Subway is an American restaurant franchise founded in 1965, known for its submarine sandwiches, salads, and pizzas, with over 41,000 locations worldwide. It operates primarily on a franchising model offering health-conscious fast food options while allowing for customization and flexibility in location. The brand targets young customers through promotions, loyalty programs, and a commitment to sustainability, including a transition to cage-free eggs by 2025.

2. OVERVIEW
• Subway is an American restaurant franchise.
• It sells submarine sandwiches (subs), pizza (some locations)
and salads.
• It was founded on August 28, 1965 Bridgeport, Connecticut, U.S. by
Fred DeLuca and Peter Buck.
• Its headquarters in Milford, Connecticut, U.S
• It has 41,512 restaurants in more than 100 countries.
• It also is the largest single-brand restaurant chain, and the largest
restaurant operator, in the world.

3. BUSINESS MODEL
• Subway relies exclusively on franchising.
• Subway has more flexibility in terms of location
• As the food comes precooked so no real cooking is involved.
• It can be fit in smaller spaces as well.
• Manual operation is the unique advantage where customers can
choose bread, sauces, vegetable, etc all by themselves.
• Low initial franchise fee compared to other fast food chain.
• The restaurant is marketed as a health-conscious restaurant chain.

4. VALUE PROPOSITION
• Healthy Fast Food – Submarine Sandwiches, Wraps, Salad,
Paninis, Baked Goods, Cookies, Doughnuts And Muffins And
Pizzas.
• It introduced gluten free bread and brownies.
• It also cut the salt content of its sandwiches by 15%.
• It saves time and cost.
• Subway released a commitment to transition to a 100% cage-
free egg supply chain by 2025.

5. TARGET CUSTOMERS
• It serves the Age group 18 -19 years
• The low fat menu containing a range of subs with 6 Grams of
Fat or less for fitness freaks.
• Kids meals- vitamin juices instead of carbonated drinks, etc
• Core menu is same with some cultural difference.
E.g., Halal menu in middle east countries,
• Vegetable without beef in India and
• More sauces in America

6. CUSTOMER
RELATIONSHIPS
• Limited time only-promotions
• Subway reward cards allow customers to earn points for free
food and sandwiches
• Self-service
• Customized
• Personal
assistance
• Co-creation

7. REVENUE STREAMS
• Revenue from Franchisees
• Sale of food
• Corporate image
COST STRUCTURE
• It is the second largest fast food advertiser in U.S.
• Distribution cost
• Lease contracts
• Taxes

8. KEY ACTIVITIES
• Advertising
• Logistic network
• Training franchising management
• Contracts and deals
• Cooking
• Packaging
• Serving
• Customer service
• Quality control

9. CHANNELS
• Restaurant chains
• Malls
• Airports
• Social Media
• Website
• Mysubwaycard.com
• Kiosk machine
• Television

10. KEY PARTNERS
• Doctor’s Associate Inc. (owner)
• Franchise holders
• Food supplies
• Food sources
• Sponsors
• Security and insurance companies

11. KEY RESOURCES
• It is the fastest growing franchisee in the world with 44,000
restaurants in 110 countries and territories.
• US alone has 26,646 outlets
• Logistic network
• Secret recipes
• Its core product is submarine sandwich
• Best selling sandwich is B.M.T
• “Five dollar footlongs” quickly became the company’s
most successful promotion ever.
• Staff
• Regional variations