How to start up a sandwich bar

How to start a sandwich bar

How to Open a Sandwich ShopA sandwich bar is a great place to grab a quick, healthy meal. There are many different types of sandwiches available, so you can find one to suit your taste. For example, you can choose from a variety of meats, cheeses, and vegetables.

You can also choose from a variety of breads, such as white or whole wheat. Sandwich bars usually have a wide selection of condiments, so you can customize your sandwich to your liking.

Most sandwich bars also offer salads and soups, so you can make a complete meal. Sandwich bars are a convenient option for busy people on the go. Many sandwich bars offer made-to-order sandwiches, pre-packaged food items, and delivery services. In our handy guide, you’ll learn everything you need to know to start and run your own sandwich bar.

Research your target market

The first step in planning your new sandwich bar business is to research your market. Discover if there is an existing demand and how well it is being met.

Estimating demand

If you want to open a sandwich bar in your area, you must make sure that there is enough demand for it. There is a lot of competition in the sandwich and snack sector – other types of outlets sell sandwiches and other snacks. Your competition will likely include some or all of the following, among others:

  • Subway, Pret a Manger, Starbucks, Costa and other sandwich and coffee shops
  • Bakeries (look for Gregg’s stores) and delicatessens
  • WH Smith, Boots, Marks & Spencer and other large stores in the UK
  • Cafes, take-outs, snack bars, and pubs
  • Major burger chains – many also sell deli-style sandwiches
  • Petrol stations, convenience shops, and newsagents

Find out how many restaurants and take-out locations sell sandwiches and take-away food in your area. You can get a good idea of who’s selling what by walking around the immediate area.

Analysing demand in your area by carrying out a head count outside an existing sandwich bar could be helpful. You can also find out when your competitors are busiest – and what days see the highest demand. To get an idea of passing trade outside your proposed location, you can also count footfall outside at various times of the day. Continue this exercise several times a week. Ideally, you should do this before making a final decision.

You should check the local area to ensure there are enough potential customers nearby. How close are you to office buildings, businesses, universities, or busy shopping areas, for example? Discover whether a sandwich business already delivers to local offices and businesses. You might be able to advertise your range to their employees if they don’t already have it.

Checking out the competition

In order to ensure that your sandwich bar attracts plenty of customers rather than your competitors, you should visit your main competitors’ outlets. The peak lunch time period would be a good time to visit your competitors. Visit their businesses and learn as much as you can about them, including:

  • The wait time and how busy they are
  • Do they offer pre-packaged sandwiches or made-to-order sandwiches
  • What kinds of fillings they offer and what types of bread they use
  • How much they charge and if they have any special offers
  • Other products they offer
  • Whether they offer both eat-in and take-away services
  • Their level of service provided

Keep a note of any other general impressions that come to mind. If you do your market research thoroughly, it will help.

Think of anything you can do to give yourself an advantage over your competitors during your research. It may be apparent from your research that there is a niche that none of your competitors cover, such as Fairtrade or organic products.

There may be long queues at all the sandwich bars in your area – this could indicate that customers would prefer a sandwich bar that offers pre-packaged sandwiches so they can buy their lunch more quickly.

Find out what people want

Ask as many potential customers as you can what they will look for in a good sandwich bar before you open. You can use this feedback to target your offer and provide an outlet that meets the needs of your customers. Ask potential customers as many questions as you can, such as:

  • What kind of breads and fillings they prefer
  • Do they prefer pre-packaged sandwiches or sandwiches made-to-order
  • What other foods and drinks they would consider purchasing
  • Which opening hours would be most convenient for them?
  • How they feel about your proposed prices
  • If you are thinking of offering an online or telephone order service, whether they would use it
  • In your area, what do they dislike about other sandwich shops?

Keep in mind that market research is an ongoing process. Find out what your customers like and dislike about your sandwich bar once it is open. Take note of the items that sell well and those that don’t. In order to ensure that you continue to meet customer needs, you could even have a suggestion box on the counter.

Making sandwiches for other outlets

You could offer wholesale pre-packaged sandwiches to other businesses like cafes and newsagents, or even to larger organisations like hospitals:

  • Make a list of potential wholesale customers in your area, say within five to ten miles of your business
  • Ask some if they would be interested in buying your sandwiches wholesale

In response to a positive response – whether a definite “yes” or an expression of interest – ask:

  • How much they would be willing to pay for fillings and other products
  • What days and how many sandwiches they would like
  • Is this enough profit margin to cover your costs and profits?

If any sandwiches go unsold, decide who will pay for them. Wholesalers usually offer returns and limited sales options for pre-packaged sandwiches they sell to other retailers.

It is important to keep in mind that the wholesale pre-packaged sandwich trade is highly competitive. A better range of products or improved terms of trade will probably be required to persuade a potential customer to change suppliers.

Establish your customer profile

Your sandwich bar’s location, the selection of sandwiches and fillings, and whether you target the upper or lower end of the market will determine who your customers are. You should conduct market research to identify any gaps in the local market and the type of customers you should target. You may have several different types of customers, including:

  • Working people buying their lunch – especially if you’re near an office complex or industrial estate. Despite building a core of regular customers, don’t forget that office workers expect free wi-fi and to be able to order in advance by phone, text or online.
  • Shoppers – you will probably be busiest on weekends if you are located in or near a busy shopping area, and you might rarely see the same customer twice
  • Students if you’re near a university or college
  • Holidaymakers if you’re located in a tourist area
  • Businesspeople 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

If you want to determine your income, you need to estimate how many sandwiches, other foods, and drinks each customer is likely to purchase on a typical day and how much each customer is likely to spend. You might check out what customers normally buy at other sandwich bars in your area as part of your market research. Depending on the time of day, the day of the week, or the season, does it vary? To estimate the average customer spend, use your market research and proposed pricing policy.

Sandwiches cost about £3.50 on average in London, while they cost just under £3.00 elsewhere. The average weekday lunch cost is a little over £6. Londoners spend £6.60 on lunch, while people in Manchester (the cheapest) spend £5.50. Weekend spending averages around £7.00.

Special offers and discounts

In order to encourage customers to visit your sandwich bar more often and buy more when they’re there, you probably offer some special deals from time to time. As an example, you could:

  • Offer ‘meal deals’ where sandwiches, crisps, and a drink are cheaper when purchased together
  • Provide a loyalty card scheme where customers receive a stamp every time they buy a sandwich – or equivalent product – and can collect a free sandwich and drink when they have collected a certain number of stamps, say eight or ten
  • Introduce new products with introductory discounts
  • Discounts for students and pensioners

As a matter of course, you’ll offer trade customers a discount. The amount of discount you decide to offer will depend on your pricing policy and the level of competition in your local area. A limited or full sale or return option is usually offered when you sell sandwiches wholesale to other retailers.

Make sure your special deals are working for you by keeping an eye on them. The average spend per customer can be affected by special offers and discounts.

Any staff you have should be aware of what special offers are available at any given time. There will be a need for them to know who qualifies for a discount and how to get it. Your staff will receive what discount you allow – if any – and what if anything they can eat on the premises for free.

Decide what to sell

Sandwiches, baguettes, rolls, and so on are likely to provide most of your income. With sandwiches, you can offer your customers a wide variety of fillings, from traditional fillings to more inventive and exotic options. Various breads are also available, such as white and wholemeal breads, as well as wraps, baguettes, ciabattas, paninis, and bagels.

Market research can help you determine what fillings and breads would be popular – as well as which market segment to target. Your outlet may be able to fill a gap in the market. Other outlets may not offer sandwich fillings made from organic produce sourced locally. It is possible that there is a demand for gluten-free or dairy-free sandwiches, low-calorie options, or vegan products. The Pret a Manger vegetarian range was introduced at the end of 2015. Their vegetarian range is expected to be very popular, particularly sandwiches with avocado fillings, and sales are expected to increase.

Consider whether you will sell food both to eat-in and to take away. It will probably be necessary to take on extra staff if you plan to offer eat-in sales. Your local council can provide you with legal advice regarding the legal requirement for toilet facilities in your area under current byelaws. Councils require toilets in cafes with any seating, while others require toilets only in cafes with more than ten seats. Think about whether you’ll offer pre-packaged sandwiches, made-to-order sandwiches, or a combination of both. Again, your market research should provide you with an idea of what would appeal to more people.

Drinks and other products

Offering sandwiches and drinks alone won’t suffice in the face of strong competition. You could offer a number of other products to appeal to a broader range of potential customers and to differentiate yourself from your competitors.

Consider these other products when thinking about what else you might offer:

  • What demand there is for the extra products you plan to offer – or if you can create it
  • If you want to serve hot food, you need to determine how much space you have and where you will display any extra products – for example, do you have room for an extra chiller or for cooking and heating equipment
  • Will you be able to get your additional stock from your current suppliers
  • If you plan to sell a lot of perishables, will wastage be a problem

The takeaway food industry and the lunchtime market are highly competitive, so it’s important to keep up with consumer preferences. It would probably be a good idea to introduce new menu options fairly regularly. It goes without saying, however, that you shouldn’t replace any customer favourites.

Decide what services to offer

You’re likely to be busy for a couple of hours around lunch time each day, even though your sandwich bar is likely to be open for most of the day. When it comes to lunchtime rushes, speed of service is vital. It is important that you can serve as many customers during this period as possible, and you do not want long queues to turn off potential customers.

Since freshness is crucial in the sandwich trade – both from a hygiene and presentation perspective – you’ll probably prepare most of your pre-packaged sandwiches, fillings, and any other products that need to be prepared ahead of time in the morning. The result will be a greater number of customers served and fewer queues at peak times. By phone, text, or email, you can offer your customers an ordering service. During the morning, you can make up these orders in time for delivery or collection.

Even though there may be some late lunchers and afternoon snackers in the afternoon, it is likely to be much quieter during the afternoon. Fillings and other products that can be safely stored for a day or two can be made up in the afternoon, as well as cleaning, stocktaking, ordering supplies, bookkeeping, etc.

Made-to-order sandwiches

Pre-packaged sandwiches can be offered to your customers, which you prepare and package in advance, or you can make sandwiches to order. It is possible to offer both, of course. Sandwiches could be made in a chiller and displayed for customers who are in a hurry, and made-to-order sandwiches could be offered for people who have some extra time. Neither option is perfect, but your market research should provide some insight into which would be most popular – and most profitable – in your area.

To estimate how long it will take you – or a member of staff – to serve a typical customer if you plan to make sandwiches to order, it can be helpful to time yourself as you make various sandwiches. You will be able to estimate how many customers you will be able to serve per hour by doing this.

Running a delivery service

It might be a good idea to run a delivery service and deliver sandwiches in time for lunch at local workplaces. You have two options if you do:

  • Preparing sandwiches ‘on spec’ before lunch time and taking them to places where you expect there will be demand – like local offices, factories, etc.
  • Delivering orders by phone, text, or email in time for lunch to your customers

You usually pay the delivery driver when they deliver the sandwiches or sell them on spec. Good record keeping systems and trustworthy staff are essential. Additionally, ensure that the person making the deliveries has a cash float so they can provide change.

Minimising wastage

To ensure the quality and freshness of your ingredients, make sure they are in peak condition before using them. Most of the ingredients you’ll use are prone to spoiling very quickly, so you’re bound to waste some every day. During the preparation stage, wastage may also occur if your staff is careless or inconsistent with the number of fillings. By training your staff in correct handling techniques, cold storage procedures, and portion control, you can reduce wastage.

Due to the fact that not every item will sell every day and some stock can only be kept for a few days, some wastage is inevitable. If you want to reduce this type of wastage, you may reduce availability and run-down stock after lunchtime. To avoid throwing away unsold sandwiches, it’s a good idea to reduce the price towards the end of the day.

Other services

You might be able to attract customers away from your competitors by offering other services. Perhaps no other outlets in your neighbourhood offer eat-in services (remember to ask your local council about the legal requirements for the provision of toilet facilities for eat-in customers in your area). If you want to have some tables outside, you’ll probably need permission from your local highway department. By setting up a hotspot, you can provide WIFI internet access to customers at your sandwich bar or cafe.

Promote your business

Sandwich bar outlets must maintain consistently high standards and project the right image. Your company’s key selling points must be communicated to potential customers.

The right image

The image your sandwich bar projects to customers is crucial. In order to attract new customers and keep existing customers coming back, everything about the way it looks and feels should be designed to attract new customers.

Bright and attractive exteriors are important for your outlet. Ensure that signs are professionally designed, clean, and well maintained.

Make sure your sandwich bar’s colours, letters, and designs convey the right message. You can tell the difference between an up-and-coming sandwich bar and one that looks old and rundown by the cleanliness of your windows and the condition of your paintwork.

Displaying daily or weekly specials on your outlet’s board or sign can be a good idea. In addition to attracting passing trade, this will demonstrate your openness to potential customers. If you offer outside catering, you could advertise it in your window. Your window should also display a menu card and price list. Don’t clutter up your window with signs and notices, though – passers-by should be able to see a well-stocked sandwich bar and an inviting atmosphere.

It is very important to pay attention to the interior of your sandwich bar. Creating a brand image and a certain ambiance for your outlet can be achieved by decorating and installing fixtures and fittings. Display your products in a way that makes sense to you. You may offer pre-prepared sandwiches, made-to-order sandwiches, or both.

A chilled serve-over counter could display a range of pre-prepared sandwiches, drinks, and other products and a range of fillings for made-to-order sandwiches.

Consider ways to encourage your customers to buy more from you. It’s important not to ignore ‘impulse’ purchases. Put a basket of fresh fruit next to the till or a rack of confectionery, cakes, or muffins. Get point-of-sale materials from your suppliers. If there are any special offers like a ‘meal deal,’ ask your staff to point them out to customers. You can also ask them if they would like any other products to go with their sandwich.

Quality standards

In shaping your sandwich bar’s image, your employees play a very important role. Customers expect politeness, friendliness, and efficiency from them. Uniforms for staff might be a good idea.

A satisfied customer will tell their friends about your sandwich bar and encourage them to visit.

Advertising and marketing your sandwich bar

Having a sandwich bar is a great way to get the word out about your business.

In order to market and promote your business, you can do a number of things. As an example, you could:

  • Establish a website listing the sandwiches and other products you offer and any other services you provide
  • Make use of online social media to promote your cafe and keep in touch with your customers – you could post about new menu items and special offers on Facebook and Twitter, for example
  • Utilise your Tripadvisor listing to the fullest extent possible
  • Publicise in local newspapers and directories
  • Make leaflets and hand them out in the local area – include your price list and highlight key features like special deals or Fairtrade products
  • Advertise your daily or weekly specials outside your outlet
  • Your vehicle can serve as a good advertisement for your business, so keep it clean and smart to project the right kind of image
  • Take part in industry promotions such as British Sandwich Week
  • Become a member of a trade association such as the British Sandwich Association (BSA) and be listed in their online sandwich and cafe finder
  • To prospective customers, offer some free samples, along with a price list and details of your range
  • Each time a sandwich or an equivalent product is purchased, customers receive a stamp on their loyalty card. Upon reaching a certain number of stamps, such as eight, they receive a free sandwich and drink – this can help to ensure repeat business

There is always a cost associated with advertising, whether it is financial or time and effort on your part. Spending time and money on advertising and promotions should prove to be worth it in terms of their effects. The types of advertising and promotion that work best for you are up to you – sometimes this is a matter of trial and error.

What equipment do you need to open a sandwich shop

Now you’ve got an insight into what the initial steps of setting up a sandwich shop entail. Perhaps you’re motivated to begin, create a menu, and delve into acquiring catering tools. What’s next? It’s essential to be aware of the downsides of opting for budget-friendly tools and the unforeseen challenges they may present.

While it seems like a wise choice for any startup, equipment of lesser quality might end up being pricier in the long haul. There are nuanced differences when managing a cosy cafe or sandwich outlet as opposed to being in a vast restaurant kitchen. For instance, possessing a chilled food display with an in-built refrigerator ensures the primary fridge isn’t accessed excessively. This helps in preserving optimal temperatures, which enhances efficiency and minimises expenses. In the same vein, washing pots is more manageable, facilitating the installation of a compact sink.

The type of dishes you opt for will heavily influence your equipment needs, but it’ll also determine how much prep area is essential. So, besides a grill and fryer, you might need a mixer and an ice-making machine to meet the craving for juices and smoothies. Displaying food and marketing becomes another crucial aspect.

Frontally, a spacious glass countertop can exhibit your ready meals and fresh produce. Of course, a glass-fronted beverage refrigerator is vital to provide patrons with a quick and transparent peek into available options.

Here are some vital equipment pieces you’ll require:

  • Wide Buffalo contact grill with open setting
  • Cool food showcase or display with an attached fridge
  • Sink designated for hand washing
  • Sink for washing pots
  • Heating oven
  • Touch grill
  • Disposables: one-off food containers, beakers, straws, and throwaway cutlery
  • Seating arrangements
  • Distinct trash bins for your cooled and warmed section
  • Polar cool food showcase brimming with refreshing beverages
  • Cooking vessels
  • Tools
  • Sanitation tools
  • Sanitation products
  • Differentiated cutting boards by colour
  • Dining tools and silverware
  • Kitchen blades.

Taking payment for your sandwiches

In today’s fast-paced world, the manner in which businesses accept payments can greatly influence customer satisfaction and overall sales. For a sandwich shop, where speed and efficiency are vital, having a diverse and efficient payment system is essential. This ensures that every customer, whether they prefer the tangibility of cash or the convenience of a card, can make a purchase without any hassle.

Moreover, diversifying payment methods can also enhance the overall customer experience, making it seamless and swift, and potentially leading to increased loyalty and repeat business.

Different payment methods for sandwich shops include:

  • PDQ Card Terminal: A Portable Data Quickly (PDQ) terminal allows businesses to process debit and credit card transactions swiftly. With its portability, it can be handed directly to customers, enabling them to pay from their seats, enhancing their dining experience.
  • Cash Sales: Even in our digital age, many customers still prefer the familiarity of cash. Accepting cash sales ensures that you cater to every customer demographic. It’s essential to have a secure and efficient cash management system, like a till or cash register, to handle and track these transactions effectively.

Insurance for you business

Owning a sandwich shop entails navigating a myriad of unpredictable challenges. These can span from unexpected incidents, such as a customer slipping on spilled water, to unforeseen calamities like fires that can devastate your establishment. Insurance is your shield against such eventualities, ensuring that your hard-earned investment, assets, and the continuity of your business are protected.

Additionally, having the right insurance coverage not only gives you peace of mind but also reinforces trust among your patrons and employees, signifying that their safety and well-being are priorities in your business operations.

Key insurance types for sandwich shop owners include:

  • Public Liability Insurance: Covers legal costs and compensation related to injuries or damages suffered by customers or third parties on your premises.
  • Buildings and Contents Insurance: Protects against damages to the shop’s infrastructure and its interior assets.
  • Product Liability Insurance: Essential if a customer falls ill from consuming products sold in your shop.
  • Employers’ Liability Insurance: Mandatory if you employ staff; it covers claims from workers who might suffer injuries or illnesses due to their job.

Renowned providers offering these insurance policies to food enterprises are AXA, Direct Line for Business, and Hiscox. It’s prudent to juxtapose different offers to identify the ideal coverage for your specific business needs.

Financing your business venture

Venturing into the world of sandwich shops necessitates more than just a passion for food; it requires sound financial backing to translate that dream into reality. From securing a prime location, sourcing fresh ingredients, hiring staff, to marketing your brand, each aspect demands a monetary commitment. Effective financing is paramount to ensure the smooth initiation and operation of your sandwich shop.

The right funding not only covers initial setup costs but also cushions the business during lean periods, aiding in stability and growth. Additionally, selecting an appropriate financial solution can provide your venture with the flexibility it needs to adapt to market demands and seize new opportunities.

Different financing options tailored for sandwich shops include:

  • Merchant Cash Advance: Ideal for sandwich shops with significant credit card sales, this offers an upfront cash amount which is then repaid as a percentage of daily or weekly credit card transactions.
  • Startup Business Loan: Tailored for new entrants in the business realm, this loan caters to the unique needs of budding sandwich shops. It generally requires a compelling business plan and might entail personal guarantees, but it can provide that initial boost to get the business off the ground.
  • Business Loan: A conventional form of financing, business loans can be obtained from banks or other lending institutions. They are typically characterized by fixed terms and interest rates. Such loans can fund a range of needs, from renovating the shop space to bulk purchasing ingredients.

Buy an existing business

Rather than starting from scratch, you might consider buying an existing sandwich bar. When you buy a going concern, the products, customers, regular sales, staff, premises, and equipment are all already established.

It can be a risky, expensive process if you don’t have the right legal and financial expertise on your team. The price you pay for the business should reflect the business’s true trading and financial position.

Franchises

There is no doubt that franchising can be a good ‘halfway house’ between starting from scratch and buying an existing business. Although you’ll still be setting up your own business if you purchase a franchise, you’ll benefit from the experience, resources, and possibly the name of an already successful business.

The sandwich bar industry offers a variety of franchise opportunities. Subway is an example of a well-known national outfit, while others are regional ones. Sandwich bar franchise opportunities can be found by searching online for ‘sandwich bar franchise’.

In spite of the fact that franchise schemes vary in detail, they all feature the following key elements:

  • Franchisees remain self-employed but use the franchisor’s identity (corporate colours, logos, trade name, etc.)
  • The franchisor will charge you a fee – either a one-time investment, a monthly fee, or both
  • There are certain obligations and minimum standards you as well as your franchisor must meet

Franchisors may require you to buy some, most, or all of your stock or ingredients.

Franchisors often offer training, marketing, and technical advice and support to franchisees, as well as help with advertising.

Both you and your franchisor will sign a franchise agreement or contract that details the above points. Also included in the franchise agreement will be territorial exclusivity due to you and a minimum franchise period.

Ensure that you’re getting a reasonable deal before entering into a franchise agreement. Make sure you have your solicitor review the contract before you sign it. The Franchise Info website provides more information about franchising. The British Franchise Association (BFA) also provides information.

Conclusion

Starting a sandwich bar requires careful planning and attention to detail. First, you need to research your local market and identify your target audience. Consider factors such as location, competition, and demand for your products. Then, create a business plan outlining your vision, goals, and financial projections. You’ll also need to secure funding, select a location, and obtain necessary permits and licenses.

Next, you’ll need to purchase equipment, supplies, and ingredients. Consider investing in high-quality equipment and ingredients to ensure the best possible customer experience. Finally, hire staff and develop a menu that offers a variety of sandwiches to cater to different dietary needs and preferences.

Promote your sandwich bar through advertising and social media to attract customers and build your brand. With the right strategy and execution, your sandwich bar can become a popular destination for hungry customers in your community.

Business Marketing Specialist at PDQ Funding | + posts

Jarred Musson is a versatile writer with a diverse educational background and a passion for all things business. Holding a Master of Science (MSc) degree in Marketing and a Bachelor of Arts (BA Hons) in Multimedia Journalism from Manchester Metropolitan University, Jarred possesses a unique blend of expertise that allows him to dissect and communicate complex business topics with clarity and precision.

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