Subway (restaurant)
Subway is a company established in 1965 by Fred De Luca and Peter Buck U.S. franchise chain in the fast food sector. The first Subway restaurant was opened in Bridgeport, Connecticut in 1965 under the name Pete's Super Submarines. The product range consists primarily of sandwiches, wraps and salads. The sandwiches are individually cooked to order in sight. Since late 2010, Subway is the fast-food chain with the world's most restaurants.
- 8.1 expansion
- 8.2 Size information
- 8.3 relationship to the German Franchise Association
Name
The company name comes from the combination of the English word "sub", an abbreviation for " submarine sandwich ", which are called because of their elongated shape as ( submarine english for submarine ), with the word particle " way" as this to the U.S. American word for U -Bahn ( subway ) fits, as even the first restaurants were equipped with a work based on the U- Bahn network plans decor.
Restaurant
The guest at Subway applies when ordering different decisions along a given production chain and communicates them to the subway employees. This affects the type of bread in sandwiches, main component of the coating (usually meat or sausage ingredients ), vegetables pads (lettuce, tomatoes, cucumbers, etc. ) as well as the choice of sauce.
The establishment of all Subway restaurants is held worldwide since 2001 in the so called uniform Tuscany style. The colors in the restaurant move in earthy natural tones. The ground is usually covered with natural-colored ceramic tile, provided the area behind the counter with a brick-red brick wallpaper.
In addition to so-called Freestander restaurants in free-standing buildings, there are Subway restaurants, among others, in hospitals, U.S. military installations, railway stations, gas stations and airports. Since March 2007, there is a standardized Subway -Free Stander, who serves as a " template" for all newly constructed Freestander.
In some cases, Subway shares a rental space with one or more concepts, such as in a food court such as the Centro in Oberhausen. Outside of shopping centers should thus be achieved for large rental spaces a reduced rental costs for the concepts involved. Some of the restaurants are very small and do not have a fully equipped kitchen and Baking Center and sometimes have no or only very limited seating. These satellites restaurants can be operated in conjunction with a full-fledged restaurant Subway.
Range
The basic range consists of sandwiches and salads, in many areas beyond wraps. In addition, potato chips, American cookies, donuts, muffins, ice cream at Ben & Jerry's brand and drinks. The sandwiches are offered in two different sizes, 15 cm and 30 cm in length and individually assembled to customer's various breads, vegetables, salads, cheeses, as well as the actual main surface (meat, sausage, vegetarian pad or seafood) and sauces. In the U.S., the UK and occasionally in Germany and other countries also soups are sold alongside sandwiches. It is up to the franchisee to offer catering.
Franchise concept
The franchisor for all Subway restaurants worldwide Doctor 's Associates Inc. ( DAI), one founded in 1966 by Fred De Luca company whose name comes from the co-founder Peter Buck. The company's headquarters is located in Milford, Connecticut. The regional offices in Germany, Austria, Switzerland and Luxembourg ( Subway Germany ) coordinated by the Subway Rental and Service GmbH in Cologne.
The contract partner of the European franchisee is the European Headquarters, the SUBWAY International BV, a limited liability company under Dutch law, having its seat in Amsterdam.
The franchise fee is currently eight percent of net sales. Who signed the first franchise agreement, pays beyond a one time fee of 10,000 euros, which decreases with acquisition of additional franchise licenses to 5,000 euros per license. Around 50 percent of new franchise licenses will award Subway franchisees who already own one or more restaurants.
Franchisees pay an additional advertising fee of 4.5 percent in an advertising fund. This is managed by a five -member board, consisting of franchisees, which in turn were elected by all franchisees. This IFAF organization called (International Franchisee Advertising Fund ) is responsible for planning and implementation of marketing activities.
Investing in a classic restaurant Subway varies between 80,000 euros and 250,000 euros. The investment costs (including the one-time license fee and scheduling a sufficient reserve capital) move mostly between 110,000 euros and 140,000 euros. The amount of the investment is mainly dependent on the size and the effort required the development of an available shop itself. Subway This is different from other franchise operators by relatively low total investment sums. The franchisee should have at least 25 percent equity available.
After completion of the franchise agreement, the new franchisee is participating in a two-week intensive training in a subway training center. German language courses take place at our training center in Cologne. The focus of the training are on the practical procedures in a restaurant as well as the subway control system. The control system with fine inventories and evaluations of all stocks and restaurant data allows complete control of all processes in the restaurant.
For all sandwiches and ingredients exist to determine the product specifications. Each supplier must undergo an approval process at first. Once it is ensured that it meets the requirements of Subway, the supplier is in negotiations with the IPC (Independent Purchasing Cooperative ) or in Europe enters the EIPC ( European Independent Purchasing Company ). The EIPC is analogous to the one carried by the IPC Shopping franchisee association whose aim is on a European basis to negotiate conditions and to ensure the procurement of goods for franchisees to Bestpreisbasis. Vegetables and salad refer the franchisee of an arbitrary regional suppliers. For all other products that meet certain product specifications from Subway, there is a reference obligation.
Fixtures and equipment must also Subways specifications match what limiting the number of possible suppliers.
Subway on principle has no territorial protection, so as not to interfere with the planned expansion. However, the system headquarters takes the interactions between existing restaurants and planned locations for information. Will a new Subway Franchisee within ten miles ( 16.09 km ) of existing restaurants to open a new restaurant, all affected franchisees are informed in writing and shall within fourteen days of the right to challenge the new location.
Dissemination
Internationally
The base of the growth of the chain forms since 1976 the regional development of markets by non- developers, so-called Development Agents. Subway franchisees operate in a total of 94 countries.
Worldwide, Subway - in terms of the number of branches - now McDonald's pales and went up to the market leader since late 2010. It should be noted, however, that it is far cheaper for Subway to open a new branch (barely seats, small footprint, almost no kitchen appliances ) than McDonald's or any other burger chains. The cost of the operation are lower. Thus, Subway stores can expect even in smaller places where there is no McDonald's restaurant profitable.
Europe grow Subway and McDonald's fastest. While Subway has taken a relative sales growth of 65 percent lead, leads McDonald's in absolute sales growth.
Germany
The development of the German market is controlled by 13 regional offices and 16 area developers from. The restaurants in Germany are operated by approximately 350 different licensees. In a European comparison, in Germany there making it the second most branches.
The first store in Germany opened in Berlin on 13 June 1999 on the Kurfürstendamm, the 100th store in July 2004 in Göttingen and the 300th branch at 12 January 2006. Meanwhile there was in Berlin to talk more than 40 stores, currently there are only 32 in Lübeck in September 2006 opened the first German branch with drive-in facilities ( currently not a Subway restaurant more) and in Würzburg, the first motorway restaurant. That same year, the first restaurant was built at a hospital in Wilhelmshaven. Moreover, opened the 400th Store in Bad Kreuznach in November 2006.
On June 15, 2006 frets opened the first Subway -Free Stander, so a restaurant that has not been integrated into an existing building, but rebuilt. In October 2007, the 500th store was opened in Berlin- Wilmersdorf and in May 2008 the 600 150 new restaurants in 2007 Thus were opened. By the end of 2008, the company wanted to show a total of 750 stores, this goal was not achieved. At 31 December 2008 there were in Germany 696 restaurants. In January 2009, the 700th store was opened in Munich.
Originally the company until 2010 to reach a target of 1,500 stores in Germany and thus to outperform the market leader McDonald's with its 1,333 stores currently planned. Market developments have stretched Subway in 2007, these expansion plans for Germany first time in 2011.
In early 2010 the chain in Germany was represented at nearly 800 locations after 2009, some 100 had been opened. However, this figure declined in the course of 2010 due to massive internal problems to nearly 700 stores by the end of 2010 from. For 2010, more stores were opened closed as new in Germany for the first time. The number of stores increased in the course of 2011 continued steadily, so there was in September 2011, only 616 branches, the end of 2011 was 612 Subway restaurants in the market. In August 2013 Subway is still represented with 587 stores.
After the initial expansion plans could not be realized, there have been repeated litigation with German franchisees. This generally also complained about the fact that the average revenue and the margins are too low. In 2010, at least 100 German franchisees were involved in legal disputes with the company.
Austria
In Austria, opened in 1995 on the Ringstrasse, the first Subway restaurant in Europe. Due to the bankruptcy of the former master franchisee in Austria Subway had to close in 2005, the majority of the clubs in Austria. Get remained merely a branch in Vienna at the Opera ring.
Currently, the company is making another attempt to establish themselves in the Austrian market. On 16 June 2008 opened a Subway restaurant in St. Pölten.
Since July 4, 2009, there is also Subway in Graz on Jakominiplatz. Furthermore, there are since October 2010, one in Fie, a suburb of Innsbruck. In Tirol in Innsbruck opened on 28 August 2011, a branch in the Kaiserjägerstraße and June 12, 2012 at Innrain and on January 12, 2013 in Wörgl. Already in July 2011 also opened a Subway restaurant in the city of Salzburg.
In addition to these current seven Subway restaurants more openings in Tirol ( especially Wörgl ), Styria, Upper Austria and Salzburg are planned. Lately Restaurants Klagenfurt (26 October 2012), Linz (12 May 2013) and Villach (4 November 2013) were in Ried ( 31 July 2012), opens. Currently (11/ 2013) is searched for a location for a local in the area Wolfsberg.
Austria is divided into three subways development areas. The stated goal by 2015 is to work with 30 restaurants in Austria to establish a solid foundation for future, structured growth. But be sought by the company currently new franchise partners and Development Agents. Development Agents are available to franchisees as an experienced developer area to the side and support them from entering the market up to the positive business development and expansion.
Switzerland
In the time of the millennium, there were five in Switzerland Subway restaurants, namely in the cities of Lausanne, Lucerne, Winterthur, Geneva and Zurich. After that Subway withdrew, and many of the shops were taken over by the then New York Pizza Connection, today's New York Food Company. After this failed attempt to establish themselves in Switzerland, a Subway in Switzerland was opened on 24 August 2007 on a branch at the Sihlbrücke in Zurich again. Your manager wants to overtake the long-term in Switzerland represented with 147 branches fast food chain McDonald's. On 17 October 2008, the second subway branch was opened in Gossau. With the opening of the Stücki Shopping Center in Basel on 24 September 2009, a Subway restaurant opened on the Rhine. On 29 October 2009 the subway was opened in Baden widths alley. More restaurants in Wohlen AG Olten SO were opened in the summer of 2010. They also expanded in Winterthur (opening November 24, 2010 ) at Helvetia in Zurich (November 2010) and Kreuzlingen TG (October 2011). 2012 (September 14 opening ) and in Zürich ZH (opening August 23 ) has opened two more stores by existing franchisees in Egerkingen SO.
On February 7, 2013 also opened a branch in Shoppyland Schoenbuehl and for the first time in the region of Bern.
Liechtenstein
On 1 April 2011 the first Subwayfiliale was opened in the shopping center Mühleholz in Vaduz.
Advertising
The two decisive for the company colors in the logo are yellow and dark green. The core statements of the company in its marketing strategy are " freshly prepared in front of ", " exactly as I want it " and "eat fresh". The guest can choose how and with what ingredients he would have prepared his food. The communication target group is currently hovering between 15 and 35 years of age, the focus is in the areas of sports and fitness.
All advertising campaigns are financed. Levy by a percentage of the franchisee in an advertising fund Since April 2007 Subway advertises the brand with television commercials in the German market. This is done with the advertising character Sub Wayne, which was done by Frankfurt advertising agency LommelLudwig. The name Sub Wayne bitsinmotion is an invention of the Agency Alliance Partners, Mainz. In all the commercials comes, as in the U.S., the same slogan used: eat fresh! Next Subway was in the past years repeatedly with different radio spots present that have run federally or state- wide.
In addition, each restaurant has the ability to launch advertising campaigns at the local level. Referred to internally as local store marketing campaigns are often based on national marketing components. In part, close together several restaurants a city or a region, to jointly launch major advertising campaigns can.
Even in the U.S. advertises Subway with a testimonial: Jared Fogle ( born December 1, 1977 in Indianapolis, Indiana), also known as the Subway Guy, is a staff of Subway company representative. The first TV commercial with Jared was broadcast on 1 January 2000 and told his story. Between March 1998 and February 1999, Fogle, the (424 pounds) originally weighed 192 kilos, more than 111 kg from by day only ate two Subway sandwiches. At a weight of 136 kg was added in an extensive exercise program.
Jared Fogle founded beyond the Jared Foundation, which seeks through education to tackle obesity in children.
In the South Park episode Jared Has Aides ( Season 6, Episode 2 ) the story of Jared Fogle was caricatured.
Customer loyalty
Subway offers a sub card called bonus program. The loyalty cards are valid as printed worldwide in all participating stores.
After a successful introduction in Ireland and the UK will be converted in Germany by the Sub Club Card to the so-called SUBCARD ™. As of December 5, 2011, guests can now earn points. The 0.15 euro turnover will be a point. From 500 points, the guest can exchange them for a free 15 - inch sandwich of your choice, from 1000 points to a free 30 - inch sandwich, as opposed to the old sub- club system, however, no obligation to buy. The points will be credited to a personal online account for smartphones after paying by scanning the Aztec codes on the SUBCARD ™ or SUBCARD ™ App. To use the SUBCARD registration is required, (eg date of birth and phone number) must be specified in the extensive personal data. In addition, the agreement requires that all purchase transactions may be stored with time and place and evaluated.
In all countries, the sub -card is only accepted, either as a card or even via the mobile phone app. This serves both as a bonus card as well as cash.
Criticism
In Germany, the magazine Der Spiegel reported in its issue of March 12, 2007 critical of the growth of the chain and the mood among the franchisees. The report quotes the president of the German Franchisee Association ( DFNV ) Bernd Fassbender, after which presumption " at a conservative estimate [ ... ] 30 percent of the Subway stores on the breadline " scratched. Some franchisees could therefore no longer pay the contractual duties of 12.5 percent of sales at Subway. The remuneration of employees is far below the industry rate of 7.50 euros per hour. The selection of the new franchisee is controversial. Further reported that it was controversial that for newcomers to the inclusion in the system (originally $ 10,000 ) suffice a 14- day training course as well as the payment of a franchise fee of 10,000 euros, while a half -year trainee program must be run through at McDonald's. Under the title with franchise into bankruptcy SternTV reported on 19 November 2008 on dubious practices, illegal franchises, bankruptcies of Subway franchisees and expansion plans of Subway in Germany.
Also the magazine Frontal21 from June 21, 2011 criticized under the title villains until you drop - The losers at Subway excessive franchise fees. In Information Sessions for potential franchisees unrealistic profit expectations were aroused, incidental expenses such as rent or personnel were not considered in the presented business plan. Part of the " refined sophisticated " franchises is the extensive franchise manual, which will be handed over with no contract has been signed, but only after expiry of the statutory cancellation period. The economist Markus Giesler of the University of Witten -Herdecke spoke of the broadcast of a "radical capitalist course" and " rip-off ", franchisees were " doomed to failure ".
Expansion
In his published in 2001 book Fast Food Nation Eric Schlosser criticizes the practice of franchising chain. Subway was involved in the 1990s in the United States in several legal disputes with its franchisees. This threw off the chain, affecting as part of an aggressive expansion, sales of existing sites through the openings of new locations.
Size information
On 26 June 2007, the U.S. television station KNXV - TV reported, citing results of the Arizona Department of Weights and Measures that by Subway sold in the U.S. 3- Foot sandwiches actually only 32.25 inches ( 82 cm) long were and thus almost 10 cm shorter than the specified size. A Foot (feet ) is 12 inches ( 30.48 cm), are thus three feet 36 inches ( 91.44 cm). According to the Arizona Department of Weights and Measures, the minimum length of a Subway " 3 -foot Sub" 97 percent of the specified length should be (the length minus three percent tolerance), that is 34.92 inches ( 88.7 cm ) to the regulatory requirements to match. In the course of further investigations, it was found that the studied packages that were provided for this product group, only a length of 34.75 inches ( 88.25 cm) and had dropped below the maximum allowable variance. In response to this research, Subway stated in the USA, that the company is currently reviewing its training activities, packaging materials and advertising actions related to specific or implied length of Giant Subs so-called check. The Company also intends further to encourage its franchisees to against future guests to name only the approximate number of embodied by the product batch number, but not specific measures of length.
Relationship to the German Franchise Association
In 2006, Subway had tried in vain to become a full Member of the German Franchise Association. In the fall of 2008, the company was temporarily taken with discretion as a full member. According to a study conducted by the University of Münster satisfaction survey of the Subway franchisees has been deprived of full membership in September 2009. Subway remained an associate member of the Association. This membership expired in January 2012 and was not renewed.