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Advantages of subway
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Given $500,000, I would choose to invest in a Subway franchise. Apart from being a personal fan of Subway, the franchise offers attractive benefits and support for franchisees, with surprisingly low startup costs for the largest restaurant chain in the world. Considering that Subway has been franchising since 1974, it naturally has a well-established system of support for franchisees. There are over 21,000 Subway franchisees already who took the leap and made an investment, because they realized the potential for growth. These franchises have largely been successful, due to the fact that the food and service offered by Subway locations internationally are both first-class. In fact, the average failure rate of Subway franchises is only about …show more content…
However, when examining the average time it takes to receive a return on investment, Subway proves to top the list at roughly 3 years. This makes sense given the average startup cost of $200,000 and an annual profit of $70,000. Subway’s competitors fall behind in this important statistic; while Jimmy John’s is close behind with a 3.1 year ROI, Quiznos franchise owners often never receive a return on their investment. With my proposed location in a college campus, the ROI could come even sooner, because my total investment cost will likely fall below the average of $200,000. It is important to note that there other competitors in the fast food market that can reduce the traffic coming into my Subway location. Chains like Chipotle, McDonald’s, Papa John’s, and Taco Bell are rampant across college campuses, but at the end of the day, none of those places offer a quality sub. While a college student may go to Chipotle one day, the next time he/she will likely opt for variety and choose Subway. In addition, Subway boasts healthier food compared to chains such as McDonald’s and Taco Bell, and while the price point may be steeper, those who are inclined towards their health will likely choose Subway a majority of the time. These considerations make Subway beat out most of its competitors, while the few remaining on par will serve as motivation to continually maintain and improve upon the Subway
The article discusses how Panera Bread had to rethink its service model seven years ago. Customers had to wait in line approximately eight minutes to place an order. Furthermore, ten percent of the time, the orders were incorrect. As a result, the company decided that online ordering was the solution to their problem. In 2012, the organization opened a Panera prototype in Braintree, Massachusetts to test the elements of “Panera 2.0”. “Panera 2.0” consisted of self-order kiosks, delivery, digital ordering and a new practice of bringing food to customers’ tables. Getting the right process took Panera Bread over six years. However, all the time spent and money invested paid off for the company. Panera is now recognized as one of the best-performing chains in the industry. In addition, a quarter of the company sales come from online ordering and customers waiting time to place an order reduced to one minute. In 2016, the company posted its best sales growth in four years, outperforming the industry average by 6.5% points.
The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.
The fast-casual restaurant is one of the most competitive and fastest growing industries in the world. Chipotle has thought to have reinvented this category and this has led to their explosive growth in the early stages of the company. As it has leveled off, however, one can see where mistakes have been made leading to the sharp decline in their sales and stock. Starbucks has continued to grow, but has also seen declines in their stock. Comparing these companies, one can see how each have went from standalone stores to market leading companies. They must continue to innovate otherwise they will be seen as just another restaurant and no longer see growth.
In Sharon Old’s, “On The Subway,” the speaker compares her life to a black boy. She compares their different lives and the different positive or negative connotations that may be associated with them. Olds does this with her use of metaphors, similes, and imagery.
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
...re they do it correctly, it was the artist’s negligence and a waste of a fresh sandwich. Subway seems to be doing a fantastic job managing, but there is always room for improvement. There should be no returns as this greatly hinders the total productivity. There are minor tweaks that the management can make, but subway seems to have it down to a science. What it comes down to is the philosophy of which techniques to follow to help build the business. Over the past five years, Subway has had a consistent growth of revenue of about 2.3% a year. With the increase of raw material prices, and petroleum prices, costs have risen about 5-20%. As times get difficult with consumers, subway decided to absorb much of the increase in costs, and pass minimal hikes to the customers. Although they may be increasing in revenue, their profits are leveled off due to higher costs.
Subway effectively competes with burger chains and others that are in the fast-casual segment of the market. Including healthier meals into its menu and giving much attention to obesity and diabetes have supported consumers' choice for Subway (Tarantino, 2005). However, Subway has not been satisfied thus far; instead, more intensified efforts have been made to improve business during the dinner hour. Additional menu options have also been added to answer competitors' trends and to place more focus on the children's segment.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
Subway has just become the biggest fast food franchise in the United States. They advertise a healthy menu full of all natural ingredients. However a recent experiment by the Journal of Adolescent Health found people consume almost the same amount of calories at Subway as McDonalds (Lesser). Subway is not the only fast food advertising healthy options however. Despite the unhealthiness of fast food, these chains do offer some benefits. Natalie Stein,a writer for the live strong foundation, who focuses on weight loss and sports nutrition points out some crucial benefits of fast food. Stein acknowledges the convince of fast food in her article “What Are the Benefits of Fast Food?” She believes that having fast food restaurants on almost every corner is a good thing. This might be a good thing to some people, but what is too much? The conveyance of fast food chains has driven out grocery stores and ruined a chance at a healthy diet. With obesity growing in the United States maybe it’s time to rethink the actual conveyance of fast
The purpose of this paper is to introduce you to the fast food industry, how it is everywhere in the United States and increasingly spreading globally. The majority of the fast food restaurants in the United States are dominated by hamburger fast food restaurants. Amongst the burger segment, McDonald’s is the number one leader in the burger industry, followed by Burger King, and Wendy’s respectively (Oches, 2011).
Whether it is marketing within franchised restaurants or major retail banks, marketing plays a large role in providing assistance for companies to reach goals such as high profit. Subway sandwiches, a world-wide franchised restaurant, uses marketing and marketing tools not only for increased sales but to create an image in the consumers mind. This essay will define and discuss positioning, as well as a case study on how the Subway franchise has positioned their product. As one cannot climb a mountain from the top, market segmentation and market targeting will be looked at in order for better understanding on positioning.
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...