Subway is a well-known fast food chain that has a presence in over 100 countries around the world. The company is known for its customizable sandwiches and salads, and it has a reputation for offering healthier options compared to other fast food chains. In this case study, we will examine the business model of Subway, its challenges and successes, and how it has evolved over the years to stay relevant in a competitive market.
Subway was founded in 1965 by Fred DeLuca and Peter Buck in Bridgeport, Connecticut. The two were college students looking for a way to pay for DeLuca's tuition, and they came up with the idea for a submarine sandwich shop. They named the company "Pete's Super Submarines," but later changed the name to Subway. The company started as a small sandwich shop, but quickly expanded through franchising. By the end of the 1970s, Subway had over 200 locations, and it continued to grow rapidly in the 1980s and 1990s. Today, Subway has over 44,000 locations worldwide, making it one of the largest fast food chains in the world.
One of the main reasons for Subway's success has been its focus on offering healthier options for fast food. While other fast food chains have been criticized for serving unhealthy food, Subway has positioned itself as a healthier alternative by offering a variety of fresh vegetables and low-fat sandwich options. In addition, the company has also focused on sustainability and environmental responsibility, using biodegradable materials and recycling in its stores.
However, Subway has faced its share of challenges as well. In recent years, the company has struggled with declining sales and closures of underperforming stores. In response, Subway has made several changes to its business model, including the introduction of new menu items, the expansion of its digital presence, and the introduction of delivery options. The company has also focused on improving the customer experience by renovating its stores and modernizing its menu board.
In summary, Subway is a global fast food chain that has succeeded by offering healthier options and focusing on sustainability. However, the company has faced challenges in recent years, and it has responded by introducing new menu items, expanding its digital presence, and improving the customer experience. Despite these challenges, Subway remains a successful and well-known brand, with a presence in over 100 countries around the world.