Rapidly Meals Industry Forecast – The Subway Illustration of Strategic Products Positioning

The United States quickly foodstuff industry has noticed a wholesome increase in advancement within the previous 3 several years which forecasts can be sustained. The fast foods current market is forecast to sustain its current expansion anticipations, with an predicted Compound Once-a-year Growth Price (CAGR) of 2.3% for the 5-calendar year interval 2005-2010. This is envisioned to drive the sector to a price of $57.6 billion by the stop of 2010. Drivers of expansion incorporate raising figures of People in the place of work, which minimizes the sum of time expended on planning foods at dwelling. In 2010, the United States rapidly food marketplace is forecast to have a benefit of $57.6 billion, an increase of 12.1% since 2005.

Forecast Volume

In 2010, the United States fast food items industry is forecast to have a quantity of 37 billion transactions (Figure 1). This signifies an increase of 5.3% because 2005. The CAGR of the current market volume in the interval 2005-2010 is predicted to be 1%.

Accomplishment Components

Accomplishment things for quick foods franchisees will consist of products and internet marketing targeted to more healthy menu selections, brand regularity, lower get started-up prices, franchisee aid, and consumer convenience. Subway ® represents a poignant case in point of a fast foodstuff franchisee ready for achievements in the foreseeable future speedy food items industry. Their approaches transcend the rapid foods sector and use to numerous other marketplaces and items.
SWOT Examination

Subway sandwich stores are well positioned to leverage their strengths and tackle fair threats, weaknesses, and alternatives. The desk below highlights these Strengths, Weaknesses, Alternatives, and Threats.


  • Dimension and amount stores and channels
  • Menu displays desire for clean, healthier and rapid.
  • Use of non-regular channels.
  • Partnering with the American Coronary heart Affiliation.
  • Around the globe brand recognition.
  • Customizable menu choices.
  • Low franchisee commence up expenditures.
  • Franchisee training is structured, brief and built to guarantee immediate start off-up and achievement.


  • Décor is outdated.
  • Some franchisees are unhappy.
  • Company delivery is inconsistent from store to keep.
  • Personnel turnover is substantial.
  • No management in excess of franchise saturation in presented marketplace parts.


  • Proceed to Develop World Company.
  • Update décor to stimulate extra dine-in business enterprise.
  • Increase Customer Service Model.
  • Keep on to develop channel prospects to include things like event wagons.
  • Increase franchisee relations.
  • Experiment with push-by means of enterprise.
  • Expand packaged dessert offerings.
  • Carry on to revise and refresh menu choices.
  • Produce far more partnerships with film producers and toy suppliers to promote new motion picture releases by means of kid’s menu packaging and co-branding alternatives.


  • Franchisee unrest or litigation.
  • Food items contamination (spinach).
  • Levels of competition.
  • Fascination Prices.
  • Financial downturn.
  • Sabotage.
  • Regulation Suits.

Aggressive Analysis

Subway is not with out competitive pressures. Main competition contain Yum! Manufacturers, McDonalds, Wendy’s, and Jack in the Box. Yum! Manufacturers are the world’s biggest, with 33,000 restaurants in around 100 nations. Four of the company’s extremely recognizable models, KFC, Pizza Hut, Extended John Silver’s and Taco Bell, are international leaders of the Mexican, rooster, pizza, swift-assistance seafood types. Yum! has a workforce of 272,000 staff members and is headquartered in Louisville, Kentucky.

McDonald’s Company (McDonald’s) is the world’s premier foodservice retailing chain with 31,000 speedy-foodstuff places to eat in 119 nations. The organization also operates eating places below the manufacturer names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates mainly in the US and the British isles and is headquartered in Oak Brook, Illinois using 447,000 persons.

Wendy’s Worldwide (Wendy’s) operates a few chains of speedy foodstuff places to eat: Wendy’s (the 3rd largest burger chain in the planet), Tim Horton’s, and Baja Refreshing. Wendy’s operates more than 9700 eating places in 20 nations, has been integrated in Fortune magazine’s record of major 500 US businesses, is headquartered in Dublin, Ohio, and employs about 57,000 people today.

Jack in the Box owns, operates, and franchises Jack in the Box brief-services hamburger restaurants and Qdoba Mexican Grill rapid-relaxed restaurants and is headquartered in San Diego, California.

Concentrate on Markets

The enhance in revenue of the sandwiches has been a consequence of decreases in shopper interest in hamburgers and fries and raises in demand from customers for healthier alternatives. Profits of sandwiches are increasing 15 percent yearly, outpacing the 3 per cent profits progress rate for burgers and steaks.

Recent Internet marketing System

A new breed of restaurant is generating large gains from the sector-saturated hamburger institutions. Termed “fast-relaxed,” these dining places are dominated by Mexican chains, and sandwich restaurants supplying refreshing-baked breads and specialty sandwiches.

Responding to evolving purchaser anticipations for wellness, fresh, tailor made-produced sandwiches Subway’s advertising and marketing method addresses these anticipations by way of a range of approaches. The most notable had been the television commercials that includes Jared. These commercials emphasize the healthful aspects of a Subway sandwich by highlighting the 245 lbs . Jared shed by consuming a Subway sandwich eating plan. Subway also marketplaces by way of a national sponsorship in situations these types of as American Heart Association Coronary heart Walks and regional occasions these types of as triathlons, and kid’s sports activities groups.

The Subway case in point signifies marketing and product strategies that are typical examples of focusing on sector demand from customers, shopper tendencies, item leveraging, and innovation. The marketing strategies of creating very clear brand name recognition, brand name and product affiliation, and marketplace calls for, have strategically positioned Subway to advance market share into the close to future. These marketing procedures are also repeatable elementary advertising and marketing techniques transcending the quick food marketplace. Does your marketing tactic bind manufacturer recognition to solutions that assist your market’s future path?