History Of Subway

Subway is the largest single branded international sandwich fast food restaurant franchise. They primarily sell submarine sandwiches and salads. They are the fastest growing franchises in the world with 40735 restaurants in 102 countries.

Subway was started by an ambitious 17 year old high school graduate, Fred Deluca , in 1965. He started this business partly because he needed money to aid his education fees. Fred Deluca approached his friend, Dr. Buck, to borrow a thousand dollars to start the business. They eventually became business partners and opened Pete’s Super Submarines. They opened a second outlet and they changed the name to SUBWAY, coloured bright yellow. This is to attract more customers with their company’s name.

Background information

The Subway story started in 1965 in Bridgeport, Connecticut during August. 17 year old Fred DeLuca dreamed of becoming a medical doctor. He was in need of money as he had to pay for his tuition so he worked in a hardware store. He could only afford lunch at McDonald’s even though he had his salary. This gave him an idea of running a fast-food venture that provides better and healthier food. He got the solution during his family barbecue in a conversation with a family friend, Dr. Peter Buck. Peter then loaned him a $1000 which was enough to open a shop in Bridgeport, which was named Pete’s Submarine after Peter Buck. But it was later changed to Pete’s Subway as the transportation system was nearby in New York.

In 1966, Fred and Peter made enough money to open a second store, but they knew it was in a poor location. They found a better location and it was opened till today. Fred continued attending his college while running Subway at the same time. By 1973, he and Buck managed to ha...

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... their stores within few miles because it is much more convenient.

Demographic:

Subway segment their market demographically by providing different foods. For example, Subway in India does not have beef and Subway in Malaysia does not have pork because of their religion and beliefs.

Psychographic:

Subway is able to segment their market on eating habits. Health conscious people are more likely to buy Subway as it is fresh rather than buying a burger which is oily and unhealthy.

Behavioral:

Subway knows that busy people, parties and events need food. That is why they provide catering services.

Positioning Strategy

Subway's strategy is making their food as fresh as possible. They bake their breads fresh daily, they offer more ingredient than any other of their competitor and their customers can customize their own sandwich which gives them more freedom of choice.