In the summer of 1965, Subway began its humble start in the quick service restaurant industry (QSR) in Bridgeport Conn. Fred Deluca was a young man looking for a way to pay for school, and Dr. Peter Buck was a man willing to write a one thousand dollar check that started the original Subway Sandwich shop. Today that one-thousand dollar investment is worth 5.7 billion worldwide sales, and over 21,000 shops, in 75 countries, which makes Subway the largest Sandwich Franchisee in existence (www.subway.com). Unlike many other restaurants these days, Subway is still a privately held company, that is not traded on the stock exchange. The only way to be part of the Subway chain is to join the well-structured franchisee program, which has presented some unique challenges, and advantages to the operation.
With a target audience of adults ranging from ages 18 to 34, Subway is now targeting those individuals who are looking for fast food that is healthy. Subways fast food varies from other fast food chains in that it is a more healthy option that is made to each persons specifications. Subway has been careful not to alienate any consumer's preference by offering options that include regular sub sandwiches, lowfat options, Atkins friendly wraps, salads, snacks, and desserts. Subway is happy to advertise that with all their sandwich features, there is over 2 million different sandwich options that are available to their consumers (www.subway.com).
The strategic marketing issues facing Subway Restaurant is the question of how to continue grow their market share with many other fast food options entering the marketplace. Subway currently competes with Burger King, McDonald's, Wendy's, Taco Bell, KFC, Blimpie, DÁngelo's, Arby's, Pizza Hut, Papa Gino's, Applebee's, Hardee's, Mr. Sub (Canada), Quizno's, Panara Bread, and any small mom and pop type sandwich shops. The one thing that has really benefited Subway...