Why is subway so successful

Franchise Opportunities. Just as Subway has significantly broadened its footprint since inception in when Fred DeLuca and family friend Peter Buck started the company into the major global brand it is today, so the company has stayed ahead of the game by investing in digital advancements.

The company has numerous Business Development Offices in the UK and Ireland, along with teams of Business Development Agents on hand to assist and mentor franchisees with site selection, leasing, design, construction, purchasing, operations, advertising and local store marketing, as well as providing ongoing support, according to Kehoe. He also recommends would be franchisees spending time in a store observing its operations and talking with the owner, if possible.

Assuming the would be franchisee fits the bill, to the satisfaction of both parties, all new franchisees attend a comprehensive two-week training course providing a combination of classroom and store-based training, which provides franchisees with all the necessary knowledge and skills to run a successful store.

In addition to face-to-face training, franchisees are also encouraged to use the University of Subway - a well-established online training programme maintained by the Global Subway Support Centre, providing over online courses for franchisees and their teams.

Subway's business model primarily revolves around their franchise-only system and non-traditional units. Franchising allows them to open many stores across the globe, raise awareness for their brand and reach the masses.

They also operate with a focus on keeping costs down and profitability up, which allows them to remain affordable to franchisees. Most of Subway's growth and success is attributed to their franchise-only model. They realized that their best avenue for growth was through franchising and owner-operators, since entrepreneurs are motivated for the store to do well.

This meant that franchisees were more likely to put more effort into growing the business, especially since their livelihoods depend on its success. Subway motivates franchisees to do their best, by giving out 'Franchisee of the Year' and 'Development Agent of the Year' awards in their conventions. These awards recognize the efforts and accomplishments of franchisees - from adding new stores to building sales, increasing profitability and achieving excellent store evaluations.

Franchisees are also provided with guidance in running their businesses. Subway Development Agents help franchisees and are crucial in maintaining the growth of Subway's brand in their respective regions. Daring to venture into non-traditional units is also a pivotal part of their business strategy.

By putting together a proprietary model, they are able to analyze the economical impact and potential growth in the country. This allows them to plan and optimize their store openings in places where they can have a large number of restaurants and a faster impact on the economy.

One of their franchisees was innovative and opened his store in a convenience store, something that was deemed impossible and unconventional to many. However, this step made it possible for Subway to leverage on low cost of entries, while benefiting from the vast number of convenience stores across the country.

Therefore, by incorporating both franchising and non-traditional units, they are able to break out of the norm and tap on new opportunities. Furthermore, non-traditional outlets think: airports, transportation hubs and Walmarts allow them to reach more customers. These are people who might not have even considered Subway as an option previously.

This helps in raising awareness of their brand and improving their business opportunities. Another key factor is having a vision and setting goals to reach it - this started off with DeLuca aiming to have 32 stores in the first 10 years of operation.

It led to the concept of franchising, as he realized that he would not have been able to meet his goal alone. He then aimed for 5, stores in , which was achieved by , leading up to 10, stores in Now, in , they have over 40, stores worldwide - an incredible feat which would not have been possible without their goals, grit, franchise strategy and willingness to embrace the unconventional.

Similar to Subway, it is crucial to first start off with a goal in mind, and thereafter create a focused business model to reach these goals.

Here are some questions to keep in mind: What is the value proposition of your brand? How would you be able to reduce operational costs? How should you develop and maintain relationships with your stakeholders? These are all essential in formulating a business model that works for your brand. By staying constantly abreast of consumer trends, Subway is able to understand what their customers want, and deliver to meet their expectations.

In anticipation of the rise in delivery preferences, Subway expanded delivery options with third party providers. Some locations are even offering in-house delivery. To improve Customer Relationship Management, they also launched a loyalty program.

This allows customers to collect points and redeem rewards, and make orders through their phones. Subway has also managed to toe the line between fast-food lovers and health conscious customers, successfully catering to both. With the realization that customers prioritize value, taste and health, Subway ensured that their product offerings are in line with these expectations. It allowed them to rank first in the three criteria, far ahead of their competitors. They also launched a national campaign targeting childhood obesity F.

Steps Childhood Obesity Prevention. This was done through promoting healthy choices in their menus, which further emphasized their standing as the healthier choice option in the fast food community. Another key factor is adaptability. Their products are often localized to cater to the tastes of consumers in different regions, while at the same time retaining certain aspects i.

In Pittsburgh, they rolled out Subway pizzas, as Pizza is one of America's favorite foods. This is all while retaining the customization true to the Subway branding, where customers can decide on their pizza toppings to create a pizza that is uniquely theirs. Localization comes with its own set of challenges. As you might know, branding is vital to create a successful franchise.

If you want to know more about franchising or want some advice, feel free to get in touch with us at The Franchise Institute. Thanks for reading, The Franchise Institute Team Your email address will not be published.

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Now, at more than 32, locations in 90 countries, the chain is poised to become the world's single largest restaurant brand, in terms of number of locations. Contributing to the brand's growth is its ability to find new markets and adapt to unique locations.

This strategy has allowed Subway restaurants to be found in spaces where competitors just could not fit or found impractical. For the next two years, a Subway store will be located on a crane, rising alongside the construction of One World Trade Center — also known as the Freedom Tower — providing meals for construction workers as the structure rises stories.

At 1, feet, the Freedom Tower will be the tallest building in the United States and one of the tallest buildings in the world. Non-traditional locations. Also contributing to the Subway chain's success is that it continues to keep its concept and operations simple, start up costs low and seeks franchisees who embrace the entrepreneurial spirit.