Subway

1
Subway

• By Kyle Chisholm
• and
• Sylvia MacPherson

2
History

• 1965 - Fred starts driving 100 miles to the
  regional produce market to personally purchase
  and deliver fresh veggies
• 1990 - Subway chain reaches goal of 5,000
  restaurants
• 2000 Jared Fogle is introduced to the world
• 2002 Subway chain surpasses McDonalds
  restaurants in the US also opens a record
  breaking 2,027 restaurants
• Subway restaurant goes on to sponsor the Little
  League World Series in Williamsport Pennsylvania

3
Growth Goals

• Currently there are more than 25,000 locations in
  83 countries
• Approximately 5,000 of these locations are in
  non-traditional units
• Subway is the second largest fast-food franchise
  in the world
• In 2005 sales totalled 9.05 billion worldwide

• Subways goal is to the be the largest fast-food
  franchise in every market
• Another goal is to have locations in every
  country around the world

4
Advertising and Community

• Subways current advertising campaign is to
  increase its presence in the consumers
  consideration set
• 30 different advertising agencies work with
  Subway locally
• Subway has a family marketing strategy and an
  emphasis on unique qualities that make them
  standout from other fast food restaurant
• Subway has a low fat message with its 8 subs with
  6 grams of fat or less and their spokesperson
  Jared
• Subways more than 25,000 franchises are active in
  their communities and the subway headquarters
  also assists many organizations

5
The Issues

• Fred has heard from several franchisees that
  there are some issues at the franchise level he
  finds troubling
• High staff turnover resulting in slower service,
  cash register errors and the need for more
  streamlined training programs
• The cost of good is not consistent with the
  amount of product sold and a mechanism is needed
  to determine if the reason is food spoiled,
  wasted or stolen by employees
• Customers have expressed the want for more
  variety in both products offered and ordering
  options
• Fred believed a performance measurement system
  should be implemented to address these issues and
  is considering the use of the Balanced Scorecard

6
Suggestions

• Implement a staff incentive/appreciation program
• Record waste, spoilage and stolen items from
  inventory so the issues can be addressed
• Implement a product development team who develops
  new products and offers each month and can be
  tested for a period to see if consumers like them
• Implement the balance scorecard to give more
  organization and provide a measurement of the
  goals and a framework for franchisees

7
The End
Questions