What Are The Disadvantages Of Subway

“Becoming a franchisee is an odd combination of starting your own business and going to work for someone else” (Schlosser 94).In Eric Schlosser’s Non-fiction book, Fast Food Nation, Schlosser reasons that fast food has widened the gap between the rich and the poor, started an obesity epidemic and propelled American cultural imperialism abroad. While the idea of a franchiser/ franchisee relationship appears to be nothing but beneficial, it has a serious drawback, which is the release/ acceptance of certain issues out of each party’s control. This, in turn causes other companies to try to develop new ways of forming this relationship. Subway, for example uses “Development Agents” to help ease tensions.

1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

As the franchisee is using Subway’s operations systems and relies on Subway to take care of the promotion, a great deal of control is in the hands of Subway (Alon, I., Alpeza, M., Erceg, A., 2007). In rough terms, it is Subway’s way or the highway, meaning that a franchisee only has limited influence on strategic matters. Franchisee have to follow a long list of guidelines, and they have to follow them exactly as instructed. The restrictions limit included advertising method, amount charge for the products they sell, and how much of an ingredient should put

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.

Franchising acquired its popularity by establishing a common method of service which gave customers the comfort that they look for when they look for a meal.When the customers go out

It is a sound strategy because SUBWAY® have been strategically positioned to advance market share in near future by the marketing strategies of creating clear brand recognition, brand and product association and market demands. Moreover, these marketing strategies are also repeatable fundamental marketing strategies surpassing the fast food market. SUBWAY® is in constant touch with consumers through its dedicated specialist customer care team. As a part of their marketing strategy, SUBWAY® identifies which venues and retail chains would be most manageable to quick-service brands as branded fast food has began to move into other non-traditional venues such as colleges, airports, military bases, hospitals and amusement

Without a proper advertising, the percentage of our business to be known by the market is lesser and it will be harder to penetrate into the current market without introducing our products as new comers as there would be much competition from the well established markets. One of the approach used to introduce our services to the public is by providing leaflets and brochures about the current promotion which Top Take Away restaurant is having and as well as our menus. There will be also some food coupons attached together with the brochures for the individuals of the public to use in our restaurant during their visit to our restaurant. Advertising is an important marketing technique to the demand of our brand and to let the people around us to be aware of our brand which is “Top Take Away

For this Task I described the basic principle of marketing and explain the marketing objective for a fast food establishment and an independent 30-bedroom hotel, also I describe the constrains that can impact on the marketing of these two establishments.

The aim of this program was to record each customers purchased in order to reward them for their next visit. Moreover due to the shift in customer’s food consumption into “eating healthy” the company is offering a wide variety of high quality and delicious products that follow the customers need and wants. In addition, the company provide an easy access to its stores because it had continually increased the number of bakery-cafes from 478 in 2002 to 1,777 in 2013. This represent a growth of more than 200% between 2002 and 2013. Moreover, their bakery-café are located in suburban, strip mall, and regional mall location; it also play an important factor for providing an easy access to their stores to customers.

Introduction Opening up a business such as a franchise can carry many risks, both financially and personally but can also be very rewarding and challenging. Some people make a decent living, some end up rich, then again, plenty of people fail. (MSNMoney, 2014) There are many advantages of owning a franchise. Some advantages are that you have association with a well-established brand, reputation and product or service, access to established standard procedures, operating manuals and stock control systems.

Franchising is defined as “a commercial agreement between a party that owns a trade name or trademark (the franchisor) and party that sells or distributes goods or services using that trade name or trademark (the franchisee) (Kubasek et al., 2015, p. 431). There are key advantages for choosing a franchise when starting a new business. First, there is many times instant brand awareness that is identifiable by potential customers, which you as a new owner do not have to concentrate on building. Secondly, on-going marketing of your business is backed by the power of the established brand, and could be as simple as contributing a fee to a advertising fund that is driven by the franchisor. Thirdly, the Return on Investment (ROI) will most likely be faster as the customers are “ready-made” and eager to buy your product or service. Fourthly, the franchise model provides a built-in support model, both from the franchisor and from other franchisees throughout the region and nation. Lastly, the franchise will provide consistent and extensive training in every aspect of the business (Goldberg, 2015).

Since the Subway restaurant chain started in 1965, it has opened more than 30,000 stores in 87 countries during the past 40 years. In Western countries, Subway is very popular and famous for its “stylish and nutritious” concept. More importantly, Subway brings the idea of health into the fast food industry. Because of the nutritious sandwiches and low fat ingredients, Subway receives considerable acclaim in Europe and America. Moreover, some professional magazines pay many honours to Subway, such as America's Top Global Franchise” in 2009 and “Annual Franchise 500® listing” for 16 of the past 22 years.（Subway Chain Fact, 2006）However, in Chinese market, the development of Subway has not

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.

Franchising Model - Brand franchising enables the franchisor to share the risk with its partner franchisors, and also to share the capital costs and running costs of developing a network – in the case of McDonald’s a network of restaurants. For the franchisee, buying a franchise is much cheaper and less risky than establishing a comparable size business from scratch. One of the main problems for a start-up business is that of developing the brand and reputation associated with branding. Buying a McDonald’s franchisee immediately provides the franchisee with an internationally known product that consumers are familiar with. The franchisee also buys into established tried and tested systems and products.