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Approximately how much would you say it costs? Could he have gotten a small business loan?

by MuffinFlavored 9y ago

deleted 9y ago
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deleted 9y ago
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binarymax 9y ago
An order of magnitude higher than 60k, if your goal is to compete in the market he was targeting. For 60k he could have opened a pizza or sandwich shop.
- bduerst 9y ago
  You'd have a hard time even opening a Subway with $60k
  - adventured 9y ago
    Bet on closer to $200,000, with room for $250,000.
  - mgkimsal 9y ago
    I googled subway franchise, found http://www.franchisedirect.com/directory/subway/ufoc/915/ http://www.franchisedirect.com/directory/subway/ufoc/915/ Low end estimate is $150k required up front, and high end of $320k. However, in that low end - $85k estimate for leasehold improvements. $15k for initial subway franchise fee. Local sandwich shop opened up a few years back and... while I don't know all the numbers, he didn't put in $200k up front. I suspect it may have been more like $40-$50k, between initial lease, equipment, stock, etc. Small town, passing traffic, little competition, he's done well enough that he's expanding - doubling his size and moving a bit up the street. He's also a very pragmatic guy, and the sandwich biz has been in his family for a couple generations, so I have to think they're at least moderately profitable.
  - drewmol 9y ago
    They recommend at least $30k in liquid assets, but I'm sure that depends on the market. $80-$310k minimum net worth. I agree with your statement, though this was interesting. http://www.businessinsider.com/what-it-costs-to-open-a-subway-2015-3 http://www.businessinsider.com/what-it-costs-to-open-a-subwa...
hbosch 9y ago
The article states no one would loan him money, since he was a first time restauranteur with zero experience. He cashed out his pension.
astura 9y ago
No loans/outside funding was available. >I contacted the banks to apply for a business loan, but I didn’t qualify. I looked into a few angel investor groups, but it turned out that they didn’t “do” restaurants. I even considered Dragons’ Den. As it turns out, no one invests in first-time restaurateurs, no matter how mind-blowing they think their cooking is.
jlarocco 9y ago
> Could he have gotten a small business loan? Not without a ton of experience running profitable restaurants.
Ice_cream_suit 9y ago
I know someone who sunk over a million dollars into a seafood restaurant in my city. A year later, he is bankrupt, has lost his house and his marriage.

Approximately how much would you say it costs? Could he have gotten a small business loan?

deleted 9y ago

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deleted 9y ago

[deleted]

binarymax 9y ago

An order of magnitude higher than 60k, if your goal is to compete in the market he was targeting. For 60k he could have opened a pizza or sandwich shop.

bduerst 9y ago
You'd have a hard time even opening a Subway with $60k
- adventured 9y ago
  Bet on closer to $200,000, with room for $250,000.
- mgkimsal 9y ago
  I googled subway franchise, found http://www.franchisedirect.com/directory/subway/ufoc/915/ http://www.franchisedirect.com/directory/subway/ufoc/915/ Low end estimate is $150k required up front, and high end of $320k. However, in that low end - $85k estimate for leasehold improvements. $15k for initial subway franchise fee. Local sandwich shop opened up a few years back and... while I don't know all the numbers, he didn't put in $200k up front. I suspect it may have been more like $40-$50k, between initial lease, equipment, stock, etc. Small town, passing traffic, little competition, he's done well enough that he's expanding - doubling his size and moving a bit up the street. He's also a very pragmatic guy, and the sandwich biz has been in his family for a couple generations, so I have to think they're at least moderately profitable.
- drewmol 9y ago
  They recommend at least $30k in liquid assets, but I'm sure that depends on the market. $80-$310k minimum net worth. I agree with your statement, though this was interesting. http://www.businessinsider.com/what-it-costs-to-open-a-subway-2015-3 http://www.businessinsider.com/what-it-costs-to-open-a-subwa...

hbosch 9y ago

The article states no one would loan him money, since he was a first time restauranteur with zero experience. He cashed out his pension.

astura 9y ago

No loans/outside funding was available. >I contacted the banks to apply for a business loan, but I didn’t qualify. I looked into a few angel investor groups, but it turned out that they didn’t “do” restaurants. I even considered Dragons’ Den. As it turns out, no one invests in first-time restaurateurs, no matter how mind-blowing they think their cooking is.

jlarocco 9y ago

> Could he have gotten a small business loan? Not without a ton of experience running profitable restaurants.

Ice_cream_suit 9y ago

I know someone who sunk over a million dollars into a seafood restaurant in my city. A year later, he is bankrupt, has lost his house and his marriage.