Subway-Business Model

business model of Subway is being described in ppt. it includes overview of Subway, cost structure, revenue, key resources, key partners, channels, etc and the remaining components that make up a business model.

2. OVERVIEW
•Subwayis an American restaurant franchise.
•It sellssubmarine sandwiches(subs), pizza (some locations)
andsalads.
•It was founded on August28, 1965Bridgeport,Connecticut, U.S. by
Fred DeLucaand Peter Buck.
•Itsheadquartersin Milford, Connecticut,U.S
•It has 41,512 restaurants in more than 100 countries.
•It also is the largest single-brand restaurant chain, and the largest
restaurant operator, in the world.

3. BUSINESS MODEL
•Subway relies exclusively on franchising.
•Subway has more flexibility in terms of location
•As the food comes precooked so no real cooking is involved.
•It can be fit in smaller spaces as well.
•Manual operationistheuniqueadvantagewherecustomerscan
choosebread, sauces, vegetable, etcallbythemselves.
•Lowinitialfranchisefeecomparedtootherfastfoodchain.
•The restaurant is marketed as a health-conscious restaurant chain.

4. VALUE PROPOSITION
•Healthy Fast Food –Submarine Sandwiches, Wraps, Salad,
Paninis, Baked Goods, Cookies, Doughnuts And Muffins And
Pizzas.
•It introduced gluten free bread and brownies.
•It also cut the salt content of its sandwiches by 15%.
•It saves time and cost.
•Subway released a commitment to transition to a 100% cage-
free egg supply chain by 2025.

5. TARGET CUSTOMERS
•It serves the Age group 18 -19 years
•The low fat menu containing a range of subs with 6 Grams of
Fat or less for fitness freaks.
•Kids meals-vitamin juices instead of carbonated drinks, etc
•Core menu is same with some cultural difference.
E.g., Halalmenu in middle east countries,
•Vegetable without beef in India and
•More sauces in America

6. CUSTOMER
RELATIONSHIPS
•Limited time only-promotions
•Subway reward cards allow customers to earn points for free
food and sandwiches
•Self-service
•Customized
•Personal
assistance
•Co-creation

7. REVENUE STREAMS
•Revenue from Franchisees
•Sale of food
•Corporate image
COST STRUCTURE
•It is the second largest fast food advertiser in U.S.
•Distribution cost
•Lease contracts
•Taxes

8. KEY ACTIVITIES
•Advertising
•Logistic network
•Training franchising management
•Contracts and deals
•Cooking
•Packaging
•Serving
•Customer service
•Quality control

9. CHANNELS
•Restaurant chains
•Malls
•Airports
•Social Media
•Website
•Mysubwaycard.com
•Kiosk machine
•Television

10. KEY PARTNERS
•Doctor’s Associate Inc. (owner)
•Franchise holders
•Food supplies
•Food sources
•Sponsors
•Security and insurance companies

11. KEY RESOURCES
•It is the fastest growing franchisee in the world with 44,000
restaurants in 110 countries and territories.
•US alone has 26,646 outlets
•Logistic network
•Secret recipes
•Its core product is submarine sandwich
•Best selling sandwich is B.M.T
•“Five dollar footlongs” quickly became the company’s
most successful promotion ever.
•Staff
•Regional variations