Mgmt 303 - Subway Case Study

Parth Vyas

MGMT- 303

Subway

The name of organization is Subway a small sandwich shop, Subway has boomed into the largest submarine sandwich chain across the globe. Since its inception in 1965, Subway continues to proliferate through its image as a delicious, healthy and fresh alternative among popular fast-food restaurants. It was started by Fred DeLuca, who ran the day to day operations of the business and Dr. Pete Buck, who helped finance the startup business. Subway Restaurants sell foot-long and other sandwiches, salads, and other food items.

Subways fast food varies from other fast food chains in that it is a more healthy option that is made to each person's specifications. The company has been using some nontraditional channels for making its network strong and the growth rate of the company has also been increasing year after year. Subway is known as a company that offers healthy subs sandwich that are preferred and much better as compared to food items offered by other fast-food chains like Sonic Drive and McDonald's. The food menu of the Subway reflects the high demand of healthy and fresh food which is fast too. The market share and the profits of the company that were due to sandwiches increased greatly as an effect to the decreased interest of the customer towards the chips and hamburgers due to increase awareness about healthy food. Subway currently has more stores in the United States than does McDonald's. Subway is not considered as a junk food compare to McDonalds and other food restaurants.

There are some weaknesses that subway is facing. Some franchisees are unhappy. Service delivery is inconsistent from store to store. Employee turnover is high. There is no control over franchise saturation in given market areas. The company can invest more to expand its business in the international market and also make improvements in its decoration and look to encourage dine-in. By improving the customer service model the satisfaction for the customer can be increased and also the loyal customer base will increase. Subway doesn't have drive-thru when other restaurants do. They can come up with new ideas how to set up drive-thru to get more customers and expand your business. Change is good in moderate amounts; however the company should be careful by not believing that it must continually change its offerings in order to remain the market leader. Making changes all the time can cause a company to lose favor with customers and Subway has already shown signs of too much change, altering its menu multiple times in past many years. Many have a bad perception of the sub club card because some Subways refuse to honor them. There is a large number of legal disputes. Some franchises have experienced broken contracts. They have small menu list compare to McDonald, burger king.

Subway has