Making Fast Food Healthy: A Growing Market
Liberty University
BUSI 520

Making Fast Food Healthy: A Growing Market The Subway chain is the most well-known of the quick service restaurant (QSR) sub industry. All five of Subway’s similar competitors combined do not come close to the 27,021 locations that Subway currently owns in the United States; Quiznos has 5,200 locations (Quiznos, 2015), Firehouse Subs owns 850 locations (Firehouse Subs, 2015), Jimmy Johns has approximately 2,000 locations (Jimmy John's, 2015), Jersey Mike’s has 1,300 locations (Jersey Mike's, 2015), and Charley's Grilled Subs has over 500 locations (Charley's, 2015). The Subway chain is indisputably the world’s largest submarine sandwich chain with over 43,000 locations around the world (SUBWAY, 2015) and a brand value of $6.6 billion (Forbes, 2014). In this paper we will discuss how the Subway brand came to be so successful, what marketing strategies were used properly in the process, and conclude with what marketing strategies should continue to be implemented and what marketing strategies should be improved in order for Subway to maintain its success in the QSR industry.
Background Information
The “How” In 1965, 17 year old Fred DeLuca needed a way to fund his tuition to become a medical doctor. With a $1,000 loan from soon-to-be business partner Dr. Peter Buck, Fred founded Pete’s Super Submarines, known today as Subway Restaurants. The first store was opened in Bridgeport, Connecticut in August, 1965 with the future goal of opening 32 stores in 10 years (SUBWAY, 2015). Their biggest concern at the time was “how.” In eight years the subway chain was able to grow from 16 stores to 200 stores and they did this by franchising. Franchising for Subway began in 1974. Fred recalls, “We didn’t have any big thought process except that, OK, franchising will help us get to our goal of 32 stores