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How became Subway restaurant chain the world's largest


The story of Subway It dates back to 1965, when Fred DeLuca, given the need to get money to get into college, He decided to ask the advice of a family friend, The doctor. Peter Buck, and proposed opening a restaurant sandwiches prepared at the time.

With a loan 1.000 Dollars, The doctor. Peter Buck and Fred DeLuca became partners and They created Subway intended to revolutionize the world of fast food and a sense, they did.

An effective strategy from the beginning

It opened its first restaurant in his hometown, Bridgeport (Connecticut) in August 1965, under the name Fred & Pete’s Submarines. Fred began searching all possible combinations that will provide success to your brand and differentiators that distinguish them from competition.

His intention was to set up a chain of restaurants that offered a quality product, well done and excellent customer service. For it, He decided to use a striking marketing strategy, without neglecting cost control. With this philosophy began to select the best placed local conditions and to establish special price the best providers State of ingredients.

Soon things started to go very well in order to open labeled 32 sandwiches restaurants 10 years, goal that failed to meet, but that they stayed close. Eight years after opening the first restaurant, They had a total of 16, distributed throughout Connecticut. It was that moment arrived when They thought of turning your franchise chain, a type of growth that brings the value of your brand and get capital investment in exchange.

De Luca met with Brian Dixon, This friend, to make a proposal. A loan from the sale of one of the restaurants with the commitment that if he did not like the business, I could return it at no cost.

In this way, Brian became the first franchisee and its creators They not only met their objectives, but surpassed the.

The growth of Subway franchises

Over time, Subway, based on the entrepreneurialism of Fred DeLuca it has grown and has become a franchise more of 44.000 restaurants in more than 110 countries, on five continents.

This is because, among other things, to what the conditions They needed to be part of the largest chain of fast food restaurants in the world They are not very strict, but they must be met certain requirements, which they are as follows:

  • Right of entry 7.500 €
  • Global investment. Half a 1.600 € per m2 for a standard restaurant (works, equipment, furniture, decor) no exterior
  • In the premises do not need vent
  • operational and management simplicity
  • Local transfer function
  • financial capital of a 30%
  • Personal: minimum 100.000 euros
  • Royalties: 8% sales excluding tax
  • Marketing funds: 4,5% About sales

These are the main requirements who have come to make Subway franchise is, Occupying a prime spot in the fast food industry.

Other successful initiatives

There are many chains restaurants that have decided to grow franquiciándose, some with great success. A clear example is the Spanish company Tommy Mels, which started with a restaurant and now has more of 50 franchises in a period not exceeding 15 years.

Your secret? Offering tasty burgers in environments with a nice retro decor, according to the staff locker room, music, etc. All employees dress as they did in the years 50 and its high quality standards are behind all the dishes and serving drinks.

Another case of absolute success have starred owners 100 Montaditos. The company has experienced a rapid development in recent years thanks to its growth model based on a good combination of modernity, Andalusian flavor and good prices, which has some great results. So much so, a large number of investors have wanted to join the adventure and have acquired their franchise.

Despite the bad figures last year, the brand has already become a classic of tapas in Spain and thousands of customers visiting their premises each day looking (and that the record as positive) this simple formula, but it has been proven to work.

By last, It is recalled that Subway has more than 50 years of experience in the fast food sector and, in many ways, It has helped to define the franchise business model. Its restaurant brand is widely established throughout the world, where millions of customers enjoy their food every day of the year.

About the Author

Article by the editorial team of DiegoCoquillat.com. It has professionals both in the field of hospitality, gastronomy and tourism, and new technologies and innovation.


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