1.1 of the competition Subway is facing its major

1.1  Executive

Subway as a company is highly motivated in providing
their customers with the best possible service. They are very confident about
their food and really take pride in the freshness of their ingredients, as you
can often see them quoting that they were the first one to start baking bread
fresh daily in stores and they promote it with their slogan “Eat Fresh” as well.
Although the food they serve is immaculate and the service is lagging not to
behind as well but they still have to work really hard on the technology and
online part, having no loyalty program doesn’t seem to do any wonders as well.
In terms of the competition Subway is facing its major competition from major
fast food chains including McDonalds, KFC, Pizza hut but no other sandwich
franchise is even close to its size or business. Taking about the key success
factors in the fast food industry Subway does seems to get all the boxes
checked from branding to taste to speed and efficiency showing us another
reason of it being such a big success. Apart from few lags, Subway does seem to
get the major part right and is by stats, numbers and my opinion one of the
best in the business.

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1.2 Introduction-

Subway is an American fast food restaurant franchise
primarily serving submarine sandwiches (subs), soups and salads. Formerly known
as Pete’s Super Submarine (1965-68) the company was founded on August 28, 1965
by two friends Fred DeLuca and Peter Buck in Bridgeport, Connecticut, U.S. As
of June 2017 almost 52 years from the foundation date Subway is now one of the
fastest expanding franchises on the globe and has approximately 45,000 stores
located in 100+ countries, Subway is the largest restaurant operator and single
brand restaurant chain in the world as well.

Subway’s international headquarter
is situated in Milford, Connecticut as well having five regional centers
located in Amsterdam, Brisbane, Beirut, Singapore and Miami supporting
company’s international operations.


2.1 Mission-

The Slogan “Eat Fresh” itself is
enough to project the mission of the business of serving fresh, hygienic,
healthy food in a fast food service environment making it one of its kinds.


2.2 Products-

Subway is mainly famous for its
Submarine sandwiches; their USP that makes them different from other fast food
chains is customization. Apart from the pre-set menu, the customer has the
option of starting their sandwich from the scratch, choosing from different
selections of breads to filling to sauces giving it a personalize customer
service experience. Apart from Subs being their main product, Subway also has a
wide product line serving-

·      Wraps

·      Panini

·      Salads

·      Soups

·      Cookies

·      Muffins

·      Doughnuts

·      Fountain

·      Bottled



2.3 Recent development and
initiatives in customer service-

·      Subway
Digital- This latest ongoing creation could totally transform the guest service
experience. Along with the new internal division called Subway digital, it is
also launching a multi-faceted and multi-year strategy to build a all inclusive
Omni channel approach.

·      As per the CEO Suzzane Greco- “We are committed to make the experience
as meaningful, contemporary and convenient as possible with the creation of
Subway Digital, across all channels.”

·      O2 Media Technology- Currently running in Britain, this technology works
on geofences installed near Subway stores, sending an automated MMS to
consumers when they enter the target area.



2.4 Positional Statement-

“Delight every
customer, so they want to tell their friends – with great value through fresh,
delicious, made-to-order sandwiches,
and an exceptional experience.”


3.1 Competitor Analysis-

Subway competes mainly in fast food
service industry. In Canada it faces major competition from other huge
franchises such as McDonalds, KFC, Burger King, Tim Hortons, Taco Bell,
Wendy’s, Boston Pizza, Pizza Pizza and Pizza Hut.

As we can see that all the
competition Subway is facing is from Burger joints, coffee shops and pizza
stations as no other sandwich joint has 1/10 of its franchise size or business.


3.2 Key driving forces in Fast food

?  Changing
customer habits- The food and beverage industry has shown the most growth
compared to any other retail industry between 2012-2015

?  Last
year for the first time in the history, restaurants sales outpaced the sales of
grocery store by 1% and according to the experts the gap will only increase.
This says a lot about the change in eating habits of today’s consumers.

?  Millennial-
what makes millennial a driving force for fast food industry is budget.
Although they dine out more frequently compared to any other generation, when
it comes to spending they spend 15% and 25% less compared to GenX and baby