The Subway Restaurant Chain

Chipotle’s organizational structure is centered on the functional structure. The top levels of management include the co-CEOs, CFO, Head-Media Relations, and Chief Creative and Development Officer CCDO (Chipotle). Chipotle is a smaller corporation relative to its competitors, which allows it to focus on a vertical hierarchy based on functions. The fact that there are few departments demonstrates that Chipotle is still a growing corporation. Chipotle is a highly centralized corporation as all of its stores are corporate owned and they must follow the rules set by the corporate headquarters this involves the same menu throughout the country and the same prices. The restaurant business follows high levels of formalization a set of guidelines must be followed in order to comply with food and health regulations. There is low division of labor at the restaurant level as those cooking can shift to serving and cleaning when needed, allowing the allocation of labor to match whatever is needed in the situation. A unique aspect of Chipotle’s upper management is the fact that there are two CEOs (Feloni). The two CEO help ease job functions and enables them to be more accessible. Another managerial aspect of Chipotle is the through the position of restaurateur. There are 183 of these positions and they work to manage several Chipotles, bringing management close to each store (Investor’s Business Daily). From their organizational structure we can see they place high importance on

It appears that a Publix store’s vertical hierarchy of authority, the “who reports to whom”, in the store is exactly as one would expect, a simple chain of command (Kinicki & Williams 239). This display represents a narrow span of control, specifically in the middle management area because there is a one-to-one ratio of department to assistant department managers. This changes to a flatter span of control at the lower level, where each store will have a total of more than one hundred full- and part-time employees reporting to only six assistant department managers. This is also a very commonly used functional structure. For example, employees who work the front of the

We then have the owners of each franchisee, in a partner ship with the main owner of subway, they are seen to be the ‘principals’ taking risks, they play the main part of setting up the franchise and expect their business to grow earning high profit. Included in this are the suppliers, subways need fresh ingredients, food and drinks supplied to them on a regular basis, suppliers want them to keep purchasing from them and therefore would like the business to work out. The government also under come being a stakeholder as all taxes have to be paid even thought they would like the business to work out. Local communities are included within the stakeholder’s category too, the actions of subway have and effect on the community too, for example, if the franchises have an un-cleared, low in hygiene environment then it will attract rats which will spread.

From the report presented at the end of the first contract signed, the conclusions ware clear, one of the most important was the confusion, that exists in restaurants, on the area of operation management, as they grow from a few stores to multiple stores (no standards and coordination throughout), combine with a lack of an organizational structure, able to lead the company to success with clear direction and professional support. To solve operational problems is extremely easy to do, the difficult job is to take a family own business to a professional one. This means; with new funding or without funding it is completely irrelevant, if the status quo of doing business remain and no changes take effect to confront the new reality, the question

SUBWAY® chain was founded by Fred DeLuca in Connecticut, USA, in 1965. It has now been a multi-billion company with more than 30000 outlets in 87 countries. There were 1254 open SUBWAY® restaurants in Australia till March 2011. As it has become a very popular brand, there are progressive plans to frequently open more SUBWAY® restaurants in Australia in the future. ‘Franchise 500’, an entrepreneur magazine has named it as the number one franchise opportunity based on research and surveys of franchises located in the United States in 2010.

Subway was founded in 1965 by Fred DeLuca and Peter Buck. The duo opened their first sandwich shop when DeLuca was only seventeen years old. DeLuca’s childhood dream was to become a prominent doctor. Therefore, he needed to find a way to pay for his medical career. On the other hand, Peter Buck was a family friend who offered DeLuca the possibility to become business partners. Their first store was opened in Bridgeport, Connecticut. It was called, “Pete’s Super Submarines.” They sold over three hundred sandwiches on the opening day. The price range for each sandwich was between forty-nine to sixty-nine cents. Although they struggled for couple of years they were optimistic. Their goal at that time was to open over thirty stores in the next ten years. The pair wanted to create a success’ image. Later, Fred learned that good customer service, quality food and low prices were important to stay in business for a long time.

Relationships: Restaurants are related most of the time, if our products get appreciated by our client’s restaurants, they will inform other restaurant, and this will expand our market. We have a good relationship with our clients.

such a vital part of the restaurant’s success. Math is used to figure out all your

Subway did not practice good preoccupation with failure. Preoccupation with failure entails developing a full understanding of what and how operations can go wrong and action plans in the case of such events. Initially, Subway did not thoroughly consider the risks associated with aligning itself with a spokesperson. In doing so, a brand completely ties itself to the actions and behaviors of that person in a way that carries far more risk than an association with a logo or jingle. There’s

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,

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

Chain Leader: Subway franchisees have found a way to ensure a safe and consistent supply chain by using an Internet-based supply-management system. Subway's Independent Purchasing Cooperative, which is owned by the chain's North American franchisees, has been using supply-chain software since the end of 2001 and rolled out the food-quality component, called Qualitynet, in 2004.

To start off, the organization in the Fast Food Industry is extremely complex. On the basic level, restaurant will usually comprise their workers with Crew Members, Crew Trainers, Maintenance Members, Preparation Members, and Crew Leaders. The industry organizations will divide the crew into these patches in order, for them to achieve their business goals. Typically, we will see industry leaders such as McDonald’s divide their management staff in many segments. This would include Floor Supervisors, Swing Managers, First Department Managers, Second Department Managers, Third Department Managers, and the General Managers. This gives the restaurants a variety of staff and more promotion opportunities that could be exceeded in the restaurant. Beyond the restaurant we will see Patch Managers, District Managers, Opps Managers, the CEO if the company is not bought out,

Making the decision on whether to go forward with a start-up verses purchasing a franchise can be a difficult one. Many factors have to be considered in order make the best sound decision for that individual. Thankfully, many resources have been established so that research can be found easier. “There are also many options as far as entrepreneurial ventures are concerned. One of the most common decisions entrepreneurs face is whether they should start up their own business or invest in a franchise. While both opportunities involve various amounts and types of risk they also hold the potential for individual benefits as well.” (Get Busy Media) Below is research that shows the

Franchising has been an influential economic engine and is vital in the expansion and growth of the business for nearly half a century (Ekelund, 2014). The inherent benefits of franchising as a business model are the key influencers of the decision of entrepreneurs opting for franchising instead of establishing a new business (Oni, Sekwele, Matiza & Pelser 2014). Beredo and Mendoza (2013) said that in order to survive in this kind of business, capital, skill, positive attitude, good location, good management and best service should be considered. Furthermore, that every franchise system revolves around its franchisees’ quality and the personal decisions that the management make with respect to their work. Understanding the cost and returns are essentials which franchise companies must work in their programs to the market and be straightforward in the assessments, with these, returns can be generated over the period (Kong & Zwisler, 2007).