Did you know? Subway serves about 5,300 sandwiches every 60 seconds, which is roughly 320,000 sandwiches every hour.
There are 44852 restaurants across eleven2 nations and territories. It is the biggest single owner of a chain of restaurants and the largest operator of restaurants worldwide. It was established with Fred DeLuca and Peter Buck in the year 1965. The current Chief Executive Officer is Suzanne Greco. Its headquarters are at Milford, Connecticut. It is operated and owned by Doctor’s Associates Inc. Subway has announced a new logo, which will be in place starting in 2017, globally.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Subway.
Subway At A Glance – Subway SWOT Analysis
Company: Doctor’s Associates, Inc.
Founders: Fred DeLuca | Peter Buck
Year of establishment: 28 August 1965, Bridgeport, Connecticut, United State
CEO: John Chidsey
Headquarters: Milford, Connecticut, United States
Employees (Dec 2020): 5,000
Ticker Symbol: ZSUBWAYF
Annual Revenue (Dec 2020): US$10.2 billion
Profit net income (Dec 2020): US$2.9 billion
Products & Services: Submarine sandwiches | Wraps | Salads and beverages
Company Website: www.subway.com
Competitors: Pizza Hut | McDonald’s | KFC | Starbucks | Burger King | Dunkin Donuts | Taco Bell
Subway SWOT Analysis – SWOT Analysis Of Subway
SWOT Analysis Of Subway analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Subway SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Subway SWOT Analysis. Below Is The Detailed SWOT Analysis Of Subway.
Subway Strengths – Subway SWOT Analysis
1. The High Quality Brand loyalty: It has a high brand recognition and a loyal following among its patrons. Customers who dine at Subway are loyal to the brand. In the top eateries in the world, Subway holds the number third place, being only beaten in the top two spots by McDonald’s along with Starbucks. The value of its brand is $10.314 billion.
2. Benefits for health: They offer healthy subs sandwich which is highly rated and superior to the food options provided from other chains of fast food, such as McDonald’s. McDonald’s along with KFC are heavily dependent on oily and fried food items that are totally different from the kind of food that Subway is aiming for. The rapid growth of Subway quickly could also be due to the growing health-related issues from eating junk food , which is why customers are now turning to healthier alternatives. This is perhaps the greatest feature of Subway’s SWOT analysis of Subway
3. Simple Starting of Franchise: Franchisee staff training is arranged, concise and designed to ensure quick starting of newly hired employees since all of these trainings are performed by the company that has been hired to manage Subway as the Subway brand that is Subway. This allows for easy setting up of new restaurants in remote places and smooth operation without any various rules and regulations.
4. Difference: In the world of a variety of pizza and burger restaurants, Subway stands different because it’s a custom-made sandwich. It can be made how you want it by using the different ingredients available offered. If we take a look at the personalization aspect there is no other fast food chain has reached the kind of popularity that subway has attained. This makes subway different from subway from other brands and makes it a well-loved brand among the many food franchises.
Subway Weaknesses – Subway SWOT Analysis
1. The Value of Brands: Although having the highest number of operating locations around the globe, Subway is still struggling with branding value when compared to its largest rival McDonald’s. Subway is also not that distant from its nearest competitors, even though in terms of restaurants it’s in the second place (keeps shifting year-to-year).
2. Satisfaction, and the Quality of Service: Due to the fact that the fact that training for personnel, the franchised ones, they can not guarantee a uniform degree of customer satisfaction across every Subway outlets around the world. The service level cannot be the identical across all Subway restaurants.
3. Old-fashioned Restaurant: Subway has not altered their design of their restaurant in response to the evolving times. This has led to a lower satisfaction of their patrons, which leads to them shifting their preferences with time.
4. There is no online presence: No online presence or promotions impact the brand name of the business. In the age of digital, having an online presence is just as crucial. This is what Subway is lacking.
5. Many employees: Subway employees’ work is low-paying and low-skilled job. It leads to low efficiency as well as an increase in staff turnover that increases the costs of training and contributes to the overall cost of Subway.
Subway Opportunities – Subway SWOT Analysis
1. Health Consciousness It is evident that people are becoming more conscious about their health in our modern world. This means that Subway is able to profit from this trend and grow as a brand and restaurant.
2. Home delivery: The majority of successful eateries are offering services such as home delivery. Subway must to take note of this trend and cater to for the home delivery-loving potential customer.
3. Diversification: Subway has been stuck with one type of product i.e. Subs, but it is required diversify to different types of healthy alternatives and remain within the market. They can make use of their existing customers to alter their eating habits, and create greater loyalty to their customers.
4. Driving through One of the other services provided by rivals is a drive through facility that is designed for quick and middle class. Subway should implement this at their restaurants too.
5. Vegetarian food: The majority of Subway offers various kinds of meats, but isn’t offering a variety of options for vegetarians. They need to diversify on this regard also.
Subway Threats – Subway SWOT Analysis
1. Competitors: Subway can face a significant threat from competitors like McDonald’s, KFC, Taco Bell, Wendy’s which also have loyal customers. If they start offering foods with low fat, this could severely impact the customer base of Subway.
2. Satisfied market: New restaurants are creating similar models to Subways. This could hurt the base of customers as they could influence local population better and meet their needs better within the local base.
3. Poor Reputation It has been certain lawsuits brought against the brand about the unhealthy and stale food being offered to customers. This erodes the trust of the brand and discourages people from deciding to ever try the brand again.
4. Trend change: If people start taking their food seriously (somewhat healthy) more, and may desire more spice to their food, they might decide to change restaurants.
Subway SWOT Analysis Template
This is the SWOT report that Subway has done. Please let us know if you have additional suggestions to add.
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