1.

INTRODUCTION

The SUBWAY was found by Fred DeLuca in the year 1965, in Connecticut, United
States. SUBWAY is a registered trademark of Doctor's Associates Inc. Doctor's
Associates Inc. Ever since then the company has expanded over 36,000 outlets in 100
different countries around the globe and it aims to expand furthermore into other and already
existing horizons. In 2008 SUBWAY was ranked 1st in the sandwich industry of Britain, and
consequently was given the 1st rank in franchise opportunity by Entrepreneur magazine in
2009.
SUBWAY is currently the largest supplier of sandwiches in the world, and plays a
key role in the development of the fast food industry. There are many fatty fast food
restaurants in area, such as Franco and Pizza Hut, but no healthy food can be purchased at
these two places. Subway is the sandwich that restaurant sandwiches are highly customizable
so you do exactly to customer requirements. All SUBWAY restaurants are intended to
provide a quality product made according to individual taste of each client. The sandwiches
and salads are prepared with the client and the choice of accessories is free such as crunchy
vegetables, cheese, sauces and condiments that provide.

2. TRANSFORMATION AND CHANGES

i. PROCUREMENT AND CONTROL
As in a fast food industry especially fast food restaurant there must be has standard
system that operate the restaurant. Procurements of goods and foods items is a core
activity in the running of fast foods business. An effective and competitive procurement
systems help to protect the operators interest and ensure the purchase made are value for
money.
During 2008 the subway chain is committed to reducing the salt content of its product
due to the health cautious, and by the end of 2008, Subway chain will begin scoping
exercise to examine where fat reduction could be made. As a result it was focus on the
sandwich that focus on protein for example cheese, meat products and baked foods.
Subway will continue to work with FSA(Food Standard Agency) to explore areas where
reduction might be possible and look at sourcing new products that are lower in fat and
saturated fat. During 2009 once again on average 15% reduction in sodium. Some
improvements to be in healthy food. As a result by 2010, more than 75% of the Subway
chains Sub and salad will meet FSA 2010 salt targets, and with the chain programmed on
salt reduction continuing to reduce salt levels, in line with any new targets that may set by
FSA. The Subway chain will continue to update all of its nutritious information provided
in the nutrition guide booklet, online and in-store.

ii. EMPLOYEE
As we know Subway is the largest submarine sandwich restaurant chains and restaurant
system is an affiliate of Franchise World Headquarters, LLC. Of course there some
challenges to manage the employee with more than 34,000 locations in 98 countries.
The challenges is Subway headquarters had been using a payroll service bureau for its U.S
based payroll processes as well in the in-house databases and spreadsheets to store and
manage HR data. The company wanted to streamline its end-to-end HR processes as well as
enhance the HR team to recruit and retain a high-performance workforce. The solution is
Subway has experienced a range of improved business outcomes including enhancements to
its processes for recruitment, performance management, and compensation since there merge
to its HCM processes with UltiPro. Subway also rolled out UltiPros performance
management to its global locations, and HR team seen substantial cuts in the paper, time, and
efforts that were associated with talent evaluation processes. Its also provides expedient,
consistent, and secure process for performances management across a multinational business.
Surprisingly, it can also reduce paper usage and related costs through automated talent
management.
Before we had UltiPro, our payroll manager started every pay period by printing a
piece of paper for every supervisor who managed non-exempt employees. The paper was
sent to the managers, who would then make any changes and return the revised documents
to us for data entry,
Now our payroll manager runs one report, and she is ready to process payroll from
start to nish with a Web browser, including time collection, pay calculations, GL
reporting, and check generation and direct deposit advices.
UltiPro is providing new levels of control, saving us approximately 10 hours of tactical
work each week. Plus, theres zero footprint as we have eliminated the need to print and
handle tons of paper.
Lisa Shea
Assistant Director of HR, Subway Restaurant
Affiliate of franchise World Headquarters, LLC
We just look inside the HR departments, now we look in terms of service that Subway
provide. Exact specifications and formulas have been developed to maintain a consistent
food product throughout the SUBWAY system. The Sandwich Artist Program was developed
as a way to ensure that every employee is trained to properly prepare our product according
to specifications and to build a beautiful sandwich. Sandwich Artists are required to
always follow strict hand-washing procedures and proper glove usage for all food handling
processes. All products are monitored throughout the day to ensure products are kept at the
correct temperature. To further ensure quality, all prepared food is managed via strict shelf
life dating procedures. Our stores must always follow the most stringent policy towards food
safety. To be a ensure that employee success he or she must pass testing in the areas of
making a sandwich and service counter marketing.
Service Counter Marketing (SCM) is training designed to improve customer service. It
starts by giving the customer 100% of your undivided attention. Purpose of SCM is to
improve the way employee serve the customer as they are placing, making and paying for
their order. By making improvements to these areas there hope to build sales and profits,
2

improve their customers perception of value. There are 3 positions, or areas of

responsibility, at the sandwich unit that are used when completing a customers transaction:
a) The image maker- the way to greet sets the tone of the visit. This is way to give
better customer service because it is important to maintain good eye contact and
smile to let the customer feel appreciated and welcome
b) The architect- builds and dresses the customers sandwich. A customers
perception of having lot of salads may be totally different from worker perception.
By asking for approval a to make sure the sandwich is made exactly how the
customer likes it. Can refer on Table 2.3 as to be better understanding.
c) The enhancer- its increases the customers satisfaction and makes them think
good value for money spent.
Using the SCM concept allows the transaction to run smoothly for the customer and
employee resulting in happier customers, more sales, and greater employee morale.
iii. FOOD PREPARATION AND PRODUCTION
a) FOOD PREPARATION
According to the official website Subway stated that all vegetable suppliers are
required to have a HACCP (Hazard Analysis and Critical Control Points) system, this is
because to prevent foodborne illness by limiting the amount of time that potentially
hazardous are held in the temperature danger zone during preparation. And before it send
to the Subway the supplier has to undergo a third-party audit for food safety on at least
annual basis Since the Subway known as healthy meal, theyre going to using high
standards for food safety to ensure that customer getting the quality the customer want.
How the system in food preparation and production to make the meal is for example
vegetables, the easy way to remember which ones stay outside and which ones go in the
walk-in is, by remembering that all veggies that come in a liquid a stay outside: for
example this would be jalapenos, pickles and olives. All the veggies that come dry stay
inside the walk-in: this would be onions, bell pepper, lettuce, tomatoes and , cucumbers.
Vegetables are cut first-thing at the beginning of every shift. Therefore, if you were to
open the store for breakfast you would cut fresh vegetables or if you came in to work the
night shift, as soon as you arrive, you would first start off by cutting vegetables. The
reason for this food preparation is because, their only cut enough veggies to last us one
whole shift so that it stays fresh and crisp. If we were to cut veggies for the whole day, by
the end of the night they would eventually start turning a little brown, and brown
vegetables dont look very good to a customer on their sandwich. It can make customer
can lost their appetite.
Subway bread is the most important part of the Subway sandwich; it is the
significance food for the subway. It is also the most inconsistent part of the food we serve.
If they serve stale, hard, over proofed, or under proofed bread, which mean it serving a
poor tasting product. Bread should be baked throughout the day to maintain the pleasant
aroma in the store this is one of our strongest selling points and is the reason the oven is
positioned at the point of ordering. There are nine (9) steps to the bread baking process:
panning, retarding, scoring, floor retarding, spraying, proofing, baking, cooling, and
storing

Table 2.2 Condiments for Subway sandwich

Table 2.2 shows how the condiments is prepared systematically so that the worker easy to
make the sandwich that customer buy. To maximize efficiency, the sandwich unit should be
set-up in the order the Subway sandwich is made such as cheese, meat, lettuce, tomatoes,
pickles, green peppers, olives, onions, and dressings. The sandwich unit should always be
kept neat and clean, especially the sneeze guard. Appearance is everything because Subway
make open kitchen that why customer can see in the making of the sandwich. The condiments
should be stock the sandwich unit.

b) FOOD PRODUCTION
Subway customer

Subway employees
Welcoming to the customer

Enter shop

Is there
a line?

Wait in the
line

Inquire what type of bread is wanted

Get the requested bread

Step up to
the counter
Respond to
question

Inquire what size sandwich is wanted

Cut the bread to appropriate length

Respond: Italian, Wheat, Parmesan, Oregano,

Honey oat

Inquire of meat wanted

Put requested meat (s) on sandwich

Respond:
Foot long or
six inch

Inquire if cheese is wanted

Put requested cheese on sandwich
Meat
Inquire if sandwich is to be toasted
Toasted sandwich

Cheese

Inquire if vegetables are wanted

Toasted
Put requested vegetables on sandwich
Inquire of sauce is wanted
Vegetables
Put requested sauce on sandwich
Sauce

Wrap sandwich
Add sides to meal
Inquire if any side
items are wanted

Card
Swipe card

Calculate total cost of meal

Pay cash

Prompt for payment

Leave shop

Process transactions
Hand over meal

Table 2.3 Process of ordering and creating a Sandwich Subway restaurant

Table 2.3 shows how the food production in Subway. At the beginning of the
process, the customer enters the shop with the intention of purchasing a sandwich. At the end
of the process, customer leave the store with a sandwich. These are the terminations, or
boundaries of the business process. The participants involved in this business process model
are the Subway customer and the Subway employee. They have separate swim lanes on the
flowchart, yet interact with one another throughout the process.
iv. ENVIRONMENTAL
Subway using sustainable sourcing extends to all aspects of our supply chain, from the
farm to the sandwich. First from the animal husbandry, fair labour practices as well as
sustainable agriculture and manufacturing practices and lastly packaging also be considered.
This is to ensure the long term sustainability of the earths natural resources.

To maintain the greenhouse environment the supplier for Subway use grow the
tomatoes and other vegetables in controlled greenhouse environment. Therefore the farmer
motivated to reducing emissions by using fuel-efficient vehicle, and are adopting low and no
till farming strategies to reduce tractors trips throughout the fields. Not just focus on farming
but dairy farm uses a bio-digester that captures the methane produced when cow manure is
mixed with the pepper stems. The methane burned in their generator creates electricity used
to power their farm. Excess energy is sold back to the grid.
Many of their Subway supplier are farming families and has been responsible for
generations and share their commitment to social responsibility and sustainability. The good
thing is there using sustainable agricultural practices such as cover cropping and crop rotation
to restore nutrients to the soil and help the ecosystems, minimize pesticide and fertilizer use,
and most important for green environment is reduce electricity and water use.

Fresh New Zealand tomatoes growing in greenhouse

Tomatoes being sorted by the machine

Solar field at Procacci Brothers

v. TECHNOLOGY

Subway restaurant not just only focused on food production, sustainable sourcing, and
procurement control but also technology. Technology almost play as important role to
promote Subway. Subway has announced that it will be releasing a mobile wallet that will
help the fast-food chain reach its consumers on a new level through payments and loyalty.
Therefore, subway takes branded approach to mobile wallet. What is mobile wallet?
According to the website www.pfip.org mobile wallet is an electronic account dominated
in a currency, held on a mobile phone that can be used to store, and transfer value. Subway
restaurant select Velti as exclusive mobile marketing platform on 28 July 2011. This
company known as leading global provider of mobile marketing and advertising
technology and become provider for Subway restaurant chain. All the restaurant chain
around the world use Velti and becoming first global franchise organizations to
consolidate on a single mobile platform. Veltis mGage platform will be used to launch
transactional mobile marketing programs that allow consumers to order meals from their
phones for pick up at the nearest Subway restaurant. In addition, through a new mobile
app and mobile site it will enable them to access key information including menu,
nutrition and store locations.
To deliver a consistent, world class mobile experience in locations around the globe,
Velti is leveraging Velti mGageTM its carrier grade Software-as-a-Service (SaaS)-based
mobile marketing platform. The flexibility and robust nature of mGage enables brands to
offer totally customized mobile campaigns that are also completely scalable and fully
integrated.

3. REFERENCES
Perrigot, R. ,Basset G, & Cliquet G, 2010, Multi-channel communication: The case of
Subway attracting new franchisees in France, International Journal of Retail &
Distribution Management Vol. 39 No. 6, 2011: pp. 434-455 q, Emerald Group
Publishing Limited,
https://www.velti.com/press_release/pdfs/Subway_Velti_Press%20Release_for_release%20_28_July
_2011.pdf Retrieved on 16 May 2014
http://www.mobilecommercedaily.com/subway-picks-paydiant-to-power-mobile-wallet Retrieved on
16 May 2014
http://www.pfip.org/definitions/mobilewallet Retrieved on 16 May 2014
http://texassubs.com/employees/subway/handbook/4_Section-4-BasicFoodPreparation.pdf Retrieved
on 18 May 2014
http://www.subway.co.uk/aboutus/sustainability-sourcing.aspx Retrieved on 20 May 2014
http://www.subway.com/subwayroot/about_us/history.aspx Retrieved on 20 May 2014
http://alexandralwilliams.weebly.com/business-process-model.html Retrieved on 20 May 2014
http://www.ultimatesoftware.com/pdf/casestudies/subwaycasestudy.pdf Retrieved on 20 May 2014
http://www.managementparadise.com/forums/human-resources-management-h-r/215128organisational-structure-subway.html Retrieved on 20 May 2014
http://www.internationalfranchisedirectory.net/page/subway-restaurants-1/subway-restaurants-1.php
Retrieved on 20 May 2014