RISE - Menu Monitor

Subway
Headquarters
325 Bic Dr., Milford, Connecticut 06461 USA
Tel: (203)877-4281 Fax: (203)876-6674
www.subway.com
Ownership: Private
Segment: Limited Service Other Sandwich
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 7,710,000 7,170,000 6,270,000
Company-owned ($000) - - -
Franchised ($000) 7,710,000 7,170,000 6,270,000
U.S. Number of Units 20,755 19,620 17,909
Company-owned - - 1
Franchised 20,755 19,620 17,908
International Sales ($000) 2,300,000 1,870,000 1,500,000
International Units 6,138 5,190 4,559
Average Sales/Unit ($000) 382 385 370
Concept Positioning |
Subway is the world’s second largest fast-food operation. Subway’s menu focus is on sub-style sandwiches. The chain offers
sit-down and carryout service to a primary customer base between the ages of 18 and 35, 65% of which is male. Carryout
orders account for 65% of sales. Doctors Associates Inc. is the parent company of Subway. Subway franchises all of its more
than 26,500 restaurants worldwide.
Some units are freestanding whereas others are located in strip centers, malls, key downtown areas, college campuses,
convenience stores, truck stops, grocery stores, military bases and hospitals. A typical unit averages 1,000 sq. ft., with seating
for 25 patrons. The smallest stores, however, occupy only 300 sq. ft. and have no seating, while larger ones measure 2,000
sq. ft. and have seating for 40 people. Some units have drive-through windows. The interior-decorating program utilizes a
yellow and green color scheme and a new “Tuscany”-inspired decor. Subway's continues to open units in supermarkets,
convenience stores and Wal-Mart stores. Subway now operates more than 70 units inside Wal-Mart stores nationwide.
Subway continues to add self-ordering kiosks in select units. Nearly 50 Subway locations in the U.S., New Zealand, the U.K.
and Australia are utilizing this new service, which allows customers the opportunity to order their sandwiches using a touch
screen.
Fred DeLuca and Dr. Peter Buck founded the company in Bridgeport, CT, in 1965. The first franchise was sold in 1974.
Doctor's Associates Inc. franchises the privately owned concept. India is an international expansion target market for the chain
where the company plans to have 100 units by the end of 2007.
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