SUBWAY: An Introduction
The Subway brand was started in the summer of 1965 in Bridgeport, Conneticut. It was the
brainchild of 17-year old Fred DeLuca and his family friend Dr. Peter Buck, with its
purpose being to earn money for Freds college tuition. With a $1,000 loan from Dr. Buck,
Fred opened up the sub shop. Currently, there are 27436 Restaurants in 85 Countries,
making it the second largest fast-food franchise in the world. Approximately 5000 of these
locations are non-traditional units — such as convenience stores, truck stops,
colleges/universities, hospitals, military bases, arenas, shopping malls, and more. Their
goal is to be the largest fast-food franchise in every market. But lets get one thing straight,
Subway is not your everyday fast food outlet. They dont sell hamburgers or greasy French
fries; theyre in the business of healthy eating, their main products being their submarine
sandwiches which are made right in front of your eyes by the highly efficient staff
members.
The 5 most important strengths of SUBWAY
Brand Awareness
Even though it is not that well known in South Africa, Subway is brand that is known the
world over for their fresh tasting products and innovative store placements.
Quality of food
Subway prides themselves on always having the freshest ingredients available for your
sub, and they hide nothing from the customer. All their products are made on the spot
while the customer chooses what toppings he/she wants on the sub. Unlike most fast food
franchises, nothing is deep-fried or frozen.
Efficiency
At Subway, you dont wait for your order. You order it at the counter and watch it being
made by the highly efficient team of staff. When the product is ready, you pay and take it
with you. No bills, no queues, no hassles.
Store Location
Subway restaurant sites are adaptable to any type of location. The simplicity of the
Subway Restaurant operation and the ability to fit into spaces that their competitors cannot
allows them to open restaurants in many unusual and non-traditional sites, such as airports,
hospitals and even supermarkets!
Exclusivity
Subway offers a unique eating experience. Its quick, easy and most importantly, its
healthy. In most cases, they are the quickest way to a healthy meal, and they possess
unrivalled innovation when it comes to choice and service.
Macroenvironmental trends that impact on Subway
Political factors
Anti-American and Anti-George Bush schools of thought.
The level of crime and lack of security in South Africa.
Economic factors
The constantly decreasing amount of disposable income that people have due to inflation
