Business Identification & Summary: The above case study is about the success story of Subway. Subway’s type of ownership is franchise. Subway was founded in the year 1965 in state of Connecticut in the United States of America by Fred DeLuca who 17 years old at the time and was looking to pay his college fees by opening a sandwich shop. DeLuca’s restaurant has since expanded and is, today, one of the largest restaurant franchises in the world. DeLuca started by getting a loan of $1000 from a close friend who encouraged him to open his own restaurant. In 1965, he started his first restaurant but the result was underwhelming. Instead of closing his business down, he went on and opened a second restaurant. Yet again, the result was underwhelming. …show more content…
It sells mostly submarine sandwiches (subs) and salads. It is owned and operated by Doctor's Associates Inc. Subway is one of the fastest growing franchises in the world, with over 44,000 restaurants in over 110 countries and territories as of September 18, 2015. It is the largest restaurant chain in the world. Subway's international headquarters is in the state of Connecticut; five regional centers support Subway's international operations. The regional offices for European franchises are located in Amsterdam; the Australia and New Zealand locations are being assisted from city of Brisbane in Australia; the Asia continent locations are supported from offices located in city of Beirut in Lebanon, and Singapore city; and the Latin America support center is in state of Florida. In 1965, Fred DeLuca borrowed $1,000 from friend Peter Buck to start "Pete's Super Submarines" in Connecticut, and in the following year they formed a company called Doctor's Associates Inc. to oversee operations of the restaurants as the franchise expanded. The name of the holding company is coming from the fact that DeLuca was aspiring to become a doctor but instead opened a restaurant that eventually became Subway. In the year 1968, the sandwich shop was renamed
Most small businesses require some outside funding. Not many entrepreneurs have enough personal capital to open and maintain funding for a business. To attract investors and attain partnerships, a business owner should consider a business model necessary. This paper will compare two restaurant businesses, identify the business model and forms of ownership for each business by completing a Comparison of Business matrix, describe benefits by building a sustainable competitive advantage, and giving advantages and disadvantages of each business
Schlosser tells us about how many companies expand their businesses by selling franchises. Selling franchises has been successful for many companies such as McDonald’s, Subway, and many others were able to expand using this route. In fact, some fast food companies open up some many franchises, that whenever the same restaurant is opened close to another one, that managers complain of losing business. Another thing the books informs us on is that when a franchise doesn’t work out then the fast food company has no choice than to close that area. Subway does this very often and is called “The worst franchise in America”. Next, the book talks about economics. There is a lot of risk taking when it comes to being a franchisee for a fast food restaurant. People who would like to become future franchisees can spend almost 1.5 million dollars just to become one. Before purchasing a franchise, people have to consider whether or not it will be worth the money, because if it doesn’t work out there is no way that
The hidden purpose of the subway system which Jurgis helps to construct is to break the teamsters’ union. Because Jurgis got hit by one of the rail freight cars, he broke his arm and lost his job.
Riding the subway to a New York City resident is nothing new. It’s something that many of us New Yorkers have to use as transportation because living in a crowded city with limited space to drive is not very ideal. For the people who do drive, they do so for personal comfort and convenience. But for us commuters, having to not look for parking and worry about traffic takes up less of our time. On the other hand we experience train delays and disturbances in personal space. Nonetheless, the pros outweigh the cons and using the subway has become a part of our daily routines for many of us New Yorkers. Marc Auge states that, “If he draws himself into the field of his ethnological inquiry, it is no less fitting for his readers to broaden the scope of appreciation of the work for riders.” With that in mind, I observed the connections with my experience riding the subway in a city integrated with many different peoples and cultures.
The story of the foundation of the first Subway restaurant started in 1965 by the 17-year-old Fred DeLuca who, seeking to earn money for college, decided to take a $1000 loan and opened a submarine sandwich shop that eventually grew into the number-one restaurant chain in the world. The young man was willing to earn some money to have
This case study is about Chipotle, a young fast food company. In 2012, Chipotle has shown a successful performance with its Grills. Following the path, Chipotle is building a new project which is the ShopHouse. The ShopHouse predicated on much the same strategy with the Grill but it had
The case depicts KRISPY KREME 's franchise system growth and decline as a lesson to entrepreneurs running a company as a franchisor.
The purpose of analyzing the success story of Five Guys burger is to examine the milestones covered by Five Guys to establish the successful business in private enterprise system. The perfect business plan that Five Guys has includes drivers of change on the system, the ethical and social responsibilities that Five Guys developed towards its employees. Furthermore, a unique strategy of marketing “word of mouth” which helped Five Guys in establishing more than 1000 outlets across the nation instead of spending millions of dollar in advertisement. Overall, this case study helps how an entrepreneur
Panera bread’s growth strategy was to capitalize on Panera’s market potential by opening both company-owned and franchised Panera Bread locations as fast as was prudent (A. A. Thompson). Panera Bread work closely with franchised branches in order for the company to broaden its market penetration (A. A. Thompson). Panera Bread has taken the appropriate measures to gain a competitive advantage to make franchising a successful market for the company to enter. Considering Panera Bread Company keeps interaction with the franchised branches to ensure success gives them the upper hand to ensure continued success.
In United Kingdom, they forecast that Subway will have more stores than McDonald’s by 2008 (Kemp 2007). Much of Subway’s success can be attributed to its strong health message and with many cultures in the middle of wellness boom (Bounds, 2006). People now want fast food without the fat.
-As a subway franchisee I do not see myself as a business owner but as a member of a team that
Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.
The first Subway was founded in 1965. The founder of the Subway chain, Fred De Luca, started running his restaurant business when he was only 17 years old. The first Subway restaurant was opened nine years after its foundation in Connecticut where the headquarter is now situated.
Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised
When people think about the franchising concept, McDonald's usually comes up first as a prime example. Although McDonald's was not the first franchise business Isaac Singer, the inventor of the sewing machine gets credit for originating the franchise idea-the hamburger chain certainly exemplifies franchising success.