Documente Academic
Documente Profesional
Documente Cultură
March 9, 2018
I. Brief History
The founder of Subway Fred DeLuca started off in the food industry by
opening a sandwich shop at the age of 17 in order to raise funds for paying his
college fees. Young Fred did not want to be a businessman but a medical doctor. He
got a loan of $1000 from a close friend who encouraged him to go ahead in setting
up a restaurant. In 1965, he and his friend Peter Buck started their first venture
together which they called ‘Pete’s Super Submarines’. The long oblong shaped bun
dish was a novelty and they hoped that it would click with the neighborhood crowd.
They formed Doctors Associates Inc. to oversee the running of their shops as
Doctorate that they had originally thought of funding through this idea.
But by the end of the summer instead of making their first profits they had only
$6 remaining with them. Instead of being disappointed and dropping out they went
on to open another restaurant nearby. Again this was not able to reach the
expectations that they had set for themselves. They defied logic and went on to open
a third store this time renaming it as ‘Subway’. This time they were able to make
profits of $7000 in its first full year of running. After experiencing their first success,
Fred decided that he wanted to pursue his career in the food industry.
Milestones
He decided that by 1974 they would open 30 similar stores in their state. But
10 years passed and they could open only 16 stores in Connecticut. But again they
found maintaining the quality of all the stores at the same level a difficult
task. DeLuca realised that the franchise model was the best for any store looking for
rapid expansion. So he persuaded his friend Brian Dixon to open the first Subway
franchise in Walling ford, New Haven. In that same year they were able to open
In 1984, they opened their first restaurant outside North America and that was
in the island of Bahrain. In 1987, Subway had opened its 1000th store, and in the
year 1998, it opened its 10,000th store. Now it started expanding itself to almost all
the countries in the world including U.A.E., Norway, Pakistan, Hong Kong,
Switzerland, etc. In 2000 it began a media campaign that would impact sales of
Subway products everywhere in the world. In the campaign a 22 year old Jared
Fogle claimed that he had lost 111 kilos eating only Subway sandwiches.
This boosted Subway’s fresh food ideology. As America was struggling with
high obesity levels due to fast food eating trend, Subway became the best option to
choose. In 2002, Subway became the franchise with the highest number of outlets
countries and yearly revenue of $9 billion. From being a part time business, Subway
has become one of the most popular chain restaurants in the world. Their consumer
oriented approach has made them one of the most successful companies of all time.
Subway offers a wide variety of sandwiches, along with Fresh Fit Choices,
Breakfast, Salads, Fresh Fit for Kids, Sides, Drinks & Extras, Footlongs, and Bread &
Toppings.
addition to these, Subway also offers wraps, salad, paninis, and baked goods,
Transit which now stands for “Bigger, Meatier, Tastier”, contains pepperoni, salami,
and ham.
2006, its personal pizzas made a debut in some of its US markets. These are made
to order and heated for 85 seconds. Breakfast and pizza items are only available in
Seattle’s Best Coffee’s coffee as part of its breakfast menu in the United States.
Recently, this April 18, 2017, Subway announced the addition of paninis to its
menu. Chipotle Steak & Cheese, Triple Cheese, Chicken Cordon Bleu, and Italian
own a single location, but collects 8% of revenue from each franchise. Fred DeLuca
borrowed $1,000 from family friend Peter Buck, to open his first sandwich shop in
Bridgeport, Connecticut in 1965. Today, there are more Subways than any other
restaurant brand with nearly 45,000 stores in 113 countries. DeLuca oversaw day-to-
day operations of the company until he died in 2015. Buck and DeLuca's heirs each
own 50% of the company. The brand controls 60% of the quick-service sandwich
market in the U.S. Subway has a robust social community with more than 25 million
Facebook fans.
(2016)
Subway restaurants were recently presented with the “Most Innovative” Award
for their Quality Engineering & Assurance practices at LiQE 2016, one of the most
prestigious and global Quality Engineering (QE) event held in Texas. Leadership in
Quality Engineering (LiQE) has become one of the leading Quality Assurance (QA)
platforms, giving QE & QA professionals a forum to learn and share their views on
The Subway chain, which has more than 20,000 outstanding franchisees
awards.
Franchisee of the Year awards are presented to the overall winners of the chain's
multi-unit and single unit owner categories from the brand’s North American, and
The Subway chain, which has more than 20,000 outstanding franchisees
recognized six franchisees as recipients of its 2014 Franchisee of the Year awards.
Franchisee of the Year awards are presented to the overall winners of the chain's
multi-unit and single unit owner categories from the brand’s North American, and
6. Zagat Survey Awards in Three Categories: Health Options, Best Service, and
For the fourth consecutive year, Subway restaurants, the world’s largest
restaurant brand, emerged as the mega chain leader in three categories: “Healthy
Options,” “Most Popular” and “Top Service”, according to the recently released 2012
Eating healthier just got easier at Subway restaurants. The world’s largest
restaurant chain, announces that they are the first and only quick service restaurant
to apply and meet the American Heart Association’s Heart-Check Meal Certification
environmental issues.” The chain also reaches 25,000 US locations and 100
countries.
9. Zagat Survey Awards in Three Categories: Top Health, Service, and Most
For the third consecutive year, Subway restaurants have been received top-
billing in three categories: “Healthy Options” “Most Popular” and “Top Service” –
The Subway restaurant chain which has long lead the restaurant industry by
providing nutrition information and healthier options has been named the 2011
Rankings (2005)
For the 13th time in 17 years, the Subway chain grabs top slot in Entrepreneur’
Sourcing Procurement
quality app. Since 2003, the purchasing co-op that handles supply chain duties for
Subway restaurants has signed an agreement for new quality management solution.
Dedicated to ensuring product quality and food safety to protect the Subway
brand and their customers has always been the main concern of the Subway.
system. IPC’s mission is to negotiate the lowest cost for purchased goods and
The IPC is currently using the site audit, product audit and complaint modules. Other
(CAPA).
specific needs. The solution can improve vendor management and quality by
allowing for the scheduling, tracking and scoring the audits and product inspections.
Also, the solution includes historical trend analysis and supplier scorecards to assist
The solution enables the franchisees and trading partners to collaborate with
Conformance
Reliability
Subway values the consistency of its product, to as to the quality they are
known for. Being an international company, maintaining the quality of the products
and services are on a serious note. But with assurance, Subway has served with
reliability and consistency on the hygiene of the food, flavors, sauces, high quality
beef meat and turkey from Jordan, and high availability of Halal food. They also
Subway offers not just high quality and delicious food sandwiches. In terms of
the quality of the service, they have the highly cooperative staff, ensures customer
ease at every level from choosing bread to finalizing the order, and explain the meat
variety to customers as to better help the customer decide on what to purchase from.
They also give trainings to the employees locally to ensure the services offered and
Aesthetics
To put the customers in mood for the products, they also have an upgrade to
entice the customers in buying the products. They maintained the oven-warmed
The researchers selected Subway as the focus of the research because of its
continuous worldwide growth. Subway is the undisputed leader in fast, healthy food.
Taste, high quality ingredients and convenience are the competitive attributes of
Subway which also foster customers from different parts of the world.