SUBWAY: An Introduction The Subway brand was started in the summer of 1965 in Bridgeport, Conneticut. It was the brainchild of 17-year old Fred DeLuca and his family friend Dr. Peter Buck, with its purpose being to earn money for Fred’s college tuition. With a $1,000 loan from Dr. Buck, Fred opened up the sub shop. Currently, there are 27436 Restaurants in 85 Countries, making it the second largest fast-food franchise in the world. Approximately 5000 of these locations are non-traditional units -- such as convenience stores, truck stops, colleges/universities, hospitals, military bases, arenas, shopping malls, and more. Their goal is to be the largest fast-food franchise in every market. But let’s get one thing straight, Subway is not …show more content…
They don’t want to wait in queues or have incompetent staff tend to their needs, they want it now and they want it done right! When compared to their biggest competitor, Kauai, Subway dominates when it comes to preparation time and variety. They offer an almost unlimited variety because you get to choose what goes on your sub, and everything is prepared in a sanitary environment right in front of your eyes in less than 2 minutes. This satisfies both the need for increased variety and increased convenience. Technological factors “In what one executive of the $9 billion, 26,000-restaurant Subway chain dubbed "the single largest integrated cash card program in the world," Subway has come out with a card that handles payment, instant loyalty rewards and highly targeted promotions that can be tracked by the customer.” Marina O'Rourke, Subway's director of retail technology, said the system is groundbreaking because of the wide range of capabilities but also because of the scope of the deployment. "We have rolled out the single largest integrated cash card program in the world. We have almost 20,000 stores on this program, and our program is integrated into our POS software," O'Rourke said. "It's a very sophisticated CRM program. It has the ability to target consumer behavior and reward and entice that behavior. It can look at cardholders in a geographic area. We can drill down to
These platforms are currently at a 50% installation rate as of March 2016, and Sonic expects to see the rest of its locations operating with these new systems by the end of 2017. Their point of sale system is different than others in the QSR industry in that it offers a more customized experience for customers, while also streamlining service and reducing waste (Murphy). This point of sale system also has the future potential to connect to customer’s mobile phones for further descriptions, while also featuring a touch screen for ease of access. This new technology will replace a system that is currently over 20 years old - Sonic may sometimes brand using their “retro” vibe, but antiquated systems set no one up for success (Kelso). This new technology is also said to drive their average check upwards by several points; Chairman, Chief Executive, and President, J. Clifford Hudson, reported not only a 2.2 percent increase in stores who had begun using this new technology, but also stated a whopping 33.8 percent rise in profits, for the same time period. This increase in profits can be related to the fact that the new POS system is not only beneficial for the customer, but also for the restaurant and employees - while minimizing waste, it also makes some things such as theft, miscommunication, and
In today’s marketing environments, iDirect strategy is critical to social media by providing means of shared information that is specifically catered to a consumers needs and buying habits. The computerized personal information collected is fast, efficient and low cost. Companies are able to know what their consumers buying habits can pinpoint exactly what they want saving companies huge amounts of money on wasted advertisements.
From the film “Undercover Boss: Subway” and “The Founder,”we can see how franchises work. Both films show the characteristics of franchises, which all of the franchises of McDonald’s and Subway sell the same product. From “ Undercover Boss: Subway”, we can see that franchises have lots of independence. Every store that the Chief Development Officer goes has its own way to operate the business. Like the one in the church, this special subway has delivery service, different than the other Subway.
Observe Exhibit 12. What are the underlying causes and drivers that make order patterns to look this way? Provide a discussion on these causes/drives to show how they are causing the resulting demand pattern. Examples of items to consider include transportation discounts, promotional activity, product proliferation.
The Subway restaurant chain is marked by its impressive leading global growth. It is the largest restaurant chain in the world. And its foundation and history could be not only a good example for the understanding of business, entrepreneurship and franchising, but also a story which can inspire and awake all of us to new possibilities in our own lives and careers.
Subway like all fast food uses the four basic variables of the marketing mix : Product, Place, Promotion and Price. The use of a marketing mix is an exceptional way of making sure that ‘putting the right product in the right place’ will take place. The marketing mix is an important tool to help understand what the product or service can offer and how to plan for a successful product offering. The marketing mix is most commonly implemented through the 4 P’s of marketing: Price, Product, Promotion, and Place. These have been comprehensively added to and stretched out through additional P’s and even a 4C concept. The 4Ps is an excellent start for Subway to plan for the product or even to assess a current product offering. THE FOUR P’S Product
Subway has been providing guests access to nutritional information on cups, tray liners and napkins for 20 years, making it one of the nation’s favorite and most successful brands in the world.
Frito-Lay uses Product focused process strategy for its food manufacturing operations in terms of process.
-As a subway franchisee I do not see myself as a business owner but as a member of a team that
Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.
The success of Subway started in 1965, when Fred Deluca took an advice from family friend Peter Buck, to open a sandwich shop to earn more money and to pay for his education. The first Subway branch opened in Bridgeport, Connecticut. Their target was to open 32 restaurants in ten years,
Subway, the largest franchise in the world, uses various promotion methods. Subway uses mass selling as their primary way of advertising. Since the target market is large and scattered over 98 countries, this is the easiest way for Subway to target their products. They announce their promotions using TV ads, radio ads, newspapers, and online ads. Subway also uses publicity as a form of advertising. Jared Fogle, Billy Blanks, and Michael Phelps are all great examples of this. We all know Jared as the overweight college graduate who lost 245 pounds by eating Subway sandwiches three times daily, Billy as the fitness guru known for the Tae Bo videos and Michael, superstar Olympian who loves the meatball and
Subway try to provide new concept with the idea of “Healthy Fast Food” by using the excellent product as their product differentiation strategy, with good taste, fresher and high quality of ingredients and clean process.
No. 1, they all had expertise in the Subway business. No. 2, they lived in the territory. And No. 3, they had adequate incentives to get the job done. There are only three things that they do. Build sales at the store level, Build profits at the store level, and we build more stores. The first two things go together, of course. It's pretty tough to build profits without sales. But we know that if we can boost profitability, we'll have an easy time building out our store network, because our franchisees will be getting a better return on their investment. At their peak, 12 kosher Subway locations were open in the U.S, including Kansas City and 5 in New York. As of 2011, only five remain: Cleveland, Miami, Los Angeles and two stores in
can order and pay for their drinks in a flash while stacking up rewards for each purchase made. This Strategy has significantly drawn people to Starbucks due to its highly anticipated services, products, and marketing strategies that differ from most fast food restaurants. The next service is the Starbucks webpage where the customers can go onto the site and view product and also make purchases. This service is quite excellent for those that want to checkout items online through the site, because it incorporates a similar process as the application on your smartphone. Starbucks also incorporates equipment and drinkware to their massive line of products. First their Drinkware consists of cups and mugs that are affordable to the customers. These cups come in many colors and aesthetic values, which make people interested in purchasing. Starbucks had the right idea when they decided to manufacture these cups out to their customers because not only were they a huge success for the business, but it also made Starbucks distribute more merchandise. Cold cups, which were from stainless steel containers. These containers made a rise once the popularity rose for other merchandise. These containers were sold very often to customers and once again made a surprise since it was from the same line of cups and mugs category. As more popularity grew in their products so did the equipment used to make customers coffee. First Starbucks decided to manufacture coffee makers, presses, and expresso