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Fast Food Market Forecast – The Subway Example of Strategic Product Positioning

Fast Food Market Forecast – The Subway Example of Strategic Product Positioning

The United States rapidly foods industry has viewed a balanced rise in development inside of the final three yrs which forecasts can be sustained. The fast meals market is forecast to sustain its existing progress anticipations, with an expected Compound Yearly Expansion Charge (CAGR) of 2.3% for the 5-year time period 2005-2010. This is anticipated to generate the sector to a value of $57.6 billion by the end of 2010. Motorists of expansion incorporate increasing numbers of Individuals in the office, which reduces the sum of time expended on planning meals at property. In 2010, the United States fast food current market is forecast to have a price of $57.6 billion, an enhance of 12.1% given that 2005.

Forecast Quantity

In 2010, the United States fast meals sector is forecast to have a quantity of 37 billion transactions (Determine 1). This signifies an maximize of 5.3% considering that 2005. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%.

Achievements Variables

Good results components for quick meals franchisees will include solutions and marketing and advertising targeted to healthier menu picks, brand consistency, low commence-up prices, franchisee support, and customer comfort. Subway ® represents a poignant instance of a rapid foodstuff franchisee all set for achievement in the potential quickly food items industry. Their tactics transcend the rapidly food market and use to lots of other marketplaces and goods.
SWOT Examination

Subway sandwich shops are very well positioned to leverage their strengths and deal with reasonable threats, weaknesses, and possibilities. The desk underneath highlights these Strengths, Weaknesses, Possibilities, and Threats.


  • Size and number suppliers and channels
  • Menu reflects demand for refreshing, balanced and speedy.
  • Use of non-standard channels.
  • Partnering with the American Heart Association.
  • Around the globe model recognition.
  • Customizable menu offerings.
  • Minimal franchisee start off up prices.
  • Franchisee education is structured, quick and developed to assure fast start out-up and good results.


  • Décor is outdated.
  • Some franchisees are unsatisfied.
  • Company shipping and delivery is inconsistent from keep to store.
  • Personnel turnover is significant.
  • No regulate more than franchise saturation in offered market place spots.


  • Keep on to Mature World wide Enterprise.
  • Update décor to stimulate more dine-in company.
  • Increase Client Service Design.
  • Continue to develop channel alternatives to contain occasion wagons.
  • Increase franchisee relations.
  • Experiment with generate-by way of small business.
  • Extend packaged dessert offerings.
  • Go on to revise and refresh menu choices.
  • Produce much more partnerships with movie producers and toy makers to advertise new film releases as a result of children’s menu packaging and co-branding alternatives.


  • Franchisee unrest or litigation.
  • Foods contamination (spinach).
  • Level of competition.
  • Interest Expenditures.
  • Economic downturn.
  • Sabotage.
  • Regulation Suits.

Aggressive Assessment

Subway is not without having aggressive pressures. Chief competitors consist of Yum! Manufacturers, McDonalds, Wendy’s, and Jack in the Box. Yum! Models are the world’s largest, with 33,000 dining establishments in about 100 international locations. 4 of the firm’s very recognizable models, KFC, Pizza Hut, Very long John Silver’s and Taco Bell, are worldwide leaders of the Mexican, rooster, pizza, fast-services seafood types. Yum! has a workforce of 272,000 staff members and is headquartered in Louisville, Kentucky.

McDonald’s Corporation (McDonald’s) is the world’s largest foodservice retailing chain with 31,000 quick-foods dining establishments in 119 nations around the world. The corporation also operates dining places less than the brand name names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates mostly in the US and the United kingdom and is headquartered in Oak Brook, Illinois utilizing 447,000 folks.

Wendy’s Global (Wendy’s) operates three chains of quick foods dining places: Wendy’s (the third most significant burger chain in the world), Tim Horton’s, and Baja Contemporary. Wendy’s operates more than 9700 eating places in 20 international locations, has been included in Fortune magazine’s listing of leading 500 US firms, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Jack in the Box owns, operates, and franchises Jack in the Box swift-assistance hamburger dining establishments and Qdoba Mexican Grill rapid-informal places to eat and is headquartered in San Diego, California.

Focus on Markets

The increase in revenue of the sandwiches has been a consequence of decreases in shopper interest in hamburgers and fries and raises in desire for much healthier choices. Profits of sandwiches are developing 15 per cent per year, outpacing the 3 p.c income advancement charge for burgers and steaks.

Current Marketing Program

A new breed of restaurant is generating huge gains towards the sector-saturated hamburger establishments. Termed “rapidly-informal,” these eating places are dominated by Mexican chains, and sandwich dining places offering clean-baked breads and specialty sandwiches.

Responding to evolving shopper anticipations for health, fresh new, tailor made-designed sandwiches Subway’s advertising program addresses these expectations by a range of ways. The most notable had been the television commercials that includes Jared. These commercials emphasize the healthy elements of a Subway sandwich by highlighting the 245 kilos Jared misplaced by eating a Subway sandwich diet plan. Subway also marketplaces through a nationwide sponsorship in gatherings these types of as American Coronary heart Association Coronary heart Walks and community activities these types of as triathlons, and kid’s athletics groups.

The Subway illustration represents internet marketing and solution tactics that are traditional illustrations of concentrating on current market demand, shopper trends, merchandise leveraging, and innovation. The marketing and advertising approaches of creating clear manufacturer recognition, manufacturer and item association, and market demands, have strategically positioned Subway to advance market place share into the around future. These advertising methods are also repeatable essential marketing and advertising procedures transcending the fast meals market. Does your promoting strategy bind brand recognition to solutions that help your market’s long term way?