Subway vs The Coffee Bean & Tea LeafFranchise Comparison 2026
Subway and The Coffee Bean & Tea Leaf represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Subway | The Coffee Bean & Tea Leaf | Difference |
|---|---|---|---|
| Franchise Fee | $15,000 | $35,000 | -57% |
| Total Investment (Low) | $116,000 | $250,000 | -54% |
| Total Investment (High) | $263,000 | $550,000 | -52% |
| Cash Required | $80,000 | $200,000 | -60% |
| Royalty Rate | 8.0% | 6.0% | Higher |
| Advertising Fee | 4.5% | 2.0% | Higher |
| Estimated Revenue | $490,000 | $720,000 | -32% |
| Number of Locations | 20,133 | 1,100 | More |
| Year Founded | 1965 | 1963 | Newer |
| Training Duration | 2 weeks | 3 weeks | Shorter |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Subway
Lower-cost franchise option with flexible footprint. Lower per-unit sales but easier entry point for new franchisees.
About The Coffee Bean & Tea Leaf
Specialty coffee and tea with global locations. Premium positioning and diverse beverage menu.
Investment Comparison
Subway requires a lower initial investment (avg $189,500) compared to The Coffee Bean & Tea Leaf(avg $400,000), making it more accessible for first-time franchisees. However, The Coffee Bean & Tea Leaf may offer higher revenue potential.
Fee Structure
The Coffee Bean & Tea Leaf has lower ongoing fees (8.0% total) compared to Subway(12.5% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
Subway has a significantly larger footprint with 20,133 locations compared to The Coffee Bean & Tea Leaf's 1,100. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Subway vs The Coffee Bean & Tea Leaf franchise?
Subway requires an initial investment of $116,000 to $263,000, while The Coffee Bean & Tea Leaf requires $250,000 to $550,000. Subway has the lower average investment at $189,500.
What are the ongoing fees for Subway vs The Coffee Bean & Tea Leaf?
Subway charges a 8.0% royalty plus 4.5% advertising fee (12.5% total). The Coffee Bean & Tea Leaf charges 6.0% royalty plus 2.0% advertising fee (8.0% total). The Coffee Bean & Tea Leaf has lower total ongoing fees.
Which franchise makes more money: Subway or The Coffee Bean & Tea Leaf?
Based on estimated average unit revenue, The Coffee Bean & Tea Leaf generates $720,000 per location compared to $490,000 for Subway. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Subway have vs The Coffee Bean & Tea Leaf?
Subway has 20,133 locations, while The Coffee Bean & Tea Leaf has 1,100 locations. Subway has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Subway or The Coffee Bean & Tea Leaf a better franchise investment in 2026?
Both Subway and The Coffee Bean & Tea Leaf are established QSR brands with proven models. Subway offers a lower entry point, while The Coffee Bean & Tea Leaf shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
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