The Subway Success Story and the Battle Against Covid


Subway Restaurant’s journey from origin to global success has been an inspiration to many. Including all of us here at Workstream. Having collaborated with multiple Subway owners to revamp their hiring processes over the past year. We thought it was fitting for us to share their route to success.

Along with essential practices they have implement to flourish in a COVID-19 environment.55 years ago. Fred DeLuca was inspire by Peter Buck to open a sandwich store in the hopes of paying off his college tuition. With an initial investment of $1000 from Peter. They launched their business connection and opened their first submarine sandwich store in Connecticut, USA.

Subway’s Fresh, Cheap, Cooked To Order Sandwiches

Subway’s Restaurant team delivered fresh, cheap, cooked-to-order sandwiches which gained appeal over time. In 1974, they took the decision to begin franchising, catapulting the brand into decades of amazing success. These sandwiches are now popularly know as ‘Subs’ all throughout the globe.

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Subway is One Of The Largest Quick Service Restaurants

This is the genesis story of Subway’s Restaurant, one of the largest quick service restaurants (QSRs) with over 40,000 outlets worldwide. Subway did not become popular overnight – it was its continual drive to scale its operations. And innovate that took them to where they are now. Let’s examine how they took ‘Make it what you want literally and used $5 footlongs to build their route to success.

The Development Of Subway

Considering their humble beginnings in Connecticut, the choice to pursue franchising was crucial to the initial success of Subway. With franchise opportunities, the Subway brand was able to achieve global awareness.

Subway’s Restaurant was the first American quick-service restaurant to open in Tanzania in 2000. At that time, there were over 2,700 Subway franchises operating in countries other than the United States and Canada. In the subsequent years, they expanded into non-traditional settings, operating stores in military bases, hospitals, and retail places.

Global Recession Of Subway

By December 2008, they had been award the top spot in Entrepreneur magazine’s 16th Annual “Franchise 500” rankings. They attributed theirs over 30,000 outlets in 87 countries to the support of their franchisees throughout the years. Even during a global recession, Subway continues to expand.

Subway’s Restaurant is made possible by the continuous reevaluation of its strategy. One such instance is altering the company’s ten primary markets based on their growth rates as compared to what was first planned. This was accomplish by categorizing markets into regions with strong development potential.

Franchising Aid In Expansion Of Your Business

As the owner of a quick-service restaurant, you should evaluate how franchising can aid in the expansion of your business. If your objective is to open multiple companies across the globe. It is nearly hard to do so on your own.

In addition to being aware of the Subway’s Restaurant environment through planning and categorization. It is also essential to be aware of the business environment. This will enable you to accurately determine which markets to enter.

Subway’s Business Strategy

The primary focus of the Subway’s Restaurant model is its franchise-only structure and non-traditional outlets. Franchising enables them to open several stores across the globe, increase brand awareness, and reach the public. In addition, they operate with an emphasis on minimizing expenses and maximizing profits. Which allows them to remain inexpensive to franchisees.

Fundamental Business Model

Subway’s development and success are largely attributable to its franchise-only business model. They discovered that franchising and owner-operators offered the best opportunity for expansion since entrepreneurs are motivated by the store’s success. Due to the fact that their livelihoods depend on the success of the firm. Franchisees were more willing to devote more time and effort to expand it.

Subway An Inspiring Franchise For Others

Subway’s Restaurant encourages franchisees to strive for excellence by presenting the ‘Franchisee of the Year’ and ‘Development Agent of the Year’ awards at their annual conferences. These awards highlight the efforts and achievements of franchisees, such as opening new stores, boosting sales and profits, and receiving outstanding store ratings.

Subway continues to operate utilizing the franchise model

Additionally, franchisees are supply with business management guidance. Subway’s Development Agents are essential to the continued growth of the Subway brand in their particular territories. As a result, Subway continues to operate utilizing a franchise model to this day. And that’s not the end of it.

Unconventional Units Of Subway

A crucial aspect of their company approach is the willingness to explore non-traditional units. By developing a proprietary model, they are able to examine the country’s economic effect and growth potential. This allows businesses to plan and optimize their shop openings in locations where they may establish a big number of restaurants and have a greater economic impact.

Subway Capitalizing On Low Entry Cost

Subway’s Restaurant felt it unrealistic and unorthodox that one of their franchisees created a store in a convenience store. But he was inventive and did so nevertheless. Nonetheless, this action enabled Subway to capitalize on low entry costs while profiting from the country’s enormous number of convenience outlets. Incorporating both franchising and non-traditional units enables them to deviate from the usual and capitalize on new opportunities.

Non-Traditional Venues Of Subway

In addition, non-traditional venues (think airports, transit hubs, and Walmart) enable them to reach a greater number of people. These individuals may not have previously viewed Subway’s Restaurant as a viable alternative. This assists in increasing brand recognition and expanding commercial opportunities.

Subway Having A Vision And Setting Goals

Another important component is having a vision and setting goals to achieve it. DeLuca’s first goal for the first decade of operation was to open 32 locations. As a result, he came up with the concept of franchising. As he realized he could not have achieved his aim on his own. Then, he wanted to have 5,000 stores in 1994, which he accomplished in 1990, culminating to 10,000 stores in 1994.

Subway An Astounding Accomplishment

Now, in the year 2020, they have over 40,000 outlets worldwide and Subway Coupons.  An astounding accomplishment that would not have been achieve without their aims, tenacity, franchise strategy, and willingness to embrace the unexpect. Like Subway, it is essential, to begin with a goal in mind and develop a targeted business plan to achieve these objectives.

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