Analysis of the Subway restaurant concept provides readers with unique data and insight into this leading brand.
Subway has clearly established itself as a QSR leader with a strong market position driven by an attractive value equation coupled with a well established fresh and healthy food perception that plays well to the growing societal concerns about obesity and health. Further, the chain’s marketing prowess has been firmly established with its hugely successful $5 footlong offering which has powerfully defined not only this chain, but the entire QSR industry. All these points are constantly reinforced to the general public with the second largest ad budget behind McDonald’s. Further, the system is strengthened by a very simple operating platform that drives a positive in-store experience because of easy menu customization coupled with high consumer confidence (as they see their sandwiches assembled right in front of their eyes). While unit level economics could be better, we believe Subway remains well positioned for the future.
