Subway took its journey from a single outlet in Perth and now has a target market of young Australian consumers that is more nutrition conscious and focuses on having healthy food as opposed to burgers or fries. It happens to be the undisputed market leader in the category of sandwiches while it has a competitive edge over others in terms of having ten times more locations than any other brand. By the year, 1993, Subway had opened up 8,400 stores with most of them being in North America that made it the number two fast food chain in the United States with Pizza Hut being on number one (McDonald, 1998).
2.What is the company’s current financial status?
The current financial status Subway company is stable.There are related party transactions between the Company and its shareholders, for office rental and non-interest bearing loans. During fiscal 2008, the Company loaned one shareholder RM48,400,000($12,100,000) in which RM36,400,000($9,100,000) was paid back in 2012.The Company is liquid and has a good current ratio of 1.9 to 1. The Company for tax purposes is treated as a Sub chapter S Corporation and therefore pays no federal income tax. During the year ended December 31, 2012, the Company paid RM34,316,000($8,579,000) of dividends to its shareholders as distribution.It appears from the face of the financial statements that the Company owns RM56,000,000($14,000,000) in machinery and equipment, which is part of the franchisee unit. The nature of the Company’s revenues is not evident from the financial statements. The statement of operations is in summary form and does not detail the expenses.
3.What is the performance of the company record?
SUBWAY Franchisee of the Year awards are presented to the overall winners of the multi-unit and single unit owner categories from North America and the chain's international emerging and developed markets. Selected from among the chain's more than 17,000 franchisees from around the world, the recipients are: Joe Franch of Rochester, NY & Steve Stewart of Buffalo, NY; Blake Newton of Gunnison, Utah; Ismail Mohammad of Lynnwood, Washington; Jennifer Smith & Julie Jansen of Cobar, Australia; Neil Garnett of Innisfail, Australia; Andre Lima Dos Santos of Rio de Janeiro, Brazil; Carolina Ugalde Olavarria of Huechuraba, Chile; Abdul Almutairi of Sharq, Kuwait; and Pavel Andrianov & Yury Gurgov of Moscow, Russia.
4.How the companies train the franchisee?
Franchise World Headquarters is proud of the excellent support systems available to SUBWAY® franchisees. Ongoing support is provided before and after you open your store. As soon as you join the SUBWAY® team, you’ll have access to help to get you started. Once open, systems are in place to help you operate your location effectively.Before You Open:
- Training-
- You and your designee or manager will take part in our intensive two-week program.
- Restaurant/Store design-
- You will be provided with floor plans for your specific location.
- Site selection-
- You will be assisted in evaluating the location for your business.
- Equipment ordering-
- You will receive guidance on ordering your equipment package for timely delivery.
- Operations manual
- - SUBWAY® restaurants’ in-depthmanual covers a full range oftopics important to running your business.
- Field support
- - Your local representative will help you get started and provide ongoing operational evaluations.
- Franchisee services
- -A coordinator will serve as your main contact person, who is just a phone call or e-mail away.
- R&D
- - SUBWAY® franchise executive chef, baking specialists, staff nutritionist, and product development team continually strive to make our excellent food even better.
- Continuing education
- - Regular newsletters, e-mails and voice-mails, DVDs and additional learning tools are also available.
Just as in any other fast food segment there is extensive competition, with many sandwich chains, each battling to be number one while still competing from its individual niche.McDonald's is still the power player within the fast-food sandwich segment. McDonald's is number one in unit allocation, with a total of 12,750 company-owned and franchised units and holds a #1 rank in market share. Within Subway's niche market, they are the power player, with Burger King and Wendy's a distant second.
6.What is the Company mission ?
“ To provide the tools and knowledge to allow entrepreneurs to successfully complete in the QSR industry worldwide by consistently offering value to consumers through providing great fasting food that is good for them and made the way they like it” (Subway , 2005 )
7. What are the strategies marketing of Franchisor?
The Subway example represents marketing and product strategies that are classic examples of focusing on market demand, consumer trends, product leveraging, and innovation. The marketing strategies of creating clear brand recognition, brand and product association, and market demands, have strategically positioned Subway to advance market share into the near future. These marketing strategies are also repeatable fundamental marketing strategies transcending the fast food market.
To bring customers into the stores and keep them coming back! In other words, the SUBWAY® Stores wants to make all potential customers aware of its products, convince them to try it, and by providing good value, and great fresh food, turn them into regular satisfied customers.
You give me such a informative information that really makes me feel happy. I am regular customer of subway, I love its food and especially the Foot Long.
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