The Subway Story

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The subway story Introduction of Subway restaurant The Subway story started when Fred DeLuca, its cofounder and his family friend Dr. Peter Buck, worked on a business plan for a submarine sandwich shop. Dr. Buck gave a loan of $1000 for implementation of this plan. The first restaurant was opened in Bridgeport, Connecticut, in 1965. It did well in its first summer with the help of advertising slogans like "put a foot in your mouth.'' Emphasizing the foot-long sandwich, and "when you're hungry, make tracks for Subway." Buck suggested opening a second restaurant. "That way people will see us expanding and think that we're successful." DeLuca has changed the company's system of franchise development several times over the years and has kept…show more content…
According to Alon, L. (2006, p.47-48), due to religious prohibition to eat pork in case of Muslims and to eat beef in Hindus in India, no pork or beef products are used in any of the sandwiches. Instead these were substituted with lamb, chicken and turkey. Counter area and preparation areas in India are separated because vegetarians do not like to be served from the same place that non- vegetarian food are prepared. Technological: new innovations and development, technological transfer, obsolescence. Subway is using Partech POS (point of sale) System. Competitive analysis- According to McCarty, M. (2006), Subway is also facing competitive pressures. Main competitors are McDonalds, KFC, and Pizza Hut. McDonald's is the world's largest retailing chain with 31,000 fast food restaurants in 119 countries.(FAQ, 13), All fast food chains, including McDonald's®, Burger King®, Wendy's®, Taco Bell®, KFC®, Quiznos Sub®, Blimpie® and Arby's® are the SUBWAY® chain's competitors. This chart has been made with the help of data available on http://www.subway.com/StudentGuide/ (How we compare to our competitors, 2006) Franchisee fee of Subway is less in comparison to other restaurants. Start up cost of Subway is also less comparison to other restaurants. But the basic royalty of Wandy's is less as compare to Subway. Advertising royalty of Taco bell, Pizza hut, and Scholtzky's deli is
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