Friends, in today’s era, everyone is very concious about taking their fitness and even then, why not in most 9 to 5 jobs we sit in front of a chair all day which is very harmful for our health and yet the common man No matter how much health congestion everyone likes to eat junk food, but do you know that there is also a brand that makes your favorite junk food not only tasty but also with healthy ingredients, yes I am talking about the world’s most About the big restaurant food chain SUBWAY.
In 2010 Subway overtook McDonalds to become the world’s fastest growing restaurant chain, opening more than 40,000 restaurants in 100 countries, but in the last 3 years Subway has closed thousands of its stores, leading them to more than 25% Business loss has occurred, so let us know why such a big franchise is running such a huge loss and what is its future in the coming years.
Subway was started in 1965 by 17-year-old Fred DeLuca, Co-founder of Subway. He started Subway from a small sandwich shop. Fred always wanted to become a doctor but had the money to fulfill his dream. Not seeing his financial patoblams, his family friend Peter Buck gave him 1000 dollars and advised him to start a business so that he could raise money for his college fees and fulfill his dreams.
With Peter’s help, Fred opened a small sandwich shop in Bridgeport on August 28, 1965, which he named Peter Super Submarine. He used to sell fresh sandwiches to the people every day, and his work soon came at a lower price than the shops and His sandwitches enticed people a lot. Gradually Fred started making a lot of profit from this business and quickly changed his name to SUBWAY.
Subway was a fairly short name and was soon gaining momentum. Subway first adopted open kitchen strategy i.e. they used to make fresh and healthy sandwiches in front of their customers, which increased the confidence of people. He broke the strike of traditional fast food being unhealthy and introduced people to fresh and healthy junk food.
By 1981, Subway had more than 200 stores in the US, and soon their business expanded to other countries outside the US. Another reason for Subway’s business to spread so quickly compared to others was that Subway’s One of the Cheapest franchise chain, for example, the cost of opening a Subway restaurant was 116000 to 263000 dollars, whereas it was here to open McDonalds. The price read about 2.2 million dollars, which was much higher and it was much cheaper and easier to open Subway restaurant than others, that is why it spread very fast.
Subway stores had grown from 5,000 to 13200 from 1990 to 1998. Meanwhile, they made a profit of 2.1 billion dollars. One particular reason for Subway’s success was that they kept changing their marketing strategy with changing trends. In the late 90’s I had become more conceived about fitness and at that time obese had become a big problem in the meantime.Subway launched an advertisement with fogle’s success story in which fogle told about his weight loss journey. How he lost so much weight that he also gave junk food without giving credit to Subway for all this.
This ad with Fogle’s Fat Loss Story became very popular among people, now more people started getting attracted towards Subway. Then came the great reception in 2008, now people were more concious about business deals and money than fitness. Subway recognized the Trend and got the $ 5 i footlong sandwich introduced at that time. Subway’s strategy sold 3.8 billion dollars, where the rest of the company was running at a loss, while Subway sold more than 17 percent over the previous year. They say that no one is happy.
Subway started falling sharply in 2014, where in 2012 the annual average revenue of a Subway restaurant was 482 thousand dollars whereas in 4 years it had fallen to 422 thousand dollars, which was the main reason why Subway suffered heavy losses. Increasing competition. Subway’s major competitors Quiznos, Jimmy John’s, Firehouse, Jersey Mikes and Panera started offering fresh and healthy options to customers in the junk food market. Common people believed that Subway’s sandwiches were getting smaller and more expensive over time, all of which also brought menus to the market more innovative than the brand Subway, which attracted people to leave Subway.
In 2015, Subway’s face Fogle on Child Debeau filed a case that led to 16 years in prison. Subway broke all its deals with Fogle, but to some extent indirectly, they also had to suffer the loss. Another strange reason was that Subway’s overpriced restaurants branched out to 10 to 12 of the subway in just 15 kilometers. The branches opened, which started eating each other’s profits.
In 2016, Subway closed more than 350 stores, closed 800 stars in 2017 and by the end of 2018, it had gone up by more than a thousand. Subway may have suffered a lot of damage but has not given up.
In 2017, Subway launched its “Fresh Forward” program where they renovated old restaurants in a good location, offering services available for WiFi, Usb Ports, Updated Furniture and Music. Subway, along with media partner Tastemade updated thousands of menus on its list. According to a survey, Subway tests more than 100 menu items every month and adds six to seven new food items to its list every month.
In 2001, Subway stepped into India and found considerable success here as well. Subway has so far opened more than 591 restaurants in 68 cities in India and is also earning a lot of profits here.
In 2015, founder Fred Deluca died of leukemia. Since then, the business has passed into the hands of his sister Suzanne Greco, and she is overseeing it. The business world is such that if you change your strategy and business You will not change models, even if you are such a big businessman, failure can hit you anytime. Subway is my favorite number one brand. What do you think about Subway? Please tell us in the comments section. Thank you.