Subway SWOT Analysis – Global Quick Service Restaurant

SWOT Analysis of Subway

by Shamsul
SWOT Analysis of Subway
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Subway SWOT Analysis | Global Quick Service Restaurant

 

This is Subway SWOT Analysis. Find more details on this analysis in the discussion below.

Company Background

Company: Subway

Industry: Restaurant

Founder:  Fred DeLuca, Peter Buck, Carmela DeLuca

Founded: August 28, 1965, Bridgeport, Connecticut, USA

Main Headquarter: Milford, Connecticut, USA

Type:  Private

CEO: John Chidsey

Products: Submarine sandwiches, Pizzas (some locations), Salads

Number of Location: 37,540 (Jun. 2021)

Area Served: 100+ countries

Number of Employees: 410,000, including franchises, (2021)

Net Worth: As of January 2022, Subway’s net worth is an estimated $15 billion

Revenue:  US$16.1 billion (2019)[4]
                     US$10.2 billion (U.S.)[5] (2021

Main Competition:

Wendy’s Company, Yum! Brand Inc., McDonald’s Corporation, and Burger King Worldwide Inc.

Subway is a popular fast-food chain in America. It has headquartered in the USA and it offers salads and submarine sandwiches. Doctor Associates, Inc. owns this largest single-brand food chain. Subway is the second-largest operator in the world after Yum! Brands. Get more details about Subway and its SWOT Analysis here.

SWOT:

Subway SWOT Analysis
StrengthsWeaknesses
Excellent degree of customization.Biggest restaurant offering fast foods in the world. Promotional and marketing strategies.Option of healthy meals. Associations with American Heart Association and British Heart Association. Franchises own all the restaurants. Low cost of startup.Usually uses cheap interior designs for outlets. High worker turnover. Stores are not consistent in the matter of service delivery. Too much pressure on franchises.
OpportunitiesThreats
Upgrading demand for quality and healthy foods. Home meal delivery. Making new customer groups and changing their habits. Drive-Thru option.Saturation in developed countries. The trend toward organic and healthy eating. Local fast-food chains. Currency rate changes. Legal cases against Subway.
Subway SWOT Analysis

Read More: MCDONALD’S MARKETING STRATEGY | MCDONALD’S BRAND POWER

Strengths | Subway SWOT Analysis

  1. Excellent degree of customization: Clients always love to select and the more options they can get about their shop the happier they are with it. This fast food chain is a best option than any other restaurant in this industry because it offers meal customization.
  2. Biggest restaurant offering fast foods in the world: Yes, Subway is among the top restaurants with the largest network of fast food chain. It currently operates nearly 38,000 restaurants. It is present in more than 99 countries and it offers a strong competition to McDonalds and other fast food restaurants in the world.
  3. Promotional and marketing strategies: It always utilizes best marketing and promotional strategies. The only purpose of these efforts is to attract more customers. Subway grows its customer base with the help of special offers. For example, it offers food deals starting from $5 only.
  4. Option of healthy meals: It presents wide range of high quality but low calorie foods. Subway always ensures nutritious and fresh quality in order to deal with the health standards. It is hard to find such quality anywhere. Subway is more interested to design food menus according to the latest trend of healthy and organic eating.
  5. Associations with American Heart Association and British Heart Association: Subway has gotten endorsements from the two associations that it serves best dinner choices, which is an incredible certification and separates the business from other drive-through eateries.
  6. Franchises own all the restaurants: Subway doesn’t claim any cafés itself so it encounters less danger. It can focus on its endeavors on promoting and developing the franchises.
  7. Low cost of startup: One reason behind such a high development pace of Subway stores is the low cost of startup. Subway stores are more modest and require less cash for leasehold gears and improvements.

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Weaknesses | Subway SWOT Analysis

  1. Usually uses cheap interior designs for outlets: Subway eateries don’t have a superior interior plan and quality that would invite everybody to remain and feel easy than in the contender’s cafés.
  2. High worker turnover: Subway Sandwich Artists work is a low talented but a low paid work. It offers high worker turnover and low performance, which builds extra expenses and adds overall expenses of Subway.
  3. Stores are not consistent in the matter of service delivery: The business battles to guarantee steady management and quality all through it stores thus a dining facility in one store might satisfy a client when another may neglect to do that.
  4. Too much pressure on franchises: In spite of the way that Subway neglects to guarantee predictable quality all through the stores it applies a lot of pressure on its franchisees. This is done through the agreements that are more ideal for the franchisor. An illustration of such high control is seizing of franchisee cafés assuming the later one is battling to keep them open.

Opportunities | Subway SWOT Analysis

  1. Upgrading demand for quality and healthy foods: It’s an option whereupon Subway develops itself and could additionally present low salt, low fat, and more nutritious menus.
  2. Home meal delivery: Subway could take advantage of a chance of conveying food to home and expand its access to clients.
  3. Making new customer groups and changing their habits: Changing client propensities address new requirements that should be met by organizations. Up to this point, Subway has just a single variety of food chain, distinctive to its close rival Mcdonald’s, which attempts to fulfill the customer’s requirements by accessing them with the help of modern services such as McExpress, McStop and McCafé.
  4. Drive-Thru option: McDonald’s now offers just drive-through cafés, which is an incredible chance for Subway to hop.

Threats | Subway SWOT Analysis

  1. Saturation in developed countries: The cheap food market in Europe and America is stuffed by so many drive-through chains and this ends up being a risk to Subway as it thinks that it is difficult to establish in the developed countries.
  2. Trend toward organic and healthy eating: Subway’s menu offers better selections of options, while the rest of menu is high in salt, contains numerous calories and is joined by soda beverages. Clients who care about their food and health might quit for something different rather than Subway.
  3. Local fast food chains: Regional drive-through restaurants can offer better food and menu that precisely address local tastes.
  4. Currency rate changes: Subway gets quite a bit of its revenue from foreign activities. That income must be exchanged with dollars and may influence the organization’s benefits, particularly when the dollar surges against different currencies.
  5. Legal cases against Subway: Subway has been involved and lost a couple of claims in the past in view of the poor strategies in regards to franchisees performance. Claims are costly, tedious and harm the company’s image.
 
 

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