Jimmy John's Competitive Forces Model

Jimmy John’s Introduction The first Jimmy John’s was created in 1983 in Champaign, Illinois, by Jimmy John Liautaud. Liautaud founded Jimmy John’s on the idea of providing the gourmet sandwiches for a low price. The first Jimmy Johns was run out of a garage with used equipment, and without an ice machine for the drinks because there wasn’t any room. Liautaud grew interest in his sandwiches by giving out free samples to people around town, especially college students. As word spread about his sandwiches, Jimmy John’s began to gain acclaim and began to make money. (Gibbs, 2005) 1985 marked the opening of the second Jimmy John’s. Since then the sandwich shop franchise has continued to flourish with over 690 stores currently open nation-wide. The restaurant still bases its business on serving gourmet sandwiches with fresh ingredients. The difference between Jimmy John’s and the rest is that Jimmy John’s is “that it’s honest, it’s damn good, it’s damn fast, at a decent price.” (Jimmy John's Website, 2009) Jimmy John’s uses their fresh, unique bread and fresh ingredients to create a sandwich that is different from everybody else’s.

Industry-Competition The competition in the restaurant business is very stiff, with lots of options available to consumers looking for something to eat. In considering the most direct competitors to Jimmy John’s target market, the restaurants that are considered as main competitors are other restaurants that specialize in sandwiches. These restaurants include Subway, Blimpie, Little King’s, Panera, and local delis. The largest sandwich chain in the nation and Jimmy John’s biggest competitor is Subway. Subway currently operates 30823 restaurants in 88 countries. (Subway) Subway offers both hot and cold sandwiches on bread that is baked fresh daily. Customers are able to customize their sandwiches as they are made, adding ingredients varying from different cheeses, vegetables, and sauces. Subway has expanded their menu

Cited: America 's Best Franchises. (n.d.). Retrieved March 2009, from http://www.americasbestfranchises.com/Jimmy-Johns-Sandwich-Franchise-Categories-Fast-Food-Franchises Blimpie. (n.d.). Retrieved March 2009, from http://www.blimpie.com Gibbs, M. (2005). Jimmy John 's Born from Tough Love. McHenry County Business Journal , 1. Jimmy John 's Website. (2009, March). Retrieved March 2009, from http://www.jimmyjohns.com Little King. (n.d.). Retrieved March 2009, from http://www.littleking.us Panera Bread. (n.d.). Retrieved March 2009, from http://www.panerabread.com Subway. (n.d.). Retrieved March 2009, from http://www.subway.com