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Sam Novak Alex MacLean Andrew Knapp

Sam Novak Alex MacLean Andrew Knapp. History of Subway. 1965-Fred Deluca and Dr. Peter Buck opened the first “Pete’s Super Submarines” in Bridgeport, Connecticuit 1968-The “Subway” name is used for the first time 1974-The first Subway franchise is opened in Wallingford, Connecticuit

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Sam Novak Alex MacLean Andrew Knapp

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  1. Sam Novak Alex MacLean Andrew Knapp

  2. History of Subway • 1965-Fred Deluca and Dr. Peter Buck opened the first “Pete’s Super Submarines” in Bridgeport, Connecticuit • 1968-The “Subway” name is used for the first time • 1974-The first Subway franchise is opened in Wallingford, Connecticuit • 1977-The Six-Inch is introduced as the “Snak Sub” • 1984-Subway expands overseas and into the Middle East • 1988-Entreprenuer Magazine ranks Subway as the #1 Franchise Opportunity • 1996-Subway.com website officially launches • 2000-Jared the “Subway Guy” is introduced • 2002-The number of Subway restaurants surpasses the number of McDonald’s restaurants in the U.S. • 2005-Toasted Subs are introduced • 2008-”5 Dollar Footlong” Advertising Campaign is launched • 2010-Started offering Breakfast options

  3. How Subway Went Global • 41,378 Restaurants in 104 Different Countries • Focused Initial Growth on 10 Countries • Used Franchising Framework to Empower Employees • First-Mover Advantage in most Countries • Looked for Small Businesses/Entrepreneurs to run restaurants • Each Subway can change their menu to offer local tastes • Advertise the Healthiness of Subway Sandwiches

  4. Subway’s Finances • Privately Owned-Not Publicly Traded • Brand Valued at $5.7 Billion • 2013 Sales Reached $18.1 Billion • Franchising Information: • Total Investment: $85,700 - $262,850 • Franchise Fee: $15,000 • Ongoing Royalty Fee: 8% • Term of Franchise Agreement: 20 years, renewable • Financial Requirements: • Net Worth: $80,000 - $310,000 • Liquid Cash Available: $30,000 - $90,000

  5. Subway Commercial • http://www.youtube.com/watch?v=DpCdrvPNh94

  6. Strengths • Great degree of subs customization • Largest fast food restaurant chain in the world by number of outlets • Marketing and promotional strategies • Choice of healthier meals • Partnerships with Britain and American Heart Associations • All restaurants are owned by franchisees • Low startup costs

  7. Weaknesses • Interior design of the outlets often looks cheap • High employee turnover • Services are not consistent from store to store • Too much control over franchisees

  8. Opportunities • Increasing demand for healthier food • Home meal delivery • Changing customer habits and new customer groups • Introduction of drive-thru • 24 Hour Subway’s

  9. Threats • Saturated fast food markets in the developed economies • Trend towards healthy eating-Is Subway Healthy? • Local fast food restaurant chains • Currency fluctuations • Lawsuits against Subway-11 inch Footlong

  10. References • www.subway.com/subwayroot/About_Us/Timeline/default.aspx • http://www2.qsrmagazine.com/articles/interview/138/don_fertman-2.phtml • http://www.strategicmanagementinsight.com/swotanalyses/subway-swot-analysis.html

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