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

Wednesday, 11 December 2013

The United States fast aliment bazaar has apparent a advantageous acceleration in beforehand aural the endure three years which forecasts can be sustained. The fast aliment bazaar is anticipation to beforehand its accepted beforehand expectations, with an advancing Compound Annual Beforehand Amount (CAGR) of 2.3% for the five-year aeon 2005-2010. This is accepted to drive the bazaar to a bulk of $57.6 billion by the end of 2010. Drivers of beforehand cover accretion numbers of Americans in the workplace, which reduces the bulk of time spent on advancing commons at home. In 2010, the United States fast aliment bazaar is anticipation to accept a bulk of $57.6 billion, an access of 12.1% back 2005.

Forecast Aggregate

In 2010, the United States fast aliment bazaar is anticipation to accept a aggregate of 37 billion affairs (Figure 1). This represents an access of 5.3% back 2005. The CAGR of the bazaar aggregate in the aeon 2005-2010 is predicted to be 1%.

Success Factors

Success factors for fast aliment franchisees will cover articles and business targeted to convalescent card selections, cast consistency, low start-up costs, franchisee support, and customer convenience. Subway ® represents a agitating archetype of a fast aliment franchisee accessible for success in the approaching fast aliment market. Their strategies transcend the fast aliment bazaar and administer to abounding added markets and products.

SWOT Analysis

Subway sandwich shops are able-bodied positioned to advantage their strengths and abode reasonable threats, weaknesses, and opportunities. The table beneath highlights these Strengths, Weaknesses, Opportunities, and Threats.


  • Size and amount aliment and channels
  • Menu reflects appeal for fresh, advantageous and fast.
  • Use of non-traditional channels.
  • Partnering with the American Heart Association.
  • Worldwide cast recognition.
  • Customizable card offerings.
  • Low franchisee alpha up costs.
  • Franchisee training is structured, abrupt and advised to assure accelerated start-up and success.


  • Décor is outdated.
  • Some franchisees are unhappy.
  • Service supply is inconsistent from abundance to store.
  • Employee about-face is high.
  • No ascendancy over authorization assimilation in accustomed bazaar areas.


  • Continue to Grow All-around Business.
  • Update décor to animate added dine-in business.
  • Improve Customer Service Model.
  • Continue to aggrandize approach opportunities to cover accident wagons.
  • Improve franchisee relations.
  • Experiment with drive-through business.
  • Expand packaged ambrosia offerings.
  • Continue to alter and brace card offerings.
  • Develop added partnerships with cine producers and toy manufacturers to beforehand new cine releases through children's card packaging and co-branding opportunities.


  • Franchisee agitation or litigation.
  • Food contagion (spinach).
  • Competition.
  • Interest Costs.
  • Economic downturn.
  • Sabotage.
  • Law Suits.

Competitive Analysis

Subway is not after aggressive pressures. Chief competitors cover Yum! Brands, McDonalds, Wendy's, and Jack in the Box. Yum! Brands are the world's largest, with 33,000 restaurants in over 100 countries. Four of the company's awful apparent brands, KFC, Pizza Hut, Long John Silver's and Taco Bell, are all-around leaders of the Mexican, chicken, pizza, quick-service seafood categories. Yum! has a workforce of 272,000 advisers and is headquartered in Louisville, Kentucky.

McDonald's Corporation (McDonald's) is the world's better foodservice bartering alternation with 31,000 fast-food restaurants in 119 countries. The aggregation aswell operates restaurants beneath the cast names 'The Boston Market' and 'Chipotle Mexican Grill'. McDonalds operates abundantly in the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people.

Wendy's International (Wendy's) operates three chains of fast aliment restaurants: Wendy's (the third better burger alternation in the world), Tim Horton's, and Baja Fresh. Wendy's operates over 9700 restaurants in 20 countries, has been included in Fortune magazine's account of top 500 US companies, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Jack in the Box owns, operates, and franchises Jack in the Box quick-service hamburger restaurants and Qdoba Mexican Grill fast-casual restaurants and is headquartered in San Diego, California.

Target Markets

The access in sales of the sandwiches has been a aftereffect of decreases in customer absorption in hamburgers and chips and increases in appeal for convalescent options. Sales of sandwiches are growing 15 percent annually, outpacing the 3 percent sales beforehand amount for burgers and steaks.

Current Business Program

A new cast of restaurant is authoritative big assets adjoin the market-saturated hamburger establishments. Termed "fast-casual," these restaurants are bedeviled by Mexican chains, and sandwich restaurants alms fresh-baked breads and specialty sandwiches.

Responding to evolving customer expectations for health, fresh, custom-built sandwiches; Subway's business affairs addresses these expectations through a amount of approaches. The a lot of notable were the television commercials featuring Jared. These commercials accent the advantageous aspects of a Subway sandwich by highlighting the 245 pounds Jared absent by bistro a Subway sandwich diet. Subway aswell markets through a civic advocacy in contest such as American Heart Affiliation Heart Walks and bounded contest such as triathlons, and children's sports teams.

The Subway archetype represents business and artefact strategies that are archetypal examples of absorption on bazaar demand, customer trends, artefact leveraging, and innovation. The business strategies of creating bright cast recognition, cast and artefact association, and bazaar demands, accept strategically positioned Subway to beforehand bazaar allotment into the abreast future. These business strategies are aswell repeatable axiological business strategies acute the fast aliment market. Does your business action bind cast acceptance to articles that abutment your market's approaching direction?