with the Boys (band) being around so much … Every time I go to Costco, we get the black forest ham and the honey smoked turkey (like you said $3.99/lb and I prefer over boars head) … we always (almost) have olives, peppeoncinis, banana peppers, regular peppers, onions, sweet peppers and lettuce on hand. Cheese is always a given (well, except during July’s Pantry Challenge!) and I try to keep the real deal on hand 🙂 Bread is the only issue since it will NOT stay fresh for long so generally, I can tell one of the boys to stop on the way over and pick up a couple of loaves (italian or french works the best imo) … funny, I just thought: the salads are the same as the sandwiches, only without the bread! 🙂 And we ALWAYS have salad stuff 🙂 Try the honey mustard dressing by Tammys Recipes for a spread….delicious!!

August 06, 2011 at 12:29 pm

We like subs too, so we make our own at home with Jimmy John’s day old bread- it’s about $.50/loaf. Also, we try to hit up the deli at one of our local grocers near closing time. They often pull out bags of pre-slice deli meats that previous customers changed their mind about. The selection can vary quite a bit, but it’s often marked down to about $1/lb.

August 05, 2011 at 6:57 am

I’d suggest buying hotel style turkey breasts (often 99/lb on sale around here), roasting them, pulling the breast meat off in 2 large pieces, wrapping and freezing until needed. Make a stock out of the carcass and freeze for soups, gravy. 99/lb turkey is a good deal!

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HELPING SMALL BUSINESSES SUCCEED

MORE DONUTS:

What do you need to know about starting a business?

• Start up business ideas
• Set up a business
• Skills and wellbeing
• Business planning
• Financing a business
• Tax and National Insurance
• Business law
• Sales and marketing
• Business premises
• Business IT
• Grow your business
• Types of business
• Testing business ideas
• Product development
• Is running a business really for you?
• Start up stories
• Registering as a sole trader
• Setting up a limited company
• Business names
• Buy a franchise
• Buying a business
• Starting an online business
• Setting up a social enterprise
• Small business support

Protect your wellbeing from the pressures of starting and running a business and develop key business skills.

• Dealing with stress
• Manage your time
• Self-confidence
• Write a business plan
• Business strategy
• Start up costs
• Start up funding
• Setting prices
• How to work out tax and NI
• Accounting and bookkeeping
• Licences and registration
• Protecting intellectual property
• Insurance for business
• Workplace health, safety and environmental rules
• Looking after your customers

Promote your business

• Your marketing strategy
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• Commercial premises
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• People management
• Recruitment, contracts, discipline and grievance
• Employment rights
• Hiring employees
• Buying IT for your new business
• Basic IT security
• Preparing for business growth
• How to scale up your business
• Funding business growth
• Start exporting
• Personal development

How to start up a sandwich bar

Sandwich bars may sell made-to-order sandwiches and pre-packed items, as well as offering a delivery service to local businesses. You'll find all you need to start up and run your own sandwich bar in our practical guide.

Research your target market

Establish your customer profile, decide what to sell, decide what services to offer, buy an existing business.

When you plan your new sandwich bar business it's very important to research your market - how much potential demand there is and how well that demand is already being met.

Estimating demand

You'll want to make sure that there's enough demand for a sandwich bar in your area. Be aware that competition in the sector can be intense - sandwiches and other snacks are available from many other types of outlet. You're likely to face strong competition from some or all of the following among others:

• other sandwich bars, coffee shops and juice bars - including the big chains like Subway, Pret a Manger, Starbucks and Costa
• retail bakers (look out for Greggs shops) and delicatessens
• supermarkets and other large shops like Boots, Marks & Spencer and WH Smith
• cafes, take-aways, snack bars and pubs
• the major burger chains - many sell 'deli style' sandwiches too
• convenience stores, petrol stations and newsagents

Try to find out how many outlets there are in your area that already sell sandwiches and take-away food. A walk around the immediate locality will give you a good idea as to who's selling what.

Carrying out a head count on different days of the week outside an existing sandwich bar could help you to build up a picture of demand in your area. It'll also help you to find out how busy your competitors are at certain times of the day - and what days are likely to see heaviest demand. You could also do a footfall count outside your own proposed location at various different times of the day to get a feel for how much passing trade there's likely to be. Again, try to repeat this exercise on a number of different days of the week. Ideally, do this before you make a final decision on your premises.

Check out the local area to make sure there are enough potential customers nearby. For example, are you near to lots office buildings and businesses, or maybe a university or busy shopping area? Try to find out whether there's a sandwich business already delivering to local offices and businesses. If not, you could ask if you can advertise your range to their employees.

Checking out the competition

You'll want to make sure that plenty of customers will choose your sandwich bar rather than your competitors, so it's a good idea to visit your main competitors' outlets to find out what you're up against. You could visit each of your competitors during the peak lunch time period. Try to find out as much as you can about their businesses during your visit, including:

• how busy they are and how long it takes to get served
• whether they offer made-to-order or pre-packed sandwiches
• what range of fillings they offer and what types of bread they use
• what prices they charge and whether they have any special offers
• what other products they serve
• whether they offer eat-in sales as well as take-away
• what standard of service they offer

Also note down any other general impressions that occur to you. It will help if you're as thorough as possible when you do your market research.

Use your research to try to think of anything that will give you an advantage over your competitors. For example, your research may immediately indicate that there's a niche that none of your competitors cater for, such as offering Fairtrade or organic products. You might find that all the sandwich bars in your area have lengthy queues - this could indicate that customers would appreciate a sandwich bar that offers pre-packed sandwiches so they can buy their lunch more quickly.

Find out what people want

It's a good idea to talk to as many potential customers as possible before you open and ask them what they would look for in a good sandwich bar. This feedback can be invaluable in helping you to target your offer and provide an outlet that gives customers what they want. You could ask as many potential customers as possible questions like:

• what sort of breads and fillings they prefer
• do they prefer pre-packed or made-to-order sandwiches
• what other food and drinks they would consider buying
• what opening hours would suit them best
• what they think of your proposed prices
• whether they would use an online or telephone order service (if you are thinking of offering this)
• what, if anything, they dislike about other outlets that offer sandwiches in your area

Don't forget that market research can be ongoing. Once your sandwich bar is open, talk to your customers - find out what they like and dislike about your outlet. Note down which items on your menu are popular and which ones don't sell well. You could even have a suggestion box on the counter to encourage comments and suggestions to ensure that you continue to meet customer demand.

Making sandwiches for other outlets

If you decide to offer wholesale pre-packed sandwiches to other businesses like cafes and newsagents, or even to larger organisations such as hospitals, you could:

• count the number of potential wholesale customers in your area, say within a five to ten mile radius from your premises
• approach some and ask them if they would be interested in buying your sandwiches on a wholesale basis

When you get a positive response - either a definite "yes" or an expression of interest - ask them:

• what sort of fillings and other products they would want, and what price they would plan to sell them
• how many sandwiches they would want and on what days
• what profit margin they would look for - is this enough to cover your costs and profit

Agree who would bear the cost of any unsold sandwiches. If you offer pre-packed sandwiches wholesale to other retailers then it's usual to offer them a limited or full sale or return option.

Bear in mind that the pre-packed wholesale sandwich trade is very competitive. If you're going to persuade a potential customer to change their supplier you'll probably have to offer them a better range of products or improved terms of trade than they currently receive.

Research current trends, plus legal and tax issues

• Sector trends for sandwich bars
• Legal issues for sandwich bars
• VAT rules for sandwich bars

The range of sandwiches, fillings and other products you offer, the location of your sandwich bar, and whether you decide to target the upper or lower end of the market will determine who your customers are likely to be. Your market research should help you to identify any gaps in the local market and the type of customer you should target. You may have several different types of customer, including:

• working people buying their lunch - particularly if you're situated near to a business area with many offices or an industrial estate. You may build up a core of regular customers but to retain them don't forget that office workers expect to be able to order in advance by phone, text or online and that they will find free wi-fi on your premises
• shoppers - if you're located in or near to a busy shopping area you're likely to be busiest on weekends and you may rarely see the same customer more than once
• students if you're near to a university or college
• holidaymakers if you're located in a tourist area
• business people who require sandwich platters for business lunches and members of the public wanting platters for functions
• other retailers if you wholesale ready-made sandwiches

Estimating the average spend

When estimating your income, you need to make an estimate of how many sandwiches and other food and drink products each customer might typically buy - and how much they're likely to spend on each visit. As part of your market research you could check out what customers normally buy when they visit other sandwich bars in your area. Does it vary depending on the time of day, day of the week or time of year? Use this aspect of your market research, and your proposed pricing policy, to estimate what the average spend per customer is likely to be. Recent research showed that in London the average price of a sandwich was about £3.50 while elsewhere the average was a little under £3.00. On average, people spend a little over £6 on their weekday lunch. The typical average lunch spend varies around the country, with Londoners spending £6.60 and people in Manchester (the cheapest) spending £5.50. At weekends people will spend more, with the average spend being around £7.00.

Special offers and discounts

To attract customers to your sandwich bar, and to encourage them to visit more often and buy more when they're there, you'll probably offer some special deals from time to time. You could, for example:

• offer a 'meal deal' where sandwiches, crisps and a drink are cheaper when purchased together
• operate a loyalty card scheme whereby customers receive a stamp every time they buy a sandwich - or equivalent product - and receive a free sandwich and drink when they have collected a certain number of stamps - say eight or ten
• offer introductory discounts on new products
• give discounts to students and pensioners

If you have any trade customers you'll probably offer them a discount as a matter of course. How much discount you decide to offer will depend on your pricing policy and on the level of local competition. If you offer sandwiches wholesale to other retailers it's usual to offer them a limited or full sale or return option.

It's important that you keep a close eye on any special deals you offer to make sure they're working for you. Don't forget that special offers and discounts can affect the average spend per customer.

Make sure that any staff you have are clear about what special offers are available at any given time. They'll need to know who's eligible for a discount and how they can get. Think about how much discount - if any - you'll allow to your staff and what if anything they can eat on the premises free of charge.

Most of your income is likely to come from the sale of sandwiches, baguettes, rolls and so on. Sandwiches are very versatile and there's a huge range of fillings that you could offer your customers, from popular traditional fillings to more imaginative and exotic options. There's also a wide range of different breads available, ranging from traditional white and wholemeal breads and rolls to wraps, baguettes, ciabattas, paninis and bagels.

Your market research should give you a good idea of what fillings and breads might be popular - and of which end of the market you should target. You may have noticed that there's a gap in the market that your outlet can fill. For example, maybe no other outlets offer sandwich fillings made from locally sourced organic produce. Perhaps there's demand for gluten-free or dairy-free sandwiches, low calorie options, or for vegan products. At the end of 2015 Pret a Manger introduced a vegetarian range. While meat remains a very important filling, they expect the vegetarian range to prove popular, particularly sandwiches with avocado fillings, and sales are expected to grow.

Think about whether you'll offer eat-in sales as well as food to take-away. Space is an issue here - you'll probably need larger premises if you're planning to offer eat-in sales and you may need to take on extra staff. Current bye-laws govern the requirement for providing toilet facilities so you should ask your local council for guidance on the legal position in your area. Some councils insist that a cafe with any seating must provide toilets while others require the provision of toilets only where there are more than ten seats. Also consider whether you'll offer pre-packed sandwiches, made-to-order sandwiches or a mixture of both. Once again your market research should give you an idea of what would attract more customers.

Drinks and other products

Strong competition means that just offering a range of sandwiches and drinks probably isn't enough. There are very many other products you could offer to appeal to a wider range of potential customers and to set yourself apart from your competitors. As well as your range of sandwiches, you might decide to sell some of the following:

• hot drinks like continental coffees and a variety of teas
• cold drinks such as bottled water, soft drinks, fruit juices, smoothies, milkshakes and so on
• breakfast foods like porridge, croissants, egg rolls and prepared fruit - research in 2016 showed that a third of people now eat breakfast out
• toast, teacakes, Danish pastries and so on
• a range of pastry products such as sausage rolls, pasties, pies and quiches
• hot food - this might include toasted paninis, soups, and jacket potatoes. Hot foods sell particularly well during the colder winter months but can cause queues if they take time to cook or heat up
• pre-prepared salads and pastas
• snacks like crisps, cereal bars and confectionery
• organic and Fairtrade products including coffee, tea, fruit and fruit juices
• desserts - for example cakes, yoghurts and ice creams

When thinking about what other products you might offer, it's worth considering:

• whether there's enough demand for the extra products you plan to offer - or if you can create it
• the amount of space your premises has and where you will display any extra products - for example, will you have room for an extra chiller, or for cooking and heating equipment if you decide to offer hot food
• where you will purchase your additional stock from - will you be able to get it from your current suppliers
• whether wastage will be a problem if you plan to sell many perishable items

Because the take-away food industry and the lunch-time market are so competitive it's important to keep up with changes in consumer preferences. You should probably introduce new menu choices at fairly regular intervals. But it goes without saying that you should take care not to replace any customer favourites.

Although your sandwich bar will probably be open for most of the working day, in many areas you're only likely to be really busy for a two hour period around lunch time - this will be your peak sales period each day. It's a good idea to be fully prepared for the lunch time rush when speed of service can be vitally important. You'll want to be able to serve as many customers as possible during this period and you don't want potential customers to be put off by the sight of long queues.

As the freshness of products is key in the sandwich trade - both from a hygiene and presentation point of view - you'll probably use the morning to make most of your pre-packed sandwiches, fillings and any other products that need advance preparation. This can enable you to serve more customers and avoid the build up of queues at peak times. You may decide to provide your customers with an ordering service by phone, text or email. You can make up these orders during the morning, in good time to be delivered or collected.

The afternoon is likely to be much quieter, although you may get some late lunchers and, later on, some customers looking for an afternoon snack. The afternoon can be a useful time to make up any fillings and other products that can be safely stored for a day or two and to generally catch up with cleaning, stocktaking, ordering supplies, bookkeeping and so on.

Made-to-order sandwiches

You can offer your customers pre-packed sandwiches which you prepare and package in advance or you can offer made-to-order sandwiches. You may, of course, decide to offer both. You could make up a range of sandwiches and display them in a chiller for customers who are in a hurry and offer made-to-order sandwiches for people who have a bit more time. There are advantages and disadvantages to both options, but your market research should give you some idea of which would be most popular - and profitable - in your particular location.

If you plan to make sandwiches to order, it can be a good idea to time yourself making various sandwiches to find out approximately how long it will take you - or a member of staff - to serve a typical customer. This will give you a rough idea of how many customers you will be able to serve in an hour.

Running a delivery service

You might decide to run a delivery service and deliver sandwiches to local workplaces in time for lunch. If you do, there are two options available to you:

• making up a range of sandwiches 'on spec' before lunch time and taking them and other products to places where you expect there to be demand - such as local offices, factories and so on
• providing your customers with an ordering service by phone, text or email and then delivering orders in time for lunch

Generally your delivery driver will collect the money when the sandwiches are delivered - or sold on spec. You'll need to make sure that you have trustworthy staff and good record keeping systems in place. You'll also need to make sure that whoever makes the deliveries has a cash float so that they can provide change.

Minimising wastage

It's essential that the ingredients you use are fresh and in peak condition. It's inevitable that you'll suffer some wastage each day because almost all the ingredients you'll use are prone to spoiling very quickly. Wastage may also occur during the preparation stage if your staff are careless or inconsistent with the amount of fillings used. Try to minimise wastage by training staff in correct handling techniques, cold storage procedures, efficient use of ingredients and portion control. Some wastage will be caused by the fact that you won't sell every single item every day and some stock can only be kept for a day or two at most. To cut down on this type of wastage you may reduce availability and run down stock after the key lunch time period. It's a good idea to reduce the price of unsold sandwiches towards the end of the day to try and get something for them rather than throwing them away.

Other services

Think about whether there are any other services you could offer to attract customers away from your competitors. For example, maybe no other outlets in your area offer eat-in facilities (remember, though, to ask your local council for guidance on the legal requirement in your area for the provision of toilet facilities for eat-in customers ). You could have some tables outside, although you'll probably need permission for this from your local highways department. You could provide wifi internet access by setting up your own hotspot - this is very popular with sandwich bar and cafe customers.

Recent years have seen an increase in consumer demand for ethical products that help producers and farmers in the developing world. You could meet this demand by offering a selection of Fairtrade products such as teas, coffees, fruit juices, fresh fruit and snack bars from the large range of food and drinks available. This would show your customers that your business is ethically aware and committed to fighting global poverty. Offering Fairtrade products can also be a good way of differentiating your business from its competitors.

What is Fairtrade

Fairtrade guarantees a fair deal for producers and farmers in the developing world by making sure they receive a fair price for their goods and products. Fairtrade items are generally slightly more expensive than similar products - but more and more consumers are happy to pay a little extra to help producers become self-sufficient. All Fairtrade products are marked with the easy to identify Fairtrade Mark and there's a huge range available.

How does it work

The Fairtrade system works by paying producers a set minimum price for their goods, giving them a living wage. On top of this, producers also get an extra sum of money to invest in their business or community. This is called the 'social premium'.

In return, Fairtrade producers must meet certain standards. These are set by Fairtrade International. As a sandwich bar it's unlikely that you'll deal directly with producers - you'll probably purchase your Fairtrade goods from a UK supplier.

Sandwich bars that sell food and drinks which already carry the Fairtrade Mark don't need to be licensed by the Fairtrade Foundation. But if you plan to use the Fairtrade Mark in any of your advertising you'll need to have it approved by the Foundation.

Where to get Fairtrade goods

Only licensees, such as manufacturers and importers that are registered with the Fairtrade Foundation can apply the Fairtrade Mark to a product. You'll probably purchase your Fairtrade marked goods from a registered wholesaler or catering distributor in the UK. More and more suppliers are offering Fairtrade products so it's worth asking your current suppliers if they have a Fairtrade range available. The Fairtrade Foundation website has a list of registered wholesalers and catering distributors that sell Fairtrade marked products to the food service industry throughout the UK.

When you buy Fairtrade certified food and drink products from a registered wholesaler or catering distributor, you can probably expect to pay a little more than you normally would for similar products. The slightly higher trade prices cover the set price and social premium that are paid to the farmer or producer, as well as supply chain costs and the cost of certification and product licensing.

Although trade prices for Fairtrade products are higher, you can probably charge your customers a little bit more for them. You may benefit from extra sales, too. The Fairtrade Foundation isn't involved in setting retail prices, so the mark-up you add is entirely up to you. While you'll want to cover your costs and retain a healthy profit margin bear in mind the purpose and aims of the Fairtrade movement when you set your prices. The Fairtrade Foundation makes it clear that profit margins on Fairtrade items shouldn't be higher than on similar products.

Get your pricing right

Setting the right price right is essential. Too high, and you'll struggle to make the sale. Too low and you're throwing away potential profit.

Make sure the price is right with our free product pricing calculator. Answer a few quick questions to work out what you should be charging.

GET THE FREE CALCULATOR

Promoting Fairtrade goods

Offering Fairtrade products can be an attractive selling point for your sandwich bar and can help to attract new ethically aware customers - so it's important to make sure that potential customers know about the Fairtrade products you offer.

The Fairtrade Foundation is responsible for promoting Fairtrade in the UK and can provide useful materials and advice to help you to advertise your Fairtrade products. Any materials that include the Fairtrade Mark, such as menus or promotional posters, must be approved by the Foundation.

The Fairtrade Foundation organises a Fairtrade Fortnight each year to promote the Fairtrade system. This could be a good time for you to raise awareness of the Fairtrade food and drinks you offer. For example, perhaps you could run a Fairtrade tasting evening or have leaflets printed promoting the benefits of Fairtrade and highlighting the Fairtrade food and drinks you serve.

Where to find out more

The Fairtrade Foundation is part of the international Fairtrade movement and oversees all aspects of Fairtrade in the UK. For more information on Fairtrade, the range of products available and how you can get involved visit the Fairtrade Foundation website.

It's very important to ensure that your sandwich bar outlet projects the right image and that it maintains consistently high standards. And it's vital to let would-be customers know about your business and its key selling points.

The right image

It's vital that your sandwich bar projects the right image to customers. Everything about the way it looks and feels should be designed to attract new customers and encourage existing customers to keep coming back regularly.

It's important to make the outside of your outlet as bright and as attractive as possible. Try to make sure that signs are professionally made, clean and in good condition. Use colours, lettering and designs that you feel put across the right image for your sandwich bar. Bear in mind that things like keeping your windows spotlessly clean and the condition of paintwork can make the difference between a sandwich bar that looks like it's up and coming and one that looks old and run-down.

It can be a good idea to advertise daily or weekly specials on a board or sign outside your outlet. This will help attract passing trade and also show potential customers that you're open for business. You could use your window to advertise special offers, promotions and any services you offer - like outside catering. It's probably a good idea to place a menu card and price list in your window too. However, be careful not to clutter your window with signs and notices - it's good for business if passers by can look in and see an inviting and well-stocked sandwich bar.

The interior of your sandwich bar is very important. You can use the way you decorate and the fittings and fixtures you install to help create a brand image and a certain type of ambiance for your outlet. Think about how you'll display your products. This may depend on whether you offer made-to-order sandwiches, pre-prepared sandwiches, or both. For example, you could display a range of pre-prepared sandwiches, drinks and other products in a chiller unit and a range of fillings for made-to-order sandwiches in a chilled serve-over counter.

Think about how you can encourage customers to buy more from you. Don't overlook the importance of 'impulse' buys. You could place a rack of confectionery, cakes or muffins - or a basket of fresh fruit - next to the till. Talk to your suppliers about attractive point-of-sale materials. Encourage staff to ask customers if they would like any additional products to go with their sandwich, such as a drink or packet of crisps, and to draw their attention to any special offers like a 'meal deal'.

Quality standards

People have come to expect high quality standards and it's important that:

• your premises are clean and smart at all times, with a good food hygiene inspection rating from the local authority
• your displays and sandwich fillings always look fresh and appetising - it's essential that you remove any items that look past their best
• if you offer eat-in sales, you make sure that tables are cleaned between customers - tables with leftovers from the previous customer can be very off-putting and could well lose you business

Your staff play a very important role in shaping the image of your sandwich bar. Customers will expect them to be friendly, helpful, polite and efficient. It could be a good idea to have a staff uniform.

Remember that satisfied customers who have enjoyed their visit to your sandwich bar are likely to tell their friends and encourage them to visit your outlet.

Advertising and marketing your sandwich bar

Once you're happy with the way your sandwich bar looks, you'll want to make sure that as many potential customers as possible know about it.

There are a number of things you could consider doing to market and promote your business. You could, for example:

• launch your own website showing the range of sandwiches and other products you offer and listing any other services
• use online social media to raise the profile of your cafe and keep in touch with customers - you could use Facebook and Twitter to tell people about your latest menu and special offers, for example
• take steps to manage and take full advantage of your Tripadvisor listing
• advertise in local newspapers and directories
• have leaflets printed and deliver them in the local area - you could include your price list and highlight key features like special deals or Fairtrade products
• put up a board outside your outlet advertising daily or weekly specials
• have your logo and contact details professionally sign written on your vehicle - your vehicle can be a good advert for your business so try to keep it clean and smart to project the right sort of image
• participate in industry promotions such as British Sandwich Week
• join a trade association such as the British Sandwich Association (BSA) and have your details listed in their online sandwich and cafe finder directory
• provide some free samples, together with a price list and details of your range, to prospective customers for any delivery service you propose offering
• operate a loyalty scheme whereby customers have a card and receive a stamp each time they buy a sandwich or an equivalent product. When they reach a certain number of stamps, for example eight, they receive a free sandwich and a drink - this can help to ensure repeat custom

Almost all types of advertising have a cost, whether it's financial or your own time and effort - or both. You need to make sure that the beneficial effects of your advertising and promotional efforts are worth the time and money spent on them. It's up to you to decide which types of advertising and promotion work best for you - sometimes this is down to trial and error.

You might decide to buy an existing sandwich bar rather than start your own venture from scratch. Buying a going concern can mean that the products, customers, regular sales, staff, premises and equipment are already in place.

But  buying a business  can be a hazardous, expensive process unless you have the right skills and experience on your team, including legal and financial know-how. Establish the genuine trading and financial position, so that the price you pay for the business is not too high.

Franchising can be a good 'halfway house' between starting out from scratch and buying an existing business. If you purchase a franchise you'll still be setting up your own business, but you should benefit from the experience, resources and perhaps the name of a business that is already successful.

There are various different franchises available in the sandwich bar trade. Some are well known national outfits like Subway, while others are more regionally based. An online search for 'sandwich bar franchise' should turn up a range of different opportunities.

Although different franchise schemes vary in detail, most feature the following key points:

• as a franchise holder, you'll remain self employed but you'll use the identity (corporate colours, logos, trade name and so on) of the franchisor
• in return, you'll pay the franchisor a fee - this might be a one-off investment, a monthly charge, or a combination of both
• both you and your franchisor will have to fulfil certain obligations and maintain certain minimum standards

You may have to buy some, most or all of your stock or ingredients from your franchisor.

Many franchisors will provide you with any specialist training you require, help with advertising and marketing, as well as advice and support on a range of business and technical matters.

Details of the above points are set out in the franchise agreement or contract, which both you and your franchisor will sign. The agreement will also deal with other matters, for example any territorial exclusivity due to you and the minimum period for which the franchise will run.

Before entering into a franchise agreement, it's advisable to check the terms carefully to be sure that you're getting a reasonable deal. Go through the contract with your solicitor before signing anything. More information about franchising is available on the Franchise Info website. Information is also available from the British Franchise Association (BFA).

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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 June 5, 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. 

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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

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”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

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

Here are the key components of a business plan:

• 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. 

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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 SEO  — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• 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.
• 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.
• 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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Sandwich Restaurant Business Plan

Start your own sandwich restaurant business plan

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.">

Pita Pal is a new restaurant that serves fresh and healthy pita sandwiches. Strategically located in downtown Washington, PA, Pita Pal will quickly become the premier lunch destination downtown, serving locals and students. Pita Pal will attract 35% new customers a year after the second year and will reach profitability by the end of year two.

Keys to Success Pita Pal has identified three keys that will be instrumental in its success. The first is the design and implementation of strict financial controls, which will be important, since the restaurant industry is quite competitive. The second requirement is that it offers high-quality fresh and healthy food to clearly stand out from the competition. The last key is the need to ensure proper visibility. Pita Pal must have a effective, targeted marketing campaign to support the opening of the store in order to ensure enough business.

Food Pita Pal will offer the community an exciting menu of pita sandwiches, salads, deserts and coffee beverages. Pita bread, Middle Eastern flat bread, is used as a healthy, tasty foundation for a variety of sandwiches. The customers will have the choice of Middle Eastern filling such as Hummus and Tabouli or more traditional American filling.

Management Pita Pal will be lead by Steve Jones, a veteran of the restaurant industry. Steve worked for his parents at the family’s restaurant for several years before moving on to work in one of Washington’s finest restaurants while in college, as well as participating in Washington and Jefferson’s Entrepreneurship Program.

Through a combination of extensive business experience, valuable academic course work, and the award of a starter loan from the school’s Entrepreneurship Program, Steve will develop a profitable niche lunch restaurant. Sales for year two and three are $145,299 and $203,676 respectively. Profitability will be reached by the end of year two.

1.1 Mission

It is Pita Pal’s mission to offer the finest, healthiest and best tasting pita sandwiches in Washington, PA. Pita Pal will offer the finest customer service, no customer will leave who is dissatisfied.

1.2 Keys to Success

• Employ strict financial controls. This is extremely important in a retail food establishment.
• Offer the highest-quality lunch time fare.
• Ensure sufficient visibility. A strong marketing campaign required.

1.3 Objectives

• To become the premier sandwich shop in downtown Washington, PA.
• To continually draw students off campus for lunch at a rate of 35% new customers per year after the second year.
• To become profitable within the first two years.

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.">

Pita Pal is a recently formed PA based L.L.C. formed by Steve Jones. The company is wholly owned by Steve. The business will be based in downtown Washington and will serve the lunch and early evening crowd.

2.1 Start-up Summary

As a start-up organization, Pita Pal will require a decent amount of equipment to begin operations. The following is a somewhat complete list of the needed equipment:

• Cash register;
• Computer system, including printer, CD-RW, Internet connection;
• Convection oven;
• Refrigeration unit;
• Blender/food processor;
• Assorted knives, cutting boards, serving dishes, silverware, food containers;
• Shelving units;
• Tables, chairs, table clothes and other table accessories;
• Lighting units;
• Espresso machine and coffee maker (these items are subsidized by the coffee vendor who sells the coffee/espresso beans).

2.2 Company Ownership

Pita Pal has been formed as a limited liability company in Pennsylvania. The L.L.C. business formation has been chosen as a way of protecting the owner from personal liability while avoiding double taxation associated with a traditional corporation.

Pita Pal is a downtown based sandwich shop serving the lunch time hour as well as early evening, weekdays from 10-6 pm. Pita bread is chosen for several reasons: it is unusual, healthy, and quite versatile. Each customer will have their choice of different fillings for the pita sandwiches. The range of options for fillings (not an exhaustive list) are: tofu pate, falafel, hummus, baba ganouj, tabouli, turkey, ham, chicken, pesto, assorted vegetables and assorted cheeses. In addition to the pitas, there will be several different salads available, both green as well as pastas, assorted deserts, espresso and coffee.

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

Pita Pal will be serving the Washington, PA lunch time and early evening crowd. Two distinct market segments will be targeted: students of Washington and Jefferson College and “towners.” The students will be attracted to Pita Pal as a better alternative to their on-campus meal plan. The towners will appreciate the selection and change from the more traditional offerings currently available on Main Street. Main Street has been chosen in Washington because of the recent renaissance of the downtown area. Currently, there are lots of different businesses that have hungry lunch time workers.

The competitive environment that Pita Pal faces is not too stiff. Most of the lunch time fare in downtown can be categorized as traditional offerings, diner food.  While this might appeal to older residents of the town, this does not appeal to many college students and to a growing population of people who are in search of more healthy food, Pita Pal should be a big hit.

4.1 Market Segmentation

Pita Pal has segmented the market into two distinct segments:

Students This group is primarily from Washington and Jefferson College, a liberal arts school, a tenth of a mile from downtown. The students are looking for food vendors for two main reasons, the first is the desire to get off campus, the second is to have an alternative to the on-campus food service. Demographic data and behavioral traits for the students is as follows:

• 75% of the students are on some sort of financial aid;
• 67% have a part-time job;
• Ages 17-22;
• 42% of the students were in the top 15% of their high school class;
• 36% of the students were in the 85th percentile for the SAT;
• 89% of the students eat out at least twice per week;
• 75% of the students are on the school food program.

This information pertains to the Washington and Jefferson students. There will be a few community college students who will trickle in, but since their campus is six miles away, there will not be a significant number of community college students.

Towners This group is the people that live and work in Washington, primarily in the downtown area.

• Ages 24-55;
• The average individual income is $38,000;
• 55% of the people have at least some undergraduate schooling;
• 44% of the people work within a seven minute walk from the downtown area;
• 76% of the group go out for lunch one to two times a week.

4.2 Target Market Segment Strategy

The two different market segments that Pita Pal will be going after are distinct enough that there will be two different marketing campaigns, one for each group. This is necessary because the two groups respond to different forms of communication. Students spend the majority of their day on campus, but typically venture off campus during the day for lunch. The marketing effort to reach the students will be based on their forms of written media, The General, student newspaper.

The towners can be reached through different sources of communication. These are people who work downtown and tend to patronize the other downtown businesses. These people are more in tune with the different business organizations that exist downtown. Pita Pal will attempt to communicate with this group via the local newspaper.

4.3 Service Business Analysis

Pita Pal exists within the general restaurant industry. There are many different categories within the restaurant industry. Pita Pal fits within two different niches within the industry, fast food and fast casual. Their offerings are similar to fast food in that orders are placed at the counter and served within a few minutes, and the menu is somewhat limited in selection. It is also similar to fast casual where the clientele tends to spend more time at a table relative to a fast food restaurant. The food is more expensive than a normal fast food restaurant and there is a larger product offering.

For the restaurant industry, it is normal for a venture to reach profitability by year two. If they reach it any earlier it is likely that they are cutting corners and that profit is unlikely to be sustainable. If it takes more than two years than it is quite questionable whether they will ever reach profitability.

4.3.1 Competition and Buying Patterns

Pita Pal’s competition exists in many forms:

• Fast food: This takes the form of the traditional restaurants such as McDonald’s, Burger King, and Wendy’s, as well as healthier alternatives such as Subway.
• Pizza: The predominant pizza place for sit down food is Brothers pizza, owned by two brothers who are professors at the college. This place is more popular with locals than with college students based primarily on the fact that the professor owners are not very well liked as professors so many students avoid the place.
• Deli: There are two different delis located downtown that serve deli style sandwiches. These delis serve very basic, standard deli fare, generally sliced deli meats.
• Diners: Based on the aging demographic of Washington, a function of its steel industry roots, there are several diners located in Washington, one of them downtown. These are very traditional diners, the menus are right out of the 1950’s.
• On-campus food service: At least for the students, this is an alternative in terms of food offerings. Most of the students have a food plan. Because of the poor food offerings and the need for variety, many of the students are looking for other alternatives regardless of the fact that their food is already paid for via the plan.

Strategy and Implementation Summary

Pita Pal’s business strategy will be to emphasize its healthy, custom food alternatives. Most of the competitors cannot compete with Pita Pal’s healthy menu. Most places uses a lot of fried foods, compromising the nutritional value of their food. Additionally, no one offers the same flexibility or ability to customize the product offerings. This competitive edge will also be stressed in the marketing campaign.

As mentioned earlier, Pita Pal’s marketing strategy will be distinct for each of the two market segments that it is seeking to attract.

The sales effort will be based on obtaining 100% satisfaction. Pita Pal will work hard to ensure that every customer has a wonderful experience at Pita Pal. Almost anything will be done to ensure any problems that arise are corrected.

5.1 Competitive Edge

Pita Pal has two competitive edges that will help it succeed in its business. The first edge is its healthy menu. Pita Pal takes pride in the fact that the only thing fried on the menu is falafel. Everything else is oil free, or at least free of any oils other than olive oil. In addition to the absence of oil based fats, much of its offered ingredients are vegetables, ensuring a healthy meal.

The other competitive edge that Pita Pal will leverage is customization. Customers are offered a laundry list of ingredients that they get to choose from. It is Pita Pal’s goal to serve the customer in whatever capacity is needed. This takes the form of its competitive edge where it will build the patrons pita pocket any way that they want.

5.2 Marketing Strategy

Pita Pal will employ a two pronged marketing strategy in an attempt to reach potential customers within the two market segments. To reach the students, Pita Pal must use resources that are successful in reaching the students. Recognizing that the students spend the majority of their time on campus, Pita Pal will rely on print advertisements and coupons within the student publications. The print advertisements will serve to draw notice to Pita Pal, increasing the student’s awareness about this new restaurant alternative. Pita Pal will emphasize its menu as a tasty, healthy alternative to the campus meal plan as well as other local food vendors. Pita Pal will also use coupons as a way drawing in students. Coupons are quite effective for students, most of them are on a fixed budget and jump at the chance to save money by using a coupon.

Print advertising will be used for the towners, however, Pita Pal will choose a different media source to reach these people. The readership levels for the local paper, The Sentinel are 67% of the targeted population. This will prove to be an effective method for reaching this group. Since the majority of this market segment work downtown, flyers will be passed around the downtown area calling attention to Pita Pal’s opening. Coupons will be used, but to a lesser degree with this segment as they tend to have much lower response rates relative to the other market segment.

5.3 Sales Strategy

As previously mentioned, Pita Pal will emphasize its 100% customer satisfaction to win over customers. The fact that it advertises 100% satisfaction is far less significant relative to its actions that ensure total satisfaction. This effort is based on the philosophy that it is far cheaper to maintain a current customer than it is to attract a new customer. Additionally, it is far easier and cheaper to remedy any problems with a customer as it occurs instead of dealing with an unhappy customer. With this in mind, the organization has the firm belief that if all customers leave the store happy, there will be a significant increase in sales in the long term, directly correlated with the fact that customers are being properly taken care of.

5.3.1 Sales Forecast

Pita Pal has decided to take a conservative viewpoint toward its sales forecast in order to increase the likelihood of achieving the stated goals.  Pita Pal has reason to believe that the first three months of business will be fairly slow.  It is forecasted that business will steadily increase over the first two years. Profitability is forecasted to be achieved toward the end of year two.

5.4 Milestones

Pita Pal has identified four milestones that are clear in terms of the goals, and are achievable:

• Business plan completion. The final version will be accomplished with in the first two months.
• $50,000 in revenue. A date of expectancy has been established and it will be useful to gauge performance on whether the revenue is realized on schedule.
• Profitability. Very important, it is forecasted to occur within two years.
• Payback of entrepreneurship loan. While non-payment of the loan will not result in serious consequences it is a matter of pride to be able to take a loan from the College’s Entrepreneurship Program and turn it into a successful business.

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.">

Steve Jones is the driving force behind Pita Pal. Steve has lived in Washington, PA for the last four years while studying for his Bachelor of Arts from Washington and Jefferson College. Steve’s introduction to the restaurant industry came at the early age of 14 when he worked in his family’s restaurant in Cleveland.

While pursuing his degree Steve was a server at a fine dining restaurant called Angelo’s, where he received more insight into the restaurant industry. He enrolled in the Entrepreneurship Program which combined coursework with speakers and empirical experience. For lucky few, it also provided them with a low interest loan which if the business fails does not personally obligate the borrower to repay.

While Steve became more and more active in this program, he began to realize that he would not be truly happy unless he was operating his own business. He also realized that he would be most effective if he worked within the restaurant industry due to all of his experience as well as the wealth of contacts that he had access to because of his parent’s business. With this in mind, at the end of the last semester of his last year, Steve applied for the a loan through the Entrepreneurship Program and was pleasantly surprised that he won. Steve has written a business plan in response to the application requirements for the loans, however by the time the loan was awarded, many months had passed and Steve felt the need to rewrite the plan before beginning the business. He undertook this task and the business has begun.

6.1 Personnel Plan

Steve will be the main employee of Pita Pal. For the first two months of operation, Steve will be the sole employee. During this period he will oversee the finishing touches on the retail space, will develop the product recipes, and will establish vendor relationships. Month three will mark the first month of sales. Steve will have at least two employees present during open hours. Steve will also have one employee working 1.5 hours before opening to help with food prep and both employees for .5-1 hour after closing. As business ramps, Steve will employ additional employees to help out with food prep, front restaurant help, as well as back kitchen activities such as dishes and clean up.

Financial Plan investor-ready personnel plan .">

The following sections will detail important financial information.

7.1 Important Assumptions

The following table will detail important Financial Assumptions.

7.2 Break-even Analysis

The following table and chart show our Break-even Analysis.

7.3 Projected Profit and Loss

The following table and charts illustrate the Projected Profit and Loss.

7.4 Projected Cash Flow

The following table and chart will indicate Projected Cash Flow.

7.5 Projected Balance Sheet

The following table will indicate the Projected Balance Sheet.

7.6 Business Ratios

The following table displays Business Ratios of this company as well as those within the restaurant industry.

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The Ultimate Guide to Opening a Successful Sandwich Bar: From Budgeting to Marketing Strategies

Related blogs.

• Sandwich Business Success: Master the 10-Step Checklist for Profitable Operations
• 7 Essential KPIs for Running a Thriving Sandwich Bar
• The Secret Behind a Profitable Sandwich Bar: How to Turn Your Passion for Sandwiches into a Successful Business
• - Startup Costs
• - Leasehold Improvements
• - Kitchen Equipment
• - Furniture and Fixtures
• - Point-of-Sale System
• - Inventory
• - Marketing and Advertising
• - Licenses and Permits

Startup Costs

Starting a sandwich bar requires a significant initial investment to purchase equipment, lease space, and hire staff. Here are the estimated startup costs associated with opening a sandwich bar business.

As shown in the table above, the total cost to start a sandwich bar business can range from $26,000 to $142,000 or more, depending on various factors such as location, size, and equipment needs. Leasehold improvements, kitchen equipment, and inventory expenses tend to make up a majority of the cost.

Leasehold improvements involve renovating the space for your sandwich bar, which includes things like plumbing, electrical wiring, flooring, lighting, and furniture. Depending on the state of the property, these costs can vary significantly. Kitchen equipment includes ovens, grills, refrigerators, sinks, and other essential tools needed to prepare sandwiches, which can be quite costly.

Furniture and fixtures include tables, chairs, decorations, and other items that make up the interior design of your sandwich bar. Point-of-sale systems allow you to process orders and track inventory, which is critical for a successful business. Inventory involves purchasing ingredients such as bread, meats, cheeses, and other items necessary to make high-quality sandwiches.

Marketing and advertising expenses come into play when you are trying to attract customers and establish your brand. This can include creating a website, designing print ads, and running social media campaigns. Licenses and permits are also required to operate a sandwich bar, which can vary depending on your location and local regulations.

If you are considering starting a sandwich bar business, it is essential to have a solid business plan in place and budget accordingly. By estimating your startup costs and creating a comprehensive plan, you can set yourself up for success and achieve your entrepreneurial goals.

Leasehold Improvements

If you're considering opening a sandwich bar, one of the first expenses you'll need to consider is leasehold improvements. These are the renovations and changes you'll need to make to the physical space in order to create a functional, appealing restaurant. Here's a breakdown of the average costs involved.

• Design and Planning: Before you can start making any physical changes, you'll need to work with a designer and architect to create a plan for the space. This can cost anywhere from $2,500 to $10,000.
• Permits and Licenses: Depending on your location and the extent of the renovations you're making, you could be looking at permit fees ranging from $1,000 to $5,000.
• Electrical and Plumbing: If you're adding or moving fixtures like sinks, lighting, or electrical outlets, you'll need to hire licensed professionals. This can add up to anywhere from $3,000 to $10,000.
• Furniture and Fixtures: Once the space is renovated, you'll need to furnish it with tables, chairs, lighting, and other fixtures. These costs can vary widely depending on your design aesthetic and quality expectations, but it's safe to budget $10,000 to $20,000.
• Kitchen Equipment: A sandwich bar requires specialized equipment like ovens, refrigerators, and prep stations. Depending on your menu and other factors, expect to spend $30,000 to $50,000 on this alone.
• Signage and Branding: Don't forget to budget for marketing elements like signage, menus, and website design. This can add up to $5,000 or more.

Tips & Tricks

• Consider purchasing used equipment to save on costs.
• Plan for contingencies by adding an extra 10-20% to your budget for unexpected expenses.
• Shop around for contractors and suppliers to make sure you're getting the best possible price.

When it comes to opening a sandwich bar, there are always going to be unexpected expenses, so it's always good to have extra cash on hand. By budgeting carefully, shopping around, and being flexible with your design, you can keep costs under control and launch a successful business. Good luck!

Kitchen Equipment

As a business consultant who has helped start thousands of businesses, I am often asked about the startup costs of opening a sandwich bar. One major expense that cannot be overlooked is the cost of kitchen equipment. Research indicates that a startup sandwich bar can expect to spend between $20,000 and $50,000 on kitchen equipment.

• Refrigerator: A key piece of equipment for any sandwich bar is a commercial refrigerator. Prices can range from $2,000 to $5,000 depending on size and features.
• Oven: Depending on the type of sandwiches you plan on offering, you may need a convection oven or a toaster oven. Commercial ovens can cost between $3,000 and $10,000.
• Prep Station: You'll need a prep station for food preparation, such as slicing meats and cheeses. A good prep station can be purchased for around $2,000.
• Fryer: If you plan to offer hot sandwiches or fries, you'll need a commercial fryer. Prices range from $2,000 to $5,000.
• Dishwasher: A high-quality dishwasher can be expensive, but is essential for keeping the kitchen clean and sanitary. Plan to spend around $4,000 for a commercial dishwasher.

It's important to remember that these costs only factor in kitchen equipment. You'll also need to budget for other startup costs such as rent, licensing fees, and marketing expenses.

Tips & Tricks:

• Consider purchasing used equipment to save money, but make sure it's in good condition and will last.
• Look for energy-efficient options to save on utility bills in the long run.
• Consider leasing equipment if you don't have the upfront capital to purchase everything outright.

Essentially, a startup sandwich bar should expect to spend at least $20,000 on kitchen equipment alone. Remember to budget for additional expenses and consider ways to save money where possible. With careful planning and budgeting, your sandwich bar can be up and running in no time.

Furniture and Fixtures

When starting a sandwich bar, one of the most significant expenses is the cost of furniture and fixtures. These items refer to chairs, tables, countertops, shelving, and any other equipment needed to make the location operational.

According to the latest statistical information, the average cost of furniture and fixtures for a sandwich bar is around $30,000. This amount, of course, depends on various factors and can be higher or lower based on the location, size of the establishment, and design choices.

• TIP 1: To reduce the cost of fixtures and furniture, consider purchasing items secondhand or refurbished. This step can significantly lower expenses without compromising quality.
• TIP 2: When selecting fixtures and furniture, opt for items that are durable and efficient. It would be best to invest in quality equipment that can withstand everyday use and possible wear and tear.
• TIP 3: Plan the design of the space carefully, taking into account the equipment and fixtures needed. This consideration will ensure that every corner of the venue is utilized, minimizing the need for extra furniture or fixtures.

A well-designed and furnished sandwich bar ensures customer comfort, contributes to excellent service, and boosts sales and revenue. Consult with a professional business consultant to plan and budget accordingly for your furniture and fixtures.

Point-of-Sale System

There are several factors that determine how much you will spend on a POS system. These include:

• The type of sandwich bar you want to open
• The size of your operation
• The features you require from a POS system
• Your budget

One of the advantages of investing in a good quality POS system is that it helps to streamline your business operations. A POS system is your primary business tool that allows you to track inventory, manage employees, monitor sales, and provide excellent customer service. Depending on your budget, there are several POS systems that you can consider, ranging from the low-end POS systems to high-end POS systems.

Three Tips to Keep Your POS System Costs Down

• 1. Only invest in the features you need: When choosing a POS system, identify the features that are essential to your operation. Avoid getting a POS system with features you may not use as this can increase your costs.
• 2. Shop around: Do not settle for the first POS system you come across. Take the time to research vendors and prices to make sure you are getting the best deal possible.
• 3. Consider Leasing: Rather than buying a POS system outright, consider leasing one. Leasing can be a cost-effective way to get a POS system without having to pay the full price upfront.

Overall, the cost of a POS system when starting a sandwich bar can be a considerable expense. However, it is essential to remember that a well-designed POS system can save you money in the long run by improving efficiency, reducing waste, and increasing profits.

The Inventory cost for a Sandwich Bar depends on various factors such as:

• The size of the Bar
• The type of ingredients used
• The location
• The type of equipment needed to prepare Sandwiches
• The quantity of products required initially etc.

Creating a well-managed and accurate inventory list can help to avoid unexpected or unnecessary expenses and capital loss. Here are some tips to manage inventory costs:

• Regular updating of the inventory list to ensure no overstocking or understocking occurs.
• Use cost-effective ingredients that offer premium quality.
• Estimate the right quantities beforehand for each product, based on your sales forecast.

Another important factor when it comes to Inventory is to have a supply chain management strategy in place. A well-managed supply chain could ensure that the ingredients are sourced timely, and it prevents wastage due to expiry or spoilage.

Therefore, it is essential to consider and plan thoroughly the Inventory-related costs while starting a Sandwich Bar.

Marketing and Advertising

As a professional business consultant who has helped start thousands of businesses in my career, I understand the importance of marketing and advertising. It is the backbone of any successful business, including a sandwich bar. According to the latest statistical information, the average cost of marketing and advertising for a sandwich bar is approximately $5,000 to $10,000 USD. However, the costs can depend on various factors, such as the location, target audience, and marketing channels.

One of the most effective ways to market a sandwich bar is through social media marketing. Creating a strong social media presence is crucial in today's digital age, and it can be relatively inexpensive. The cost of social media marketing can range from $500 to $2,000 per month, depending on the level of activity and engagement.

Another effective marketing strategy is email marketing. It is a cost-effective way to reach out to potential customers and build a loyal customer base. The cost of email marketing can range from $20 to $300 per month, depending on the number of subscribers and the frequency of emails sent.

• Utilize social media platforms to showcase your sandwich bar's unique menu and brand identity.
• Offer promotions and discounts through email marketing to attract new customers and retain regulars.
• Collaborate with complementary businesses, such as coffee shops or breweries, to increase visibility and customer reach.

In addition to marketing, advertising is equally important. The cost of advertising can vary greatly, depending on the advertising channels used. A sandwich bar can advertise through various channels, such as billboards, posters, or local print media. The cost of advertising through these channels can range from $1,000 to $5,000 or more, depending on the duration and size of the advertisement.

Finally, it is essential to allocate a budget for online advertising, such as Google Ads or Facebook Ads. The cost of online advertising can range from $500 to $10,000 or more, depending on the target audience, ad placement, and keywords used.

In conclusion, marketing and advertising are crucial for the success of any business, including a sandwich bar. By utilizing various marketing and advertising strategies, a sandwich bar can increase its visibility, attract new customers, and retain regulars. The cost of marketing and advertising can vary greatly, but it is a necessary investment for any successful business.

Licenses and Permits

Before opening a sandwich bar, you will need to obtain various licenses and permits. The cost of obtaining these documents depends on the region you operate in. However, on average, you can expect to pay about $2,500 to $5,000 for licenses and permits. This expense includes a permit for food handling, restaurant operation, and zoning regulations.

In addition to permits and licenses, you will also need to purchase insurance for your sandwich bar. The cost of insurance varies, but you should anticipate spending around $3,000 to $5,000 annually for liability coverage. This insurance will protect you from potential lawsuits, accidents, and other unforeseen events that could occur within your establishment.

Tips & Tricks Ensure that your sandwich bar business is legally registered and that it complies with all local laws and regulations. This will help you avoid legal hassles in the future. Research the licenses and permits that you need to get before opening the sandwich bar. Different states mandate different permits, and the costs may vary. Use an insurance broker to get the best deal for your business. They can provide you with customized insurance coverage, which fits your business model and budget.

Finally, you may need to pay for professional services, such as legal and financial advice from experts. This may cost you around $5,000 to $10,000 extra, depending on the complexity of your business and how much advice you require. It is essential to factor in these expenses while planning your budget.

In conclusion, licenses, permits, and insurance are among the essential expenses required to start a sandwich bar business. You should budget for these expenses, including professional consultation; varying costs are dependent on the region you operate in.

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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 322,424 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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How to start a sandwich shop

Our experts, written and reviewed by:.

When thinking how to start a sandwich shop, consider:

• 01 | The industry
• 02 | Necessary skills
• 03 | Business plan
• 04 | Regulations
• 06 | Useful contacts

The sandwich shop: The industry and being a sandwich artist

We give you the low-down on the sandwich shop industry to help you make a fat wedge through selling one of the nation’s most popular snacks.

The industry

Ever since 1762, when the Earl of Sandwich famously demanded that his food be placed between slices of bread so that he could continue his card game, the simple delight of the sandwich has been appreciated.

The sandwich industry is estimated to be worth £2.8bn, and it is estimated that over 60% of us buy a sandwich at least once a year.

However, the industry is fiercely competitive, and if you open your own shop you will be competing against supermarkets, workplace canteens, cafes, bakers and, of course, other sandwich shops.

What is a sandwich shop?

Sandwiches are only a small part of what is sold in a sandwich shop. Your customers will also want other breadstuffs such as rolls, baguettes and ciabatta, as well as extras like drinks, soups, crisps and chocolates. Some ‘sandwich shops’ provide pastries and other hot foods, but we shall steer clear of the café world and remain focused on the sandwich.

You have the option of buying in pre-packed sandwiches, or making your own on site. By making your own you have greater creative input and have the benefit of being able to advertise your goods as being ‘freshly made’. But it takes more work and time and you have to make sure that your recipes work.

Over the last few years there have been a lot of changes in the world of convenience food and there are now many specialist sandwich makers on the market. Some of the early sandwich specialists, such as Subway, O’Briens and Pret a Manger, are now market leaders; Pret’s turnover now exceeds £450m.

McDonalds, once the number one force in the fast-food industry, has also added sandwiches to the menu in a bid to keep up with the fast-changing market, and coffee houses such as Starbucks and Coffee Republic have added sandwiches to their repertoire.

There are many big names to compete against, and while this may be daunting you would be well advised to find out how and why they have been successful.

Who is suited to it?

Anyone thinking of going into this business should enjoy meeting the general public. Each day you will be standing behind the counter face to face with the general public, listening to their wants, demands, suggestions, general conversation and, from time to time, their complaints (fair or otherwise). If this puts a shiver down your spine then it is likely that the sandwich business is not for you.

You should also have a passion for food as there is little point making a business out of something that you don’t care about.

Phil Brown, founder of Philpotts sandwiches, said: “You shouldn’t go into this type of business just to make money.

“You should do it because you can do it better than other people are currently doing it.”

Developing a business plan for running a sandwich shop

How do I find my niche?

If you want to find a niche in the marketplace, visit similar venues and consider what you do and don’t like about their business.

You should find things you admire as well as things you cannot stand. If you are lucky and observant enough, you might spot a gap in the market which you can exploit.

Brown explains that the sandwich business has got a lot tougher since he began in the mid 1980s.

He said: “When I started in 1985 there was a gap in the market as there were no sandwich shops apart from in London.

“The only sandwiches available were poorly made and wrapped in cling film.”

For Brown the answer was clear; set up shops outside the capital that provided high quality freshly made food, and he was bound to find a hungry market. His example is a good one to follow.

Making a profit

Like most new businesses, you should expect to have to work hard.

Brown continues: “The hours are also long – you start at 6am and work until 4.30pm.

“People often aren’t aware of how much work you put is involved, they think that it’s just a bit of cheese and bread – there’s so much more.

“The standards in industry now are so high, anybody who doesn’t put everything will just fail.”

In order to make a profit you must research the business really thoroughly.

Knowing the prices and costs of everything that your business will have to pay is vital to your success.

Get accurate costs of all ingredients, packaging and overheads such as utilities, staff costs and other bills.

Plus, don’t forget the one person who never takes no for an answer – the taxman. He will always want his slice and won’t accept sandwiches.

Work out how much all your products are going to cost to make and how much you are going to sell them for.

Compare your prices to other businesses and undertake some first-hand research to see if people are prepared to pay the types of prices you plan on selling your goods for.

It is vital that you get feedback from the right people. If you are going to be selling to commuters then ask people near a railway station; if you are targeting students, check out your local university.

Once you have got your pricing sorted out, work out how many sandwiches you are going to have to sell to cover all your costs and make a profit on top.

If the figure is in the hundreds then you are probably not far off. But if you are going to be selling tens of thousands of sandwiches, you might have to think again.

Look for opportunities to take more business. Consider doing catering events, parties and deliveries. Go and meet the other businesses in your area; many of them could be a source of extra trade in the future.

Getting to know people is all-important, and building a rapport with your customers is essential – both for repeat business and for extra business.

To help formulate your sandwich shop business plan you may find it useful to download our free business plan template .

The rules and regulations when opening a sandwich shop

Many people go to the same shop everyday because they like the people who run the shop, not necessarily because they have the best food.

Your customers are everything. They act as ambassadors,selling you as much as you sell yourself; they also give vital feedback about your food, and could be the source of extra business.

You never know when a person who has the power to make a big order could turn up at your counter.

Getting across to your customers initially can be one of the hardest things. A big promotion might the best way to attract attention initially. Look out for a deal you can offer which adds value to the customer while remaining  cost-effective to you.

Offering free drinks and crisps with select sandwiches is the type of offer many outlets make, but don’t be content to follow the crowd – be creative!

Rules and Regulations

The Food Standards Agency (FSA) is the body invested with government responsibility for all food safety standards.

They can provide you with advice on all food hygiene matters and offers tailored information packs under the ‘Safer Food, Better Business’ banner. The catering pack will help you comply with the law and make your premises safe for the public; the information it contains covers all key areas on serving food, including contamination, cleaning, chilling, cooking, management and keeping a food diary.

Currently, there is no law that states you must undertake formal training to open a sandwich shop.

However, you must ensure that you and anyone else working with food at your business has the appropriate level of training and/or supervision to do their job properly. The legal responsibility lies with the business owner, so make sure you have all the information you need.

Your business must also be registered with the local authorities, and you can – in all probability, you will – face inspections in the future.

A failed inspection is bad for your sandwich shop for a number of reasons. Legally, you could be closed down; commercially, you’ll receive bad publicity and referrals; and morally, people could be taken ill or even die from contaminated food.

In order to avoid such pitfalls you should learn the HACCP, which stands for ‘Hazard Analysis Critical Control Points’.

This is an internationally recognised and recommended system of food safety management that focuses on identifying the ‘critical points’ in a process which could compromise food safety hazards, and putting steps in place to prevent things going wrong.

For more information on HACCP, and other food hygiene legislation, click on the following link .

You might want to take a look at the rules and regulations section of our catering guide too, as the same restrictions on food preparation will apply. Click to see our catering guide .

Costs for opening a sandwich shop

Here are some typical costs for essential sandwich shop equipment:

Glass counter £1000 – £2300

Glass door drinks merchandiser from £500

Integral multi-deck refrigerator display £1600

General kitchen utensils £300 (approximately)

Cash tills from £100 (more information on our point of sale systems page )

Please note equipment costs are based on the average costs of a number of suppliers, and it’s best to shop around your area to get the best price. Companies such as Jordon specialise in sandwich shop fit-outs, and will be happy to provide further information.

Keeping your stock costs down are also important. Just like sandwich ingredients, you may be able to buy stock at the supermarket and still make a profit, and it definitely pays to look for cheaper suppliers.

Wholesalers are one good option, as trade with businesses is typically the lifeblood of their business. However you need to be sure you know exactly what, and how much, you want, as traders like to do bulk deals. Also, be prepared to haggle!

For a directory of UK wholesalers, click here . Alternatively, you can visit the Catering Equipment Suppliers Association here .

The cost of rents can vary enormously, as area and location are key to the success of any business.

So beware buying or renting a property purely on the basis of price; if you are too far off the beaten track, you won’t catch any passing trade. On the other hand you need to avoid buying somewhere too expensive; else you’ll never make back your payment to the landlord.

Aim to find a place you can afford, but where there are also plenty of potential customers nearby. A large office block full of hungry workers is a top target; if you find one without much competition nearby then you are likely to be on to a winner if the rents are not too high.

Useful contacts

Food Standards Agency Tel: 020 7276 8829 www.food.gov.uk

Catering Equipment Suppliers’ Association Tel: 020 7793 3030 www.cesa.org.uk

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Related articles.

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.

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 Sandwich Shop 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 for a Sandwich Shop

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.

Other Helpful Business Plan Articles & Templates

Sandwich Bar Business Plan

• Description
• Executive Summary
• Products & Services
• Market Analysis

Marketing Plan

• Management Plan

Financial Plan

What you get with sandwich bar business plan package.

I.- Executive Summary

People spend a lot of time on the go and are finding it difficult to find freshly-made sandwiches made to order with a variety of meats, vegetables, and cheeses. Customers often find that their choices are limited and the sandwich they do end up buying is often lacking in freshness, taste, and quality. This has created an identifiable need in the market for a sandwich bar that provides a customized sandwich with a selection of sauces, condiments, and toppings.

Subfection aims to fill this need by providing freshly-made sandwiches made to order with a variety of meats, vegetables, and cheeses, as well as a selection of artisan beverages and sides to go with the meals. Customers can customize their sandwiches to their tastes and preferences, ensuring that every bite is exactly how they want it.

Subfection will provide a comprehensive solution to customers’ sandwich cravings. Our freshly-made sandwiches are made to order with an array of meats, vegetables, and cheeses. Customers will be able to enjoy a fully customizable experience with our selection of condiments, sauces, and toppings. To complete the meal, Subfection will also offer a selection of artisan beverages and sides. We believe our products and services will enable customers to enjoy delicious, flavorful sandwiches that are affordable and easily accessible.

Target Market

Subfection's target market are residents and students in Los Angeles, CA, as well as casual dining customers and downtown business people. We expect to see a high demand from people who value convenience and delicious, high-quality ingredients in their meals. The downtown business people will appreciate being able to customize their sandwiches to their individual tastes and time constraints.

Subfection will focus on offering a variety of vegetarian, vegan, and omnivorous options so that all dietary needs are met. We anticipate that students and residents in Los Angeles, CA will appreciate Subfection's affordability, as well as its proximity to commercial centers, universities, and other popular hangouts.

Competition

Subfection will be competing against existing sandwich shops and casual restaurant establishments in the Los Angeles area. These include fast food and fast casual restaurants, as well as smaller, local sandwich shops and cafes. Many of these establishments offer similar products and services, ranging from fast-food style sandwiches to freshly-made sandwiches, sides, and beverages. Subfection will differentiate itself from these competitors through its customized sandwich-making experience and extensive selection of artisan side dishes.

Financial Summary

Subfection’s financial plan highlights key points about initial costs, sales projections and profitability. The following bullet points provide an overview of our financial goals:

• Start-up costs, including initial investment and business expenses, are estimated to be $50,000.
• Our estimated sales in the first year should reach $100,000.
• We will use a combination of online channels, market promotions, and word-of-mouth to drive sales.
• We are projected to be profitable starting in the second year of operation.

Funding Requirements

Subfection is seeking an initial investment of $500,000 to cover startup costs, including: rent and build-out of the space, purchase of the necessary kitchen equipment, salaries for employees, inventory, marketing, and operating costs. This initial investment will ensure that we can open in the expected timeline and begin serving our customers in the most effective way.

• Rent and build-out: $200,000
• Kitchen Equipment and Supplies: $50,000
• Employee Salaries: $150,000
• Inventory: $30,000
• Marketing: $20,000
• Operating Costs: $50,000

Milestones and Traction

Subfection has come a long way since it began its operations in Los Angeles, CA. We have developed a fresh, new sandwich shop with a variety of meats, vegetables, cheese, condiments, sauces, and toppings to provide customers with the highest quality sandwiches. We have carefully selected our selections of artisan beverages and sides to accompany customers’ meals. Furthermore, we have established systems and order-taking procedures to ensure customer satisfaction. Going forward, our milestones will include increasing the number of stores, expanding our menu and services, and boosting brand recognition.

In the coming years, we are committed to significantly raising the profile of Subfection and strengthening our customer base. Our plans include: developing a marketing strategy to reach out to new customers through promotions and advertising campaigns; improving our in-store technology to better serve our customers; and providing customer loyalty programs to reward loyalty and increase customer satisfaction. Additionally, we plan to introduce more organic and vegetarian options to our menu.

II.- Products & Services

There is a lack of convenient options within the Los Angeles area for customers to purchase freshly made, customizable sandwiches. Currently, the majority of sandwich shops in the area are fast-food establishments and offer limited options in terms of what can be customized. Those customers who desire to create their own sandwich with a variety of meats, vegetables, and condiments do not have a convenient option that can fulfill their need.

Subfection will provide freshly-made sandwiches made to order with a variety of meats, vegetables, and cheeses. Customers will have the flexibility to craft their own sandwiches with a range of condiments, sauces, and toppings. In addition, we will offer a selection of artisan beverages and sides to go along with the meals.

At Subfection, we emphasize customer convenience and satisfaction. We know that people have busy lives and need food that is fast, delicious, and customizable. Our sandwiches will be ready quickly and will be made with quality ingredients. Furthermore, customers will be able to customize each sandwich to their exact tastes.

We understand how important it is to offer a convenient, tasty and affordable option for our customers. We are committed to providing a unique and enjoyable 'dining' experience and will do so with top-notch customer service.

Validation of Problem and Solution

In order to validate the problem of an inadequate availability of freshly-made sandwiches and the potential of Subfection to offer an improved solution, we identified an array of surveys and studies focusing on the sandwich market and consumer demand. Surveys conducted by the National Restaurant Association, the U.S. Bureau of Labor Statistics, and the National Grocery Retailers Association revealed that sandwiches are among the top five favorite menu items in the U.S. Furthermore, these surveys and research studies also revealed that restaurants offering a variety of sandwich customization options have the highest level of customer satisfaction, a trend that we believe will continue to grow as consumers look for more personalized experiences.

We have also conducted our own market research studies in the Los Angeles area along with results from focus groups and customer feedback surveys that show strong positive interest in our customized sandwiches and artisan beverages. Overall, our research has revealed a high demand for restaurants that provide freshly-made sandwiches of the highest quality, along with a selection of condiments, sauces, and toppings that make for an unforgettable meal.

Product Overview

Subfection is dedicated to providing customers with freshly-made sandwiches crafted to their exact specifications. Our sandwich bar offers a wide selection of meats, vegetables, and cheeses that customers can choose from to make their own unique creation. Our condiments, sauces, and toppings provide a variety of flavor combinations, allowing customers to customize their sandwiches to their exact tastes. We also offer a selection of artisan beverages and sides to pair with their meals.

Subfection aims to serve as a convenient and affordable lunch option while delivering the highest level of quality and freshness. We believe that customers should have complete freedom to express themselves through their sandwich creations, which is why we offer such a wide range of ingredients to choose from.

At Subfection, we promise to provide you with the highest quality ingredients, an enjoyable customer experience, and a delicious, homemade sandwich that you can’t find anywhere else.

Subfection will be competing with other sandwich shops in the area, such as national chains and local restaurants. In order to differentiate ourselves, our sandwiches will be freshly prepared using high-quality, natural ingredients. We will source meats, vegetables, and cheeses from local farmers and businesses, as well as offer a wide variety of condiments, sauces, and toppings so that our customers can customize their own sandwiches. In addition, we will offer artisan beverages and sides that are unique to Subfection.

Subfection has taken significant steps so far to establish and grow its sandwich bar business. To continue, our roadmap focuses on identifying the right suppliers, strategizing product pricing, and setting up an effective market expansion plan.

The first step is to source high-quality ingredients from reliable suppliers and create a comprehensive inventory of the ingredients. This will form the basis for the ingredients used for building and crafting custom sandwiches, maintaining standards of quality, taste and ensuring the preservation of freshness for the customers.

Next, we will continue to refine and optimize our pricing strategy, such as through introducing discounts and loyalty programs, taking into account our internal cost structure and the market rates.

Finally, to maximize our outreach and reach as many customers as possible, we plan to use both conventional and digital marketing channels. We will also focus on creating an attractive website and a sustainable social media presence.

III.- Market Analysis

Market segmentation.

Subfection's primary target market consists of young professionals in the Los Angeles area between 25 and 45 with disposable income. The estimated population size of this demographic within the greater Los Angeles area is approximately 8 million people. Other potential target markets include office workers on their lunch break, families looking for a quick meal, college students, and health-conscious individuals.

Subfection's segmentation strategy is focused on gender, age, income level, and lifestyle. Subfection aims to provide a variety of options to satisfy the needs of all potential customers. The below table outlines our market segmentation strategy:

Target Market Segment Strategy

Our target market for our sandwich bar business is those who desire fast and convenient food options. Our ideal customer is anyone looking for a quick and tasty meal during their busy day. We plan to focus on those who are looking for something to take away such as office workers and those who are on the go, including delivery service. We will also consider those looking for a casual and relaxed lunch experience while enjoying freshly made sandwiches.

Our marketing efforts and strategies will focus on catering to the needs and tastes of our target market. Our goal is to build long-lasting relationships with customers and provide them with an exceptional experience that will bring them back for more. We plan to use a combination of traditional and digital marketing solutions to reach our target audience.

Key Customers

Our ideal customer archetype is the health-conscious individual who values savory flavors and the convenience of a quick meal. Our main customers will be individuals who live within close proximity of our sandwich bar and are looking for a fast and convenient meal that still offers exceptional flavor. They are aged between 20-35 and are professionals with hectic schedules, they are looking for meal options that satisfy their dietary needs but still capture the flavors they crave. With this in mind, we intend to create an inviting atmosphere that encourages customers to return in order to savor both the familiar and new flavors our menu will offer.

Future Markets

Our market analysis has highlighted significant potential for a new sandwich bar business. We have identified our target customer demographic and identified the locations which will provide the most advantageous market opportunity. Our business strategy is to target young adults and families by providing quality homemade sandwiches at a competitive price. We will capitalize on the convenience factor by operating out of a range of sites which are near popular shopping destinations and offices. Our strategy is to build partnerships with local businesses and leverage the local customer base.

Our sandwich bar business is in the ideal position to capitalize on the current market opportunity and establish itself as a leader in the local area. We will continually monitor the market and consumer demand so that we can stay ahead of the curve when it comes to pricing, convenience and quality of service. Our aim is to create an environment for long-term, sustainable growth and development.

Subfection will face competition from existing sandwich bars operating in the Los Angeles area. The table below outlines some of the potential competitors and their offerings.

IV.- Marketing and Sales Plan

Our marketing plan for Subfection will focus on creating awareness and driving sales of our delicious sandwiches. We will use a combination of traditional, digital, and word-of-mouth methods to reach our target market in the Los Angeles area.

For our traditional marketing methods, we will mainly use print advertisements and direct mailers to reach customers in the target area. Additionally, we will also use radio and television ads, though to a lesser extent. Our radio and television ads will focus on telling the story of Subfection and its signature sandwiches in an entertaining way to draw attention and generate interest in our restaurant.

For our digital marketing plan, we will use a combination of SEO and online ads targeting search terms related to the sandwich industry. Additionally, we will also use social media campaigns to engage and interact with customers, as well as influencer marketing to spread awareness and reach new audiences. A large focus of our digital marketing will be to grow our brand's following and visibility online.

Finally, we will use word-of-mouth methods, such as customer referral programs, to both grow our customer base, as well as reward our loyal customers. We will also focus on building relationships with local businesses and universities to spread word-of-mouth through their networks.

Above all else, our goal with our marketing plan is to continually engage our customers and prospects with the Subfection brand and spread awareness of the unique sandwiches we offer.

We anticipate making sales based on market conditions, capacity, pricing strategies, and other factors. We aim to achieve successful, consistent sales numbers. We will adjust pricing strategies if necessary to maintain current customer base and attract new customers. In order to gain precise estimates, a thorough research of the target market is highly recommended.

We forecast that our sandwich bar business can serve a minimum of 60 to 70 customers per day and a maximum of 150 customers per day depending on the market factors. Our sales estimates will be based off our pricing strategies, customer satisfaction, and customer loyalty. We expect our sales to be higher during peak lunch and dinner hours.

Location and Facilities

Subfection is located in Los Angeles, CA, in an ideal location to reach a wide variety of patrons, who can enjoy the freshly made-to-order sandwiches, condiments, sauces, toppings, artesian drinks, and sides. The location is strategically located, close to neighborhoods and commercial areas, to deliver maximum convenience and accessibility, with many businesses and private residences within easy reach.

The premises are fairly modest in size, with a total usable area of 500 square feet. The layout and design were chosen to maximize efficiency and customer convenience, with all necessary equipment, including refrigerators, food prep areas, and condiment counters, with enough space left over for seating and socializing. The estimated use cost comes in at less than $3,000 a month, which includes the cost of utilities, taxes, maintenance, and staff.

Our new sandwich bar business will utilise technology to enhance the customer experience. We have identified several technological opportunities that can help define our business and provide consumers with an excellent service. By harnessing the power of technology, we can ensure that our products and services reach our customers faster, easier, and with greater convenience.

We plan to make use of online ordering for our sandwich bar business, which would allow customers to place orders quickly, directly to our store. This would save our customers time, effort, and hassle and make their customer experience more enjoyable. We will also use technology to manage our inventory, allowing us to better track items and ensure that our store shelves are always stocked to meet customer demand.

Finally, we will make use of social media to connect with our customers and promote our business, products, and services. We plan to utilize Instagram and Twitter, as well as other platforms, to reach out to customers and inform them of our offerings. The goal is to make our sandwich bar a household name by using technology to increase our customer base.

Equipment and Tools

The sandwich bar business will require some basic equipment and tools to ensure smooth operations. We will need commercial cooking equipment, refrigeration equipment, as well as storage and retail support with fixtures and furniture. The cost associated with each equipment or tools is listed in the table below.

We are considering purchasing the majority of our required equipment and tools instead of renting them, as it will prove more cost-effective in the long-run. The total estimated cost of equipment and tools is $12,500.

V.- Management and Organization

Organizational structure.

A successful sandwich bar business requires an organized structure, with clearly assigned roles and responsibilities. To help guide the day to day operations of the business, we have outlined the organizational structure in a table layout. This table outlines the roles and responsibilities of specific employees and the flow of information between levels of the organization.

Management Team

Our management team will comprise of experienced professionals from the hospitality and food industry. We have carefully considered each candidate and their respective skillsets, and have outlined a range of potential candidates for the highlevel management roles in our company below.

Management Team Gaps

At present, our management team has yet to fill several key positions. This includes roles related to marketing and customer relations, financial management, and general operations. We are actively seeking talented professionals to join our team in these positions. Ideally, our new hires would have experience or ability in the following areas:

• Marketing and Promotions
• Customer Service
• Financial Management
• Operations Management

We appreciate any referrals or suggestions for candidates who could fill the above roles in our sandwich bar business. We are open to applicants from a wide range of backgrounds and levels of experience.

Personnel Plan

A key component of successfully launching a sandwich bar business is having the right personnel for the job. We have put together a table of the potential positions that we expect to require in order to ensure our business runs smoothly:

• Floor Staff

We will hire personnel who understand and are committed to the vision of our business, are excellent communicators and are highly organized with the ability to multitask. We will ensure that these staff members have the right skillset and experience to excel in their respective roles.

Company History and Ownership

Subfection began in 2018 with two partners, Dylan Smith and Sarah Carpenter. The two shared a vision of providing freshly-made sandwiches made to order with a variety of meats, vegetables, and cheeses. Along with the fresh ingredients, the partners strived to offer a selection of artisan beverages and sides.

Rather than just being a take-out sandwich shop, the owners wanted to create a space that also fostered community. To that aim, they opened Subfection in Los Angeles, CA, with a cozy, inviting atmosphere. They made it a point to craft each sandwich to the customer's individual preferences with a variety of condiments, sauces, and toppings.

Owner Sarah Carpenter brings a background in accounting to the business. Owner Dylan Smith has an extensive background in the foodservice industry, with experience both running a kitchen and designing menu items. The partners have a 50/50 ownership stake in the business. While Sarah and Dylan are the primary owners, they also have a few minority partners in the company.

At this stage of our business plan, we are creating a roadmap with specific goals and objectives in order to effectively manage and steer our sandwich bar. We intend to use this roadmap as a tool to achieve our desired objectives and measure our progress over time. The table below details these milestones, including specific targets and an estimated timeline for completion.

We have set these objectives to ensure that our sandwich bar meets both our short-term and long-term goals. We will monitor our progress accordingly and modify our plan where necessary in the event that any goals are not becoming achievable.

Key Metrics

It is important to track key performance indicators (KPIs) in order to gauge the overall performance and health of your sandwich bar business. These KPIs may include sales volume, operating costs, customer retention rate, customer satisfaction, and staff turnover. Monitoring these over time will enable you to identify areas of improvement and set meaningful goals. Additionally, you can use KPIs to develop strategies to measure the success of your business.

VI.- Financial Plan and Metrics

Sales forecast.

The following table displays the projected sales for the sandwich bar business over the next three years:

Sandwich Bar Financial Plan Key Inputs

In the 'Financial Plan and Metrics' section of this sandwich bar business plan, we will take a look at the expected and incurred costs necessary to start and operate our sandwich bar. To provide an overview, we have created two tables: one to list the startup costs and one to list the operational expenses.

Startup Costs

Operational Expenses

This part of the business plan is where you present the three main financial documents of any startup: the income statement, the cash flow statement, and the balance sheet. The income statement shows expected revenues and expenses for the sandwich bar, and the cash flow statement shows the inflow and outflow of money for the business. The balance sheet provides an overview of the financial position of the business, including assets, liabilities, and equity. In addition to these documents, any major potential investments to be made should also be discussed.

Sandwich Bar Financial Plan Profit & Loss Statement

Sandwich Bar Financial Plan Cash Flow Statement

Sandwich Bar Financial Plan Balance Sheet Statement

For our sandwich bar, we plan to hire experienced staff members who can carry out food preparation and customer service duties. The number of staff will be determined on the basis of the number of customers and days of operations, and additional staff can be hired on an as-needed basis. We plan to pay an average salary of $45,000 a year with benefits, depending on the individual’s qualifications and experience.

Our personnel structure will consist of a manager, a head chef, an assistant head chef, and service personnel. The manager will be responsible for supervising the staff and ensuring the smooth running of the business operations. The head chef and assistant head chef will be in charge of food preparation, while the service personnel will be responsible for customer service and taking orders.

We plan to implement an employee-reward system, offering bonuses and other incentives depending on performance results. This system will help motivate employees and ensure that they strive to reach the highest level of customer service excellence.

Capital Requirements and Use of Funds

When preparing a financial plan and metrics as part of a business plan, it is important to consider what capital will be required to get the business up and running, and how such money will be spent. The capital requirements should reflect how much money needs to be raised and how the use of funds should be allocated. This is typically meant to be shared with investors or lenders for them to form an opinion of the business.

For the sandwich bar business, the capital requirements can be used to cover items such as premises, equipment, stock, working capital, and other essential outgoings. Additionally, a portion of funds may need to be allocated towards either marketing or research and development. Together, these funds will provide the business with a strong foundation for success.

Exit Strategy

The desired long-term goal of this business is to establish a profitable and sustainable sandwich bar through a well-planned and organized approach. As such, an exit strategy is important for our business in order to unlock the maximum value for the stakeholders involved. Our exit strategy for the sandwich bar business plan is broken down into two potential options: acquisition and sale.

The acquisition option would require our company to explore potential purchase and merger opportunities with larger market players or industry competitors. This process is inherently complex and involves a variety of legal and financial considerations, but can ultimately unlock higher value for the business. If attractive merger and purchase opportunities do not present themselves, the sale option would be explored. This option involves leveraging our own marketing and sales efforts to find a buyer who will be interested in taking over the business, either as a whole or in parts.

Our team understands the nuances and complexity of both the acquisition and sale exit strategies, and is committed to exploring these options as the business grows and matures. Our goal is to ensure maximum value is unlocked for stakeholders as the business progresses.

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

Business steps:, 1. perform market analysis., are sandwich shop businesses profitable, 2. draft a sandwich shop business plan., how does a sandwich shop business make money, 3. develop a sandwich shop brand..

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:

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

4. formalize your business registration., resources to help get you started:, 5. acquire necessary licenses and permits for sandwich shop., what licenses and permits are needed to run a sandwich shop business, 6. open a business bank account and secure funding as needed., 7. set pricing for sandwich shop services., what does it cost to start a sandwich shop business, 8. acquire sandwich shop equipment and supplies., list of software, tools and supplies needed to start a sandwich shop business:, 9. obtain business insurance for sandwich shop, if required., 10. begin marketing your sandwich shop services., 11. expand your sandwich shop business..

Check Out Easy Recipes for Busy Weeknights

Make Your Own Sandwich Bar (Party Idea for a Crowd)

Make Your Own Sandwich Bar is a your next party idea! Whether it’s the summertime or Game Day, this is a great way to feed a hungry crowd.

The next time you’re hosting, try a DIY sandwich platter! You’ll lay out all the sandwich fixings and let people make their own sandwiches.

I recently hosted this party for a Masters Pickle Party. It was Masters Weekend and friends and I had discussed hosting a pickle party.

A big Make Your Own Sandwich board was displayed, and everyone helped themselves to sandwiches, pickles, and drinks!

How to Set Up a Make Your Own Sandwich Bar

This is an easy party, as long as you have everything ready!

Here’s what I did the night before the party:

​I’ve got a tiered serving display , so I placed the deli meats on one tray.

The deli meats were roast beef, smoked turkey, slices of ham, etc.

The next tray has lettuce leaves, sliced tomatoes, and sliced onions (I used sweet onions, but feel free to use red onion).

One tray had sliced cheese: provolone, american, and swiss!

These all “lived” in the fridge, covered with plastic wrap until people were ready to eat.

Next to all the cold cuts, there was some homemade Tuna Salad in a bowl. I love a delicious sandwich of tuna salad, pickles, and lettuce! 

I also made a pickle dip and onion dip for the chips.

Whatever your favorite sandwich recipes are, make your own sandwich platter with all those fixings!

This is a great idea for family dinners when it’s a busy week, and people are coming and going.

The buffet line started with slices of bread on a cake platter. I also sliced some hoagie rolls in case someone wanted that kind of sandwich.

They moved down the buffet to the condiment section with all kinds of mustard, mayo, etc.

Then, people piled their plates high with crispy chips and filled their pickle picks!

Sandwich Shop Ideas

You can order party platters from Publix Deli, that have all kinds of cold cuts and cheese. But, they offer one party platter that is all the extras for a really good sandwich! Bell peppers, banana peppers, sweet peppers, etc.

If you’re pressed for time this is the best way to feed your hungry family! Just order it, and place the party trays out for people to help themselves.

Whether you’re hosting for the big game, a baby shower, or a holiday party, this DIY Sandwich Party is a winner!

Things You Can Do Ahead of Time

For this party, the island was pre-set with the butcher paper and all the “places” for things to go.

Everything was waiting for me in the fridge or right in its place, ready to open.

The hardest part about this party was opening all the pickle jars and condiment bottles!

You can make the Azalea Cocktail and Vanilla Almond Iced Tea the night before, too!

Y’all, I also included a Pickle Bar, where people filled their bamboo picks with all the pickles their hearts desired!

You’re going to love hosting this DIY Sandwich Bar!

I’m Ashley! The Sweetpea behind Sweetpea Lifestyle! The hostess with the mostest who is ringing in the new southern belle! Let’s edit out the mess of the over complicated dinner party so we can cultivate community! As an avid host, I love sharing dependable, easy recipes that help you gather your people around the table and share a delicious meal with others.

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I love this and will definitely have a sandwich bar for the volunteers at our next Hog & Strings fundraising event! Thank you for sharing!!

Yay!!! That’s a great idea to serve this at a fundraiser! Good luck!!

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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.

Related Posts

Opening a Deli Costs $54,500 to $141,500 on Average

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How to Open a Sandwich Shop: Going All-In on a Deli

Have you seen delis and sandwich shops with a line going out the door? Ever wanted to own your own sandwich shop and cash in on one of America’s favorite foods?

If you love sandwiches but don’t know how to get into the business, we’ve got you covered.

To help you get started, we spoke with Kevin McHenry of Cricca’s Italian Deli & Subs in Woodland Hills, California.

His shop is so successful that he paid off his investment in four years, and it now boasts a 4.8 out of 5 rating on Google with over 190 reviews! Kevin went “all-in” on a sandwich shop and is now reaping the benefits of his hard work.

Follow our definitive guide and Kevin’s expert advice, and you too can start cashing-in on your own successful sandwich shop!

If you don’t have a big starting budget then you can always buy an existing and established shop.

1. Make a Plan! Calculate the Startup Costs and Operating Costs

Before opening a sandwich shop, it’s important calculate your initial and ongoing costs of operation as part of a business plan. Like any new business, it isn’t cheap if you want to set up for success. Fortunately, there are options in this branch of the food service industry.

How Much Does It Cost to Open a Sandwich Shop?

Sandwich shop opening costs range from $60,000 (in Iowa) to over $1.5 Million based on the location and type business. Also, whether you open a franchise or an independent business will factor into your grand total.

We’ll explore those options in the next section, but first, here is a list of the initial costs:

• Inventory (Opening)
• Equipment (Kitchen Appliances, POS System, Refrigerators, etc…)
• Location (Deposit)
• Business Registration and Licenses
• Inspections
• Business Attorney

This is a list of the ongoing expenses you can expect in a sandwich shop:

• Maintenance and Repair
• Location (rent and lease)
• Marketing and Advertising

Kevin explained,

What Equipment Do I need to Open a Sandwich Shop?

Sandwich shops require a lot of equipment to operate, and it’s up to business owners to find local restaurant suppliers that can equip their location for success. You can buy or lease equipment based on the supplier, and you must factor it into your initial and ongoing costs.

A great resource to find a local supplier is through your state’s restaurant association that is affiliated with the National Restaurant Association .

However, if you’re opening a franchise, you must go through their recommended suppliers.

Here’s a shortlist of equipment needed for opening a sub shop:

• Commercial Refrigerators (Reach-in, Glass-Door Reach-in for beverages, and possibly a Walk-In)
• Preparation Tables (and refrigerated ones)
• Sinks, Dishwasher, and Cleaning Equipment
• Meat, Cheese, Bread, and Vegetable Slicers (Yes, there’s a different machine for each.)
• Food Processor
• Commercial Oven and Microwave
• Sandwich Press and/or Griddle
• Kitchen Utensils (Knives, cutting boards, tongs, etc..)
• Ice and Beverage Machine
• Customer Utensil and Condiment Caddies (A caddy is a display that holds these items.)
• Furnishings

Independent business owners have an advantage with equipment as they can purchase used equipment to reduce startup costs. However, if you open a franchise, these decisions (and their costs) are made for you.

2. Work in a Deli or in the Food Service Industry

For many of us, our first job was as a server, bartender, or cashier. We remember sweating bullets and delivering orders with a smile to happy and sometimes unhappy customers. Running a deli is no different.

If you have no experience in food service, you should get some before investing your hard-earned money into a new business. It is essential to know the style and pace of the industry.

Kevin stated,

“My first job was working in a deli. I knew from that day I always wanted to have my own Deli.”

However, not everyone has worked in a deli or knew they wanted to own one from the start. If you have no experience, you would benefit from a job as a food and beverage server or as a food service manager .

The good news is that the food service industry is always hiring. With a college degree, it’s not unheard of for sandwich chains to hire managers with little to no experience. Without one, you can still learn the business from the bottom up.

Here are some of the top sandwich chains in the U.S.:

• Jimmy John’s
• Jason’s Deli
• Jersey Mike’s
• Firehouse Subs
• McAlister’s Deli
• Arby’s
• Panera Bread

3. Should I Open a Franchise or an Independent Sandwich Shop?

As stated, opening a franchise or an independent location is a big factor in your initial opening cost, and there’s no clear-cut answer to this question. But we can provide the pros and cons of both situations, so you’re equipped to make a decision that’s right for your small business.

Franchise Pros

• Pre-set business model with a proven track record of success
• Name recognition at opening
• Easier to obtain a business loan
• Less experience is necessary to run the business
• Sometimes cheaper inventory and equipment (Franchises have established relationships with suppliers).

Franchise Cons

• Higher initial investment based on the franchise (see below)
• No creativity with recipes or ingredients
• Shared financial information (Franchises require you to share financials for audits and marketing).
• No control of advertising or promotions
• Prices set by franchisor

Independent Pros

• Complete and total control of menu, marketing, and pricing.
• No profit (or financial information) sharing
• Possibly cheaper equipment if you have existing knowledge or relationships
• Creativity and innovation opportunities are limitless
• Lower initial investment (usually)

Independent Cons

• No support or training; everything falls on you
• Harder to obtain financing
• No name recognition unless you purchase an existing independent business
• Experience is necessary or, at the very least, highly recommended
• Inventory (food cost) is more expensive

Conclusion: Franchise vs Independent Business

There’s a lot to think about when weighing out the question of franchise vs independent deli. With an independent business, it’s important to note the expenses of your inventory, as that will be the X-factor that makes you stand out above a franchise.

As Kevin explained, the #1 tip to having a successful sandwich shop is:

However, if you lack experience or business knowledge, a pre-existing model may be the best path to opening a deli. Here are the franchise costs associated with the top sandwich shop franchises we listed above:

Note: These costs are averages of franchise fees plus all additional costs (construction, supplies, etc…). The cost will vary by location.

• Jimmy John’s – $350,000
• Subway – $150,000
• Jason’s Deli – $1 Million
• Jersey Mike’s – $350,000
• Firehouse Subs – $350,000
• McAlister’s Deli – $1 Million
• Arby’s – $1 Million

4. Know the Risks of Opening a Sandwich Shop

Let’s be honest: while the failure rate of restaurants is largely overexaggerated, there are a lot of sandwich shops out there. Subway locations outnumber McDonald’s by nearly 10,000 in the U.S., and all the other chains and independent sandwich shops number in the tens of thousands.

We don’t mention these statistics to scare you, but it’s important to know the risks of opening a sandwich shop. Many small business owners risk their life savings every day in the U.S. To be in the success column in this industry, it will take hard work and dedication.

In our interview, we asked Kevin what he attributes to his success:

With every small business, there is risk, but there are also ways to reduce those risks. Nothing is better than excellent work ethic and experience. If you’re starting a sandwich shop and have no experience, minimize your risk and gain experience or work with a mentor.

5. Find a Location

We can provide information on things like costs, equipment, and risks, but it’s all for nothing without the right location. If you want to know how to open a sandwich shop business, then you need to know how to pick a restaurant business location .

It’s a top factor in determining the initial cost of your business. You may want a spot in an area with a heavy population and high-traffic, but you’ll have to pay for it. For smaller restaurants like sandwich shops, it’s beneficial to find locations with a blend of traffic and value.

That’s why market research is so important for determining factors like:

• Demographics
• Competition
• Accessibility and Visibility

You can find a lot of this information through the U.S. Census Bureau , and it will help you assess locations that suit your business needs.

Pre-existing Business Location

Also, it may be in your best interest to find a location with a pre-existing business. Opening a new location can be tough even for someone with experience in the industry. Buying an existing location can reduce your startup costs, and if you’re lucky, you could find a mentor willing to help you get started.

Even with Kevin’s experience in the deli industry, he opted to purchase a pre-existing business because the location already had a solid base and great traffic.

“One of the guys I met at that Deli, my very first job, is who I ended up buying the Deli from 40 years later.”

However, if you do plan to purchase another business, be sure to explore our article on How to Value a Business so you don’t pay a penny more than what it’s worth.

6. Registration

Now that you’ve made some hard decisions, it’s time to choose your business structure and register your business at the state and federal levels . Fortunately, starting a deli is a little easier than many other businesses out there in terms of permits and licenses.

Work with an accountant or business attorney to help determine which business structure is best for you (sole proprietorship, limited partnership, limited liability company, or corporation). Most sandwich shops operating as a small business opt to form an LLC to maximize their tax benefits and financial risk.

It’s also necessary to choose a name for your business at this point. Just know that many restaurant business names do not match the name that’s on the store front. This is the case if you invest in a franchise. Even Taco Bell’s business name is Yum! Brands, Inc.

7. Sandwich Shop Business Plan and Funding

The most important factor in learning how to open a small sandwich shop is knowing how to put together a business plan. Many owners fail in the food service industry because they go into a new business relying only on gut experience instead of a plan.

A business plan in the food industry is a little different from other industries and should include:

• Executive Summary
• Company Description
• Market Analysis
• Employees (Management Team)
• Location and Design of the Location (Layout)
• Market Overview
• Marketing Strategy

If you need help developing a plan, the U.S. Small Business Administration has tons of resources for putting together a great business plan.

Funding Your Sandwich Shop

We said at the beginning that Kevin was “all-in” on his deli, and he meant it. Sandwich shops are not a cheap investment, and you will also have to figure out a way to fund your new business.

If you don’t have out-of-pocket funds like Kevin, you can apply for a small business loan through the SBA or a conventional loan from a bank. It may also be possible to hedge your funds with other investors who believe in your vision and business plan.

Here are some other options for getting a loan for your business:

• Vendor Financing
• Non-Bank Online Loan
• Business Credit Card

Regardless of how you get the money, your business plan will be the #1 tool and resource that helps you secure those funds and pay them back through the success of your shop.

8. Financial Goals

The menu section of your business plan will be key in helping set these goals. The cost of the food vs the price at which you sell it is the baseline financial determiner of any sandwich shop. And your menu determines that margin.

If you’re buying an existing business, be sure to carefully review the menu (food cost) section of any business plan.

How much does a Sandwich Shop Make a Year?

To set these financial goals, it’s good to have a reference point for comparison. On average, sandwich shops in large cities in high traffic areas net from $120k to $300k per year. However, the factors are determined by brand, culture, and location.

For example, a deli in Ann Arbor, Michigan that has been in business since 1982 is now netting over $50 million per year with only one location. On the other hand, over 1,000 Subway locations closed in 2018. Ultimately, it will be you, the business owner, who determines the success of your business.

Are Delis Profitable?

Regarding profits, Kevin said,

“You want to try to hit at 30 percent but that is not always doable. One thing is we pay for top of the line products. You try to do at least 30%, but people are not going to pay $18 for a turkey sandwich either.”

Delis are a profitable venture if you make sure that your pricing is correct and you keep your payroll in check. Profitability reflects a solid business plan and clear financial goals that are set before you open the store. If you set everything up for success, then you too can pay off your store in 4 years just like Kevin.

9. Marketing

The marketing plan for any business is important, but marketing for a business in the food industry is what you live or die on. Think about all the food-oriented advertisements you see on television. I can still hear that stupid “$5 footlong” song playing in my head, and that’s the support you receive from partnering in a franchise.

Small business owners have to get creative to drive customers into their store. The options are endless, but here are a few ideas to get you started:

• Free Samples
• Food Classes
• Loyalty Programs (Remember all of those stamp and punch card programs from sandwich shops?)
• Email and Social Media lists
• Community Outreach

On marketing, Kevin explained,

Partnering with Online Ordering and Food Delivery Services

When Kevin took over his deli, he was adamant that they didn’t change the product, but that didn’t mean he refused to update the business model. He said,

Here’s a list of the top online ordering and food delivery services, so you can incorporate it into your business plan and start your business with a 21st century model:

10. Customer Experience: POS, Employees, and Quality

Customers are the lifeblood of the food industry and your most important marketing tool is their word-of-mouth. That’s why it’s so important to provide an amazing experience for first-time visitors of a new business. After all, they’re the ones who will post about your new sandwich shop on Yelp, Google, and Facebook.

Creating a good customer experience in the food service industry is reliant upon three things: the POS (point of sale) system, your employees, and the quality of your food.

As Kevin explained in the previous section, he added a POS (point of sale) system to his new business to update it to a 21st century model.

A solid POS system allows your employees (or you!) to input orders quickly and correctly. It’s a computer program that contains your entire menu and all of the additional elements you can add or take away from a menu item.

Think of it this way:

You need a system so your cashier can tell the sandwich maker that a customer ordered a large turkey sub with lettuce, tomato, pickles, swiss cheese, no mayonnaise, and extra Dijon mustard. And the customer also wanted chips and a large beverage.

These systems are essential for ensuring that customers receive their order in a timely manner and that the order is exactly what they ordered. Speed and efficiency are key for customer service.

A POS system saves you from having to re-make food because an order was incorrect. It also ensures that employees charge for every item or menu addition that was ordered. This is a key factor in maximizing revenue and profits in the food service business.

POS systems are so important that franchises spend millions to develop their own in-house software. But if you’re an independent business, be sure to do your research and invest heavily in a solid system with warranty, maintenance, and support plans. Here are some of the top POS systems to get you started:

We asked Kevin what his biggest struggle was with his business and he said,

Employees are one of the most essential elements in the food industry besides the actual menu. They’re the key to providing your customers with an outstanding experience through customer service. And many times, that great service is the reason customers come back.

Here are a few key strategies you can use to make sure you’re hiring the best of the best:

• Make it easy for people to apply. You’ll find more applicants which gives a better statistical chance of finding a great one.
• Give a clear job description, title and wages and clearly describe responsibilities.
• Instead of attracting unemployed workers, try to attract workers looking for a better job
• Train yourself or managers at interviewing.
• Talk about your goals and see how a potential employee responds

We asked Kevin about the main key to growing a sandwich shop business and he said,

Take this advice and provide fresh, high-quality ingredients. Create a sandwich that customers will think about next time they’re hungry.

Let’s Make Some Sandwiches!

With those last three elements, you now know how to open a sandwich shop. Sandwich shops are a saturated market, but with a good business plan, a great location, and a solid menu, you’ll be ready to serve your first customers in no time.

We’ll leave you with three final tips from Kevin:

Do you have any experience with running a business in the food service industry? Tell us about it!

80% of businesses fail... Learn how not to.

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Is there an existing sandwich shop business for sale that you can suggest? I'm planning to just buy an existing one. Thanks!

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