How to Open A Deli: From Cold Cuts to Cash Flow

Whether you’re drawn to crafting signature sandwiches or becoming the neighborhood hotspot, a deli restaurant could be an excellent opportunity for you. Learn how to open a deli and turn your culinary passion into a lucrative business.

Sandwich and Sub Restaurant Industry Overview

Generating $46.2 billion in revenue in 2024, the sandwich and sub restaurant industry employs over half a million people across more than 20,500 businesses. As sandwiches remain popular for consumers due to convenience, customization, and affordability, the market offers great potential for savvy, driven entrepreneurs seeking their next investment.

How to Open a Deli in 10 Steps

Starting any type of business takes time and patience – and restaurants are no different. See what it takes to open a successful deli:

1. Draft a business plan: Your business plan serves as your deli roadmap. Your plan should outline your vision, target market, menu concept, and financial projections. Keep in mind that this plan is a fluid document. Be sure to review and make frequent updates as your business grows.
2. Secure financing: Determine your startup costs, including everything from lease agreements to equipment purchases. Work with a financial advisor to determine how much capital you have and what you’ll need to fill any gaps. Explore various funding options such as business loans, SBA financing, personal investments, or crowdfunding.
3. Site selection: Location, location, location! The right spot can significantly impact customer flow and overall profitability. Choose a site with high foot traffic, strong visibility, and easy accessibility. Consider parking availability, as well. An ideal spot would have plenty of space for customers and employees.
4. Obtain licenses and permits: Beyond obtaining a general business license and choosing your business structure, you must be aware of any state and local regulations. Ensure compliance with all health and safety codes by securing the necessary food service licenses, food handler’s permits, and health department approvals.
5. Purchase equipment: Invest in essential equipment, including refrigerators, meat slicers, prep stations, and a reliable POS system to keep your operations running smoothly. Additionally, should you plan to offer dine-in seating, purchase comfortable seating options for your customers.
6. Build your menu: Develop a menu that balances variety, quality, and profitability. Offer signature sandwiches, salads, and sides while incorporating high-margin items and customizable options to accommodate dietary needs and attract a broad customer base.
7. Recruit and train staff: Recruit employees with experience in food preparation and customer service. As the deli owner, you must provide your team with comprehensive training on food safety, operational efficiency, and hospitality to maintain consistency and quality. Foster a sense of camaraderie through team-building exercises and activities. A supportive, cohesive staff is essential to employee retention.
8. Market your deli: Use multiple media types to generate brand awareness around your restaurant. Build foot traffic by using social media, digital marketing, in-store promotions, local partnerships, and community engagement. Consider offering a rewards program to build customer loyalty and encourage repeat business.
9. Streamline operations: A big challenge for foodservice businesses is managing and reducing food waste. To improve efficiency and maximize profits, be sure to utilize inventory management systems, optimize food prep processes, and establish cost-control measures.
10. Grow your business: Expand your revenue potential by offering catering services, incorporating online and third-party ordering, or opening additional locations. If expansion is your goal, consider investing in a reputable sandwich franchise to help you scale your deli restaurant with a proven business model.

Hit the Ground Running with a Deli Franchise

The above to-do list may seem overwhelming. However, should you choose to partner with an established franchise brand, opening a deli can be much easier. There are many advantages to investing with a franchise versus starting your restaurant independently, including:

• Costs are communicated upfront: All franchises must disclose the estimated initial startup costs. This removes the chance of any unexpected expenses later.
• No trial-and-error phase: The franchisor has spent many years perfecting their business model. As a franchisee, you get direct access to their playbook, giving you a solid head start.
• Vendor partnerships: To reduce costs, franchisors have negotiated contracts with third-party vendors, meaning franchisees get better rates than independent business owners.
• Built-in recognition: With a notable name above your deli’s door, customers are more likely to trust – and frequent – your location.

Learn How To Open a Deli with Penn Station East Coast Subs

Are you wondering, “are sandwich shops profitable?” Here’s the answer: The success of any business depends largely on the amount of work you’re willing to put in. Investing with a franchise like Penn Station East Coast Subs makes the work required more manageable. With our dedicated team of industry professionals here to guide you, we’ll teach you everything you need to know about running a thriving deli franchise.

To learn more about our franchise opportunity, request information today, and one of our team members will set up an introductory call.