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

The United States rapid meals marketplace has noticed a wholesome upward thrust in expansion throughout the remaining 3 years which forecasts may also be sustained. The rapid meals marketplace is forecast to take care of its present expansion expectancies, with an expected Compound Annual Growth Rate (CAGR) of two.3% for the five-year length 2005-2010. This is predicted to power the marketplace to a price of $57.6 billion through the tip of 2010. Drivers of expansion come with expanding numbers of Americans within the place of business, which reduces the period of time spent on making ready foods at house. In 2010, the United States rapid meals marketplace is forecast to have a price of $57.6 billion, an building up of 12.1% since 2005.

Forecast Volume

In 2010, the United States rapid meals marketplace is forecast to have a quantity of 37 billion transactions (Figure 1). This represents an building up of five.3% since 2005. The CAGR of the marketplace quantity within the length 2005-2010 is expected to be 1%.

Success Factors

Success elements for speedy meals franchisees will come with merchandise and advertising and marketing focused to fitter menu alternatives, logo consistency, low start-up prices, franchisee reinforce, and client comfort. Subway ® represents a poignant instance of a quick meals franchisee able for good fortune one day rapid meals marketplace. Their methods go beyond the quick meals marketplace and observe to many different markets and merchandise.

SWOT Analysis

Subway sandwich retail outlets are neatly situated to leverage their strengths and deal with cheap threats, weaknesses, and alternatives. The desk under highlights those Strengths, Weaknesses, Opportunities, and Threats.


  • Size and quantity retail outlets and channels
  • Menu displays call for for brand new, wholesome and rapid.
  • Use of non-traditional channels.
  • Partnering with the American Heart Association.
  • Worldwide logo reputation.
  • Customizable menu choices.
  • Low franchisee birth up prices.
  • Franchisee coaching is structured, temporary and designed to guarantee speedy start-up and good fortune.


  • Décor is out of date.
  • Some franchisees are unsatisfied.
  • Service supply is inconsistent from retailer to retailer.
  • Employee turnover is prime.
  • No regulate over franchise saturation in given marketplace spaces.


  • Continue to Grow Global Business.
  • Update décor to inspire extra dine-in industry.
  • Improve Customer Service Model.
  • Continue to extend channel alternatives to incorporate tournament wagons.
  • Improve franchisee members of the family.
  • Experiment with drive-through industry.
  • Expand packaged dessert choices.
  • Continue to revise and refresh menu choices.
  • Develop extra partnerships with film manufacturers and toy producers to advertise new film releases via youngsters’s menu packaging and co-branding alternatives.


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

Competitive Analysis

Subway isn’t with out aggressive pressures. Chief competition come with Yum! Brands, McDonalds, Wendy’s, and Jack within the Box. Yum! Brands are the arena’s biggest, with 33,000 eating places in over 100 nations. Four of the corporate’s extremely recognizable manufacturers, KFC, Pizza Hut, Long John Silver’s and Taco Bell, are world leaders of the Mexican, rooster, pizza, quick-service seafood classes. Yum! has a group of workers of 272,000 staff and is headquartered in Louisville, Kentucky.

McDonald’s Corporation (McDonald’s) is the arena’s biggest foodservice retailing chain with 31,000 fast-food eating places in 119 nations. The corporate additionally operates eating places below the logo names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates in large part in america and the United Kingdom and is headquartered in Oak Brook, Illinois using 447,000 folks.

Wendy’s International (Wendy’s) operates 3 chains of rapid meals eating places: Wendy’s (the 3rd biggest burger chain on the planet), Tim Horton’s, and Baja Fresh. Wendy’s operates over 9700 eating places in 20 nations, has been integrated in Fortune mag’s checklist of most sensible 500 US corporations, is headquartered in Dublin, Ohio, and employs about 57,000 folks.

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

Target Markets

The building up in gross sales of the sandwiches has been a results of decreases in client pastime in hamburgers and fries and will increase in call for for fitter choices. Sales of sandwiches are rising 15 % yearly, outpacing the three % gross sales expansion price for burgers and steaks.

Current Marketing Program

A brand new breed of eating place is making large positive factors towards the market-saturated hamburger institutions. Termed “fast-casual,” those eating places are ruled through Mexican chains, and sandwich eating places providing fresh-baked breads and forte sandwiches.

Responding to evolving client expectancies for well being, brand new, customized sandwiches; Subway’s advertising and marketing program addresses those expectancies via a lot of approaches. The maximum notable have been the T.V. ads that includes Jared. These advertisements emphasize the wholesome facets of a Subway sandwich through highlighting the 245 kilos Jared misplaced through consuming a Subway sandwich vitamin. Subway additionally markets via a countrywide sponsorship in occasions corresponding to American Heart Association Heart Walks and native occasions corresponding to triathlons, and youngsters’s sports activities groups.

The Subway instance represents advertising and marketing and product methods which might be vintage examples of specializing in marketplace call for, client developments, product leveraging, and innovation. The advertising and marketing methods of making transparent logo reputation, logo and product affiliation, and marketplace calls for, have strategically situated Subway to advance marketplace percentage into the close to long term. These advertising and marketing methods also are repeatable elementary advertising and marketing methods transcending the quick meals marketplace. Does your business plan bind logo reputation to merchandise that reinforce your marketplace’s long term route?