SUBWAY Success Secrets

Posted by mwriters on January 11, 2009 under Subway |

The emerging of Subway Franchise as the 2009 No. 1 franchise in the Entrepreneur Magazine’s Franchise 500 list is a simple proof of their meeting, by most (or all) standards, the basic requirements of an ideal franchise, according to Entrepreneur’s franchise 500 . Exceeding McDonalds by some units, the company has the stayed afloat, even in the worst economic times, declaring2008 as their “best year ever.”

This is no new feat for the Subway franchise, as they have had this honor for the 16th time in 22 years of the rating of franchises. It had about 4,000 locations, mostly in the U.S., when they first ranked the Number One Franchise by Entrepreneur 500 in 1988.  Having scaled the 30,000 location mark, and with a strong presence in 87 countries and territories around the world, the company has well earned its credits. A company with a historic opening of nine stores within a 24-hour period is really worth the comments!

You can imagine how Fred DeLuca felt when he opened his $1000 worth first submarine sandwich shop in 1965 at the age of 17 with Dr. Peter Buck,  and how he feels now, when the business has grown into such a height. The franchise has success secrets, and favorable factors that can keep them high on the flight of success they are on today.

Subway has grown to greatly support their franchisees. Some of the franchisees can attest to the personal interest taken by the headquarters in their affairs. With the franchisees freedom to be their own boss, each one has the courage to reach for greater heights, with the confidence that they have a strong backing. To Fred DeLuca, the Company co-founder and President his “thousands of people - franchisees and support personnel” are “the number one franchising team in the history of the industry!”, showing this is a business team with very high dreams.

One of the things that set  SUBWAY apart from its contemporaries is its concept of relatively  low start-up costs, and effective training support.  This flows harmoniously  from their wide spread network of headquarters and regional personnel, who are skilled in the art of foodservice provision and proactive business guidance. SUBWAY has a flexible concept that requires only minimal equipment and space. Their widespread presence in most public and semi-private places like places food courts, free-standing locations and strip malls,  convenience stores, truck stops, airports, casinos, hotels, department stores, high schools, college campuses, hospitals and amusement parks is another thing that makes them relevant enough to earn such recognition.

The quality of the Subway fast foods and restaurants cannot be overemphasized. Their sub sandwiches, great-tasting custom-made salads, subs and wraps, are yummy enough to worth the stops. The exceptional customer service and value attached to customers is likely the reason why Millions of customers prefer the SUBWAY Restaurants as their favorite sub sandwich joints.

Running a franchise with the SUBWAY Restaurants chain is something a potential franchisee will appreciate. This is because of their acclaimed operationally simple and proven ‘no cooking’ concept. Anyone with the intention of running a food business with the SUBWAY brand can succeed, even without prior experience in foodservice.

The worldwide brand recognition of the subway brand did not just come without the ‘blowing of the trumpet’. Their value based operations and favorite menu choices were backed by years of strategic nationwide TV advertising, both in USA, Canada, and the rest of the world where the brand exists.  The company has also made use of other mediums, both in local and international advertising.

In spite of all these successes, Subway Franchise is not without challenges, as many more franchisees evolve with the same storefront approach as Subway. The current real estate and credit crises have also reasonably cogged the wheel of advancement. The success of Subway has created internal murmurings about the spacing of franchise locations.  The encroachment issues and “too close units” complaints by some business owners may not have helped the management/franchisee relationships of the company. Apparently the greatest challenge among Subway operators, is finding labor.

Subway has still not faltered in their zeal to make and retain a repeat customer’s status out of new and old ones. To them, marketing is paramount.

Article by :  Mek Writers