STUDY ON SUBWAY FAST FOOD CHAIN

SUBMITTED BY:

VIVEK MP

VISHNU K

VISHNU ARAVIND

INTRODUCTIONSubway is an American fast food restaurant franchise that primarily

sells submarine sandwiches. It is owned and operated by Doctor's

Associates Inc. Subway is one of the fastest growing franchises in the

world, with 44,280 restaurants in 110 countries and territories as of

September 18, 2015. It is the largest single-brand restaurant chain and the

largest restaurant operator in the world. Subway is the second-biggest fast

food advertiser in the United States, behind only McDonald’s .It spent

US$516,000,000 on measurable advertising in 2012.

Subway uses the advertising slogan "Eat Fresh", and focuses on how their

sandwiches are made from freshly baked bread and fresh ingredients, in

front of customers to their exact specifications, by employees whom

Subway calls "Subway Sandwich Artists".

The first subway restaurant was opened in 1965 in Bridgeport USA. A

Business relationship was forged between 17 year old Fred Deluca and

Peter Buck that forever changed the landscape of the fast food industry

About the topicSubway has expanded with numerous stores, healthier diet options in the

menu, partnership with several association and organizations promoting

health consciousness, customizing the menu options and offering low

franchising cost. One of the unique propositions of subway is to use only

fresh ingredients in the food it prepares in front of the customers and

offering customized food rather than prepared food based on fixed menu.

Subway has used nontraditional channels to expand and develop

awareness about its brand equity among the customers.

ConclusionThe low franchising cost comparing to the competitors is one of the major

factors behind the success of the subway fast food chain. However the cost

of ingredients and supplies used in the preparation of food is higher than

that of competition due to the need for fresh ingredients. Customers have a

perceived value which is higher than that of the product offerings of

alternate fast food chains