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Subway Business Plan Template

Jul.18, 2018

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Table of Content

Do you want to start Subways business?

Do you want to start a Subway business? Subway is one of the most famous American privately held fast food restaurant franchises whose core product is the sub – submarine sandwich. In addition to that, Subway also sells salads, paninis, and baked items like doughnuts, muffins, etc.

Subway is one of the biggest food chains in the world and opening a Subway franchise is undoubtedly an extremely profitable venture. In case, you don’t know how to start Subway business franchise, the first thing you must do is to create a detailed business plan covering all business requirements. Your business plan is the most important thing that can earn you a Subway franchise among other applicants. For writing an effective business plan, we are providing the business plan for a startup Subway franchise located in Hillsborough, California.

Executive Summary

2.1 the business.

The Subway franchise, located in Hillsborough, California, will be bought and owned by Harry Jacob. Jacob is a well-known franchisee who has been in this business for the past 10 years. He is currently running three franchises of notable restaurants in California.

2.2 Management

Jacob has more than 10 years’ experience in operating franchises of famous food chains. For his new venture, he has made an incredible Subway business model  in which the main emphasis is made on the franchise’s management since it is the key deciding factor of the success of any startup. Jacob will hire a small team which will be trained for one month before onboarding.

2.3 Customers

Our target market will the residential community based in Hillsborough along with the non-residents – people who don’t live near us but have come to the area for any purpose.

2.4 Target of the Company

Our business targets are as follows:

Company Summary

3.1 company owner.

Harry Jacob will be the owner of the new Subway franchise in Hillsborough, California. Jacob is a well-known franchisee who has been in this business for the past 10 years. He is currently running three franchises of notable restaurants in California.

3.2 Why the Business is being started

Jacob has been in the food franchising business for a decade and is now looking forward to expanding his business by adding another promising franchise to his ownership. Considering that Subway has performed really well in more than a hundred countries with its over 45,000 stores, Jacob is willing to invest what’s needed for availing the incredible Subway business opportunities .

3.3 How the Business will be started

For starting the franchise, a 2-storey restaurant building will be procured on lease in Hillsborough. After getting the business registered by the tax authorities, Jacob will purchase furniture, machines, material, and crockery. The costs for startup are as follows:

The startup requirements are as follows:

Services for customers

The success of a food restaurant greatly depends on the quality and nutrition of the food products. Subway is the world top franchise restaurant and for buying their franchise, you have to provide the same services with the same quality. If you don’t know what services are provided by a Subway restaurant, you can take help from this   sample business plan for Subway franchise .

Initially, we will provide the following nutritional products:

• Sandwiches: Black Forest Ham, Chicken & Bacon Ranch Melt, Meatball Marinara, Oven Roasted Chicken, Roast Beef, Rotisserie-Style Chicken, Steak & Cheese, Subway Club®, Classic Tuna & Turkey Breast
• Signature Wraps: Black Forest Ham, Steak & Cheese, Subway Club®, Classic Tuna & Turkey Breast

We’ll provide dine-in, takeaway & free-delivery service to our customers.

Marketing Analysis of Subways business

The most important component of the Subway business plans  is the marketing plan which can only be developed after an accurate market analysis. Before creating your Subway business plan , you must analyze whether the market you are going to choose has demand for your business or not. While developing your Subway franchise business plan , you should also keep in mind that several people will be sharing the same business in the same locality. If you are planning to start a Subway franchise business, you can take help from this Subway sample business plan or any other Subway business plan sample  available online.

5.1 Marketing Trends

Before starting a Subway franchise, it is good to have a solid understanding of the market positioning of the Subway brand. Subway is the world’s second-largest food franchise after Wendy’s. As of 2017, Subway had more than 45,000 stores in about 112 countries and was generating more than $422,000 on average annually.

The number of Subway locations has been increasing day-by-day which indicates the popularity of this food chain. The situation is no different in the United States, where sub sandwiches are one of the most popular fast foods, especially among the teenagers.

5.2 Marketing Segmentation

Our primary target market will the residential community based in Hillsborough. Our experts have identified the following segmentation of our target market:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Residents: Our primary target market will the residential community based in Hillsborough. American people love Subway sandwiches especially the children and teenagers so we hope to have a lot of sales from the residents living near us.

5.2.2 Non-Residents: Our secondary market will be non-residents or the people who don’t live in our vicinity but have come to the area for any purpose. This group might include the tourists and the people who work near us. Considering the high name of Subway, we expect these people to stop by us for having a bite of our sandwiches.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our business targets are:

• To become the best Subway franchise as well as the most trusted food restaurant in Hillsborough
• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with the earned profits by the end of the first year

5.4 Product Pricing

Product pricing is an important factor which decides the future of a new business. Considering our strategic location and our famous brand name, we don’t need to keep our prices low. We will follow the standard Subway prices, according to which 6-inch sandwich will cost $3.5 and footlong will cost $6.5, exclusive of tax.

Sales strategy is also an important component of Subways business plan  since it determines how you will attract your customers toward you.

6.1 Competitive Analysis

A startup business can never survive if it doesn’t have anything special and different about it that’s why you must devise your Subways business plan keeping in view your competitive aspects. Our biggest competitive advantage is our brand which is well-known for its quality and taste. Moreover, our second competitive aspect will be the value, we give to our customers. Our workers will be friendly and available to the customers. We’ll highly entertain any complaint received against any of our products or workers through social media or any other channel to retain our brand image.

6.2 Sales Strategy

• We will advertise our franchise on social and mass media in compliance with the standards of franchise requirements
• We will give away free sandwiches to first 100 customers in the first 3 days of our startup
• We will give discounts and gifts during the first month of startup to promote sales

6.3 Sales Forecast

6.4 Sales Monthly

6.5 Sales Yearly

Personnel plan

The personnel plan describes the number and type of staff needed for your startup. It’s also very important and must be properly developed before you plan your Subway business strategy services . The personnel plan of our Subway franchise is as follows:

7.1 Company Staff

We will initially hire the following staff:

• 1 Manager for managing overall operations
• 2 Cashiers for keeping records
• 4 Waiters/Assistants
• 10 Cooks for preparing sandwiches
• 5 Drivers for home delivery
• 2 Security Guards

7.2 Average Salary of Employees

Financial plan.

The final thing to do before starting your Subway franchise business is to develop a detailed financial plan covering all costs and expenses. The financial plan describes all expenses required for the startup as well as how these expenses will be covered by your earned revenues. The financial plan is an important component of business plan Subway franchise  so make sure to develop it with great care.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Subway Business Plan Sample in pdf

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OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Subway Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Subway companies.

If you’re unfamiliar with creating a Subway business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a Subway business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Subway Business Plan?

A business plan provides a snapshot of your Subway business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Subway Franchise

If you’re looking to start a Subway business or grow your existing Subway company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Subway business to improve your chances of success. Your Subway business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Subway Businesses

With regard to funding, the main sources of funding for a Subway business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for Subway companies.

Finish Your Business Plan Today!

How to write a business plan for a subway business.

If you want to start a Subway business or expand your current Subway business, you need a business plan. The guide below details the necessary information for how to write each essential component of your Subway business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of Subway business you are running and the status. For example, are you a startup, do you have a Subway business that you would like to grow, or are you operating a chain of Subway locations?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the Subway industry.
• Discuss the type of Subway business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of Subway business you are operating.

For example, you might specialize in one of the following types of Subway businesses:

• Traditional Subway Business: In this type of Subway business, you will serve customers in a retail operation, offering menu items from the Subway corporate headquarters to serve public customers.
• Non-Traditional Subway Business: If you are opening a non-traditional Subway business, your location will determine the food choices offered and layout of your restaurant. Such locations are found in hospitals, specialty restaurants within a larger restaurant, those in airport locations and others in sports arena locations.
• Subway Express: This type of Subway business is focused on customers who have a limited amount of time. Menu items are limited to fast, favorite items and pricing is based on basic menu fare without customized ingredients. Found in convenience stores and pocket retail shops, these businesses are smaller than traditional, but typically serve high-volumes of fast food.

In addition to explaining the type of Subway business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of revenue during the past six months, opening a second Subway store location, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the Subway industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the Subway industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your Subway business plan:

• How big is the Subway industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your Subway business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your Subway business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, corporations, civic organizations and event/venue organizers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of Subway business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Subway businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes grocery stores, specialty fast food outlets, and traditional dining rooms.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of fast food business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for high-volume customers?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a Subway business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of Subway company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide Subway fare to college-aged students on a large scale promotional basis?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your Subway company. Document where your company is situated and mention how the site will impact your success. For example, is your Subway business located in a busy retail district, a business district, or a standalone building? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your Subway marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your Subway business, including answering calls, planning and stocking Subway items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 100th Subway sandwich, or when you hope to reach $X in revenue. It could also be when you expect to expand your Subway business to a second or third location.

Management Team

To demonstrate your Subway business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing Subway businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a Subway business or successfully running a Subway restaurant in a commercial building.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day, and/or offer special Subway sales online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Subway business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a Subway business:

• Cost of inventory and related packaging
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of friends and associates who are already lined up to buy Subway from your business.

Writing a business plan for your Subway business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the Subway industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful Subway business.

Subway Business Plan FAQs

What is the easiest way to complete my subway business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your subway business plan.

How Do You Start a Subway Business?

Starting a Subway business is easy with these 14 steps:

• Choose the Name for Your Subway Business
• Create Your Subway Business Plan
• Choose the Legal Structure for Your Subway Business
• Secure Startup Funding for Your Subway Business (If Needed)
• Secure a Location for Your Business
• Register Your Subway Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Subway Business
• Buy or Lease the Right Subway Business Equipment
• Develop Your Subway Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Subway Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Subway business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

4 Reasons For Subway's Explosive Growth

Subway has surpassed McDonald's in terms of global locations. 

The sandwich chain has more than 40,000 locations, compared with McDonald's 35,000.

And while McDonald's is struggling with lagging sales, Subway is plotting an ambitious expansion to 100,000 restaurants by 2030.

Here are a few reasons Subway has become ubiquitous. 

Related stories

Easy access. Subway restaurants are efficient to build, and require less square-footage than the average McDonald's. As a result, Subway can easily open a restaurant nearly anywhere. Unusual locations include a laundromat, church, and car dealership.

Healthy perception. "When customers want something fresher or lighter than burgers and fries,  Subway  is an easy choice, and its range of vegetables and cold cuts lend to a broader brand perception of  Subway  being better for you," Sam Oches, editor of QSR Magazine , told Business Insider. 

Ability to customize. Customers today are all about making meals to their specifications. McDonald's has responded to this trend by testing tablets that allow customers to customize a burger. Subway has been all about customization from the beginning, adding to its popularity. 

Simple franchising model. Subway stores are easy and economical to open. As a result, franchisees are lining, up, Oches said. 

Despite having more locations, Subway won't overtake McDonald's anytime soon when it comes to sales.

" McDonald 's, despite having nearly half as many units as  Subway , does almost three times as much as  Subway  in U.S. sales.," Oches said. 

• Main content

How To Write a Business Plan for Subway Franchisee in 9 Steps: Checklist

By henry sheykin, resources on subway franchisee.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

If you're considering owning a Subway franchise , you're in good company. According to a recent report by Franchise Direct, Subway is the world's largest submarine sandwich chain with over 43,000 locations in more than 100 countries.

But how do you write a business plan to become a Subway franchisee? In this post, we'll take you through a 9-step checklist to help you get started.

From conducting market research to attending franchise seminars, this guide will help aspiring franchisees navigate the process of owning a Subway restaurant successfully.

So, whether you're an established business owner, first-time entrepreneur, or someone looking for a career change, this guide will equip you with the tools and support you need to turn your Subway franchise dreams into a reality.

Conduct Market Research

Market research involves collecting and analyzing data about a particular market, including its potential customers, competitors, and industry trends. It is the first step towards developing a solid business plan for a Subway franchisee. Before investing your time and money into opening a Subway restaurant, you need to conduct thorough market research to ensure that there is a demand for the product and that it aligns with your goals and objectives.

Market research helps you identify your target market, their preferences, and purchasing behavior. You will also discover the current trends and opportunities in the fast-food industry that will help you stay ahead of the competition.

The following are steps to follow when conducting market research for Subway franchisee:

• Identify the geographic area where you want to open the restaurant.
• Use online tools like Google Trends to research the popularity of sub sandwiches in your area.
• Visit other Subway restaurants within your area to evaluate the competition, prices, and customer service.
• Read industry publications and government reports to keep up with the latest trends, regulations, and issues affecting the fast-food industry.
• Conduct surveys, focus groups, or interviews with potential customers to gather firsthand insights on their preferences, needs, and attitudes towards Subway restaurants.

By conducting market research, you will get a better understanding of the fast food industry and the demand for sub sandwiches in your area. You will also be able to identify the strengths and weaknesses of your competitors, which will help you come up with strategies that will enable you to stand out in the market.

Develop A Business Concept

Once you have conducted your market research, it's time to develop a solid business concept . Your business concept should be unique and different from other Subway restaurants in your area. You want to stand out and offer something that will attract customers to your restaurant.

To create a strong business concept, it's important to clearly define your target audience, menu, and branding. Your target audience will dictate your menu offerings and marketing strategies. Make sure you consider dietary restrictions, cultural preferences, and local trends when developing your menu. Your branding should also be tailored to your target audience and reflect your restaurant's values and mission.

• Think about what makes your Subway restaurant unique and how it can stand out from competitors in the area.
• Consider the local community and their preferences when developing your menu.
• Think about your branding and how it can appeal to your target audience.
• Stay true to your restaurant's values and mission, and make sure they are reflected in your business concept.

It's also important to have a clear understanding of your restaurant's values and mission. Your values and mission will guide your decision-making and ensure that your restaurant stays true to its purpose. Make sure you communicate your restaurant's values and mission to your staff and customers.

Once you have developed your business concept, test it out by conducting market research and getting feedback from potential customers. This will help you refine your concept and make sure it's truly unique and appealing to your target audience.

Having a strong business concept is crucial for the success of your Subway franchise. It will guide your decision-making and ensure that your restaurant stays true to its purpose. Take the time to carefully develop and refine your business concept before moving on to the next steps of opening your franchise.

Assess Your Financial Situation

Before embarking on a Subway franchisee opportunity, it is essential to assess your financial situation honestly. Starting any business venture requires a lot of capital, and owning a Subway franchisee is no exception. You must have a clear picture of your financial status to determine if you have enough funds to start and sustain the business.

• Calculate Your Start-Up Capital: The cost of starting a Subway franchisee can range from $114,000 to $258,000. This amount covers the expenses necessary for opening a new location. It includes a franchise fee, rent, equipment, supplies, and training costs. Make sure to have enough funds to cover these expenses.
• Determine Your Ongoing Commitments: Running a successful Subway franchisee involves ongoing expenses, such as staff salaries, food supplies, rent, and utilities. You will need to track your costs, estimate your profits, and plan for any unexpected expenses.
• Consider Your Income and Savings: Determine how much of your savings you can afford to invest in a Subway franchisee. You should also consider your current income and the potential income from the franchisee. It will help you ensure that you can make ends meet while growing your business.
• Don't invest all your life savings in the business; keep some funds in case of an emergency.
• You may need to consider taking out a loan or other financing options to cover the start-up cost.
• Maintain a financial cushion to cover unexpected expenses

Assessing your financial situation is a crucial step when considering owning a Subway franchisee. You must have a clear picture of your finances and expenses to determine if you can meet the requirements. The key is to plan and manage your funds efficiently in the initial stage of the business to achieve long-term success.

Choose A Location

One of the most important steps in becoming a Subway Franchisee is choosing the right location for your restaurant. The location of your restaurant can make or break your business, so it's critical to choose carefully .

When considering potential locations, you should first research the area you're interested in. Look for areas with high foot traffic, such as shopping centers, busy streets, and other popular areas. You should also consider the surrounding businesses, as being near complementary businesses can help drive traffic to your restaurant.

• Consider the demographics of the area, including income level, age, and interests.
• Do a thorough assessment of the competition in the area.
• Check local zoning laws and regulations to ensure your restaurant will be in compliance.

Once you've identified potential locations, it's important to visit each site in person to get a feel for the area. Look for things like accessibility, parking, and overall attractiveness. Additionally, you should research the landlord or property owner to ensure they have a good reputation and a track record of success.

After considering all of these factors, you should compile a list of potential locations and present them to Subway's real estate team. They will review each location and provide feedback to help you make the best choice for your restaurant.

• Don't rush your decision. Take your time to make sure you're choosing the best location for your business.
• Consider hiring a real estate professional to help you find and evaluate potential locations.
• Be willing to compromise on certain factors in order to find the best overall location.

By following these tips and using your best judgement, you can choose a location that will set your Subway franchise up for success.

Secure Financing

One of the most important steps in becoming a Subway Franchisee is securing financing. Most traditional sources of financing, such as banks and credit unions, offer loans to prospective franchisees, but you may also consider securing financing through alternative channels.

Before applying for financing, it's important to do your research. Be sure to review the costs associated with opening and operating a Subway franchise, such as the franchise fee, rent, equipment, and inventory costs. Take the time to review your personal finances as well to ensure that you are able to meet the financial requirements associated with securing financing for a Subway franchise.

Here are some tips on how to secure financing for your Subway franchise:

• Create a solid business plan. Lenders want to see that you have a well-thought-out plan for your Subway franchise and that you have a strong understanding of the market and competition.
• Consider alternative sources of financing. Don't limit yourself to traditional bank loans, explore options such as microloans, crowdfunding, or even borrowing from friends and family.
• Work with a franchise financing specialist. These financing specialists have experience working with Subway franchisees and can help you navigate the financing process.
• Prepare a great loan application. When applying for financing, it's important to be organized and thorough. Be sure to have all of the necessary documents and information ready to present to lenders.

Once you've decided on the best financing option for your Subway franchise, it's important to apply as soon as possible. The application process can be lengthy, so it's important to give yourself plenty of time to gather all of the necessary documents and meet with lenders.

Remember that securing financing is just one step in becoming a Subway Franchisee. It's important to continue to work hard and follow the Subway system to ensure your franchise's success.

Gather Necessary Documents

Before becoming a Subway franchisee, you will need to gather all the necessary documents to ensure everything is in order. This will help you avoid any delays in the process and make sure that everything is properly organized. Here are some of the documents you will need to gather:

• Personal Identification Documents: The first set of documents you will need to gather are your personal identification documents, which include your birth certificate, passport, and social security card.
• Financial Documents: You will also need to provide proof of your financial situation , including bank statements, credit reports, tax returns, and net worth statements. This will help determine your eligibility for financing and provide a clear picture of your financial standing.
• Business Plan: Your business plan is another crucial document that you will need to gather. This will outline your business goals, strategies, and how you plan to make your Subway franchise a profitable venture.
• Franchise Disclosure Document: You will also need to review the Franchise Disclosure Document (FDD), which provides information about the franchise system, fees, and other important details. Make sure to read and understand the document thoroughly before signing the franchise agreement.
• Lease Agreements: If you have already secured a location for your Subway franchise, you will need to gather the lease agreements for the property. This will help ensure that you have a lease in place when you sign the franchise agreement.
• Make sure all your documents are properly organized and easily accessible.
• Keep a copy of all documents for your records.
• Review all documents carefully and seek professional advice if necessary.

By gathering all the necessary documents, you can ensure that your Subway franchisee application process goes smoothly. This will also give you the confidence you need to move forward with your new business venture.

Attend A Franchise Seminar

Attending a franchise seminar is an important step for anyone interested in becoming a Subway Franchisee. These seminars provide a comprehensive overview of what it takes to start and operate a successful Subway restaurant.

• Do your research ahead of time on the seminar's agenda to come prepared with any questions you may have.
• Engage with other potential franchisees to learn more about their experience and ask about any challenges they've faced.
• Take notes throughout the seminar to refer back to during later stages of the franchise process.

During the seminar, expect to learn about the company's history, core values, and expectations for its franchisees. You will also receive information about the financial requirements to become a franchisee, the support you can expect to receive from Subway's corporate team, and the steps involved in selecting and opening a restaurant location.

Attending a franchise seminar is a chance to meet the Subway franchise team face-to-face, so be prepared to ask any questions you have about the process. Consider asking questions about what qualities the company looks for in its franchisees, how it supports its franchisees once they've opened their restaurants, and its approach to marketing and advertising.

If you are serious about becoming a Subway franchisee, attending a franchise seminar is a must. It will provide you with a wealth of information about the franchise opportunity, allow you to meet the Subway team in person, and give you the chance to ask questions and interact with other potential franchisees.

Sign The Franchise Agreement

Once you have gone through the franchise seminar and attended the necessary training sessions, it is time to sign the franchise agreement. This document is important since it outlines the terms and conditions of your partnership with Subway and the obligations that come with being a Subway franchisee.

Before signing the agreement, it is important to review it carefully to ensure that you understand all the terms. Seek legal counsel if necessary to help you understand the legal implications of the document.

If there are any clauses that you find unclear or that you disagree with , do not hesitate to raise them with the franchisor and seek clarity or modifications.

• Take your time reviewing the agreement. A franchise agreement is a legal document and requires proper attention to detail.
• Get professional help to review the legal language of the agreement.
• Remember that the franchise agreement is a partnership with Subway. Ensure that you agree with the obligations stipulated in the document.

Once you are satisfied with the terms, sign the agreement and attend to any other requirements that may be requested.

After signing, both you and the franchisor will have obligations that you are required to fulfill . You will need to pay royalties, submit regular reports, and comply with the brand standards set by Subway, among others.

Signing the franchise agreement is a major step towards becoming a Subway franchisee. It is therefore important to ensure that all parties involved have a common understanding of the expectations and that the partnership is based on a solid foundation.

Attend Training Sessions

Once you have signed the franchise agreement, the next step is to attend training sessions. It is essential to attend these sessions as they are designed to equip you with all the knowledge and skills necessary to operate a successful Subway restaurant. The training sessions cover a variety of topics, including:

• Inventory management
• Customer service
• Staff management

The training sessions are typically held at the Subway training center, where you will meet other franchisees and network with industry professionals. You may also have the opportunity to participate in hands-on training at one of the Subway restaurants to get a better understanding of how the business operates.

• Take notes during the training sessions: The training sessions cover essential information that you will need to reference later. It is essential to take detailed notes to ensure you retain the information.
• Ask questions: Don't be afraid to ask questions during the training sessions. The trainers are there to help you succeed, and they will be more than happy to help you.
• Network with other franchisees: Attendees come from different backgrounds and experiences. Use this opportunity to learn from other franchisees by asking questions and sharing ideas.

It is important to note that the training sessions are not just a one-time occurrence. Subway offers ongoing training and support to help you stay up-to-date with the latest industry trends and best practices. The company also provides online training modules and resources that you can access at any time to refresh your knowledge and skills.

By attending the training sessions and taking advantage of Subway's ongoing training and support, you will be well-equipped to run a successful Subway restaurant and achieve your business goals.

Opening a Subway Franchisee requires careful planning and preparation. By following these 9 steps, potential Franchisees can create a solid business plan and increase their chances of success.

• Conduct market research
• Develop a business concept
• Assess your financial situation
• Choose a location
• Secure financing
• Gather necessary documents
• Attend a franchise seminar
• Sign the franchise agreement
• Attend training sessions

With the right resources and support, owning a Subway restaurant can be a lucrative and rewarding opportunity for entrepreneurs.

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Earnings roundup: Fatburger, El Pollo Loco and Pizza Inn

Tgi fridays sells licensing rights to kraft heinz to pay off debt, report says, as it is sold, clean juice struggles with supply issues, restaurant job growth appears to be slowing, looking for the next chipotle these 3 chains are already there, subway takes a key step in its franchising strategy.

Subway is taking a key step in its bid to shift the makeup of its franchisee base following deals with five new multi-unit operators, the company announced on Monday.

The five groups together consolidated or acquired more than 230 restaurants this year, including two groups new to the Subway system and an existing franchisee that amassed 100 additional stores to bring their total number to more than 140 restaurants. The franchisees are in Texas, Florida, Arizona and the mid-Atlantic region.

The operators have also agreed to remodel and strategically open new restaurants in the coming years, Subway said.

The sandwich giant has been working with new and existing operators to buy up restaurants in a bid to bring more larger, multi-unit operators into the system. The idea is to diversify the size of the franchisee base and bring in operators with more financial wherewithal than the smaller operators that have traditionally owned Subway’s nearly 21,000 U.S. locations.

Among the new operators is EYAS Capital , an investment firm that targets businesses that generate cash flow “without overpaying.” It looks for brands in the hospitality and real estate businesses and its founder, Tim Foley, has owned and operated Truxton’s American Bistro, Wendy’s and Pat & Oscar’s, among other things.

“Subway is an iconic brand that has undeniably refreshed every part of its business over the past few years with the introduction of new menu items, unique guest experiences and operational enhancements,” Foley said in a statement.

Subway did not reveal the identities of the other operators.

The announcement comes as Subway continues to look for buyers. The Miami-based sandwich giant has been courting private equity groups and others in a deal that could value the chain at $10 billion.

Among the company’s hope is that it can convince potential buyers that it did much of the hard work of a turnaround. Subway has closed about 6,000 restaurants since its peak in 2015 in the U.S. and has been closing locations internationally more recently.

The franchise strategy is a key part of that because larger operators may be more able to remodel locations. The company hopes that a combination of remodels and relocations, coupled with some new locations, can help improve operator profitability and the company’s overall market position.

The company said it expects to remodel 3,600 locations in North America this year, which could bring the total number remodeled to 10,000 by this summer.

“A key element of Subway’s multi-year transformation journey is attracting multi-unit owners with the vision, resources, operating expertise and passion for the Subway brand,” Trevor Haynes, Subway’s president of North America, said in a statement.

Another key strategy is rebuilding international growth, and there are signs that is already taking place.

Subway generated $9.8 billion in the U.S. last year and finished the year with 20,810 restaurants, according to data from Restaurant Business sister company Technomic. System sales grew 4% domestically.

But international sales rebounded after recent years of weakness due largely to closing locations. International system sales grew 9.5% to $5.8 billion. The company also grew international unit count, finishing with 67 more restaurants outside the U.S. than it had a year ago. Subway said it opened 145 new restaurants in the first quarter of this year.

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Sample Subway Franchise Business Plan

Do you need help starting a subway franchise? If YES, here is a sample subway Business Plan.

Subway restaurant is one of the largest restaurant chains in the world. To own this franchise, you need to have a business plan ready. This Subway franchise business plan example is provided for this purpose.

Do you know what it takes to start a Subway sandwich shop? How much does a Subway owner make a year? Subway is a top eatery in the food industry that has been franchising for many years. Though it reached the peak of success in the food business in record time, Subway continues to have increased demand and is expanding faster than ever before.

SUBWAY FRANCHISE BUSINESS PLAN SAMPLE

If you are an entrepreneur with a good eye for lucrative business and a desire to play in the food industry, owning a franchise with Subway is the best thing to do.

This article serves as a guide to buying and running a Subway franchise, so read further with rapt attention to know and understand the company and its system of doing business and see how well you can fit in.

You should know about the organization you want to start a business with, so let me introduce the company before I go into the business model of the Subway franchise.

About Subway Franchise

It all started in 1965 when a young man went to a family friend to solicit college funds. The founder of Subway, Fred DeLuca, got the money he asked for, but his benefactor, Dr. Peter Buck, gave him $1,000 on the condition that he opens a sandwich shop.

This led to the birth of Subway, as both men became business partners, but the name was not always Subway; it started as Pete’s Super Submarines, which was replaced by Subway in 1974.

The first shop was opened in Bridgeport, Connecticut, and about nine years after the first opening, they had managed to open 16 other branches all over the state of Connecticut. This progress looked slow to the founders, who decided to start offering franchising opportunities to boost the expansion of the business.

Since the first franchising unit was opened in Wallingford in 1974, Subway started to experience a rapid expansion. As of 2013, this business opened more than 50 new franchising units weekly!

With global recognition as a nutritious substitute to the traditional fast foods we have around, Subway continues to feed customers with the improvement of their health in mind.

A Subway menu contains breakfast, salads, all sandwiches, guest subs, kids pack, side drinks, and extras. Platters are also available for all kinds of occasions with any size of the crowd.

Currently, over 44,000 Subway franchises are scattered all over 111 different countries worldwide.

These are the vital things you need to know about the Subway franchise;

• First, you do not need any previous experience with business owners to start a franchise with Subway, but good leadership skills and business management are an added advantage.
• Even if this is a food business, you don’t need to be a cook because the Subway manual clearly states that there is no cooking or grills.
• Being a Subway franchisee means you will pay an ongoing royalty fee of 8% and an Ad royalty fee of 4.5%.
• You are allowed to have absentee ownership.
• You will need eight to twelve employees to run your Subway franchise.
• You can build your restaurant by using your contractor or letting Subway recommend one.
• You can choose to sell your restaurant any time you feel like it; the company has to approve the buyer.
• You will have proper training and support before you launch your business, and even after you start, there will be periodic training for you and your staff.
• Lending services are available for you in case you need them.
• Subway does not explicitly publish any earning claims for its franchisees. You can refer to the Franchise Disclosure Document (FDD) for more information.

Starting your Subway Franchising Business

How much does it cost to own a subway? To start your Subway franchise;

• You must have a net worth ranging from $80,000 to $310,000, along with other financial requirements.
• You will need liquid cash ranging from $30,000 to $90,000.
• You will make an initial investment of $147,050.

These are the steps to acquiring and running your Subway business;

How do I become a subway franchisee?

• Attend the free seminar organized by the company and meet Subway representatives.
• Fill out the franchise application form on this website https://subapps1.subway.com/AdditionalInfoApp/index.aspx.
• You will pay a franchise fee of $15,000. It is a one-time payment that will give you the right to use the Subway trademark and brand name anywhere in the world.
• Sign the Subway franchise terms of agreement and renewal, which seals your 20 years contract that can be renewed on expiration with the company.
• Attend the two weeks Subway training course where they groom you and your staff on basic management skills and the Subway system of doing business.
• Secure a location for your business. Subway will provide you with a list of approved sites during your qualifying process.
• Purchase food for your restaurant by ordering from a Subway-approved vendor.
• Launch your business

Subway is headquartered at 325 Sub Wy. Milford, CT 06461, and the present Chief Executive Officer is Suzanne Greco.

SUBWAY FRANCHISE BUSINESS PLAN EXAMPLE

Using this sample business plan, you have a template to work with. We have covered some of the most overlooked areas by newbie entrepreneurs. Now you have the opportunity to put together a plan that captures the vital aspects of doing business.

Let’s get into the nitty gritty without further ado;

• Executive Summary

Subway Restaurant is a franchise opportunity that seeks to replicate the franchisor’s successes. We are a dynamic team driven by a desire to run a highly efficient business model. We are located in Baton rouge, LA.

Our products and services will consist of those allowed by the franchisor.

Some of these will include the franchisor’s signature product, the submarine sandwich, also known as subs. Others are donuts, muffins, cookies, paninis, salads, and wraps.

Our business will be located in the heart of Baton Rouge’s central business district. This location is strategic and presents us with an opportunity to grow and expand rapidly.

• Our Products

All Subway Restaurant’s products and services are of the highest quality. We seek to continue this tradition of excellence by making these products available to all our esteemed customers. These products include submarine sandwiches, known as Subs, salads and wraps, paninis, cookies, muffins, and donuts. These will be prepared with specially formulated spices in a hygienic environment.

• Vision Statement

We will not only continue in the franchisor’s tradition of excellence but will follow a growth model that will result in the opening of multiple units. Because we are expansion-driven, our sights will be set on identifying opportunities from the onset. This will allow us to implement strategies to establish more franchise units quickly; this will be done with the complete guidance of the franchise owners.

• Mission Statement

Our mission at Subway Restaurant is to offer our clients delicious meals in a cozy and comfortable environment. We also seek to become one of the most productive and competitive Subway franchises.

• SWOT Analysis

For meaningful growth to be achieved, a SWOT Analysis of our business operations has been conducted. This has allowed us to identify key areas important to achieving our set targets. The following are our findings;

The experience of our workforce is of great importance to us. This is coupled with our strategic location. This location is easily accessible from all directions of the city. This busy location enhances our potential for profitability.

Our firm commitment to growth also counts among our strengths. Every member of our team is driven by this single determination to succeed.

Our weakness can be attributed to the availability of substantial funding. We would have loved to start on a larger scale. The consolation is that we will gradually expand with the right approach and determination, no matter our current size.

• Opportunities

With a Subway franchise, opportunities are never in short supply. We are taking full advantage of these opportunities to establish a thriving business that will help us achieve three objectives; increase sales and profits, create employment opportunities and satisfy our clients.

Threats faced by our business include the risks posed by a troubled economy or a recession and stiff competition from an oversaturated industry. The former cannot be readily predicted, but there is a chance it could happen anytime.

• Target Market

A lot of people love to eat out. This is the primary reason restaurants are still relevant. We have a diverse target market: families, single men and women, tourists, teenagers, corporate executives, and lovers. Others include families and the young. These segments of society regularly patronize restaurants.

Our services and products will be targeted at them to help us build a dedicated group of clientele.

• Sales Projections

With the vast market at our disposal comes the opportunity to grow our client base. To achieve a level of sales sufficient enough to help us realize our growth potential, we have come up with a 3-year projected sales as seen below;

• First Financial Year.             $390,000.00
• Second Financial Year.        $560,000.00
• Third Financial Year.            $800,000.00
• Marketing and Sales

Marketing is essential to us. We seek to adopt the most effective strategies. These have a direct bearing on sales. We will assume the internet as a tool to promote our restaurant. This will be through creating a user-friendly website revealing every service we provide. Social media marketing will also be adopted.

We will also have a referral program where customers will accumulate points that can be redeemed for our products. Paid ads will run on TV and radio stations in addition to the distribution of handbills.

• Competitive Advantage

Other businesses offer similar services. However, what sets us apart from the pack is our brand. Subway is a reputable brand with both domestic and international appeal. We will use this advantage to set up a restaurant business to consolidate its previous successes.

This Subway restaurant business plan sample has provided essential information you can work with to draft your unique plan.

While using this as a template, you can use information obtained from your feasibility study to write a plan that will benefit the growth and stability of your business.

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Subway – Franchise Business Plan

• Commercial , Industry Insights

Subway - Franchise Business Plan

• 04 Feb, 2019

Founded in 1965,  Subway is a privately owned fast-food chain that primarily sells sub sandwiches, as well as salads and other food items.  All Subway restaurants are franchised and the company only employs a small head office staff. Currently, Subway has more than 40,000 restaurants operating in 102 different countries. In the U.S. alone, the company serves nearly 2,800 sandwiches every 60 seconds. This restaurant has traditionally grown through its flexible franchise model and surpassed McDonald’s as the number one fast-food restaurant in the U.S. in terms of store numbers.

Subway franchisees can choose from a variety of traditional and non-traditional locations. Compared to other fast-food chains, Subway allows franchisees to open a very small or a large restaurant from 160 to 2,700 square feet. The restaurants can be with or without seats, in a mall, a hospital, a university, as a drive-thru, or as a free-standing restaurant. It is the franchisees’ responsibility to find the location  of the restaurant.  Joorney Business Plans  offers a comprehensive location-based market analysis to meet the various needs of Subway franchisees.

The initial investment for establishing this franchise business ranges from $89,550 to $328,700, depending on the size, construction costs, and the equipment needed. The Subway restaurant business can be started with a minimum equipment investment depending on the restaurant’s size.

The Subway license is purchased for a one-time fee of $15,000. The license entitles franchisees to carry the trademark, to open up a Subway restaurant, and to have unlimited access to everything there is to know about the Subway brand. Once the restaurant has opened, franchisees pay 8% of the net sales as a royalty fee. In addition, 4.5% of net sales go into the national marketing budget. Joorney Business Plan writers have extensive experience in developing long-term financial projections  for Subway restaurants.

The aim of the marketing campaigns is to drive profitable sales for Subway franchisees. Franchisees actively participate in the running of the franchisee advertising fund and receive help to conduct local marketing activities. Over the past decade, it has significantly boosted its marketing campaigns and has been at the forefront of advertising toward a healthier demographic. Subway constantly works on creating new products, optimizing processes, and developing new decors. Joorney Business Plans writes marketing strategies  that are in line with the  franchise agreement .

Financial Assistance

The franchisor offers an equipment leasing program to most franchisees in the U.S. Subway deems the equipment lease to be a true lease and not a financing lease. Equipment leases are written for the term of five years. The franchisor also offers to finance $10,000 of the initial franchise fee under its minority loan program for qualified franchisees purchasing their first franchise at the full $15,000 franchise fee.

In addition, Subway may loan money to franchisees in connection with a Subway restaurant. The terms and purposes of these loans are negotiable. The franchisor may change or eliminate these loan programs and equipment leasing programs without any prior notice to franchisees. Joorney Business Plan writers can develop in-depth, long-term financial projections in line with the leasing or loan agreements with the franchisor.

All Subway franchisees have the advantage of a well-proven system that has been working for over 50 years . Due to the popularity of the products, the Subway system is a welcoming opportunity for a successful future.

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Inside the Plan to Build a Better Subway

This summer, CEO John Chidsey began a multi-year journey to transform the world’s largest restaurant chain around the globe. And it starts with an overhaul of the total guest experience.

John Chidsey had a comfortable seat on the sidelines. The former Burger King chairman and lead executive was content to offer advice on boards, invest, and generally not consider the idea of directing another major restaurant chain.

It had been eight full years since he stepped down at the burger giant a year or so after its 2010 sale to 3G Capital.

Yet if there’s one figure in this business that can reawaken somebody’s attention, it’s this: Some 95 percent of Americans live within a 10-minute drive of a Subway.

And yet the ubiquitous nature of the world’s largest restaurant chain wasn’t indicative of an opportunity that had run its course.

Like Burger King, labeled by some a floundering chain before Chidsey took over in 2006 and engineered a turnaround, Subway was trudging in neutral. The 56-year-old company, private its entire life, didn’t operate with any real sense of urgency, Chidsey says.

Just weeks after Subway’s 50th anniversary in September 2015, co-founder Fred DeLuca, who started the brand when he was 17 in 1965, passed away. DeLuca, 67, battled leukemia since 2013.

Chidsey says Subway lost its way a bit. Perhaps not stuck in a malaise, exactly, but it lacked direction. Subway needed to figure out who it wanted to be in its next act.

And Chidsey thought he might have an idea.

He officially joined in fall 2019 and got to work. Of the top 100 employees in Subway’s leadership team, some 75 percent are new hires. They hail from Burger King parent Restaurant Brands International; Dunkin’; Yum! Brands; Outback owner Bloomin’. “All people we knew,” Chidsey says. “We hardly used head hunters.”

It didn’t take long for Chidsey to lock in on Subway’s greatest differentiator and perhaps also its greatest challenge. Subway ended 2020 with 22,201 domestic locations. That’s 1,612 fewer than the previous year, and the continuation of a sloping trend. There were 23,802 stores headed into 2020 and 24,798 locations by year-end 2018. Subway boasted 27,103 U.S. restaurants at the close of 2015.

READ MORE: Where Subway ranks on this year’s QSR 50, by sales, AUV, and more

Before an 866-store decline from 2016–2017, Subway added 4,456 restaurants the previous six years combined. And it was steady growth to a measure few companies in retail history could rival: 816, 872, 956, 878, 778, and 145. The 2015 count was more than Burger King, Wendy’s, Taco Bell, and Pizza Hut combined. It was 12,844 more than McDonald’s and 14,582 ahead of Starbucks.

As Chidsey explains, though, it was clear Subway morphed into a development-focused restaurant company. His goal? Evolve it into an “experience-focused organization.”

“What we would all consider more of a traditional restaurant company,” he says. “And that’s a multi-year journey.”

Work toward the change didn’t quite begin on day one, Chidsey adds, but it wasn’t long after. Research was ready for review when he showed up. Chidsey doubled or tripled the effort, he says, and then Subway conducted more.

Call-outs from the brand’s analytics and insights teams sketched a clear roadmap. Subway needed to widen its lens and compete not just against other fast-food giants with scale—the McDonald’s, Wendy’s, and Burger Kings of the world—but also against emerging sandwich brands. That blip on Subway’s radar had become a flashing siren.

At the end of 2015, there were 1,046 Jersey Mike’s in America. Firehouse Subs had 945 stores. Jimmy John’s 2,405. If you added those together they represented just 16 percent of Subway’s U.S. footprint.

Accelerate to 2021 and Jersey Mike’s has 1,856 locations. Firehouse 1,140. And Jimmy John’s 2,705.

Beyond just a numbers game, however, it’s really consumer perception that’s caught up to Subway. It’s hardly the only sub restaurant in town anymore and that includes a bevy of fast casuals. It’s also likely not the lone quick-serve promoting itself as a healthier alternative to the “big guys.”

Subway’s consumer data was “overwhelming,” Chidsey says, to these points and what needed to change. More craveable options. More innovation. A quality-forward ethos that centers on the core.

Subway’s answer is coming in stages (in a system this large you can’t do everything at once, Chidsey says), and 1.0 splashed in mid-July.

The company rolled more than 20 significant menu updates across its U.S. system—what it calls the “Eat Fresh Refresh.” Based on records they could find, Chidsey says, this was the most extensive overhaul in brand history.

Unlike some past efforts, though, Subway built everything from the core out. It introduced 11 new and improved ingredients, six all-new or returning sandwiches, and four revamped signature options. A highlight being two new fresh-baked breads, Artisan Italian and Hearty Multigrain.

Beginning July 13, guests noticed fresh sauces, breads, and proteins. Among them: new deli-thin sliced ham and turkey, hickory-smoked bacon, smashed avocado, BelGioioso Fresh Mozzarella, and a tangy MVP Parmesan Vinaigrette.

Additionally, Subway debuted chef-recommended sandwiches such as the Turkey Cali Fresh, Steak Cali Fresh, and All-American Club.

Subway also completely redesigned its digital ordering experience and app to “provide the same customized and consistent experience found in Subway restaurants.” The updated platform features a new dashboard, improved ordering flow, and insight into out-of-stock items with further updates planned for the fall. In-store pickup and contactless curbside (a COVID measure) are now readily accessible. Subway developed a direct delivery feature to provide guests with the same pricing as in-store ordering and generate profitable growth for franchisees, the company said.

Subway devised fresh in-store merchandising and packaging and ignited its largest campaign ever that “brings our iconic brand and unique voice to life.” TV, uniforms, an “all-inclusive push for the guest to realize there’s a lot different about the brand, and a lot that you should come experience,” Chidsey says.

It was such a monumental effort Subway closed more than 10,000 locations across the country at 6 p.m. on July 12 so employees could get ready. When they opened the following day, Subway gave away up to a million free subs from 10 a.m. to noon.

As noted, Chidsey says Subway received a wake-up call from its competition. And so it had to ask itself, perhaps for the first time, “how do we get there?”

It wasn’t about chasing the next great sandwich, Chidsey says. It was finding Subway’s DNA and giving it an injection.

Now, when Subway reintroduces classics, it won’t just aim to tug on nostalgic consumers; it hopes to surprise them, too. The Chicken Bacon Ranch, for instance, is going to feature bacon Subway customers haven’t tried before.

“I think there’s going to be more than enough to have guests realize, ‘wow, something is really different at Subway,’” Chidsey says. “And they have invested heavily behind food innovation.”

Over the next 12–24 months, he adds, guests are going to constantly see improvements.

Yet Subway’s refresh isn’t solely a consumer-facing narrative. Reinvigorating the chain’s franchise base and getting operators enthused again is as critical as any marketing push. If not more so.

“In a way, it’s as much about a rallying cry for them as it is showing the consumer there’s something new and different,” Chidsey says.

When Chidsey interviewed for the job, Subway informed him there were more than 10,000 domestic franchisees in the system. “I thought, that’s impossible,” he says. “That’s more restaurants than Burger King has in the U.S.”

Simply, it’s a lot of people to motivate. COVID-19 didn’t help matters. “My joke is, every day you spend in a corporate headquarters is a wasted day because you learn so much more being out in the field with your operators,” Chidsey says. “On the frontlines. What you’re doing right. What you’re doing wrong.”

Before his stint at Burger King, Chidsey served as chairman and CEO for two corporate divisions of Cendant Corporation. He led the vehicle services side, which included Avis Rent A Car, Budget Rent A Car Systems, PHH and Wright Express, and the financial service group that featured Jackson Hewitt Tax Preparation Services and various membership and insurance companies. He also held international leadership roles with PepsiCo. “I’ve just been franchising my whole life,” Chidsey says.

While Chidsey admits there’s been friction at times with operators over the past year, the “vast, vast majority” are excited about Subway’s trajectory and shift from a development mindset to an experience-forward one. From maniacal growth to competitive awareness and response.

But don’t let superlatives tell the story. Chidsey says Subway’s results from January to April back a tale that’s easy to get behind.

“This place needed hope. Optimism. I think now they’ve got it,” CEO John Chidsey says.

Again, Subway is not your average restaurant chain when it comes to sheer size. As of May, Subway’s bottom quartile performers—stores in colleges or empty office parks or downtown locations—remained down 30–40 percent from pre-COVID levels.

The top three quartiles, however, posted positive gains. Not just against 2020 pandemic holes, either, but versus 2019.

How sizable is Subway’s top three quartiles? It’s a collection larger than McDonald’s.

January through April, the top half of Subway’s restaurants were up over 10 percent, Chidsey says. That group is bigger than Burger King or Taco Bell.

“So to be up double-digits for half your system over 2019, and to be positive for the top three quartiles, franchisees are noticing,” Chidsey says.

Subway’s top quartile’s sales comped a smidge under 20 percent, he adds. That’s more restaurants than KFC.

“If you look at it numerically, clearly, we’re going in the right direction despite whatever you read in the press,” Chidsey says.

Subway’s leadership traveled to Dallas recently to meet with 300–400 franchisees. Chidsey says he asked each room, “who has all-time best, highest sales?” in recent periods.

“And I would say it was a good 50 percent,” he says. “Sometimes 75 percent.”

“If we can continue that, as you know in this industry, sales cure cancer,” he adds. “If we can keep that track record going, I think we’ll be in a great spot.”

While COVID made it difficult for Chidsey to interact face-to-face with franchisees out of the gate, he says being rooted to HQ in Milford, Connecticut, “allowed us to turn over the rocks much faster.”

Subway quadrupled digital sales in 2020. A lot of that came from in-app improvements and attention to friction points. Subway rebuilt third-party delivery relationships. To the overall refresh, it worked on direct delivery where the aggregator takes care of the last mile.

Subway officially launched curbside to more than 11,000 restaurants in November, which was a massive undertaking. The brand onboarded up to 1,800 restaurants per week. Early on, operators reported roughly 50 percent higher ticket sales versus dine-in, and ordering during off-peak hours surged, not unlike a drive-thru. You saw this unfold with targeted marketing, including NFL legend Deion Sanders conducting some orders himself.

This was essential, Chidsey says, to compete with McDonald’s, Wendy’s, Burger King, et al during the COVID clamp down. Subway only boasts about 1,000 drive-thrus out of its 20,000-plus venues.

Subway dove deep, including food photography, which improved exponentially, Chidsey says. Advertising is crisper. “When I looked at the reels, it’s been quite a while since I think they were in the cultural zeitgeist and relevant,” Chidsey says. “I can’t point to any one thing and go that’s it. But I think it was a lot of singles that added up to a lot of things.”

Chasing opportunity

It’s likely Subway will continue to retract domestically over the near-term. The message Chidsey tries to get across is the company would rather have five, nice looking remodels and high-performers than seven stagnant units. “Because my bet is you’re going to get more sales out of those five than you would out of seven,” he says.

In the past, Subway was all about its development dartboard. Chidsey wants to take more of a portfolio approach with franchisees and figure out what’s the right size, he says, and get away from being so restaurant-count centric.

One avenue of whitespace, though, will come with non-traditional. Chidsey says he’s learned to appreciate Subway’s agility, which is part of the reason it scaled so quickly and so vastly in the first place.

You can fit them almost anywhere. No fryer. No broiler. No hood. No grease trap. Comparatively speaking in the industry, it’s a much simpler operation with plenty of flexibility.

Chidsey says Subway is working on grab-and-go-units. Vending units. Kiosks.

Consider an airport, he says. If there’s terminal A, B, C, and D, Subway can open a store in the most populous spot. But it could then easily add a kiosk in one or more of the other terminals.

In fact, Subway is testing this model in Cincinnati. One restaurant feeds the other. The main restaurant puts, say, 50 prewrapped sandwiches in the grab-and-go. Customers can get drinks and chips.

Subway can also go to places like Love’s Travel Stops or Pilot Flying J sites. There’s a restaurant in the truck stop that’s open 15 hours a day. The brand devised grab-and-go units that employees load up before they leave the restaurant. And customers can purchase sandwiches throughout the night.

“So you’re really leveraging your existing kitchen and finding ways to build,” Chidsey says. “… It’s almost like a hub-and-spoke. You’ve got the restaurant in the middle. Think of an Army base. Think of a college campus. And you can have all these, what I call ‘asset-light models’ out there that feed off that core kitchen.”

“Clearly, that’s an opportunity.”

Another, and this one Chidsey calls, “the largest growth opportunity in this brand by a mile,” comes via international runway. Of the six global players with true scale in Chidsey’s view—McDonald’s, Burger King, KFC, Domino’s, Starbucks, and Subway—only Subway is larger in the U.S. than outside the country.

“You don’t even need to get remotely near the penetration we have in the U.S. and you could easily have 30, 40, 50,000 restaurants outside the U.S.,” Chidsey says.

Presently, Subway has somewhere in the neighborhood of 13,000–14,000 international stores.

Why hasn’t it grown larger overseas? Chidsey says there was a previous approach where Subway had development people in countries. Unlike Burger King or Domino’s, which go find an institutional investor developer that says, “I’m signing a deal to build you 800 Burger Kings in the country.”

“So we’ve ripped that up and we’ve said, we’re going to go with the traditional [quick-service restaurant] model and go find people who have already built a lot of units for some other brands, or just people we think have the experience and the wherewithal,” Chidsey says.

In the next six to 24 months, Chidsey says, people could expect “lots of deals” to be signed where parties commit to “multi-hundred [restaurants].”

“And so, I think we can totally transform the international landscape for Subway,” he says.

Subway is doing well internationally, he explains, but “we can blow the doors off and make it three, four times bigger than it is.”

Consolidation is something to circle as well. Previously, Subway courted a smaller franchisee model. But Chidsey says he’s comfortable if operators want to go in and buy up “lots of their smaller colleagues.”

“I’m all for that,” he says.

The situation overall at Subway isn’t all that dissimilar to the one Chidsey walked into at Burger King, which came off six straight down years of sales.

“This place needed hope. Optimism. I think now they’ve got it,” he says. “I want [franchisees] to feel good enough about the future that they will invest in remodels. That they will buy new equipment if they need new ovens, if they need new fountain equipment. Whatever it is. That they’re confident enough that they’re going to invest in the business.”

“And then those that want to grow feel confident that they can get from eight Subways to 12, from 12 to 20,” Chidsey continues. “Or the person who has 20, they want 40. I think it’s just that confidence and belief in the brand that will allow them to stop looking in the rearview, because you can’t fix what’s in the rearview mirror, you can only fix what’s in front of you.”

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Promote Well-being

At Subway, we understand that artificial flavors, colors from artificial sources and artificial preservatives are not desired by our customers. Where possible, we have removed them from our sandwiches, salads, soups and cookies. We continue to innovate and work with partners to seek removal while ensuring we also deliver nutritious, safe, high quality, great tasting food at affordable prices.

At Subway, we believe children are a unique and special audience, and take particular care to responsibly communicate our meals to them and their caregivers. We also know it is important to provide growing children with a well-balanced meal that includes a variety of food groups including grains, vegetables, fruits and lean meats. While regulations may differ by country, and we always abide by the local regulations, any advertising to children under age 12 only contains those offerings that encourage the consumption of nutritious foods and beverages.

At Subway, the safety of our products is a top priority and we abide by regulatory guidelines everywhere in the world where we do business. Decades of research and much scientific literature have established that caramel colorings, and the foods and beverages they are in, are safe. Their use continues to be approved by regulatory authorities. The U.S. Food and Drug Administration, the European Food Safety Authority, and Health Canada, among others, have approved the use of caramel colorings in foods and beverages.

Even though deemed safe, we do recognize that many customers prefer products without caramel coloring.  For many countries across the globe, we have removed caramel colorings from our sandwich ingredients to meet these customer interests.  We also recognize our beverage partners and other non-Subway branded products may contain caramel coloring.

Subway is dedicated to producing the highest-quality, safest, and best-tasting sandwiches and meals in every part of the world. Developing and maintaining robust food safety programs is how we work to assure safety for every meal, every day, in every market.

Our produce farmers and growers must follow Good Agricultural Practices (GAP), while all other food manufacturers must adhere to the rigorous Food Safety and Quality Expectations outlined in our audit standard. This ensures that only the best products make their way to Subway restaurants in all of our global markets. Further, Subway has comprehensive internal programs and procedures for controlling food safety within our restaurants. Franchisees and Sandwich Artists TM are trained to manage these programs, and all restaurants are inspected on a regular basis.

At Subway, we are committed to producing great-tasting meals of the highest quality in every part of the world, ensuring that all of our products meet or exceed appropriate safety and quality standards.

We understand that some customers and other stakeholders have questions about bioengineered ingredients or genetically modified organisms (aka GMOs).

The use of bioengineered agricultural produce ingredients is safe. Many of the most influential regulatory agencies and organizations that study food safety, including the U.S. Food & Drug Administration, the American Medical Association, the World Health Organization, Health Canada, the U.S. Department of Agriculture, and the National Academy of Sciences have found that bioengineered ingredients are safe and that there are no negative health effects associated with their use.

We recognize that customers may still be concerned about the use of GMO ingredients, so some markets may choose to restrict their use.

At Subway, we believe in providing complete and accurate nutrition information and clear ingredient listings.  As a global brand, it is important for Subway to provide simple, fact-based, and easy-to-understand information so that our customers can make an informed menu selection that meets their individual dietary and lifestyle needs.

All nutrition and ingredient details are compiled and reviewed by a registered dietitian, and nutrition information is verified routinely by third-party accredited laboratories.

At Subway, we provide our guests with choices and ingredient information so they can make decisions that suit their tastes and dietary needs through informed choices. Nitrites/nitrates are preservatives commonly used to cure meats such as salami, bacon, and ham. In those meats, they cannot be removed, but some other meats may contain added nitrates as a preservative. Customers can choose from many menu items that are nitrite/nitrate-free when visiting our restaurants.

Creating a healthier relationship between people and food is integral to our business. While we are transforming the nutritional profile of many of our products by reducing added sugars, and sodium, and increasing whole grains, vegetables and lean proteins, we are also building our portfolio of nutritious products, accelerating a journey that we began with our founding.

Subway has always aimed to provide better choices to our customers and, as an established nutritional leader in the quick service restaurant (QSR) industry, is committed to:

• Offering a variety of balanced choices that can fit into any lifestyle.
• Providing detailed and accurate nutrition, diet, and balanced lifestyle information.
• Serving ingredients you can feel good about.
• Marketing and promoting nutritious choices for both adults & children.

Informed by the guidelines on sodium intake provided by the World Health Organization (WHO) and other authorities, we understand the potential positive health impacts of reducing sodium consumption. We are committed to finding the right balance between sodium and flavor in our products around the world.

The majority of added sugars on our menu comes from the beverages we serve.  Our global beverage partners have shown their own commitment to reducing sugar and calories in their drinks. At Subway, we also ensure we provide customers with other beverage options without added sugars, ranging across waters, dairy-based drinks and juices.  We will continue to add beverage options to better meet health and customer interests in every region across the globe, and always provide transparency to the customer on the sugar content of our menu offerings.

In recognition of the negative health impact of artificial trans fats (TFAs) and to support public health initiatives around the world, in accordance with guidance from the World Health Organization (WHO), Subway has removed partially hydrogenated oils in its Subway branded menu. These cooking oils contain minimal amounts of TFAs that can develop during the refining process.

We do recognize that some branded chips/crisps offered in restaurants may contain trace amounts of artificial TFAs.  As our partners work to reduce TFAs in their offerings, we will always ensure menu and nutritional transparency.

Respecting Our Planet

As part of our ongoing commitment to improving animal welfare throughout our supply chain, we are happy to be working with Compassion in World Farming (CIWF), a widely recognized global leader in animal welfare. In collaboration with CIWF, we continue to evaluate emerging and evolving systems and practices to advance long-term improvements in animal welfare throughout our global supply chain.

• Subway Animal Welfare Policy (238K)

The following geographies are committed to sourcing cage-free eggs by the end of 2025: North America, Latin America, Europe, Australia, New Zealand, Singapore, Malaysia, Thailand, Philippines, Vietnam, Taiwan and South Korea. 

• Europe, Subway has been sourcing free-range eggs since 2010, winning multiple “Good Egg Awards” from Compassion in World Farming (CIWF).
• In Australia, we have been serving cage-free eggs since 2014.
• In North America, 27% of the eggs we purchase are cage-free.
• In Latin America, 31% of the processed eggs we purchase are cage-free. Note: Subway removed eggs from the menu in many countries across Latin America in 2020. While this had an impact on our overall percentage of cage-free eggs purchased, it also resulted in us reducing our total egg purchases by more than 300,000 eggs in the region.  

At Subway, we believe building and implementing solutions to address the risks associated with climate change is important to the future of our company, customers, and the world.  To do so, we believe all interested stakeholders should commit to science-based actions. 

As a 100% franchised business with more than 20,000 Franchise owners across the globe with over 45,000 restaurants, our extended supply chain is complex. 

While we help our Franchisees and suppliers implement known technologies to reduce their energy footprint or GHG emissions, we are still currently studying the best means to measure our total Scope 1, 2 and 3 GHG emissions and devise science-based solutions that can be implemented.

Subway understands our ingredients and packaging depend upon a safe, high-quality, affordable supply of raw materials to support the expectations of our customers, Franchisees and other stakeholders. Agriculture is a critical element of our value chain and it is linked to the health of the world’s forest system.  Subway’s influence on forests is mainly through the sourcing of agricultural materials (palm oil, soy and beef value chains) and paper/wood-based products for disposable packaging and restaurant design.

Subway aims to source from suppliers that strive to:

• Use sustainable forest management practices in forests they own, lease, or manage to provide fiber, paper, timber, and other forest-based products.
• Leverage principles and implement sustainable agriculture practices that enable farmers to increase production on currently farmed land and minimize impacts on the surrounding area.
• Preserve biodiversity and cultural values and optimize the social, environmental, and economic benefits of managed forests.
• Ensure that this policy is implemented in such a way that supports the inclusion of smallholders in their supply chains.

Packaging plays an important role in the way our meals are experienced. In addition to understanding its necessary role in protecting the quality and experience consumers have with our meals, we have a responsibility to minimize resources used, potential waste created, and overall environmental impacts in our communities across the globe. We do this by optimizing the use of materials in sandwich wraps, bowls, napkins, and other packaging, with the goal of -- continually improving our designs and supporting increased recovery. 

We recognize there is a level of complexity when balancing considerations that relate to the source of materials, their efficacy in use, and eventual disposal.  In a perfect world, all materials would operate in a closed-loop system with no waste, loss or litter – as we strive to meet this ideal, we have set the following goals related to packaging in our restaurants:

• Strive to design 100% of our packaging to be recyclable, compostable or biodegradable.
• Increase recycled materials in our paper and plastic packaging.
• Reduce our packaging's carbon impact via minimalist design and material choice based on sound science.
• In partnership across the QSR industry, work to increase container (paper cups and plastics) recycling rates both in-restaurant and for take-away/delivery.
• Subway Sustainable Packaging Policy (43K)

At Subway, palm oil is used as a sub-ingredient in several of our ingredients due to its desired baking characteristics and in support of our initiative to eliminate added trans fats. We believe that best practice today is to source palm oil from Roundtable on Sustainable Palm Oil members (RSPO) and endorse the RSPO as the primary sustainability standard for palm oil products.  Subway seeks to uphold standards for sustainable palm oil in our own supply chain, even though it is not a primary ingredient, as we continually seek alternative ingredients that have fewer potential supply chain impacts.

At Subway, the breadth of ingredients that come from farms are key to making our menu unique.  Pesticides in farming play a key role in controlling insects and weeds thereby protecting the vegetables. This improves yields for farms, creates reliable, affordable supply from minimal agricultural footprints, prevents deforestation and improves farmer incomes.

Responsible use of pesticides is an important aspect of sustainable agriculture. Subway recognizes pesticide use has led to concerns around the potential for unintended environmental and health impacts all across the globe. Subway understands these concerns and takes pesticide issues seriously, and we continue work across our value chain to support responsible pesticide use.

At Subway, we hold our suppliers to the same standards of integrity to which we hold ourselves.

Working with our Franchisee-owned Independent Purchasing Cooperatives/Companies (IPCs), the Subway brand looks for suppliers who share our values and commitment to environmental and social responsibility. Therefore, all suppliers are expected to follow our Supplier Code of Conduct, and relevant policies and commitments as a condition of doing business with us.

These standards are based on international conventions including the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, and the ILO Declaration on Fundamental Principles and Rights at Work.

At Subway, ensuring sustainable agriculture systems is a critical element to creating a healthy, profitable business for our Franchisees founded on safe and high-quality ingredients.  Even as a global brand, we recognize agriculture is a local operation, each of which presents different opportunities and risks when promoting strong sustainable agricultural practices. 

Our efforts to promote sustainable agriculture practices focus on engaging with farmers and supportive stakeholders to promote and share best practices on water management, pesticide use, and other critical processes.  By working with farmers directly whenever we can, we believe we can improve the supply and quality of our ingredients, reduce impacts to the environment and help build healthy local businesses and communities all across the globe.

Waste reduction is important to Subway for many reasons, ranging from cost savings and productivity improvements for our Franchisees to being a good neighbor in the communities where we have restaurants by reducing our environmental footprint.

Our actions and involvement in waste reductions cover all aspects of our supply chain, including helping Franchisees with restaurant design, promoting material recycling, and reducing food waste, and designing our boxes and disposable packaging to minimize materials used.

At Subway, we recognize the importance of water to every individual in every community across the globe.  Many regions around the world are experiencing varying degrees of water stress due to increases in population, weather pattern changes and/or inadequate water management infrastructure that can result in the insufficient supply of safe drinking water.  As a brand that relies on water to grow the crops needed for our business, we have a vested interest in proper water use within our value chain, from the restaurants operated by our Franchisees to the farmers growing our vegetables. We will continue to research in-restaurant investments that optimize water usage, as well as work with farmers worldwide to share best practices in water management techniques.

Our Communities

The values of health and safety in our Corporate offices, and independently owned and operated restaurants around the globe are some of our top priorities. We work in a variety of ways to reflect these values through our employee codes of conduct and restaurant operating manuals.

Open Carry of Firearms

For the consideration and comfort of restaurant employees and guests, Subway respectfully requests that guests (other than authorized law enforcement) refrain from openly displaying firearms inside restaurants — even in states where “open carry” is permitted.

For more than 50 years, Subway’s mission has been to let customers design their own sandwiches, and to serve local tastes through a network of independently-owned restaurants. That hasn’t changed. A limited number of Subway locations across the globe have offered a Halal menu. We follow the local regulations on menu labeling for Halal products when they are available.

Subway’s commitment to respecting the human rights of workers throughout our value chain is articulated through the expectations we set across our Supplier Code of Conduct, Statement on Modern Slavery and Human Trafficking, and other relevant policies including those on land rights, deforestation, and sustainable agriculture. 

At Subway, we recognize that the prevention and eradication of modern slavery and human trafficking is a global challenge. Integrity in our operations, products, and supply chain is of the utmost importance.

This statement addresses the Modern Slavery Act of the United Kingdom and the California Transparency in Supply Chains Act for the 2020 fiscal year.

• Subway-Statement-on-Modern-Slavery-Human-Trafficking (58K)

Subway has developed a Global Responsible Use of Antibiotics Policy – in line with the World Health Organization – for the approach to responsible use of antibiotics within our supply chain.

• Subway Global Antibiotics Policy (99K)

Subway's research processes and those of our partners are confidential for competitive reasons. However, Subway does not conduct or fund research – including research funded by Subway but performed by third parties – that utilizes any cloned organisms. Furthermore, any meat, dairy, poultry, fish or egg derived from a cloned animal, including subsequent generations, must not be used in Subway menu offerings.

Practices and Processes

We are committed to conducting business with integrity and our REPORT IT program is an important part of our culture of ethics and compliance.

To report questionable behavior or a possible compliance violation, send an email to [email protected] .

We will maintain confidentiality to the extent possible and do not retaliate against any individual who has, in good faith, reported questionable behavior or a possible violation of law.

People are our greatest asset. We require all associates throughout the Subway system to adhere to ethical principles and employment standards to ensure that all workers at our corporate headquarters and regional offices, are valued and treated fairly and with respect.

Franchise World Headquarters, LLC is an affirmative action, equal opportunity employer. Franchise World Headquarters, LLC does not tolerate discrimination of any kind on the basis of race, sex, sexual orientation, gender identity, creed, religion, color or national origin.

We value the views of our interested stakeholders and the input we receive from them is critical to the development of our policies, commitments, and actions.  As a 100%-franchised business model, our stakeholder set have unique attributes in comparison to other global brands. These broad engagements help inform our efforts, surface emerging topics in Sustainability, and help Subway be a more productive member within the neighborhoods of our extended operations.

We use a variety of mechanisms to solicit feedback from our stakeholders, including partnerships, bilateral meetings, topical industry forums, and other methods. When we are engaged with a wide range of stakeholders, we have a better chance to incorporate thinking on topics from different perspectives than our own – including organizations that are critical of our policies or actions.  Listening and engaging in conversation with organizations who may be critical of our approach helps us better understand their concerns and enables us to incorporate their views into our development.

At Subway, we believe having a foundation of governance for our policies, commitments, and actions regarding sustainability enables us to build a strong business rooted in long-term thinking.  Integrating sustainability into our overall business strategy supports growth and stability for our Franchisees, their Sandwich Artists TM , our business partners and Subway brand employees across the globe. For us to ensure that sustainability topics are integrated into, and not separate from, our business, we have built a sustainability governance structure that incorporates every level of leadership – from our Executive team to the front-line teams that operate our business daily - inclusive of outside stakeholder engagement.

Laying Hens

Subway seeks to transition our entire global supply chain to egg procurement practices with improved animal welfare outcomes and we will accomplish that goal for our North America and Latin America restaurants by 2025, with 100% cage free eggs.

Broiler Chickens

In the US and in line with World Health Organization guidance, our sandwiches, wraps, and salads are served only with chicken raised without antibiotics important to human health.

By 2024, Subway is committed to implementing the following changes for our US chicken products and will demonstrate compliance via third party auditing.

• Source only chickens that are given more space, with a maximum stocking density of 6 lbs/sq. foot, per GAP’s standards;
• Ensure all chickens sourced have an improved environment, including litter, lighting and enrichment, per GAP’s standards;
• Source only chickens that are more humanely processed, through a multi-step, controlled-atmosphere system.

And by 2026, source only chicken breeds that are approved by Global Animal Partnership (GAP) as having higher welfare outcomes.

In addition, in Europe we have confirmed our intent to adhere to the European Chicken Commitment. Read more here . 

Subway recognizes the importance of sow and piglet welfare in our pork supply chain, and we support sow husbandry and housing approaches that create improved animal welfare outcomes. We have completely phased out of gestation crates in our European supply chain, and we are actively engaging with our US suppliers to evaluate sow housing approaches that improve welfare while maintaining commercially viable pricing.

Subway seeks to transition our entire global dairy supply chain to be free of the supplemental growth hormone, rBST, and this goal has been accomplished in the US.

Subway® takes the issue of animal welfare seriously and believes the ethical treatment of animals is an essential component of our commitment to responsible sourcing. Subway serves eggs on our breakfast menu, and Subway supports layer hen housing approaches with improved animal welfare outcomes. We have commitments to source cage-free and free-range eggs across the world and we aspire to work with our supply chain partners to source eggs used as a secondary ingredient in the products we serve in the same way.

As of Q1 2020, our US turkey supply chain transitioned to a limited antibiotic use program which aligns our sourcing practices to World Health Organization (WHO) recommendations to restrict the use of antibiotics that are important to human medicine. In addition, in line with the WHO, our sandwiches, wraps and salads in the US are served only with chicken raised without antibiotics important to human health. The US supply of pork and beef products from animals raised without antibiotics important to human medicine is limited, and we expect our transition to be completed by 2025.

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Subway Restaurant: Business Plan Entrepreneurship Essay

Subway sandwiches restaurants, introduction to subway sandwiches restaurants.

Subway Sandwiches restaurant is a type of food industry and it has more branches in different countries selling quick and nutritious meals. It offers Americans franchise with low capital to begin their own restaurants.

Subway Sandwiches restaurant is the type of business proposal selected in the city as the decision to invest in restaurants has no stiff competition in the city as few entrepreneurs, who does not as if investing in it and it requires less capital (Capon, 2009). Subway restaurant produce submarine sandwich products to their customers in many parts of the world.

Business Plan Entrepreneurship

Business plan are important processes in starting a business activities by an entrepreneur that should follow when creating business ideas for starting a business. A business plan is an official declaration of company targets, aims of the planned dealing and the plans intended for accomplishing the previously instituted targets.

The average time of opening a subway store is usually a period of seven months. Subway restaurants will make fast food brands using frozen in order to have a consistency products and low costs of production. Business plan entrepreneurship involves various steps to be followed when starting up any kind of business in the market so that the business can succeed in a competitive environment and to meet customers’ needs and wants (Capon, 2009).

Competition analysis

Competition analysis is the process of evaluating and analyzing the SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats factors that are affecting the internal and external environment of the business to the competitors (Hirsch & Peters, 1998).

Subway Sandwiches restaurants will have to be competitive to remain in the market by providing better and quality services to their customers. Subway restaurants faced a lot of competition from sandwich chain, Quiznos that made subways to also toast submarine sandwiches (Capon, 2009). Subway franchise also introduced fresh toasting to compete with Quiznos in the market share.

The introduction of Sub Club Cards to be given to customers for redeeming their points for free standard sandwiches will attract more and retain more customers in the market than their competitors. The managements of the restaurant should be in a position of doing a thorough research on the needs and wants of their customers to provide them with what they want as per their tastes and preferences.

Market Subway Sandwich Restaurant

The business is named, Subway Sandwiches restaurants will be involved in the food service industry, as it will be selling food sandwiches like submarines sandwiches, salads, and personal pizzas in the market. Subway restaurant is owned and managed by Doctor is Associates, Inc and is in many parts of the world franchises.

Subway restaurants will provide better services to the customers to retain their customers and bring new customers in the restaurants. Customers will be served with hot and fresh sandwiches as per their order and having different quantities and qualities of tastes to attract more customers. Subways restaurant will promote their restaurants through television advertisement as one of the promoting tools of the restaurants and foods that are prepared in the restaurants to attract more customers than their competitors.

Economic, social, and ethical dilemmas in Subway Restaurant

The restaurants business should follow the following conducts and policies for it to operate in the market both as an individual and as a business level. The economy of the country will be a factor to consider when sitting the subway sandwiches restaurants to meet most of their customers’ needs and wants.

The restaurants will be situated in the City, as this is place where more people will demand the sandwiches as in Muslim countries will be provided with halal menu. Subway restaurants should be able to face a stiff competition from pizza franchising and economic problems.

Pricing of the products will be a problem since consumers will be more sensitive with the price. Managers of the restaurants will have problems in dealing with the ethical beliefs and standards with the environmental ethics. Evaluating the multinational with their conflicting norms and expectations of ethical issues and how to tackle them. The social issues in the United States include obesity, which is known to be caused by taking sandwiches foods and snacks.

Market demands and labor activities have drastically changed the social activities in the United States as the government has supported social responsibilities. Healthier products have led to an increase in economy of the state as its sales increased sharply in the demand of healthier and premium products. Due to economic values in the subway business of the restaurants have led to the establishment of implicating the costs of facilities, equipments and inventory of the restaurants.

Economic value of McDonalds changed by negative 0.2 and increase of 0.5 percent in overall. The economy of the United States prospered more due to employment opportunities that the restaurants created and provided to the people. Due to stiff competition from other restaurants have resulted to better sandwiches provided to consumers in the market.

Marketing plan of the business

Marketing plan is a written document that gives the details that are to be used to achieve the goal and marketing objectives of the proposed business to attract and retain more customers than the competitors. Marketing plan of subway restaurants will be having different menus that will be varying by stores, country, and market. Eat fresh everyday will the advertising slogan for subway restaurants as this will help to explains to the customers how they use fresh ingredients in preparing their sandwiches.

Subway will use various methods of promoting the business like using the instant win competition based on the game scrabble to create awareness and attract more customers than their competitors. Subways will also advertise their restaurants in televisions and product placement method that has been their routine in the past years to promote their restaurants.

The use of Sub Club Cards which are small cards to be given to customers and which will be used to reward their customers with free standard sandwiches by redeeming their points stamped in the cards. This will increase and encourage more customers to their restaurants who will be joining for the free standard sandwiches.

Subway’s marketing strategies will be cash on delivery that is a customer pays for his order first before taking his or her food sandwich. This strategy will help in reducing increase in customers’ bills, no long queues, and hassles of in the queue as it is going to be fast (Hill, 2005). They will employ qualified employees who will be able to provide better quality services to their customers, and in this way, they are going to attract more customers than their competitors in the market.

Funding criteria of the business

The funding criteria of the proposed business should be determined and at the same time the cost of operating the business to be evaluated for effective running of the business. Capital of starting the restaurants can be got from the financing programs for franchisee subways.

Opening a subway restaurant needs a total of $ 238,300 as required by the Franchise Mall. The franchising fee and running expenses should be included in the starting capital for the first three months. Planning on how to pay the franchise fees and knowing how much it costs. Packaging costs, lease terms, cost of constructions and equipments needed in the restaurant should be planned and catered for when planning on the capital funds.

Capital Sources

Capital sources are the resources and assets that an entrepreneur needs when he or she is planning to start and operating a business of his or her own, and subway restaurant needs approximately $ 285,000. The cost of starting up the restaurants can be from franchise owners, loans from banks and personal savings. The starting capital ranges depending on the size of the food chain, location of the restaurant, equipments needed in running the business and scale of operating the restaurant also affect the capital needed to operate the business.

Exit strategy of the business

Exit strategy is the last part of any business plan outlines and it helps the owner of the business or the entrepreneur to consider the long-term plans of the business. The exit plans of subway restaurants are changing since franchising is developing and is more complex (Hirsch & Peters, 1998).

Franchisor were the one who introduced the business should and they have now employed new staffs who will be responsible for running the business since they have knowledge and skills in management. Subway restaurants will also be traded publicly and will attract more investors like the equity investors. Subway restaurants will operate nationally as the capital increase with time.

End State Goal

The end state goals of subway restaurant wants to be ranked the first restaurant that have the fastest service in the world, and also having the greatest tastes and freshness of its products to become their trademark in the market (Hill, 2005).

How and why the entrepreneur chose this business idea

The main reason as to why the entrepreneur chose this type of business idea was that the entrepreneur believed in food industry type of business in the market.

The idea of Subway Sandwiches restaurant was a better idea because there were few restaurants in the market and the demand of the population were high, further more the few restaurants that were operating in the city had more customers who made this type of business to do well (Capon, 2009).

The idea of food industry was what the entrepreneur did in college and is one of the experiences the entrepreneur got from past employment jobs the entrepreneur did in the city. The entrepreneur had friends whom they used to school together while in college advised the entrepreneur on starting the sandwiches restaurants as they had skills and knowledge of handling restaurants.

Capon, C. (2009). Understanding the business environment . New York, NY: Financial Times Prentice Hall.

Hill, L. W. C. (2005). International business competing in the global marketplace . New York, NY: McGraw-Hill.

Hirsch, R. D. & Peters, M. P. (1998). Business plan entrepreneurship. Boston: McGraw-Hill.

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IvyPanda. (2022, April 2). Subway Restaurant: Business Plan Entrepreneurship. https://ivypanda.com/essays/business-plan-entrepreneurship/

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1. IvyPanda . "Subway Restaurant: Business Plan Entrepreneurship." April 2, 2022. https://ivypanda.com/essays/business-plan-entrepreneurship/.

Bibliography

IvyPanda . "Subway Restaurant: Business Plan Entrepreneurship." April 2, 2022. https://ivypanda.com/essays/business-plan-entrepreneurship/.

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SWOT Analysis of Subway 2023

This is Subway SWOT analysis. Learn how to do a SWOT analysis .

Company Overview

Subway is an American fast food restaurant chain that mainly sells submarine sandwiches (subs) and salads. It is owned and operated by Doctor’s Associates, Inc. (DAI). Subway is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands. You can find more information about the business in its official website or Wikipedia’s article .

Subway SWOT Analysis

• Great degree of subs customization. Customers always like to choose and the more choices they can make about their purchase the more satisfied they are with it. Subway is better than any other large fast food chain in providing the choice of meal customization.
• Largest fast food restaurant chain in the world by the number of outlets. Currently the comapny operates 38,181 restaurants in 99 countries, more than McDonald’s or any other fast food chain operator.
• Marketing and promotional strategies. Subway employs superior marketing techniques and promotional strategies to attract and grow their customer base. The most successful Subway’s promotional offer was to offer footlongs for only $5, which became a new pricing standard of a sub.
• Choice of healthier meals. Subway offers a range of low calorie, fresh and nutritious food, which you can’t find in other fast food stores, at least not to such an extent. This Subway strength meets current trend of eating healthier food.
• Partnerships with Britain and American Heart Associations. Subway has received certificates from both organizations that it serves health meal options, which is a great reward and differentiates the business from other fast food restaurants.
• All restaurants are owned by franchisees. Subway doesn’t own any restaurants itself so it experiences less risk and can focus its efforts on marketing and growing the franchise.
• Low startup costs. One of the reasons behind such a high growth rate of Subway stores is the low startup costs. Subway stores are smaller and require less money for leasehold improvements and equipment.
• Interior design of the outlets often looks cheap. Subway restaurants lack the interior design and quality that would welcome everyone to stay and feel more comfortable than in the competitor’s restaurants.
• High employee turnover. Subway Sandwich Artists job is a low paid and a low skilled job. It results in low performance and high employee turnover, which increases training costs and add to overall costs of Subway.
• Services are not consistent from store to store. The business struggles to ensure consistent services’ quality throughout it stores and so a service in one store may please a customer when another may fail to do that.
• Too much control over franchisees. Despite the fact that Subway fails to ensure consistent quality throughout the stores it exerts too much control over its franchisees. This is done through the contracts that are more favorable to the franchisor. An example of such high control is seizeing of franchisee restaurants if the later one is struggling to keep them open.

Opportunities

• Increasing demand for healthier food. It’s an opportunity upon which Subway already grows itself and could further introduce low fat, low salt and more nutritious subs.
• Home meal delivery. Subway could exploit an opportunity of delivering food to home and increase its reach to customers.
• Changing customer habits and new customer groups. Changing customer habits represent new needs that must be met by businesses. So far, Subway has only one variation of restaurants, different to its close competitor McDonald’s, which tries to satisfy and reach previously untapped customer groups by introducing McCafé, McExpress and McStop.
• Introduction of drive-thru. McDonald’s already offer only drive-thru restaurants, which is a great opportunity for Subway to jump.
• Saturated fast food markets in the developed economies. The fast food market in the developed countries is already overcrowded by so many fast food restaurant chains and this already proves to be a threat to Subway as it finds it hard to grow in the developed economies.
• Trend towards healthy eating. Only part of Subway’s menu offers healthier choices of meals, while the rest menu is rich in salt, contains many calories and is accompanied by soft drinks. Customers who care about their food and well-being may opt out for something else rather than Subway.
• Local fast food restaurant chains. Local fast food restaurants can offer healthier food and menu that exactly represents local tastes.
• Currency fluctuations. Subway receives much of its income from foreign operations. That income has to be converted into dollars and may affect the company’s profits, especially when the dollar is appreciating against other currencies.
• Lawsuits against Subway. Subway has been involved and lost a few lawsuits in the past because of the poor company policies regarding franchisees management. Lawsuits are expensive, time consuming and damages the firm’s brand.
• Simms, A. (2011). How Subway tops the fast-food chain. Available at: http://www.guardian.co.uk/commentisfree/2011/mar/11/subway-fast-food-chain-mcdonalds
• Subway (2013). About us. Available at: http://www.subway.co.uk/aboutus/
• DeLong, K. (2012). Zagat 2012 fast-food survey: Subway is most popular. Available at: http://fox6now.com/2012/10/04/zagat-2012-fast-food-survey-subway-is-most-popular/
• Entrepreneur (2013) Subway. Available at: http://www.entrepreneur.com/franchises/subway/282839-0.html
• Wikipedia (2013). Subway (restaurants). Available at: http://en.wikipedia.org/wiki/Subway_(restaurant)
• Subway Mission Statement
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NYC congestion pricing start date set for June 30. See a map of the zone and how much it will cost

NEW YORK - New York City's congestion pricing plan has a start date. 

The controversial plan charges a fee to  enter Manhattan's Central Business District , which the MTA is now calling the "Congestion Relief Zone," which is surrounded by more than 100 MTA cameras that will scan license plates. 

The MTA estimates congestion pricing will result in 100,000 fewer vehicles in the zone every day. 

The MTA says congestion pricing is necessary not only ease street traffic but also to raise critical funds to support mass transit projects, such as revamping the subway signal system. The MTA says a revamped signal system will improve overall train service, particularly during rush hour, by making it possible to run trains closer together, and trains therefore less crowded. 

"I think the main thing is, New York is, at our density, we're a mass transit city, and many people have already come to the realization that it's cheaper and faster to travel by mass transit," MTA Chairman Janno Lieber said. 

When does congestion pricing start in NYC?

According to the MTA's website, congestion pricing will begin on Sunday, June 30. 

The MTA is still contending ongoing lawsuits , including one from the state of New Jersey. The MTA has pushed back against those lawsuits, and has said  the litigation is effectively  hampering their ability to make new improvements . 

What about MTA congestion pricing exemptions?

The MTA says there are some discounts and exemptions for congestion pricing. 

Among the discounts:

• A 50% discount is available for vehicle owners who are enrolled in the Low-Income Discount Plan . The discount kicks in after the first 10 trips in any month. 
• Residents in the zone whose household income is less than $60,000 may qualify for a tax credit
• The  Individual Disability Exemption Plan will provide relief for those who have medical conditions that prevent them from using mass transit. Similarly, an Organizational Disability Exemption Plan will address vehicles for organizations like Access-A-Ride
• Certain emergency vehicles will be exempt
• School buses, commuter buses and certain other buses will be exempt
• As will certain other specific types of government vehicles that perform public works

NYC congestion pricing map 

The congestion pricing zone encompasses Manhattan's Central Business District, including all of Lower Manhattan and running north through 60th Street. 

That area includes  the Queensboro Bridge, Queens-Midtown Tunnel, Williamsburg Bridge, Manhattan Bridge, Brooklyn Bridge, Hugh Carey Tunnel, Holland Tunnel and Lincoln Tunnel. 

What are the congestion pricing hours and fees? 

Peak congestion pricing time runs from: 

• 5 a.m.-9 p.m. Monday-Friday
• 9 a.m.-9 p.m. Saturday and Sunday

The toll structure listed below is for E-ZPass users. The MTA says fees for non E-ZPass users, such as tolls by mail, will "generally be 50% higher than the E-ZPass rates." 

• Passengers and small commercial vehicles will pay $15 during peak/$3.75 overnight
• Motorcycles will pay $7.50/$1.75
• Trucks and buses will pay either $24 or $36 and $6 or $9 overnight
• The fee will be reduced for drivers with an E-ZPass who use the following four tolled entry points in the zone during peak hours: The Lincoln Tunnel, Holland Tunnel, Queens-Midtown Tunnel and Hugh L. Carey Tunnel. Those credits include $5 for passenger vehicles, $2.50 for motorcycles, up to $12 for small trucks and charter buses, and up to $20 for large trucks and tour buses. There will be no credit offered during the discounted overnight period. 

Here's how to sign up for an E-ZPass . 

The MTA has posted extensive information about the congestion pricing plan on their website.

Pending congestion pricing lawsuits

Congressman Josh Gottheimer says pending lawsuits could halt the congestion pricing plan .

New Jersey lawmakers have argued congestion pricing would negatively impact the environment .  

"We should get an answer any day now. That could literally freeze it up and say you actually have to study the impact of the cancer-causing pollution that will come out because of more traffic," he said. "I'm very optimistic about these lawsuits. You gotta keep fighting this because families can't afford it."

Multiple suits have been filed in three separate federal courts.