Sam Novak Alex MacLean Andrew Knapp

History of Subway 1965-Fred Deluca and Dr. Peter Buck opened the first “Pete’s Super Submarines” in Bridgeport, Connecticuit 1968-The “Subway” name is used for the first time 1974-The first Subway franchise is opened in Wallingford, Connecticuit 1977-The Six-Inch is introduced as the “Snak Sub” 1984-Subway expands overseas and into the Middle East 1988-Entreprenuer Magazine ranks Subway as the #1 Franchise Opportunity 1996-Subway.com website officially launches 2000-Jared the “Subway Guy” is introduced 2002-The number of Subway restaurants surpasses the number of McDonald’s restaurants in the U.S Toasted Subs are introduced 2008-”5 Dollar Footlong” Advertising Campaign is launched 2010-Started offering Breakfast options

How Subway Went Global 41,378 Restaurants in 104 Different Countries Focused Initial Growth on 10 Countries Used Franchising Framework to Empower Employees First-Mover Advantage in most Countries Looked for Small Businesses/Entrepreneurs to run restaurants Each Subway can change their menu to offer local tastes Advertise the Healthiness of Subway Sandwiches

Subway’s Finances Privately Owned-Not Publicly Traded Brand Valued at $5.7 Billion 2013 Sales Reached $18.1 Billion Franchising Information: Total Investment: $85,700 - $262,850 Franchise Fee: $15,000 Ongoing Royalty Fee: 8% Term of Franchise Agreement: 20 years, renewable Financial Requirements: Net Worth: $80,000 - $310,000 Liquid Cash Available: $30,000 - $90,000

Subway Commercial

Strengths Great degree of subs customization Largest fast food restaurant chain in the world by number of outlets Marketing and promotional strategies Choice of healthier meals Partnerships with Britain and American Heart Associations All restaurants are owned by franchisees Low startup costs

Weaknesses Interior design of the outlets often looks cheap High employee turnover Services are not consistent from store to store Too much control over franchisees

Opportunities Increasing demand for healthier food Home meal delivery Changing customer habits and new customer groups Introduction of drive-thru 24 Hour Subway’s

Threats Saturated fast food markets in the developed economies Trend towards healthy eating- Is Subway Healthy? Local fast food restaurant chains Currency fluctuations Lawsuits against Subway-11 inch Footlong

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