Fast Food Market Forecast – The Subway Example of Strategic Product Positioning

The United States rapidly food items sector has noticed a wholesome rise in development inside the past three yrs which forecasts can be sustained. The rapidly food items sector is forecast to retain its present development anticipations, with an predicted Compound Yearly Progress Rate (CAGR) of 2.3% for the five-calendar year period of time 2005-2010. This is expected to drive the sector to a price of $57.6 billion by the finish of 2010. Motorists of development involve rising figures of People in america in the office, which lessens the sum of time invested on making ready meals at home. In 2010, the United States rapidly food items sector is forecast to have a price of $57.6 billion, an increase of 12.1% due to the fact 2005.

Forecast Quantity

In 2010, the United States rapidly food items sector is forecast to have a volume of 37 billion transactions (Figure 1). This signifies an increase of 5.3% due to the fact 2005. The CAGR of the sector volume in the period of time 2005-2010 is predicted to be 1%.

Accomplishment Factors

Accomplishment factors for rapidly food items franchisees will involve goods and marketing targeted to healthier menu choices, brand consistency, minimal start-up expenditures, franchisee assist, and purchaser usefulness. Subway ® signifies a poignant example of a rapidly food items franchisee prepared for achievement in the foreseeable future rapidly food items sector. Their approaches transcend the rapidly food items sector and utilize to many other marketplaces and goods.
SWOT Examination

Subway sandwich outlets are effectively positioned to leverage their strengths and tackle affordable threats, weaknesses, and chances. The desk underneath highlights these Strengths, Weaknesses, Prospects, and Threats.


  • Dimensions and amount merchants and channels
  • Menu reflects desire for fresh new, wholesome and rapidly.
  • Use of non-standard channels.
  • Partnering with the American Heart Association.
  • Globally brand recognition.
  • Customizable menu choices.
  • Very low franchisee start up expenditures.
  • Franchisee teaching is structured, transient and created to guarantee fast start-up and achievement.


  • Décor is out-of-date.
  • Some franchisees are unsatisfied.
  • Company shipping and delivery is inconsistent from retailer to retailer.
  • Employee turnover is higher.
  • No command about franchise saturation in presented sector regions.


  • Proceed to Mature Worldwide Business enterprise.
  • Update décor to encourage additional dine-in small business.
  • Make improvements to Buyer Company Product.
  • Proceed to increase channel chances to involve occasion wagons.
  • Make improvements to franchisee relations.
  • Experiment with drive-by small business.
  • Grow packaged dessert choices.
  • Proceed to revise and refresh menu choices.
  • Produce additional partnerships with movie producers and toy manufacturers to endorse new movie releases by children’s menu packaging and co-branding chances.


  • Franchisee unrest or litigation.
  • Food items contamination (spinach).
  • Competitors.
  • Desire Charges.
  • Financial downturn.
  • Sabotage.
  • Regulation Suits.

Aggressive Examination

Subway is not devoid of competitive pressures. Main rivals involve Yum! Models, McDonalds, Wendy’s, and Jack in the Box. Yum! Models are the world’s greatest, with 33,000 dining places in about 100 nations around the world. Four of the firm’s extremely recognizable manufacturers, KFC, Pizza Hut, Extensive John Silver’s and Taco Bell, are worldwide leaders of the Mexican, rooster, pizza, speedy-assistance seafood types. Yum! has a workforce of 272,000 staff and is headquartered in Louisville, Kentucky.

McDonald’s Company (McDonald’s) is the world’s greatest foodservice retailing chain with 31,000 rapidly-food items dining places in 119 nations around the world. The corporation also operates dining places underneath the brand names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates largely in the US and the British isles and is headquartered in Oak Brook, Illinois utilizing 447,000 people today.

Wendy’s Global (Wendy’s) operates three chains of rapidly food items dining places: Wendy’s (the third greatest burger chain in the earth), Tim Horton’s, and Baja Clean. Wendy’s operates about 9700 dining places in 20 nations around the world, has been provided in Fortune magazine’s checklist of top rated 500 US organizations, is headquartered in Dublin, Ohio, and employs about 57,000 people today.

Jack in the Box owns, operates, and franchises Jack in the Box speedy-assistance hamburger dining places and Qdoba Mexican Grill rapidly-informal dining places and is headquartered in San Diego, California.

Focus on Markets

The increase in sales of the sandwiches has been a end result of decreases in purchaser fascination in hamburgers and fries and raises in desire for healthier selections. Profits of sandwiches are growing 15 p.c yearly, outpacing the 3 p.c sales development fee for burgers and steaks.

Present Marketing Application

A new breed of cafe is producing significant gains towards the sector-saturated hamburger establishments. Termed “rapidly-informal,” these dining places are dominated by Mexican chains, and sandwich dining places giving fresh new-baked breads and specialty sandwiches.

Responding to evolving purchaser anticipations for overall health, fresh new, customized-made sandwiches Subway’s marketing program addresses these anticipations by a amount of approaches. The most notable have been the tv commercials showcasing Jared. These commercials emphasize the wholesome factors of a Subway sandwich by highlighting the 245 kilos Jared missing by eating a Subway sandwich diet regime. Subway also marketplaces by a countrywide sponsorship in occasions this sort of as American Heart Association Heart Walks and local occasions this sort of as triathlons, and children’s athletics teams.

The Subway example signifies marketing and merchandise approaches that are vintage illustrations of concentrating on sector desire, purchaser developments, merchandise leveraging, and innovation. The marketing approaches of building apparent brand recognition, brand and merchandise affiliation, and sector requires, have strategically positioned Subway to progress sector share into the near foreseeable future. These marketing approaches are also repeatable basic marketing approaches transcending the rapidly food items sector. Does your marketing strategy bind brand recognition to goods that assist your market’s foreseeable future direction?

Supply by Michael Mccarty

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