How to start a sandwich shop and run it successfully
Starting a sandwich shop in your local community can be really rewarding. Not only can you serve up the latest sandwich trends, but you can also create a community hub with customers who keep on coming back.
Bionic provides a range of services to help you set up, manage and grow your business. From comparing business energy quotes to finding you the right business cover, Bionic helps to take the hassle out of sorting business essentials.
Whether you’re opening a sandwich shop for the first time or expanding your business to multiple premises, this guide aims to provide you with everything you need to know. From understanding the practical side of things – from setting up and getting going, to ongoing costs and considerations of running your own sandwich shop. We can also help you with understanding what type of insurance cover you might need - check out our sandwich shop insurance page for more info.
How much does it cost to open a sandwich shop?
Before you open your doors, it’s essential to understand the full cost of opening a sandwich shop. From rent and equipment to staff and insurance costs, the cost of opening a sandwich shop in the UK depends on the type, size and location of your business. For example, a small takeaway-focused sandwich shop might cost less than a sit-in establishment with multiple premises.
When weighing up how much it costs to start a sandwich shop, you’ll need to consider both upfront and ongoing costs. Typical start-up costs may include renovations, furnishings, licensing and more. Ongoing payments usually include rent or mortgage payments, energy bills, staff wages, software subscriptions, equipment maintenance and marketing.
What are the key start-up costs?
Here are some of the key start-up costs every sandwich shop owner should consider:
Premises and renovations
One of the highest upfront costs for a sandwich shop is securing a suitable location. Rent deposits, lease agreements, and property size may all affect the price. Whether leasing a shop or renovating a food truck, the cost can vary widely depending on the space’s condition and your preferences.
Equipment
Sandwich shop equipment is also a major investment, ranging from refrigerators and ovens to cookware and utensils. The exact type of equipment you’ll need will depend on the type of establishment you run. Choosing quality equipment for your business may help you save money in the long run, but you can always consider buying second-hand if you can’t afford brand new, to get you on your feet.
Business rates
You’ll have to pay business rates if you use a building or part of a building for non-domestic purposes. Most hospitality businesses need to pay business rates, but the amount you pay is worked out based on certain factors
For example, a small sandwich shop in the centre of Manchester might pay more annually than a similar cafe in Carlisle. As a small business, you may be eligible for business rates relief, which means you could pay less. Find out more on the government site.
Insurance costs
Business insurance is essential for helping to protect a sandwich shop from risks. Employers’ liability insurance is required if staff are employed and helps protect against injury or illness as a result of work. Public liability insurance can help cover accidents and injuries to members of the public on your property, and business equipment insurance can help protect against damages.
Start a quote online with Bionic to compare business insurance, and a member of our insurance team will be on hand to help you through the specifics.
Energy costs
Electricity, gas, and water bills can add up quickly for food businesses. Sandwich shop owners can consider energy-efficient lighting, smart thermostats, and water-saving fixtures to help reduce energy bills, though the upfront installation of these solutions may itself be costly.
At Bionic, we work with a panel of trusted energy suppliers to help you find your next, best deal. See the latest business energy rates.
Professional services
Professional help from accountants, lawyers, and consultants can help ensure you do everything by the book and should be factored into your early costs. You may want legal support to help review contracts, tenancy terms or even your insurance policy, while an accountant can help you organise your finances and plan for tax from day one.
Marketing and branding
Strong marketing and clear branding help your sandwich shop stand out in a crowded market. Early on, it’s worth budgeting for logo design, signage, a website and social media so customers can easily find and recognise your business.
Are there any regulations and licenses I need to be aware of?
Operating a sandwich shop means complying with a range of regulations and licences designed to keep food safe and businesses operating legally.
Food business registration
All food businesses in the UK must register with their local authority at least 28 days before trading. This is a legal requirement for all food businesses and is free to complete online via your local council's website.
Street trading licence
If you sell sandwiches from a stall, cart, or food truck in public spaces, you may need a street trading licence from your council. Each local authority has its own rules and regulations, so it’s best to check this yourself.
Music licence
Playing music in your shop, even on the radio or through a playlist on a streaming service, may require a music licence from PPL PRS Ltd. If you don’t want to pay this fee, consider playing royalty-free music.
Alcohol licence
If you plan to serve alcoholic drinks with your food, you’ll need the appropriate licences from your local authority. To apply for a premises licence, you will need to complete an online application form and send it to your local council licensing team, along with the fee. You’ll also need a personal license in order to actually sell the alcohol, this needs to be assigned to someone on shift. This can cost around £37.
Find more information and to apply, check the government site.
Planning permission
Planning permission may be required if you change your property from one use to another or make structural changes. For example, if you’re converting a retail shop into a sandwich shop, you may need planning permission. Check your individual situation on the government site.
Food hygiene certificate
A food hygiene certificate shows you understand safe food handling practices. In the UK, food handlers don't have to hold a food hygiene certificate to prepare or sell food, but they must ensure that staff who handle food receive the appropriate supervision and training in food hygiene. You can find various food hygiene certificates online.
Are sandwich shops profitable?
According to Restaurant Online, Lumina Intelligence has launched the UK Food to Go Market Report 2025, revealing that the sector is forecast to reach a value of £24bn in 2025. Profitability for sandwich shops can depend on factors like cost control, location and customer demand.
Before opening a sandwich shop, you should carry out thorough market research to prevent costly mistakes and identify opportunities others might miss. Have a look around your local area and understand who your target audience is and what food they might want. Would they prefer healthy options like egg salads with sourdough bread and organic produce? Or a hearty steak and cheese baguette – getting it right is key for appealing to your customers.
How can I attract customers to my sandwich shop and make money?
To get on your feet and grow, your sandwich shop needs to attract a loyal customer base that keeps coming back for more sandwiches.
Choose your location wisely
Your location can be one of your biggest drivers of success. Footfall, visibility, nearby competition and parking can all influence your shop’s ability to attract customers. When choosing your location, it’s worth having a look at potential sites at different times and days, as a location busy during weekday lunch might be dead on weekends.
Offer a diverse menu
Offering a diverse, well-planned menu helps attract a wide range of customers and encourages repeat visits. Consider stand-out items that change monthly and those with dietary requirements, such as vegetarian or gluten-free. You’ll want a clear menu to help customers order. If you plan on doing takeaway and eat-in concepts, then having a clear menu on tables as well as above the counter could help you appeal to both types of customers and make their ordering experience easy.
Keep customers coming back
Building strong ties with regular customers is arguably just as important as great food. Exceptional service, loyalty schemes, and personalised touches can help keep customers coming back and recommending your sandwiches to others. Having a loyalty scheme helps encourage customers to choose your shop time and time again, while mid-week lunchtime deals can help capture nearby office workers and therefore, help to increase revenue.
What are the biggest challenges, and how can I overcome them?
Running a sandwich shop can come with challenges, from rising costs to staffing issues — but there are steps you can take to help overcome them.
Rising supply and operating costs
Rising food, supply and operating costs are one of the biggest challenges facing modern sandwich shop businesses, and other hospitality businesses in the UK. Prices for essential ingredients can go up and down unexpectedly, while energy, rent and labour costs can continue to rise annually. These pressures can quickly reduce profit margins if they’re not actively managed. To help protect your business, it’s important to track your own costs closely, build strong relationships with your suppliers and review your menu pricing regularly to ensure you are making profit.
Seasonality
Regular customer traffic isn’t consistent year-round, and seasonal patterns can have a real impact on cash flow. Most hospitality businesses experience fluctuations in demand, particularly during summer holidays and Christmas periods. In addition to this, shops near offices may see quieter periods during school breaks or due to increased remote working. To account for this, plan for off-season months.
Competition
The sandwich market is competitive, and established chains can put ongoing pressure on independent, small businesses. Large multi-premised chains benefit from strong brand recognition, large marketing budgets and often lower product prices. However, independents have an advantage when it comes to quality, creativity and overall customer experience, helping smaller businesses stand out in ways big brands often can’t replicate.
How to start a sandwich business from home
Starting a sandwich business from home is very different from operating a commercial sandwich shop or takeaway. It can be a cost-effective way to enter the food industry, but there are important steps you must take to make sure you’re operating legally and considering food safety. Once you get these steps in place, you can focus on making money.
Register with your local authority
Every food business, including those run from home, must be registered with the local environmental health department at least 28 days before trading.
Check you have the appropriate licenses
Before starting, ensure you have any necessary licenses for running a business from home, especially if you’re making deliveries or selling from your property.
Register as self-employed
If you're starting a sandwich business from home, you'll need to register as self-employed with HMRC to pay the correct taxes.
Food safety training
Food safety training is essential for anyone handling or preparing food, and it’s key for running a successful sandwich business from home and avoiding any complaints or ill customers.
Prepare your premises to run a food business
Preparing your home kitchen to meet food business requirements is vital for maintaining hygiene standards and legal compliance.
Get your sandwich shop on its feet with help from Bionic
Running a sandwich shop comes with a lot of moving parts, and having the right business essentials in place can make all the difference. From helping to protect your premises to keeping your energy costs under control, choosing solutions that fit how your business operates can help you stay focused on running your business.
With years of experience working alongside UK small businesses, Bionic helps you compare options from trusted suppliers so you can find deals that align with your budget and day-to-day needs. Join over 200,000 businesses getting support from Bionic by starting a quote online today.
