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BOHOL
WISDOM
SCHOOL

“A FEASIBILITY STUDY ON
SUBWAY FRANCHISE
AT PANGLAO, BOHOL”

Members: 12-ABM

Bulambot , Trixie Mae

Decasa , Adzen Lane
Diez , Chestar Jay
Hontanosas , Maria Zandra Genieve
Paigan , Aleona Alexandra
Salado , Nathaniel Simon
Timcang , Glee Helani

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Situation Analysis
According to Statista.com, Subway is currently the market leader and the world’s
largest in the sub and sandwich shops market and franchise offering a healthier
alternative to just any normal fastfood. The annual sales exceed to 6.3 billion, and many
awards and recognition has been bestowed on the chain. The subway has more than
28,000 units worldwide and there is no franchise of this chain here in Bohol, and
probably now is the time to build such since Bohol is a growing province.
Subway effectively competes with all other fast fastfood chains that are in a fast
casual segment of the market. Including healthier meals into the menu and giving much
attention to obesity and diabetes has been and will be continued to be supported by the
consumer’s choice of fastfood.
It is seen that Subway is maintaining its core menu consisting of sandwiches with
the touch of some kind of cultural and religious segment. So that travelers from around
the world can expect same good quality regardless of what country they are visiting.
Knowing that there is a new International Airport being constructed on Panglao Island,
Bohol Province in Central Philippines and has been built on an area of more than that of
the Tagbilaran Airport and can handle 1.7M passengers a year according to airport-
technology.com. With that said, it is very suitable to have a franchise of Subway inside
the newly built airport.
Subway offers submarine sandwiches as their core product besides it, the
franchise also sells salad, wraps, cookies muffins and doughnuts. According to the study
conducted by Sardana (2016), the chain has also become the first choice for consumers
who prefer quick and nutritious food. Since travelers most likely orders easy to order
food, the chain is suitable for them most especially that people now are training
themselves to eat healthy.
This will indeed be a good business not only because it is new to all Boholano but
also because it is well-known worldwide and has proven itself to be very marketable
across the globe no matter what country you are from. The fact that there are 1.7M
passengers a year, it can be assumed that most of the travelers will try to order from the
chain.

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THE COMPANY

History: (source: subway.com)

Subway began in August 1965 as a partnership between Fred DeLuca, a 17-year-
old who needed money for college, and Peter Buck, a family friend with a Ph.D. in
physics. Buck loaned DeLuca $1,000 to open a takeout restaurant in Bridgeport,
Connecticut. The restaurant was called “Pete’s Super Submarines” because submarine
sandwiches were the menu specialty.
In 1966 DeLuca and Buck incorporated a company called Doctor’s Associates.
DeLuca later identified the doctor as Buck and the associate as himself. A second store
was opened in 1966, and two years later the restaurant name was changed to Subway.
After an expansion to 16 owned-and-operated outlets, the first franchised restaurants
opened in 1974. By 1982 the company was claiming to be the largest “sub chain” in the
United States. The first stores outside the United States opened in Bahrain in 1984. In the
second decade of the 21st century, there were more than 40,000 Subway restaurants
worldwide. By then, all stores were owned by franchisees. DeLuca died in September
2015, after which day-to-day control of the company passed to his sister, Suzanne Greco.
The company remained privately held. To begin with an introduction of business, we will
be franchising a fast food chain that is suitable for the airport customers, we came up
with the decision of franchising Subway Sandwiches.
All subway outlets has a general mission, vision and goals and are required to
uphold the following:

MISSION
Delight every customer, so they want to tell their friends--- with great value
through fresh, delicious, made to order sandwiches, and an exceptional experience.

VISION
Be the #1 Quick Service Restaurant (QSR) franchise in the world, while
delivering fresh, delicious sandwiches and an exceptional experience.

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GOAL
Our goal is to be ranked the number 1 Quick Service Restaurant (QSR)
worldwide while maintaining the great-tasting freshness of our products that is our
trademark.
Since every consumer in different places have different preferences, our outlet
came up with our own mission, vision and goals to make sure that we can provide and
satisfy the needs of our target market. These are the mission, vision and goals we came
up with:
MISSION
Provide the best tasting, made to order sandwiches for the satisfaction of
customers in Panglao International Airport. Making sure that we maintain the quality of
all our products regardless of the price.
VISION
To be the best-selling fastfood in Panglao International Airport, while delivering
high-quality and luscious sandwiches.
GOAL
Our goal is to be the #1 Quick Service Restaurant (QSR) in Panglao International
Airport delivering fresh and delicious yet affordable sandwiches.

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THE PRODUCT
SUBWAY PH

Subway serves decent food at a decent price. It is definitely one of the healthier choices
when it comes to fast food. There are over 35,000 subway restaurants in over 100 countries
worldwide. Subway has quickly gained popularity with the rise of healthy-conscious consumers
of the 21st century.
Subway offers a menu whatever you’re in a mood for, Subway has a wide variety of subs,
and sides to choose from. Every one of our Subs is made fresh in front of you, exactly the way
you want it.
Below is a list of the products that are loved by a lot of customers:
FEATURED PRODUCTS of the Core Menu

 Chipotle Southwest Steak and Cheese - Php 125.00

- Saddle up with this delicious tomato basil wrap jam-packed with a double
portion of steak and topped with your favorite tex-mex flavors like Monterey
cheddar, guacamole, jalapeños, lettuce, tomatoes, red onions, green peppers and
Chipotle Southwest sauce.

 Turkey, Bacon, and Guacamole - Php 125.00

-The name says it all. A delicious Tomato Basil wrap filled with a double portion
of turkey breast and smoky applewood bacon topped with Provolone cheese,
guacamole, lettuce, tomatoes, red onions, and Ranch.

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 Savory Rotisserie-Style Chicken Ceasar - Php 125.00

-Who can resist the classic combination of a delicious Spinach wrap filled with a
double portion of tender Rotisserie-Style chicken with seasoning and marinade
topped with Monterey Cheddar, Parmesan cheese, lettuce, tomatoes and Savory
Caesar sauce? It’s fit for an emperor.

ALL SANDWICHES

 BLT - Php 90.00

The sub that proves great things comes in threes. In this case, those three things
happen to be crispy bacon, lettuce and juicy tomato.

 Ham – Php 90.00

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-Our Ham sandwich is a joyous marriage of savoury sliced ham that goes best
with SUBWAY® restaurant’s exclusive Honey Mustard Sauce and your choice of
crisp vegetables.

 Sliced Chicken –Php 90.00

-Lean and tender, gourmet style sliced chicken breast with your choice of
vegetables and condiments served on freshly baked bread.

 Sliced Chicken & Ham –Php 90.00

-With a sandwich this hearty you won't know you're healthy. Delicious sliced
chicken breast and ham with your choice of vegetables and fat-free condiments—
served on freshly baked bread.

SALADS
(Everything but the bread! Turn any one of your favorite sandwiches into a salad. Add
crunch to your meal with chopped lettuce, red onions, tomatoes, cucumbers and much
more!)
 Ham

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Php 85.00

 BLT

Php 85.00

 Chicken Teriyaki

Php 85.00

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SIDES, DRINKS & EXTRAS

As delicious as our sandwiches are, they are even better when paired with the perfect side
and drink or even adding a little something extra. With such a variety to choose from,
there's truly something for every taste.
 Chips

 Cookies

 Drinks

 Coffee/Tea

 Hashbrowns
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Service Description
The Subway Sandwich staffs greets and serves guests, prepares food,
maintains food safety and sanitation standards, and handles or processes light
paperwork. Exceptional customer service is a major component of this position.
Prepares food neatly, accurately and in a timely manner.
We will demonstrate a complete understanding of menu items and
explains it to guests accurately. Exhibit a cheerful and helpful manner when
dealing with guests. Check products in sandwich unit area and restocks items to
ensure a sufficient supply throughout the shift. Clean as directed. Greet guests and
prepares their orders, uses Point of Sale system/cash register to record their order,
collects payment from guests and makes change. Understand and adhere to all
quality standards, formulas and procedures. Understand and adhere to proper food
handling, safety and sanitization standards while preparing food, servicing food
and clean up. Maintain professional appearance and grooming standards as
outlined in the Operations Manual.
Since Subway Sandwich is known to be a quick service restaurant, we
won’t let our customers wait for too long especially to those who stops by the
shop to order despite the rush in catching up a flight. We will make sure we
prepare enough stocks for every offering in our menu to avoid hassle.
Pay as you order is one policy we will follow for faster accommodation of
the customers. We will also practice the CLAYGO or clean as you go to train our
customers to be responsible with their own wastes.
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Table of Organization

OWNERS

Aleona Paigan
General Manager

Glee Timcang Trixie Bulambot Adzen Decasa

Finance & Accounting Kitchen Supervisor
Service Supervisor
Supervisor

Chester Diez Trinidad Ngujo Zan Hontanosas

Cashier 1 Waiter/Waitress 1 Head Cook

Simon Salado Berta Cortez Juan dela Cruz

Cashier 2 Waiter/Waitress 2 Cook

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PERSONEL REQUIREMENT

 GENERAL MANAGER
 They oversee local managers and their employees, as well as a local office
of employees. General managers set policies, operations, create and
maintain budgets, and coordinate with local management in the company
to evaluate employees, company performance and efficiencies.

Education Attainment:
 Should be a college graduate in management stream.
 Additional studies in the form of diplomas and courses in business and
management stream are required.

Skills:
 Leadership Skills: She will have to keep your employees motivated,
resolve conflicts and make hard decisions for your employees.
 Time Management: She will be working with employees, customers and
management. Time management is essential to make sure everything gets
done.
 Analytical Skills: She will be in charge of overseeing the hiring of new
employees and being a good judge of character will help ensure that you
hire the right people to maintain an efficient and motivated team. You will
also need analytical skills to be able to solve problems that may come up
during a typical work day.
 Decision-Making Skills: Whether it is dealing with employees,
customers, top executives or vendors, she will have to make decisions that
affect the company.

 FINANCE & ACCOUNTING SUPERVISOR

 They manage and oversee the daily operations of the accounting
department. They monitor and analyze accounting data and produce
financial reports or statements. They establish and enforce proper
accounting methods, policies and principles.

Educational Attainment:
 Bachelor’s Degree in Accounting or Finance required (Master’s degree
preferred).
 3.5+ years’ experience as a certified public accountant.
 5+ years’ experience in an accounting leadership role.

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Skills:
 Math and Budgeting: Finance and Accounting Supervisors are expected
to create, keep and maintain a budget, as well as make projections based
on previous expenditures. She will need to be confident in using math
skills to make sure you know where your company's money is going.
 Analytical - Professionals must read, compare, and interpret figures and
data. For example, accountants might work to minimize a client’s tax
liability by looking at their finances. Auditors might analyze data to find
instances of people misusing funds. Being able to analyze numbers and
figures in documents is a critical skill for all accounting jobs.
 Communication/Interpersonal - She has to be able to communicate with
other departments, colleagues, and clients. She might have to
communicate in person, via email, or over the phone.
 Information Technology - Accounting jobs often require knowledge of a
variety of computer programs and systems. Having a grasp of IT related to
the accounting field will put her ahead of the job competition.

 CASHIER
 They manage cash and sales transactions in dining facilities. Their
responsibilities include promoting services, improving customer
satisfaction, answering to inquiries, reporting to the restaurant's manager,
and greeting customers.

Educational Attainment:
 Should be a college or high school graduate.

Skills:
 Math Skills - A cashier is the point of contact for customers who are
purchasing items, and he or she is responsible for ringing up items and
bagging them. The cashier also handles tender and provides customer
receipts using a cash register or till. Cashiers may also handle returns or
exchanges.

 SERVICE SUPERVISOR
 They maintain and enhance customer services by organizing and
evaluating service and delivery systems and procedures; supervising staff.

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Educational Attainment:
 Should have a bachelor's or associate degree in business.
Skills:
 Customer-service skills –She must be courteous and attentive when
dealing with patrons. Satisfying customers’ dining needs is critical for
success and ensures customer loyalty.
 Leadership skills – She must establish good working relationships to
ensure a productive work environment. This may involve motivating
workers, resolving conflicts, or actively listening to complaints or
criticism from customers.
 Organizational skills - She keeps track of many different schedules,
budgets, and people. This becomes more complex as the size of the
restaurant or food service facility increases.

 WAITER/WAITRESS
 Most waiters and waitresses, also called servers, work in full-service
restaurants. They greet customers, take food orders, bring food and drinks
to the tables and take payment.

Education Attainment:
 No formal education is required.

Skills:
 Communication skills - She must listen carefully to customers' specific
requests, ask questions, and relay the information to the kitchen staff, so
that orders are prepared to the customers' satisfaction.
 Customer-service skills – She must spend most of her work time serving
customers. She should be friendly and polite and be able to develop a
rapport with customers.
 Physical stamina and strength. She must spend hours on her feet
carrying trays, dishes, and drinks. She needs to be able to lift and carry
trays.

 KITCHEN SUPERVISOR
 They supervise and coordinates activities of food preparation, kitchen,
pantry, and storeroom personnel and purchases or requisitions foodstuffs
and kitchen supplies. They also plan or participate in planning menus,
preparing and apportioning foods, and utilizing food surpluses and
leftovers.

Education Attainment:

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 Should have a high school diploma, and;

 Studied two years in a culinary college.

Skills:
 Ability to Multitask - Since any restaurant kitchen will always have
multiple things happening inside it at the same time, she must be a great
multi-tasker who aren’t easily flustered or confused.
 Communication Skills - Without superb communication skills, she would
be unable to train staff, correct mistakes, keep tabs on kitchen activities,
ensure quality or adequately perform just about any other aspect of their
job.
 Cooking - Unlike a General Manager, she is directly involved in food
preparation. Because of this, employers require Kitchen Supervisors to
have cooking experience, be able to follow recipes and know how to
prepare various types of food.

 HEAD COOK
 The head cooks oversee the daily food preparation in the restaurant. She
direct kitchen staff and handle food-related concerns.

Education Attainment:
 A graduate in culinary arts school or a 4-year college.

Skills:
 Communication skills - Because the pace in the kitchen can be hectic
during peak dining hours, she must be able to communicate customers’
orders clearly and effectively to staff.
 Dexterity - She needs excellent manual dexterity, including proper knife
techniques for cutting, chopping, and dicing.
 Leadership skills - She must have the ability to motivate kitchen staff and
develop constructive and cooperative working relationships with them.
 Sense of taste and smell - She must have a keen sense of taste and smell,
to inspect food quality and to design meals that your customers enjoy.
 Time-management skills - She must posses efficient time management
skills. She must ensure that meals are prepared and that customers are
served on time, especially during busy hours.

 COOK
 Besides his primary responsibility of preparing food for a restaurant, he
often prepare ingredients, ensure cleanliness of their working area, and
keep the restaurant stocked with necessary cooking supplies.

Educational Attainment:

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 Should have a high school diploma or

 Associate and bachelor's degree.

Skills:
 Culinary Expertise - The most important hard skill on this position is the
ability to cook, as well as knowledge of the kitchen. This broad skill
includes a variety of smaller skills, including knife skills and tasting skills.
He cooks precisely and efficiently. He is also good in recognizing flavors
and judging the balance of seasonings.

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LEGALITIES
On 17 November 2010, the Department of Trade and Industry (DTI) released a
non-binding advisory under Bureau Order No. 10-24 Series of 2010 (Advisory on Due
Diligence to be Undertaken by a Prospective Franchisee). This Advisory defines a
franchise agreement as a written contract or agreement between two or more parties by
which a franchisor grants the franchisee the right to engage in the business of offering,
selling, or distributing goods or services under a marketing plan, system or concept, for a
certain consideration. Unless otherwise provided, this right includes the use of a trade
mark, service mark, trade name/business name, know-how, logo-type advertising, or
other commercial symbols associated with a particular business.
There are no specific laws governing franchising in the Philippines. Franchise agreements
are regulated by the applicable provisions of the:

 Intellectual Property Code (IPC).

 Civil Code.
 Corporation Code.
 Relevant special laws.

IPC

 Sections 87 and 88 of the IPC list prohibited and mandatory provisions of

technology transfer agreements, including franchise agreements. Failure to
conform to these provisions (that is, the inclusion of prohibited provisions or the
exclusion of mandatory provisions in a franchise agreement) will render the
agreement unenforceable. Sections 87 and 88 of the IPC are intended to prevent
unfair competition and trade. The prohibited provisions are deemed prima facie to
have an adverse effect on competition and trade.

Civil Code

 The Civil Code contains the general law on contracts and human relations.
Franchise agreements are considered to be ordinary contracts. Therefore,
franchise agreements are subject to the general provisions of the Civil Code
governing obligations and contracts. For example, when offering a franchise, a
franchisor must observe honesty and good faith. Additionally, offers are only
deemed accepted if they are accepted unconditionally. Contracts between a
franchisor and franchisee are also subject to the rules on interpretation of
contracts.
 Actions for remedies for breach, damages or recovery relating to franchise
agreements are treated as regular civil actions.

Corporation Code

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 The Corporation Code sets out the requirements for registering a business in the
Philippines. Before it can conduct trade or business in the Philippines, a foreign
corporation must apply to the Securities and Exchange Commission (SEC) for a
licence to transact business in the Philippines.
A foreign corporation that intends to conduct franchising operations in the Philippines
has the following options:

 Enter into a franchising agreement with an existing local entity.

 Establish an entirely new corporation under Philippine laws.
 Register a branch office with the SEC.

The third option is only available to corporations from countries that provide reciprocal
treatment to Filipinos for doing business in their country.

Special laws

There are a few special laws that affect franchising, as follows:

 While foreign corporations are generally governed in the same manner as
domestic corporations, the Retail Trade and Liberalisation Act prevents them
from owning or wholly owning a business below a certain amount of paid-up

capital.
 The Foreign Investment Negative List and Foreign Investments Act set out
restrictions and prohibitions on foreign investors in relation to the sectors they can
invest in and how much they can invest.
 The Philippine Competition Act prohibits:
o anti-competitive agreements; and
o one or more entities from abusing their dominant position by engaging in
conduct that would substantially prevent, restrict or lessen competition.

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MARKET STUDY

Macroenvironmental Analysis

With the generally growing and betterment of economic condition of the

Philippines projected into the future, the municipality of Panglao can capitalize on its
inherent economic advantages. These include a well-endowed natural resource and a
generally accommodating business environment. There is a rich and diverse cultural
heritage in the general area of Bohol exemplified in traditions. Bohol has 18 world-class
diving havens, rich marine resources and a variety of beaches, waterfalls, springs, caves,
hills and exotic islands supported by a number of accommodation facilities which attracts
tourist and increase in number. Whether these resources can be harnessed to sustain
economic growth is a function of political will and continued confidence in the economy.

Panglao Island is located southwest of Bohol and east of Cebu. Panglao Island is
divided into 2 municipalities: Dauis and Panglao. This island has gained a reputation as
one of the choicest destinations in the Philippines. Renowned and celebrated for its
stunning coral reefs, dive spots and a manifold of islets fitting for sun worshippers. The
serene ambiance of the island as well as its proximity to world famous sites make this
island an impeccable must-see tourist spot. Thus, leading to the idea of building an
International Airport

Panglao at a glance
Population (2015): 33553
Population (2010): 28603
Population (2000): 21337
Number of households (2000): 3890
Land area: 5537 ha
Number of barangays: 10
Distance from Tagbilaran: 18 km

Baranga Populatio Household Populatio Populatio

y n (2000) s (2000) n (2010) n (2015)
Bil-isan 2296 411 3050 3649
Bolod 1304 232 1690 1906
Danao 2635 506 3860 4935
Doljo 2483 413 3004 3417
Libaong 1161 242 1842 2132
Looc 1765 334 2282 2543
Lourdes 816 158 1387 1544

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Poblacio 3870 716 4831 5305

n
Tangnan 2582 459 3324 3645
Tawala 2425 419 3333 4477

(Based on figures from the census of 2000, 2010, and 2015 from PSA)

Above is the population of Panglao of 2015 by Philippine Statistics Authority

(PSA).

Dauis at a glance
Population (2015): 45663
Population (2010): 39448
Population (2000): 26415
Number of households (2000): 2669
Land area: 4288 ha
Number of barangays: 12
Distance from Tagbilaran: 3 km

Barangay Populatio Household Populatio Populatio

n (2000) s (2000) n (2010) n (2015)
Biking 2615 315 3334 3428 Above is
the Bingag 1460 107 3887 4436
Catarman 3318 285 4373 4749
Dao 891 183 1331 1514
Mariveles 2033 139 3216 3664
Mayacabac 2530 233 3469 3934
Poblacion 2297 287 2672 3074
San Isidro 956 58 1238 1330
(Canlongo
n)
Songculan 3000 359 3870 4375
Tabalong 2064 275 4410 5375
Tinago 1625 195 2169 2753
Totolan 3626 233 5479 7031

population of Dauis of 2015 by Philippine Statistics Authority (PSA).

The Municipality of Panglao, is a 4th class municipality in

the province of Bohol, Philippines. According to the 2015 census, it has a population of
33,553 people. There are also major establishments existing in the municipality like
resort and hotels specifically, Hennan Resort Panglao, Eskaya, Alona, Be Grand Resort,
Bluewater Resort and many more. Though Panglao is a progressing municipality, it is
only classified as a 4th Class in the Income Classification of Municipality and City year
2008. The municipality’s estimated income is between 160-240 million pesos. It may not

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be a lot because the basis here is the people living in the municipality but for the fact that
many tourist visits Panglao daily, it means that more people in town who can afford to
buy stuff especially from our business. In addition to the probable customers from Dauis
and Panglao are the expected 1.7 million passengers per year that the airport is expected
to handle which could be very suitable for a new food business to be built inside the
newly built airport.

We all know that Filipino people are hospitable, especially us Boholanos. it is just
right to welcome our tourist with delicious food and sumptuous meals. Believe it when
we say that Subway is a good comfort food for various types of tourist. For Subway
sandwiches and salads are fresh and tasty all the time! They prefer to eat what is easy to
buy and fast to have and would not at all trouble them with time. That is why, we
decided to franchise Subway and build an outlet inside the Pangalao International
Airport.
Panglao Island is a progressing place since the building of the new Panglao
International Airport. Thus, building a business there won’t be a regret. And franchising
Subway that will be located in the Airport is also a wise decision. Below are the
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of our franchise of
Subway.

Strengths Weaknesses

Food is a necessary need after all. It is the The existence of competitors in the airport
number one need according to the that provides the same service as us.
Maslow’s Hierarchy of Needs and if it is a The products and their respective prices
primary need, then the demand must be are close to what the competitors offer.
high. The services offered are difficult to
The location of the business is in the differentiate from competitors. Just like
airport. It is where almost all people are in other fast food chain, it offers either dine
a hurry therefore a quick service which our in or take-out and quick orders.
company provides is essential.
Subway is known for its popular
sandwiches. Thus, its popularity can attract
customers.
The service provided by the company will
be quick since most of the customers are in
a rush.

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Opportunities Threats

Subway will be the first and only sandwich People of the place are not used to eat our
fast food chain to be established in the product for their daily meal.
island of Panglao. Customers might get bored of our product
The target market are known to be since it is only sandwiches and salad.
financially well-off. Since subway belongs to the food industry,
Increasing number of visitors because of there are a lot of substitutes that are
the new international airport. available
Very well recognized brand of sandwiches
food chain through out the whole world.
Provides the most mouth-watering
sandwiches that would satisfy a person's
hunger
Increasing demand for quick service

Subway identified Cinnabon, Dunkin’ Doughnuts and Camden Food Co. as direct
competitors. But even though competition between Camden Food Co. is identified,
Subway is confident in dominating the rest of its competitors. According to latest
consumer survey reports online, Subway has been closing in on Camden Food Co. in
terms of preference.
Subway, however, is confident it will maintain its leading position in the years
ahead through innovations and improvement in its products, services, store design and
network expansion, and communications with customers.

Our Subway branch’s immediate targets are both the tourists and locals of Bohol.
For Bohol will welcome more tourists than before because of the opening of Panglao
International Airport. The primary target market of Subway are classified as follows:

 Boholano Teens (ages 11-21 years old both male and female)
o Because of the Subway fast food chain popularity, teens will most likely
grab a taste of what is popular in their generation.
 Tourists of Bohol
o Because of the opening of the Panglao International Airport, tourists will
visit Bohol more often and would be given the chance to taste the most
delicious fast food chain Bohol could offer, Subway.
 Locals from Panglao and Dauis
o Because of the opening of the Panglao International Airport, locals from
Panglao and the neighboring town, Dauis will also be interested in eating
Subway Sandwiches since it’s new and popular and it’s the first and only
Subway Franchise here in Bohol.

Subway makes it sure that the food being served are all tasty and safe. Subway
abide the Republic Act No. 10611 which is an act strengthening the food safety and
regulatory system in the country to protect consumer health and facilitate market
access of local foods and food products, and for other purposes.

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Subway considers the following variables in serving the tourists and locals
of Panglao:

 Price – it must be affordable

 Taste/Quality- it must be worth the money the customer paid
 Fast Quality Service – since it will be located in the Panglao International Airport
and its immediate target market are passengers, it must have a fast quality service
for the immediate target market not to be late in their flights and the other
customer’s time won’t be wasted.
 Food Selection – Subway makes it sure that their customer has a variety of
sandwiches to choose from.
 Availability – Subway makes it sure to always have all its menu to be available
for the convenience of each customer.
 Place – Subway makes it sure that there will be many tables and chairs enough to
accommodate a big number of customers.

Below is the brand positioning of Subway:

Subway Camden Dunkin’ Cinnabon

Food Co. Doughnut
s
Friendly Crew ✓ ✓ ✓ ✓
Fast Service ✓ ✓ ✓ ✓
Affordable Price ✓ ✓
Clean Restrooms ✓ ✓ ✓ ✓
Variety of ✓ ✓
Choices
Healthy Options ✓ ✓
Great Taste ✓ ✓ ✓ ✓

If Subway can guarantee all of those variables, then Subway will be the
number one consideration when talking about where to eat.

Need to eat food in order to satisfy the hunger and survive the day.
NEED Satisfy the hunger after a long day.

To eat at nearby fast food chains

WANT

SUBWAY PANGLAO
Variety of delicious food/sandwiches
DEMAND
 P a g e | 24

Subway is already popular and it has already advertisements in the television, and
even in social media. Because of its popularity, we won’t have to spend a lot in
promoting our branch. But in order to ensure of Subway’s advertisement that our branch
will be well-known, we plan to have an advertisement on the radio, have tarpaulins in
conspicuous strategic locations here in Bohol, and create a Facebook page of the branch
online to let the world know that a Subway branch is available in Panglao International
Airport, Bohol, ensuring there is consistency in customer experience, and make use of the
word of mouth marketing to increase awareness of our existence.

Another marketing strategy of the business is to establish good relationship with the
customers and in order to establish good relationship with the customers, Subway created
some of these rules for their employees to keep in mind.

1. Prioritize the hungry – Always customer first.

As we all know, people who are hungry are angry. In order to avoid conflict with
customers, Subway makes it sure to feed the hungry and serve the menu in a
matter of minutes.
2. Have a sense of teamwork with your workmates.
As we all know, no one is an island. A worker can’t function properly if he is
alone and have no one to help him. Thus, Subway emphasizes teamwork within
its workers.
3. Show the spirit of a true Boholano.
Since Boholanos are known to be hospitable, our employees should act like true
Boholanos and maintain a good relationship with customers by being nice to
them.

The market size of Subway’s market is the approximated population of Panglao

Island (Panglao and Dauis) which is 80,000 (as of 2015) plus the estimated 1.7 million
passengers/tourists of Panglao Intenational Airport. For short, Subway will serve a big
number of costumers and almost all people who are in need of food.

Below are the market trends of Subway. So far, Subway was ranked 2 nd in the
brand/visit share trending as of 2016 in the Philippines. And 3rd in worldwide Top 20 Fast
Food Chain that Rake the Most Money.

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Below is the Tactical Implementation of the different marketing strategy of

Subway:
Tactic Operating Details Timetable
Start constructing the In order for the public to be January 15, 2019
outlet inside the Panglao curious what will be raised
International Airport in the site.
which should also be
visible to the public.
Hire and train personnel Hire personnel who will be July 5, 2019
a great help in the business
and will also build a good
relationship with the
costumers.
Create Facebook Page Create the official August 25, 2019
Facebook page to catch the
attentions of the public
Distribute fliers and post Make and distribute fliers August 30, 2019
tarpaulins and tarpaulins to improve
the publicity of the branch
Have a grand opening The grand opening should September 5, 2019

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really catch the attentions

of the public. The first 50
customers will be given
free sandwiches and
drinks.

Below is the marketing budget of our Subway Franchise outlet:

Expenses Budget for a Year
(In Philippine Peso)
Royalty Fees (3% of sales every month)
Advertising Tools (Facebook page, P240,000
Tarpaulins, Fliers)
Rent (5,000 per month) P60,000
Utilities P1,350,000-P1,480,000

TECHNICAL STUDY
A. Location

The proposed business site will be operated at Panglao, Bohol. Specifically,

inside the new Panglao International Airport. The site will be suitable for building a
branch of Subway because it is inside airport premises. It is not only accessible for the
passengers or tourists but also for the locals.

Below is the aerial view of the proposed location.

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Proposed
location

Below is the nearer view of the proposed location.

Below is the proposed Subway inside the Airport

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A. Materials Requirement

Subway makes it sure to satisfy the needs of its customers. We chose

Marcela Farms to supply us with meats products and Bakels Philippines to supply
us with bread. For we believe that their products are worthy of the money that we
will spend in buying. Marcela Farms Inc. delivers their meat twice a day, and is
freshly sliced already. While their chickens are available in whole or in different
cuts suitable for the different products our company offers. On top of that,
Marcela Farms assured the public that their poultry farms and products remains
100% free of bird flu, and are very safe to eat. Their eggs also comes from three
sizes which are small, medium and large. The other suppliers are presented in the
table below:

Suppliers Product to be Delivery Credit Terms Shipping

supplied Terms Arrangement
Marcela Chicken, meat, Twice a day 50% down Supplier
Farms and eggs payment on Delivery
order
balance
payment on
delivery
Bakels Bread Everyday Cash on Supplier
Philippines Purchase Delivery
Plaza Marcela Oil, Sugar, Everyday Cash on Personal

SUBWAY PANGLAO
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Salt, and other Purchase Transportation

sediments
Island City Tomatoes, Everyday Cash on Personal
Mall Lettuce, Purchase Transportation
Potatoes,
Chips, Coffee,
Tea, Soft
Drinks, Juices

While the equipment needed are the following:

Equipment Needed
Cutters Refrigerator
Food Warmer Pans
Counters Ovens
Deep Fryer Soft Drinks
Dispenser
Holding Cabinets Coffee brewing
and Holders Machines

The following are the kitchen utensils needed:

 Plate/Bowl
 Spoon and Fork
 Knife
 Cups
 Stainless Tables
 Chairs

B. Labor Requirement

Every company wants their business to grow, yet only a few know how to sustain
it for the long-term. Growing a business requires the right intellectual capital, carefully
selected strategic partnerships, products and/or services with strong marketplace demand,
and etc. Without the right people, a business can't grow and it certainly makes it difficult
to sustain momentum over time. Business is about people and without the right people a
business can't grow and mature. In order for these certain right people to stay, the

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company needs to treat them right and give them the recognition they deserve. Their
wages will be evaluated from their performance and attitude towards work.
No. Employee Per Day 15th 30th Total
Salary
1 Owner/Manager Aleona 875.00 13,125.00 13,125.00 26,250.00
Paigan
2 Accountant Glee 850.00 12,750.00 12,750.00 25,500.00
Timcang
3 Service Trixie 500.00 7,500.00 7,500.00 15,000.00
Supervisor Bulambot
4 Kitchen Adzen Lane 400.00 6,000.00 6,000.00 12,000.00
Supervisor Decasa
5 Cashier (day) Chester 350.00 5,250.00 5,250.00 10,500.00
Diez
6 Cashier (Night) Simon 375.00 5,625.00 5,625.00 11,250.00
Salado
7 Waiter (day) Trinidad 300.00 4,500.00 4,500.00 9,000.00
Ngujo
8 Waiter (night) Berta 325.00 4,875.00 4,875.00 9,750.00
Cortez
9 Head Cook Zandra 500.00 7,500.00 7,500.00 15,000.00
Hontanosas
10 Cook (day) Juan dela 375.00 5,625.00 5,625.00 11,250.00
Cruz
TOTAL 4,850.00 72,750.00 72,750.00 145,500.00

C. Transportation/Delivery

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Our franchise of Subway does not offer delivery service since we only
cater to the people in the airport. However, since Subway heavily relies on

fresh ingredients for our products we use trucks to deliver the ingredients to
us.

D. Technology
The following are the other equipment needed.
Technology Description
 Air-Conditioning Unit A system or a machine that treats air in a
defined, usually enclosed area via a
refrigeration cycle in which warm air is
removed and replaced with cooler and more
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 Cash Register
 Emergency Lights
 Sound System
 CCTV cameras
 Telephone with Wi-Fi
 TV/ Digital Menu
Board
humid air.
Electronic device used to calculate financial
transactions
A battery-backed lighting device that switches
on automatically when a building experience
a power outage.
A set of equipment for playing recorded
music, or for an announcement to be heard
inside the store.
A TV system in which signals are not
publicly distributed but are monitored,
primarily for surveillance and security
purposes.
The telephone can be used in communicating
with suppliers or when customers order.
While the Wi-Fi will be used in connecting to
the internet for business purposes.
A screen that shows what is being served or
its shows the menu.

But we will no longer buy the said materials and equipment as the franchise fee of
30-40 million pesos includes the construction of the store, kitchen equipment and
facilities, aircon system, signage, and pre-operating expenses.
The franchise fee does not include the cost of food ingredients, employee salary
and wages, venue lease or rental fee, and other related expenses, all of which are to be
shouldered by the potential franchise owner, Aleona Paigan.
Subway will assist us in the recruitment and training of the management team.
However, the team will be employees of the franchisee and the franchise owner will be
responsible for the salaries and benefits even while on training.

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