Franchising-Subway case study
Products
Subway's offers healthy, fresh alternatives to fast-food restaurants: sandwiches-salads-subs-wraps
Business model
The parent company does not operate any restaurants
Local franchisees operate the stores, and in most markets Subway enters into a contract with a franchisee to be its Development Agent for that market
The Development Agent is responsible for developing new locations, evaluating stores on a monthly basis, and assisting and supporting franchisees
Marketing Strategy
The most important strengths of SUBWAY are:
Brand Awareness: it is a brand that is known in the world for their fresh tasting products and innovative store placements
Quality of food: Subway has always the freshest ingredients nothing is deep-fried or frozen
Efficiency: all their products are made on the spot in front of the customer
Store Location: Subway restaurant sites are adaptable to any type of location
Company Information
Location
USA-Worldwide
History
Fred DeLuca(17) and his friend Peter Buck opened in 1965 Pete’s Super Submarines in Bridgeport, Connecticut.
With only a $1,000 loan from Buck, Fred wanted money to go to college.
Industry
Considered the number one franchise opportunity in the last twenty years
Competitors
Mac Donald
Burger King
Number of franchises
In 2019 Subway had 41,600 stores worldwide in 108 countries
Mission Statement
Sottoargomento
“To provide the tools and knowledge to allow entrepreneurs to successfully complete in the quick-service restaurant (QSR) worldwide by consistently offering value to consumers through providing great fasting food that is good for them and made the way they like it”
Logo
The logo with arrows simbolizes evolution, movement. Advertising Campaign Marketers choose colors very carefully as colors are important for the brand. The dark green color represents health and environment yellow represents energy.
Costs and requirements
From low investment $100,050 to high investment $342,400
Franchisee must attend and complete two-week long Worldwide Training program and work at an existing restaurant in their area for a minimum of 40 hours
The length of the franchise term is 20 years