Kane Richards is the sole franchisee of two Sydney based Subway stores, and he owns another in partnership with Subway’s Australian master franchisees. 

Kane joined the system in 2006, and in April he received the company’s highest accolade – the 2014 Franchisee of the Year award.

Subway didn’t initially fit into Kane’s career plan; in fact his future had been mapped out from a young age – he was to be an oyster farmer. 

“I was destined to have been a fourth generation oyster farmer, which was thoroughly rewarding work,” Kane says.

“Unfortunately due to a disease that affected the oysters, the business was wiped out, which was obviously devastating for the family.”

The unfortunate circumstances meant Kane had to decide on an alternate career path. He always dreamt of owning his own business and had a genuine interest in the sandwich chain. 

“The Subway model stood out as a great fit for me, and it was enticing for several reasons. It’s a healthy alternative in the QSR market, part of a large network, there’s a wealth of opportunity to expand and it’s affordable in terms of set up costs,” Kane explains.

“It is a healthy food alternative and a well established business model – it’s really great to be developing and growing with the brand.”

THE ROLE OF RESEARCH

Kane began to research the Subway brand by heading online, and he proceeded to make contact with the team at Subway.

“I requested all the formal documents from Subway and I met with many existing franchisees, who were fantastic in giving their time and advice – this enabled me to truly make an informed decision,” he explains.

While Kane is confident he made the right decision, he would delve a little deeper if he had his time again.  

“Looking back, if I was going through the process again, I would work more with franchisees from a broader cross section of Subway stores to gain additional in-store/operational experience prior to opening my own store.” 

He advises potential franchisees put a sufficient amount of time aside to thoroughly research the brand they are interested in.

“It’s imperative that you research and gather as much information as you can, as this will help you to make the best decision. Taking the time to speak with current franchisees in the system, particularly from a diverse number of locations is important,” Kane explains.

“I was quite thorough with my research and probably a little bit full on, but you have to be when you’re investing a considerable amount of money.” 

THE FINANCIALS

The costs associated with purchasing a business were at the back of Kane’s mind throughout the research process, and he worked tirelessly to finance the investment.

“I worked three jobs to save up for the initial set-up costs and the bank financed the remaining portion. 

“My newest store has been financed through FinanceNet, an initiative of the Independent Purchasing Company of Australasia (IPCA) and Subway. FinanceNet has given me access to a team of professionals who understand the Subway business, which has streamlined the process for me,” Kane adds.

TRAINING

Upon completion of the transaction, Kane took part in Subway’s initial franchisee training, which he says was highly valuable.

“Subway delivers a comprehensive two week training program in Brisbane, where franchisees spend time both in-store and at the training centre.

“It was fantastic in preparing me for owning and operating a Subway franchise and it’s really intensive, which is great because in a way that’s how it is when you’re actually running a store,” he explains. 

Subway also offers a one week multi-unit owner training program, which is now compulsory for franchisees that wish to invest in additional stores.

“The company organises for some really great existing multi-unit franchisees to come in and present – it’s a really valuable course for people considering owning a second store, I’d really recommend it. 

“Subway provides effective systems and extensive support, which is readily available,” he adds.

NOT YOUR TYPICAL NINE TO FIVE

Kane says owning a franchise is definitely hard work, and he tends to work on the business every day. 

“The university stores are open seven days a week and they close for one of the days over the non-semester period, but for me that’s a great time to go in and do repairs and maintenance, and there isn’t anyone around so I can sit down and go through a lot of the paperwork.

“It is seven days but when you have everything in place you do get that little bit more freedom to look for other opportunities and importantly for me I get to spend more time with the family.”

Kane admits he finds it’s hard to separate his work and personal life, and he credits the company’s network of franchisees to helping him find a better balance. 

“It’s always been a slight problem for me because I am passionate about the brand and the business so I am very much hands on – thinking back I’ve actually postponed a fair few holidays just so I could stick around and do some work and stay on top of everything.

“The great thing about being part of such a large network is you can really work with other franchisees and see how they find that balance,” he adds.

ON THE GO

Kane is constantly on the move, travelling between his three stores, which are situated in the Sydney suburb of Gordon, as well as at The University of Sydney and The University of New South Wales, each day.

“I am always up really early; I can be up from 5.30am. Normally I’d start the rounds by going in at about 6.30am and I’ll travel between the stores up until lunch time, where I’ll work as part of the team during the lunch period,” he explains.

“Normally I’d leave after the lunch rush and get back, and that’s where I get a bit of balance with the family – I am fortunate enough to be able to pick up my son from school.”

Once he’s home for the day, Kane will continue to work on the business. “Evenings are spent catching up on the administrative side of the business and following up on operations,” he says.

He is responsible for managing all three stores, and is in constant communication with his partners. “We meet quarterly to discuss the store performance.”

A SMOOTH JOURNEY?

Kane explains opening his first store, which was to be situated at a brand new site in Gordon, was definitely challenging.

“It opened a week after my wife and I were married and it was certainly a trying time! Hiring the right people for the right positions, and then building a great team culture is an ongoing challenge.

“Maintaining and building business profitability in an ever changing economy can also prove trying, and as the company grows with more stores, time management can be challenging,” Kane adds.

Over the past eight years he’s learnt a lot about both the Subway brand specifically, and the franchising model more generally.

“The biggest lesson I’ve learned is to follow the system! The system has been refined over many years, and it gives franchisees the best opportunity to succeed.

GOALS: PAST, PRESENT, FUTURE

Kane says he’s achieved a number of business goals during his time with the brand, including receiving awards such as Rookie of the Year and the more recent National Franchisee of the Year title.

“Serving on the IPCA Board, which is an independent Subway franchisee owned and operated purchasing company, alongside many dedicated and passionate Subway franchisees is another personal goal that I’ve fulfilled.

“Being a Board member has given me the opportunity to be involved with strategic buying, managing the supply chain and delivering business solutions to assist Subway franchisees,” Kane explains.

Kane is constantly re-evaluating his goals for the business, and they currently include: “reinvesting in the business and opening more stores, continuing to strengthen store operations and the culture of the company, and to focus on the team and achieving KPI’s,” he says.

“For me it’s been great investing with Subway and it’s been a great investment with each store so I am certainly looking for more.”

He’s subsequently recruited a number of employees to help him achieve the aforementioned goals. “As the company has grown I’ve been able to recruit area managers and people in operations. I’ve got a manger in each of the stores, assistant managers in the university stores and I am in the process of training an area manager for the three stores.

“It gives me a bit of time to step back and work on operational aspects of the business and look at other sites, and I enjoy a little more freedom now,” he explains.

A HAPPY FRANCHISEE?

Kane is pleased he decided invest in the Subway brand all those years ago, and he’s kicked a numer of personal goals in the process. 

“Subway has provided me with a career that I’ve been able to grow and develop with. The experience has been fantastic in terms of personal development – I’ve had some amazing experiences and met some incredibly influential people within the system.

“I have never looked back since owning my first Subway franchise and I am always looking for new locations,” he adds.