Subway Franchise By Jory Bell.

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Presentation transcript:

Subway Franchise By Jory Bell

How it got started Fred Deluca borrowed $1,000 from his friend Peter Buck to start a sandwich shop In 1965 Pete’s super subs opened in Bridgeport, Connecticut

Expansion On 1966 Fred and Peter formed the Doctors Associates Inc. to oversee the company as it expanded This has nothing to do with a medical organization Named this in hope that the company will pay off Fred’s medical tuition

Franchise Begins By 1974 Fred and Peter had 16 owned and operated stores A little much for two people to manage The subway franchise began

Opening new stores 1975 - Subway opens first store outside of Connecticut in Massachusetts 1977 – Snack sub is introduced. Later called the 6 inch

Stores reaching in the hundreds 1981 – 200th store opens in Renton, Washington 1982 – In just one year subway opens another 100 restaurants with the grand total being 300 1983 – Came out with freshly baked breads

Franchise expansion By 1984 the company was claiming to be the largest sub chain in the United States Also in 1984 the first store opened outside of the U.S. in Bahrain

Reaching in the thousands 1985 - 500th store is opened and first restaurant is opened in Puerto Rico 1986 - Subway expands into Canada 1987 – 1,000th store is opened and subway expands into Hawaii and the Bahamas

More Expansion 1988 – 2,000th store opens and Entrepreneur Magazine lists subway as #1 franchise 1990 – 5,000th store opens and stores open in Mexico 1991 – Subway comes out with the kid meal

Opening in interesting areas 1992 – Subway participates in school lunch programs and opens in Japan and Saudi Arabia 1993 – Subway opens in gas stations 1995 – Subway sponsors an Indy race car and appears in movies like the Simpsons and Ace Ventura Pet Detective

New Menu Items 2004 – Toasted sandwiches are introduced 2008 - $5 foot long is introduced 2017 – Subway has 44,000 stores in more than 100 countries Subway is still privately held

Cost of starting a subway The company charges a $15,000 franchise fee Startup cost range from $105,800 to $393,600 The company takes 12.5% of gross income On average Subway stores generate $422,000 annually

Subways local Competitors Footers – Family owned business. 6 inch club = $4.70 Gulliver's – Family owned Business. 6 inch club = $8.75 Deli at super pumper. 6 inch club = $5.00 Reynolds 6 inch club = $4.79 Subway 6 inch club = $4.75

Work Cited https://www.subway.com/en-US/AboutUs/Timeline https://www.subway.com/en-US/AboutUs/History https://www.britannica.com/topic/Subway-restaurant-chain https://www.businessinsider.com/what-it-costs-to-open-a-subway-2015-3