Misplaced Pages

Revision as of 07:54, 21 July 2012

Subway

Company type	Privately held company
Industry	Restaurants
Genre	Fast food
Founded	Bridgeport, Connecticut, U.S. (August 28, 1965)
Founder	Fred DeLuca and Peter Buck
Headquarters	Milford, Connecticut, U.S.
Number of locations	37,000 restaurants in 100 countries
Key people	Fred DeLuca (President) Millie Shinn (EVP) David Worroll (Controller)
Products	Submarine sandwiches Salads Pizzas
Revenue	$16.2 billion US$ (2010)
Owner	Doctor's Associates, Inc.
Website	subway.com

Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs) and salads. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with 37,000 restaurants in 100 countries and territories as of June 27, 2012. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands (over 37,000 locations).

Subway's main operations office is in Milford, Connecticut; five regional centers support Subway's growing international operations. The regional offices for European franchises are located in Amsterdam, Netherlands; the Australia and New Zealand locations are supported from Brisbane, Australia; the Asian locations are supported from offices located in Beirut, Lebanon, Malaysia, Singapore and India and the Latin America support center is in Miami, Florida.

Doctor's Associates

Doctor's Associates, owner of Subway, was founded by Fred DeLuca and Peter Buck in 1965. That year, they opened the first Subway restaurant, in Bridgeport, Connecticut. The name comes from the fact that Buck holds a PhD. Doctor's Associates is not affiliated with, nor endorsed by, any medical organization.

History

Fred DeLuca borrowed $1,000 from family friend Peter Buck, to start his first sandwich shop on August 28, 1965.

The first Subway outside of North America opened in Bahrain, in December 1984.

Since 2007, Subway has consistently ranked in Entrepreneur magazine's Top 500 Franchises list. It ranked #2 in 2012. It also ranked #2 on the "Fastest Growing Franchise" and "Global Franchise" lists. In March 2011, Subway was named "the most loved fast food chain in the US" by Amplicate.com, based on their analysis of opinions expressed on social media websites.

At the end of 2010, Subway was the largest fast food chain on Earth, with 33,749 restaurants worldwide, 1,012 more than McDonald's. In terms of revenue, McDonald's still led Subway.

Products

Subway's core product is the submarine sandwich (or "sub"). In addition to these, the chain also sells wraps, salad and baked goods (including cookies, doughnuts and muffins). While some menu items vary between countries and markets, Subway's worldwide signature sub varieties include:

• Italian B.M.T.
• Roasted Chicken
• Subway Club
• Tuna
• Meatball Marinara
• Subway Melt
• Chicken Teriyaki
• Steak & Cheese

Subway's best-selling sandwich, the B.M.T., contains pepperoni, salami and ham. The name originally stood for Brooklyn Manhattan Transit, but now stands for "Biggest, Meatiest, Tastiest".

Subway also sells breakfast sandwiches, English muffins and flatbreads. In 2006, "personal pizzas" debuted in some US markets. These are made to order (like their subs) and heated for 85 seconds. Breakfast and pizza items are only available in some stores. In November 2009, Subway signed a deal to exclusively serve Seattle's Best Coffee coffee as part of their breakfast menu in the US.

A 2009 Zagat survey named Subway the best provider of "Healthy Options" (in the "Mega Chain" category). Subway was also first in "Top Service" and "Most Popular" rankings. It placed second in "Top Overall", behind Wendy's.

Regional Variations

Subway's menu varies between countries, most significantly where there are religious requirements relating to the meats served.

In 2006, the first kosher Subway restaurant in the United States opened, in a suburb of Cleveland, Ohio. Subway spokesman Jared Fogle attended the opening. A press release stated, "With slight modifications, such as no pork-based products, and the use of soy-based cheese product, the menu is virtually identical to that of any other Subway restaurant." Since then, kosher Subways have opened in New York, Los Angeles, Kansas City, and Baltimore, and plans were announced for Milwaukee and Boston. Kosher stores on Wall Street and in Livingston, New Jersey have since closed.

Subway restaurants in India do not serve beef and mostly do not sell pork products, and sell an extended vegetarian range. There are 264 Subway restaurants in 26 cities of India.

Most Subway restaurants in Muslim countries offer a halal menu. At least two Subway restaurants in the United States, three in Canada and over one hundred in the United Kingdom do the same.

Nutritional content

In 2011, Subway introduced gluten-free bread and brownies to some locations in Texas. It also cut the salt content of its sandwiches by 15 percent.

In the UK and Ireland, Subway has reduced salt content across its entire range by 33% and has committed to further reductions, in line with government targets. Subway's range of "Low Fat" subs is endorsed by the charity Heart Research UK.

Advertising

Subway uses the advertising slogan "Eat Fresh", and focuses on how their sandwiches are made from freshly baked bread and fresh ingredients, in front of customers to their exact specifications, by employees whom Subway calls "Subway Sandwich Artists".

In November 2007, Subway's US commercials featured the cartoon character Peter Griffin (from Family Guy) promoting its new Subway Feast sandwich. Subway has also used "instant win" games, based on the game Scrabble.

Subway has run a product placement campaign in the US TV series Chuck since its first season. As ratings dwindled in the second season, a campaign to "save Chuck" was launched for fans, encouraging them to purchase a footlong sub from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, called it the best product placement the restaurant chain has done "in several years."

$5 Footlongs

In 2008, Subway began to offer all foot-long submarine sandwiches (excluding premium and double-meat varieties) for five dollars, in the continental United States and Canada, as a "limited time only" promotion. "Five Dollar Footlongs" quickly became the company's most successful promotion ever. Upon the initial promotion's completion, customer response prompted Subway to create a permanent "$5 Footlong Everyday Value Menu" that offered some footlong sandwiches for $5. As of 2011, there has been a monthly rotating $5 footlong. Which subs are permanently priced at $5 varies by market.

In October 2011, a similar promotion was launched in the United Kingdom. Customers can buy one of nine subs and any drink for £3 (for a six-inch sub) or £5 (for a footlong).

Sub Club

In early June 2005, Subway announced its customer reward program would be phased out due to counterfeiting. The "Sub Club" program was discontinued in the US and Canada by Doctor's Associates.

All stores in the United Kingdom and Ireland participate in the Subcard system, offering customers points with each purchase at a Subway store, which are redeemable for subs and snacks. Unlike in the US system, these cards cannot be used to store cash. The program will be rolled out in Germany and other parts of the EU from 2012.

Participating Subway restaurants in the U.S. and Canada offer a "Subway Card" to customers, which functions as a stored-value cash card. In some states and provinces, the card also functions as a "Subway Rewards Card", allowing customers to earn points for free food and sandwiches. Unlike in the "Sub Club" program, no other purchase is needed when redeeming points, and registered cards can be replaced if lost or stolen. Subway runs periodic promotions in which it gives away free subs to customers who preload a Subway Card with certain dollar amounts, usually listed at mysubwaycard.com.

Controversy

Sandwich size

On February 2, 2007, KNXV-TV (with the help of the Arizona Department of Weights and Measures) reported that three of Subway's "Giant Sub" sandwiches, nominally each 3-foot (91 cm) long, were actually 2 feet 8 inches (81 cm), 2 feet 8+1⁄4 inches (81.9 cm), and 2 feet 8+1⁄2 inches (82.6 cm) long. The maximum variance in length allowed in Arizona is 3% (1.08 inches (2.7 cm), for a three-foot sub). The report also showed the boxes designed to store these sandwiches were 2 feet 10+3⁄4 inches (88.3 cm) in length; shorter than the maximum allowable variance. In response to the report, Subway stated they were reevaluating their advertising, training and packaging materials with regard to the specific or implied length of Giant Subs, and were advising their franchisees to only discuss with customers the approximate number of expected servings and not a specific length of measurement.

Franchise relations

In 1995, Subway Sandwich Shops, Fred DeLuca, Peter Buck, and Doctor's Associates, Inc. were held liable for breach of contract. An Illinois jury awarded more than $10 million in damages to Nicholas and Victoria Jannotta after finding lease and contract violations. The plaintiffs claimed the defendants had misrepresented the asset value of Subway Sandwich Shops (a leasing company used by Doctor's Associates for franchising purposes) while negotiating a 1985 lease agreement.

The U.S. House of Representatives' small business committee studied the franchise industry from 1992 to 1998. Dean Sagar noted: "Subway is the biggest problem in franchising and emerges as one of the key examples of every abuse you can think of." In 1989, the U.S. Small Business Administration refused small business loans to Subway franchise owners until Subway removed a contract clause which gave it power to seize and purchase any franchise without cause. The Dallas Morning News reported Subway had seized American soldier Leon Batie Jr.'s Subway stores in 2006, while he was serving in Afghanistan. He had been deployed to support Operation Enduring Freedom in March 2005, three years after buying his first restaurant. Batie alleged Subway had violated the U.S. Servicemembers Civil Relief Act. He filed a federal lawsuit against Subway, which was dismissed. He then filed suit in state court, in Dallas County, Texas. Both parties settled on "mutually agreeable" and confidential terms in January 2010.

UK VAT treatment

In October 2010, Subway franchisees in the UK lost a high court appeal against paying standard VAT on all toasted subs, as required by HM Revenue and Customs. Thus, in the UK, a toasted sub attracts VAT, whereas a cold sub, eaten off the premises, does not. Competitors such as Quiznos and McDonald's do not pay VAT on similar food.

In his March 2012 budget, chancellor George Osborne announced plans to close the loophole that allows Subway competitors to offer hot food without paying VAT. This legislation was expected to come into force from October 2012, but the government withdrew plans to charge VAT on originally hot food being allowed to cool naturally on 28 May 2012.

In June 2012 Subway launched the "Toast the Tax" campaign to put pressure on the UK government to drop VAT on toasted sandwiches, as it has done for hot savouries.

Casey's trademark case against Subway

On January 31, 2011, Subway lawyer Valerie Pochron wrote to Casey's General Stores, a chain of Iowa-based convenience stores, demanding it cease using the term "footlong" in its advertisements for 12-inch sandwiches. Consequently, in February 2011, Casey's General Stores Inc. filed a lawsuit against Subway in U.S. District Court in Des Moines, seeking a legal declaration that the word "footlong" does not violate Subway's rights. Casey's further sought a declaration that the word "footlong' is a generic description of a sandwich measuring one foot, and that Subway's attempt to assert trademark rights is "frivolous litigation." Before serving its complaint on Subway, Casey's voluntarily dismissed its action, ending the litigation.

References

1. ^ "Explore Our World". Subway.com. Retrieved 2011-12-20.
2. Subway publication (2011). "Official SUBWAY Restaurants Web Site". Subway Restaurants. Retrieved March 3, 2011.
3. Joe Bramhall. "McDonald's Corporation". Hoovers.com. Retrieved August 23, 2007.
4. Joe Bramhall. "YUM! Brands, Inc". Hoovers.com. Retrieved August 23, 2007.
6. http://www.smallbusinessdelivered.com/smalltobigsubway.html
7. Subway Franchises Rhode Island, MA and CT | Subway Development
8. Subway Restaurants International Homepage
9. "2008 Fastest Growing Global Franchises". Entrepreneur Magazine. Retrieved February 24, 2008.
10. "Subway is the most loved Fast Food Restaurant". Retrieved March 1, 2011.
11. "Subway Passes McDonald's as Largest Fast-Food Chain in World". FOX Washington, DC. March 7, 2011.
12. http://www.subway.com/Menu/MenuCategoryItems.aspx?CC=USA&LC=ENG&MenuTypeId=1&MenuId=35
13. Dennis, Guy (April 25, 2004). "Subway sets out to torpedo McDonald's". The Daily Telegraph. London. Retrieved May 24, 2010.
14. "Official SUBWAY Restaurants FAQs". www.Subway.com. Retrieved August 25, 2009.
15. Subway Restaurants to Brew Seattle's Best Coffee Exclusively
16. "ZAGAT Survey Summary 2009 Fast-Food Restaurants Survey". QSR Magazine. Retrieved February 17, 2011.
17. First Kosher Subway Restaurant Opens in Cleveland
18. "Kosher Subway opens to rave reviews". Kansas City Jewish Chronicle.
19. "Glatt kosher Subway list". TiyulTalk. Retrieved March 2, 2008.
20. http://www.jta.org/news/article/2009/08/05/1007057/the-largest-us-kosher-restaurant-chain-is-subway
21. http://www.subway.co.in/page_about_us.html#
22. Roberson, Amanda. "Gluten-free items come to some Subway's in East Texas". KYTX CBS 19. Retrieved June 29, 2011.
23. "Subway slashes salt in sandwiches". WHEC News 10. April 19, 2011.
24. . July 2011 http://www.subway.co.uk/media/news/healthandwellbeing.aspx. {{cite news}}: Missing or empty |title= (help)
25. .
26. Gail Schille (November 17, 2007). "Subway in 'Family Guy' promotion". the Hollywood Reporter. Retrieved February 24, 2008. Fox's "Family Guy" has lined up its first national quick service restaurant promotion with Subway Restaurants, which will air a TV spot featuring the show's Peter Griffin
27. "Subway: Good Night, and Good 'Chuck'". TV Week. April 27, 2009. Retrieved April 27, 2009.
28. Personal Finance News from Yahoo! Finance
29. http://www.subway.co.uk/menu/subs/value-lunch/default.aspx
30. SUBWAY Operations Manual (2008 ed.). Doctor's Associates. 2008. p. 17.25.
31. https://subcard.subway.co.uk/
32. "Subway Card FAQ". Retrieved November 1, 2009.
33. Joe Ducey (June 26, 2007). "Sub-Standard". KNXV-TV (Phoenix, Arizona). Archived from the original on August 18, 2007. Retrieved April 8, 2008. His office recently warned Subway, for shorting a customer and the ABC 15 Investigators found Subway was the biggest offender in our test. Video
34. Robin Lee Allen (December 11, 1995). "Subway ordered to pay $10M in punitive damages to ex-landlord". Nation's Restaurant News. Retrieved August 8, 2011.
35. Richard Behar (March 16, 1998). "Why Subway Is 'The Biggest Problem In Franchising' That's the assessment of a congressional staffer who studied". Forbes Magazine. Retrieved August 8, 2011.
36. ^ Karen Robinson-Jacobs (June 21, 2009). "Soldier suing after being stripped of Subway restaurant franchises". Dallas News. Retrieved July 28, 2009.
37. ^ "Soldier suing after being stripped of Subway restaurant franchises" (PDF). tullylegal.com.
38. Robinson-Jacobs, Karen. "Subway, soldier settle Dallas franchise dispute". The Dallas Morning News. Retrieved 25 August 2011.
39. "Subway wrangle over VAT could be heading to high court". The Huddersfield Daily Examiner. January 4, 2011. Retrieved June 29, 2011.
40. "Big butties, small mindedness". Taxation. October 20, 2010. Retrieved February 17, 2011.
41. "Subway VAT appeal: Subway loses". Howlader & Co. November 4, 2010. Retrieved January 17, 2011.
42. "Budget 2012: VAT move could 'hit cost of bacon rolls'". BBC News. March 21, 2012.
43. "Government does U-turn over 'Cornish pasty tax'". BBC News. May 28, 2012.
44. http://www.examiner.co.uk/news/local-west-yorkshire-news/2012/06/16/david-cameron-of-birkby-v-david-cameron-of-downing-street-in-toastie-tax-row-full-details-here-86081-31194155/
45. Welte, Melanie S. (February 14, 2011). "Iowa store chain sues Subway over 'footlong'". MSNBC. Retrieved February 17, 2011.
46. "Casey's sues Subway over rights to 'footlong'". USA Today. July 16, 2010. Retrieved February 17, 2011.
47. "Complaint, Casey's v. Subway, No. 4:11-cv-64 (S. D. Iowa)" (PDF). 11 Feb 11. {{cite web}}: Check date values in: |date= (help)
48. "Motion for voluntary dismissal, Casey's v. Subway, No. 4:11-cv-64 (S. D. Iowa)" (PDF). 03 May 11. {{cite web}}: Check date values in: |date= (help)

External links

• Official website
• Subway's Nutritional Information at FoodInfoDB.com

Template:Link GA

• Submarine sandwich restaurants
• American brands
• Companies based in Fairfield County, Connecticut
• Companies based in New Haven County, Connecticut
• Restaurants in Connecticut
• Fast-food chains of the United States
• Fast-food chains of the United Kingdom
• Fast-food chains of Canada
• Restaurants established in 1965
• Fast-food franchises
• Privately held companies based in Connecticut
• Multinational food companies
• Restaurant chains in the United States
• Restaurant franchises
• Fast-food chains of Australia
• Subway (restaurant)