SUBWAY

BACKGROUND OF FRANCHISE

In 1965, Fred Deluca had just graduated from high school in Bridgeport, Connecticut, USA. Like many young adults his age, he had dreams of attending college. Although he was a hard-working, competent and dependable young man, the $1.25-per-hour he earned working at the local hardware store wouldn't be enough to finance his education.

Discouraged, Fred decided to ask Dr. Peter Buck, an old family friend, for some advice. The two had known each other for years and Fred half expected Dr. Buck to loan him the money for college after telling him of his plans to study to become a medical doctor. Instead, Dr. Buck gave Fred an idea that would change his life and the lives of people around the world.

"I think you should open a submarine sandwich shop," said Dr. Buck.

At first Fred was skeptical, but after Dr. Buck explained how the sandwich shop could finance Fred’s future education, he was on board. That night, Fred and Dr. Buck formed a partnership that would lead to the first SUBWAY® restaurant.

By lunchtime on the first day Fred and Pete’s submarine shop was open, customers were pouring in. From that day on the company continued to grow. Fred and Pete had a goal of opening 32 submarine sandwich shops within 10 years. By 1974, eight years after they opened their first sandwich shop, Fred and Pete owned and operated sixteen shops throughout the state of Connecticut, only halfway to their goal.

As Fred and Pete looked to grow the business, talk turned to franchising, an idea they had previously dismissed as something only for “the big guys.” Determined to succeed, Fred and Pete decided franchising was the key to achieving their goal. So Fred met with his friend Brian Dixon and made him an offer he couldn't refuse. He offered Brian a loan to buy one of their restaurants, but to sweeten the deal, Fred told Brian that if he didn't like the business, he could return it and owes nothing.

Brian is known as the very first SUBWAY® franchisee setting the new standard for the SUBWAY® business model. This enabled Pete and Fred to not only reach their goal, but surpass it. Today, entering their 46th year of operation, SUBWAY® restaurants is the world’s largest submarine sandwich chain operates more units in the US, Canada and Australia than McDonald’s® does. Countless awards and accolades have been bestowed upon Fred DeLuca and the SUBWAY® chain - the SUBWAY® name and its products have even appeared in numerous television and motion picture productions. The SUBWAY® franchise has come a long way from the modest sandwich shop in Bridgeport, CT.

Fred Deluca

Peters Subway

COMMERCIAL SITE

 Subway is a commercial establishment. It traditionally caters to customers who have choices in where to eat, and in which selling food is usually profit driven as opposed to non-commercial food service which is not profit driven and caters to individuals that have little choices. Subway is a fast food or quick service commercial chain that provides a healthy meal to customers in a short period of time.

MISSION STATEMENT

Subway’s mission statement is based on a philosophy that helps guide their business on a daily basis. Subway restaurants provide tools and knowledge to allow entrepreneurs to successfully compete worldwide by consistently offering value to customers through providing great-tasting food that is good for them and made the way the customer likes it. Subway restaurants are committed to keeping their customers happy by providing them with the freshest, healthiest and nutritious service any fast food chain can deliver.

PRODUCT AND SERVICES

Subway is providing high quality, low fat, cholesterol, and healthy sandwich with reasonable price. They feel very proud because their product is the healthiest compare to other fast food industries. Moreover, they also made sandwich in front of the customer after customer choose topping, meal and bread. It can prove that the way of their made sandwich is fresh and clean.

HISTORY IN MALAYSIA

In Malaysia, The SUBWAY® chain is always looking to expand its team of franchisees, so if you are interested in being your own boss and building your own business with a helpful, competent and successful network of support, then the SUBWAY® system is right for you.

With more than 43,000 locations in 108 countries, the SUBWAY® brand is the world’s largest submarine sandwich franchise, and has become a leader in the international development of the quick service restaurant industry.

SUBWAY® restaurants first ventured outside North America when the first location opened in the small Middle Eastern island nation of Bahrain in December of 1984. Since then, the SUBWAY® concept has gone around the world, with restaurants opening from Argentina to Zambia.

Wherever SUBWAY® restaurants are located, the core menu stays relatively the same with the exception of some cultural and religious variations. World travelers can expect the same high quality of ingredients regardless of what nation they are visiting. You can enjoy a foot long Turkey Breast Sub, with your choice of a variety of vegetables and condiments served on bread baked right in the restaurant in Jamaica, then travel to New Zealand and get the same foot long Turkey Breast Sub!

FRANCHISOR MANAGEMENT

We know that it takes more than just good food to nourish a strong people and build a vibrant community. It starts with taking care of people, the heart and soul of the SUBWAY® experience.

We value the cultural richness and breadth of ideas resulting from the diversity that is fostered in who we are and what we do. We are dedicated to building strong business relationships through open communication, respect and by with each other as well as by serving our customers and our neighborhoods much like we do within our own families.

As the franchisor of the SUBWAY® brand, we draw on the strong entrepreneurial spirit and passion that exists throughout our organization to help shape and grow our business. We strive to and create opportunities for our franchisees, their staff, and the people within the communities in which serve.

We continually challenge each other to succeed through teamwork, against shared goals & benchmarks, and to be accountable for our actions. We take great pride in our business and are committed to being good global citizens; to encouraging healthy, active lifestyles and to making a difference where we live and work around the world.

• Diversity
• Entrepreneurial Spirit
• Giving Back and Encouraging Healthy Active Lifestyles
• Making a Difference in Our Neighborhoods

FRANCHISE OPERATIONS

The franchisee is responsible for:

• Initial franchise fee
• Finding locations
• Leasehold improvements and equipment
• Hiring employees and operating restaurants
• Paying 8% royalty to the company and a fee into the advertising fund
•  

The company provides:

• Access to formulas and operational systems
• Store design and equipment ordering guidance
• Training program
• Operations manual
• Representative on-site during opening
• Periodic evaluations and ongoing support
• Informative publications

Before You Open:

Training

• You and your designee or manager will take part in our intensive two-week program.

Restaurant/Store Design

• You will be provided with floor plans for your specific location.

Site Selection

• You will be assisted in evaluating the location for your business.

Equipment Ordering

• You will receive guidance on ordering your equipment package for timely delivery.

After You Open:

Operations Manual

• SUBWAY® restaurants’ in-depth manual covers a full range of topics important to running your business.

Field Support

• Your local representative will help you get started and provide ongoing operational evaluations.

Franchisee Services

• A Coordinator will serve as your main contact person, who is just a phone call or e-mail away.

R&D

• SUBWAY® franchise executive chef, baking specialists, staff nutritionist, and product development team continually strive to make our excellent food even better.

Continuing Education

• Regular newsletters, e-mails and voice-mails, DVDs and additional learning tools are also available.

LOCATION PERFORMANCE

Generally, the most important factors for performance are the location of the franchise and how well it is run. Because these key factors are unknown, Doctor’s Associates Inc. cannot predict your results.

In fact, to eliminate possible misunderstandings, the company has a policy that no employee or agent can provide you with projections as to potential sales, earnings and profitability.

The best way to get this information is to complete an application. After your application is received, you will receive a letter with contact details for our Development office in your area. Our existing franchisees will be able to answer your specific questions.

SUPPORT

Franchise World Headquarters, LLC is proud of the excellent support systems available to SUBWAY® franchisees. Ongoing support is provided before and after you open your store. As soon as you join the SUBWAY® team, you’ll have access to help to get you started. Once open, systems are in place to help you operate your location effectively.

SUBWAY WORLDWIDE DEVELOPMENT AGENT OPPORTUNITIES

Company Vision

• Be the number 1 Quick Service Restaurant chain in the world.

Company Mission

• Delight every customer so that they want to tell their friends; with great value through fresh, delicious made-to-order sandwiches and an exceptional experience.

Development Agent’s Role

• A Development Agent is an independent contractor who sees the “big picture”. When approved, the DA develops a territory by helping franchisees own and operate SUBWAY® restaurants in that territory

Company Values

Family

• We build our business relationships by serving each other, our customers and our communities, much as we do within our own families.

Teamwork

• We challenge ourselves and each other to succeed through teamwork, against shared goals and to be accountable for our responsibilities.

Opportunity

• We create an entrepreneurial, ever growing SUBWAY® community, increasing the opportunity for everyone

Qualities of a successful SUBWAY® Development Agent:

• Excellent leadership capabilities
• Vision for the future of the SUBWAY® brand and restaurant development
• Passion for the SUBWAY® brand
• Local market knowledge
• Excellent communication skills
• Determination to lead a successful territory
• Excellent organizational skills

FRANCHISEE EXPERIENCE

Learning to create a great SUBWAY® sandwich is the easy part.  Our formulas will have you creating our famous ‘made before your eyes’ sub sandwiches before you know it.  However, the business side of SUBWAY® provides the vision for success.  We are looking for goal oriented business savvy entrepreneurs who are willing to apply the energy and time to realize this vision.

Our franchisees bring the skill set and business experience that help meet our criteria for success which include the following:

Owner/Operator

• Be prepared to have a ‘hands-on’ approach to ownership.  A SUBWAY® franchisee is actively involved in the running of their SUBWAY® restaurant.

Follow the Business Model

• SUBWAY® requires our franchisees to follow the operations manual.  Don’t reinvent the wheel.  Be part of our team.

Management Skills

• You will set the tone and be a role model for your employees.  Create an environment of mutual respect.  You will be responsible for delegating work, ensuring SUBWAY® standards of operation and keeping your employees up to date on promotions, operations and safety practices.

Mentoring/Training Experience

• Be prepared to establish a training program for your staff and empower them to protect your investment.

Financially Viable

• Franchisees show financial viability early in the approval process.  Be prepared with documented verification of net worth, assets, cash allocation and investment strategy.  A $50,000 liquid cash investment coupled with the ability to secure additional financing is required by the Dixon/Turi Territory. Your lender many require additional funds to secure a loan.

Community Involvement

• SUBWAY® franchisees live locally and continually network with community businesses and civic organizations. They build their business through these associations.

Successfully Complete the Qualifying Process

• Investigate SUBWAY® thoroughly. Do your due diligence. The local development office will guide you through the process while evaluating your skills to meet the challenge of becoming a successful SUBWAY® franchisee.

Implement a Marketing Plan

• Our franchisees are building marketing plans, setting goals and following through with their plans.

CUSTOMER SURVEY AT 1 OUTLET

We found out that most of the respondents can be considered as Subway’s loyal customers as they always visit the outlet.  In contrast, there are just a few respondents who seldom visit the outlet. Such situation shows that majority of the customers have positive impression towards Subway and are willing to keep visiting the outlet.

From the customer satisfaction, we found out that most of the customers satisfy with the taste of Subway’s food especially its Italian B.M.T, Tuna and Meatball Marinara subs. So, this means that the food matches customers’ tastes and preferences. For menu’s choices, most of them also satisfy with it because the outlet provides width range of bread choices, salads and sides. Besides, the outlet is very strong in its service speed and it is vital for this make-to-order restaurant.

In addition, majority of the customers also satisfied with the staff’s friendliness and store appearance. These mean that many customers feel that the way of serving is polite enough and the design of this outlet brings comfort and relax environment. However, the responses toward price are not ideal. This indicates that the prices are set too high and it brings burden for many customers. Thus, in order to increase customer satisfaction level in this aspect and to retain loyal customers, it is suggested to make readjustment of prices.

It shows that most of the customers would like to visit the outlet again in the future. Meanwhile, for the likeness to recommend to others, majority of the customers would like to recommend the outlet to family, friends, colleagues and those who they know.  

Italian B.M.T Subway

Tuna Subway

 Meatball Marinara Subway