Swot analysisStrengths:No. of stores: Subway has 44,852 outlets compared to its competitors. McDonald’s has 36,615 while Burger King has 15,243.
KFC is operating in 19,952 locations. This sheer difference gives Subway an added advantage to cover larger potential population.High Brand Loyalty: The ones who eat here are high brand loyalists. On the most valuable restaurants in the world, Subway holds the number third spot being beaten only by McDonald’s and Starbucks. Its brand value stands at $10.
314 billion.Health benefits: (best strength) They offer healthy subs sandwich that is preferred and much better as compared to food items offered by other fast-food chains like McDonald’s. McDonald’s and KFC rely heavily on oily and fried foods which are completely opposite to what Subway aims for. Its franchisees are required to source all the raw ingredients from suppliers certified by Subway. This certification ensures that suppliers are meeting the quality standards specified by Subway and ensures that franchisees are supplying the appropriate standard required by SubwayEasy Starting of franchise: Franchisee staff training is structured, brief and designed to assure rapid start-up for new employees as these are all carried out by the agency which has hired the brand name of Subway. This ensures easy set-up of new restaurants at far off locations and smooth functioning without any obstructions of different regulations.Differentiation: In the world of many different burger and pizza chains, Subway stands different because it is a customised sandwich.
You can build it the way you like it with the various ingredients on offer. This personalize service is not common in most of the fast food restaurants.WeaknessesBrand Value: Although having the highest no of operating locations in the world Subway still suffers in brand value when compare to its biggest competitor McDonald’s. It is also not very far away from its closest competitors, though in restaurants it is solidly at the second position (keeps changing year on year).Satisfaction and Level of Service: Because of the training of the staff is outsourced to the ones who have franchised does not ensure a common level of service satisfaction around all the Subway stores around the globe. The commitment cannot be the same across all the restaurants.
Old-fashioned themed restaurant: Subway has not updated their restaurant’s styles accordingly to the changing times. This results in poor satisfaction level of the customers leading to the customers changing their preferences over time. The restaurant has uncomfortable seating arrangements (low quality chairs). Many of the outlets are very small as well.
No Online Presence: No online presence and promotions affect the brand name of the company. Today in the digital era online presence is equally important. This is where Subway lacks.
Many Employees: Subway employees’ 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.Size of the sandwiches: Subway’s sandwiches only come in two sizes. This may be considered a relatively large portion for consumers, especially for kids. Opportunities Health Consciousness: People are getting more and more health conscious in today’s world. So, Subway can actually exploit this and become more successful as brand and restaurant.Online ordering and Home Delivery: Most of the successful restaurants are providing services like home delivery. Subway needs to pick up on this trend and start catering the home delivery loving potential customer.
Diversification: Subway has stuck with only one kind of product i.e. Subs but it needs to diversify into different kinds of healthy options and stay in the competition. They can utilise their already established customers to change their eating habits and generate more loyal customers.
Furthermore, Subway should use the feedback from its customers to improve the business model as other competitors have been able to financially benefit from these changing consumer tastesDrive through: Also one of the services offered by its competitors is drive through the facility for the quick and working class people. Subway needs to apply this in their restaurants as well.Vegetarian Foods: Mostly Subway offers different kinds of meats but lacks in a varied menu for vegetarians. It needs to diversify in this front as well.Different sizes of sandwiches: Subway can introduce smaller sizes of sandwiches, creating a “kid meal” for example.Threats Competition: Subway can face a serious threat from competition like McDonald’s, KFC, Taco Bell, Wendy’s which also have a loyal following. If they also start providing low-fat food options this can seriously damage Subway’s customer base.
Saturated Market: New restaurants are coming up with the same model as of Subways. This can damage the customer base as they can influence the local people better and serve their needs better in the regional base.Bad Reputation: There have been some lawsuits against the brand regarding stale and unhealthy food that was being served to the customers.
This damages the brand’s trust and makes people reluctant to try them again.
