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Mos Somji Case Study

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Subway PR Agency Article May 2005 regarding Mos Somji of Blue Cross Group

Subway PR Agency Article May 2005 regarding Mos Somji of Blue Cross Group

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Mos Somji Case Study Mos Somji Case Study Document Transcript

  • SUBWAY ® franchisee case study - Mos Somji When Mos Somji and his wife Mumtaz became the new franchisees of the SUBWAY® store in Woking, Surrey, they used their respective accountancy and retail backgrounds to turn the store into the success story it is today. Mos initially saw the SUBWAY® franchise opportunity as a vehicle for his wife to return to work after having children – offering her the flexibility and strict control systems she needed with the demands of a young family to care for. Mos reflects: “It quickly became clear that in order to make the store as successful as we envisaged and to be part of the rapid growth that the SUBWAY® chain was about to experience, I would also need to work on the project in a full time capacity. I gave up my city career and committed myself fully to our SUBWAY® store. Neither of us has looked back since!” The SUBWAY® chain’s expansion plans are progressing at a phenomenal rate, with the chain aiming to open another 1,500 stores in the UK and Ireland by 2010 - creating a further 15,000 jobs with an investment of over £150 million. An average of 15 stores opened in the UK and Ireland every month throughout 2004, reflecting the huge growth potential of the SUBWAY® brand. -mf-
  • -page 2- Worldwide, the SUBWAY® chain has directly created over an estimated 230,000 full and part-time jobs and has a turnover in excess of £4 billion. Fred DeLuca, president and co-founder of the SUBWAY® chain, comments: "Our international development is really starting to take off. Europe is going through a big upward cycle - particularly in the United Kingdom, Ireland and Germany. “We're just really starting to grow internationally, but there's evidence that we will be able to surpass McDonald's wherever we're able to get a really strong foothold." Mos comments: “I felt that the SUBWAY® chain offered the quality product we were looking for with the right brand identity. The costs involved were low, and it was reassuring to know that you have the full support of an organisation that is worth billions of pounds.” The SUBWAY® chain was also recently awarded the coveted Number 1 spot in Entrepreneur magazine’s 26th annual “Franchise 500” rankings - the most comprehensive system of franchise rankings in the world. This year’s result represents the 13th time in the past 17 years that this prestigious honour has been awarded to the SUBWAY® chain. The chain now has over 450 stores open in the UK and Ireland and more than 23,000 sandwich outlets in over 80 countries worldwide. The chain also has an increasing presence in the non-traditional sector, with over 2,600 outlets in convenience stores and almost 400 forecourts - a proven track-record in this market. -mf-
  • -page 3- Before signing the franchise agreement, Mos and Mumtaz carefully checked it to make sure they were happy with it. There are certain safeguards in the agreement that ensures the correct systems are operated and that certain criteria are adhered to. Customers need to know they will be given the same consistent and excellent service in every SUBWAY® store that they go into - whether it’s in the UK, US or anywhere in the world. It is the owner involvement and family-run image which has been the key to the Somji’s stores’ success. Mos has even managed to charm the children of the parents eating in the store, dissuading them from the tempting, less healthy, choices also available on the high street. Mos and Mumtaz have put together an effective team at their store who work together to achieve the high profitability they now enjoy (25% to 30% year on year growth). Mos explains: “Every member of staff, from the new joiner to the longest serving member of staff, enjoy the benefits of our bonus schemes – each person contributes in this store from the day they join and is rewarded accordingly.” With the support of Development Agent for Kent and Surrey, Hemina Patel, Mos and his wife have introduced impressive marketing initiatives, which have made a huge impression on the local customers who frequent the busy Chertsey Road area of the town. -mf-
  • -page 4- Mos comments: “We thoroughly researched our target market during the course of putting our business plan together. We are located next door to a McDonald’s outlet and one of the things we did was work with the SUBWAY® chain’s marketing department to create the first ‘7 under 6’ A-frame poster. “We positioned this so it was eye-catching to every customer walking past other stores on Chertsey Road – you wouldn’t believe the amount of increased footfall this simple idea created!” “Another initiative we have introduced is breakfast at a low price, which works particularly well with those customers for whom price is paramount and it also educates customers about our breakfast offering.” Mos continues: “We are innovative when it comes to offering food promotions to drive new customers in and, more importantly, raise the brand and product awareness and loyalty for repeat business. “We also offer a daily special – a different sub sandwich each day, priced at £1.99, which tempts those die-hard customers who always order the same sub, to try something different. It is after all, as much about choice, as the quality and freshness of the product that will keep customers coming back for more.” -mf-
  • -page 5- Hemina Patel comments: “Mos, his wife Mumtaz and their team at the store in Woking, have demonstrated a real determination to succeed by focusing on what their customers really want. Mos will shortly become a multi-unit owner, and he truly embraces the vision of being part of building the SUBWAY® chain’s market. With their sound organisation skills and methodical planning, the future is looking exciting for the Somji family.” Mos’s multi-unit ownership status will start with the three further SUBWAY® stores he currently has under negotiation. Looking ahead this year, Mos’s target is to have seven outlets open by the end of the year – no doubt this is a franchisee that we will hear more about! Q. Can you eat fast food and still eat healthily? A. Yes, with the SUBWAY® chain. The chain’s unique approach to fast food does not compromise a healthy approach to meals. The chain has a well-earned reputation for offering a healthier alternative to traditional greasy and fatty fast food and offer fresh, nutritious, made-to-order sandwiches, prepared just the way customers like it, right before their eyes. The ‘7 Under 6’ menu features seven delicious choices that contain six grams of fat or less. For health-conscious consumers, the SUBWAY® chain has become a popular choice in the quick-serve category. With today’s busy lifestyles, a meal on the go is a regular occurrence, yet many people are demanding more that just convenience – they want healthier choices. The ‘7 Under 6’ menu gives them exactly that - a low calorie, low fat option and
  • great taste too. This is where the SUBWAY® chain fills the gap in the fast food market for great tasting, healthy food. -ends-