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Subway Franchise Case Study

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Subway Franchise Case Study
Subway Restaurant

Overview
Our organisational analysis focuses on Subway Corporation, a submarine sandwich Franchise which is the fastest growing fast food franchise in the world. The Subway headquarters is registered and operates in Connecticut USA.
In 1965 Subway a private company owned by Fred Deluca set a goal of having 32 stores in 10 years. With only16 submarine sandwich shops operating in 1974, Mr. Delica realized that his goals were unachievable and decided to Franchise his stores. That year the SUBWAY® brand was launched.
It was decided that further growth would be achieved through serving high quality products, providing excellent customer service, keeping operating costs low, finding good store locations and continually recruiting new franchisees. Subway gradually became the “largest submarine sandwich chain in the world” (The Franchise Magazine.net, 2009), located in 92 Countries with more than 33,611 franchise restaurants to date. (Subway Restaurant Website, 2010)
This document reviews performance and operations of the company and their strategies for becoming the largest submarine sandwich chain.

The Business
In 1974 Subway identified their business and fundamental purpose to serve their franchisers worldwide, and to offer them the support systems required to carry out their business. We were unable to locate any past mission statements, however, out of these principles the current Subway mission exists:
Subway’s mission statement is “To provide the tools and knowledge to allow entrepreneurs to successfully compete in the Quick Service Restaurant (QSR) industry worldwide by consistently offering value to consumers through providing great tasting food that is good for them and made the way they like it” (Subway, 2010)

Subway maintains its business concepts of keeping the investment low, keeping the operation simple and offering customers healthy, delicious fast food options. The



Bibliography: Ammas.com. (n.d.). Retrieved November 4, 2010, from Ammas website: http://www.ammas.com Behar, R Coopers, P. w. (2009). The Franchise Business Outlook, The Economic outlook of Franchise Business. New York: IFA Educational. Daley, J. (2010, Janruary). The year of teh sandwich. Retrieved October 2010, from Entrepreneur magazine: http://www.entrepreneur.com/magazine/entrepreneur/2010/january/204358.html DePree, M Drucker, P. F. (2008). The Essential Drucker. New York, New York, USA: Harper Business. Drucker, P. F. (2008). The Five Most Important Question You Will Ever Ask Your Organisation. San Francisco: Jossey-Bass. Franchise Direct. (2010). Retrieved November 3rd, 2010, from Franchise Direct web site: http://www.franchisedirect.com/foodfranchises/fastfoodfranchiseindustrystudy/14/262 Subway Subway Restaurant Website. (2010, November). Retrieved October 29, 2010, from Subway web site: http://www.subway.com/subwayroot/newsItems/newsItem1.aspx The Franchise Magazine.net Top100 Global Franchises Report /157. (2009, November). Retrieved October 29, 2010, from www.franchisedirect.com: http://www.franchisedirect.com/top100globalfranchises/the2009report/158/767/ website Subway chain becoming Micro-lending agency www.thestartupnation.com. (2010). Retrieved November 3rd, 2010, from Whats the average Income of Subway owner: http://www.startupnation.com/whats-the-average-income-of-a-subway-restaurant-owner/topic/)

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