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Submitted to:

Sir Mirza Shakeel Baig

Submitted by:
Muhammad Adeel Ahmad Khan
Sheikh Bilal Iqbal
The initial concept to be aware of is that SUBWAY Restaurants is a registered trademark
of Doctor’s Associates Inc. (DAI). DAI owns the operational business concept and
trademark of SUBWAY Restaurants. It is the franchisor and seeks to find entrepreneurs,
or franchisees to partner with. The franchisee buys the right to operate the
SUBWAY franchise according to DAI’s contract.

DAI is a privately owned company, located in Milford, Connecticut. Here, at corporate

headquarters, approximately 600 people work to keep SUBWAY Restaurants the number
one sandwich franchise in the world.

Our Mission Statement

"To provide the tools and knowledge to allow entrepreneurs to successfully compete in
the QSR industry worldwide by consistently offering value to consumers through
providing great-tasting food that is good for them and made the way they like it."

Our Core Values and Philosophy

• We are committed to customer satisfaction through offering high quality food

with exceptional service and good value.

• We take great pride in serving each other, our customers and our communities.
• We seek continuous improvement in all that we do.
• We value a sense of urgency and emphasize an innovative, entrepreneurial
approach to business.
• We expect fairness and mutual respect in all our activities.
• We know our success depends upon the initiative we take individually and our
ability to work as a team.
• We are currently having 31 stores in Pakistan.
Competitors of Industry


• Overview of KFC
 Target Market
KFC is targeting urban and sub urban areas of Pakistan
 Market Share
It is having 29% market share in QSR industry.
 Current Products
• Zinger Burger
• Chicken burger
• Rice n spice
• Hot wings etc
 4 P’s
Their all products are different from every product and the packaging and other
products feature are different from other they change their products by
introducing new products but their main product the Kentucky fried chicken is the
The price is not affordable by all persons in Pakistan. Due to its large setup the
price selecting are very challenging for the new product of KFC
They provide free home deliveries for some specific cities. They open their
outlets in those places in the cities where people can buy products easily and
without difficulties. They also introduce mobile units for delivery of their
In Pakistan KFC not advertise their products too much because people KFC due
to its reputation in other countries. They promote their products through special
packages like Ramadan packages, mid night package. They promote their
products through billboard, pamphlets and through other promotion strategies.
Pizza Hut

• Overview of Pizza Hut

 Target Market
Middle and high class family background people are the target market of Pizza
 Market Share
Pizza hut is having 27% market share in QSR industry.
 4 P’s
Large Variety of Taste
e.g. Cheesy Bites, Stuffed Crust, Hand-Tossed, Thin 'N Crispy, Bigfoot
A large number of Market share is with Pizza Hut Only Because of their
High Quality Pizza
Always Round Pizza
Each Variety is grouped on different Tastes.
delivery through Hot Oven in Boxes
• Pizza hut is using Market Skimming Price Strategy.
• Low price for meal and expensive for just one
• Coupons Worldwide and Gift Card in Developed Countries
Charging Method in Pakistan
Price x 16% Tax
e.g. For a Pizza of 999 you will Pay Rs. 1149
Spends approximately Rs 1M-1.2 M on
advertising annually using a Media mix
Advertising through
• Bill Boards
• TV Ads
• News Papers
Personal Selling
• Visit to School & Colleges
Sales Promotion (Discounts)
• Pizza Hut offers annually an "All you can eat" in the Holy month of
• Having 34,000 outlets in 100 Countries
• In Pakistan 38 outlets in 9 Cities
• Sport Arena’s, Major Airports & Shopping Mall
• More accessible to the customer
• Selling through Take In, Dine in, Home Delivery

 Current Products
• Pizza
• Pastas
• Salads
• Garlic Bread etc.
SWOT Analysis of Subway

• Size and number stores and channels

• Menu reflects demand for fresh, healthy and fast.
• Partnering with the American Heart Association.
• Worldwide brand recognition.
• Customizable menu offerings.
• Low franchisee start up costs.
• Franchisee training is structured, brief and designed to assure rapid start-up and


• Décor is outdated.
• Some franchisees are unhappy.
• Service delivery is inconsistent from store to store.
• Employee turnover is high.
• No control over franchise saturation in given market areas.


• Continue to Grow Global Business.

• Update décor to encourage more dine-in business.
• Improve Customer Service Model.
• Improve franchisee relations.
• Expand packaged dessert offerings.
• Continue to revise and refresh menu offerings.
• Develop more partnerships with movie producers and toy manufacturers to
promote new movie releases through children's menu packaging and co-branding


• Competition.
• Interest Costs.
• Economic downturn.
• Law Suits.
Trends of the industry

The fast food industry in Pakistan

The fast food industry is popular in Pakistan. The sources of most of its
innovation and many major international chains are based there. The presence of
multinational fast food chains like Subway, McDonalds, KFC, Pizza Hut etc have
somewhat catered to the high income segment therefore developing a niche as upscale
fast food restaurants. Multinational corporations such as these typically modify their
menus to cater to local Pakistan tastes and most overseas outlets are owned by native
franchisees to ensure that cultural ethnic and community values are taken care of.
Additionally, multinational fast food chains are not the only or even primary source of
fast food in most cities of Pakistan. Many regional and local chains have developed
around the main cities of Pakistan to compete with international chains and provide menu
items that appeal to unique regional tastes and habits at comparatively low costs. In
Pakistan multinational chains are considerably more expensive; they usually are
frequented because they are considered chic and somewhat glamorous and because they
usually are much cleaner than local eateries. How much of the middle income segment
prefers visiting local outlets that offer low cost fast food, hence more frequent visits.

Forecast of industry

Increasing market for fast food- the population boom

Pakistan currently ranked as 6th in terms of total population, so this is a great opportunity
for fast food industry. Almost everywhere you look you’ll see a familiar sign symbolizing
our fast food nation. You find them on the corners of streets, off the side of interstates,
airports, malls, schools, gas stations, your local shopping center, and even in hospitals.
More money is spent on French fries than on higher education, personal computers, or
new cars! Looking at how our society has become faster paced, it is no wonder less time
is spent. Today, eating out definitely is part of our fast paced lifestyle, not just a special
treat as it was in years past. Fast food is mainly targeted to children. The high fat foods
taste good to these youngsters, which in turn make them believe that fast food is quick,
easy and satisfying. Fast food restaurants are now making “value” meals for children that
are increased in portion sizes. Today, fast food has become a fashion, as customers are
not only eating, they are enjoying the environment not adults, children are also fond of
going to the fast food restaurants for celebrating their memorable occasions like
birthdays, results and even get together parties.

Product Line
The main products in which subway is primarily dealing with are
• Subs
• Salads
• Cookies

Size of Business
As per annual turnover of subway is concerned that is Rs 2.5 billion. Cost
evaluation or capital requirements for the franchise are as under.

Targeted Segment
Our target customer is hygienic conscious. The age group of our target
customer lies above 18 years.

• All the material of warehouse is frozen.

• The machines which we use for production are imported from USA.
• Chicken is brought from K&N’s
• Beef is imported from premier foods Saudi Arabia.
• Bread is of Dawn Bread Lahore.
• Sauces (Uniliver) and vegetables are bought locally.
• Proofer from DUKE is used to melt the frozen material.
• Freezer is having -22 degree centigrade temperature which is used to freeze meat
beef and bread etc.
• Cooler is having 1 degree centigrade temperature, and is used to freeze the
• The reason to use the frozen materials is that bacteria are produced in eatables
between the temperatures of 6 – 60 degree centigrade.
• So all the materials are available ready to use. And we have to just assemble this
• And that’s why we are at the top in QSR industry.
• The products which we are producing are 100% Halal & our materials are
certified from Government of Pakistan.

• Our contract of franchise with subway is of ten years by paying a fee of 5000
• Our development office will select property from the list provided by the
• There will be a development organizer and a field consultant; they will handle all
this matter.
• Site evaluation should be done within 8 months.
• If it is not done within the prescribed time then the franchisee will have to pay
5000 USD again (but paying this Sub Way’s development agent will have to
arrange for the site.)
• Our building consists of two floors one of them is for families and party events
and the other one is for our general customers.
• There are two types of outlets in subway
 Main outlet (traditional outlet)
 Satellite (dependent on traditional outlet)
• The whole staff of subway will be trained from head office of subway store which
will helpful in dealing effectively with our respected customers.
• All the stationary is bought from Art Creator Lahore for our daily paper work.
They also publish our menu cards etc.
• We are offering free home and office delivery in all over Multan.

Multi Unit Manager


Assistant Manager

Shift Manager

Senior Sandwich Sandwich Artist

Artist Artist
Manager Manager

Form of Ownership

It is a partnership Business. There are two partners.

 Muhammad Adeel Ahmad Khan

 Sheikh Bilal Iqbal

• Competition.
• Interest Costs.
• Economic downturn.
• Law Suits.

• Subway stores send their WISR (weekly inventory sales report) to the head office.
• Subways week day are from Wednesday to Tuesday.
• Sales, consumption, inventory, expenditure etc are included in WISR.
• Royalty and franchisee advertisement fund are also calculated through WISR.
• Royalty is the payment for using the name of subway.

Jan Feb Mar Apr May Jun

ue 90000 1148000 1322000 1450000 1533000 1615000
CGS -30000 -358000 -422000 -508000 -522000 -595000
G.P. 60000 790000 900000 942000 1011000 1020000

es 140000 140000 140000 140000 140000 140000
es 120000 126000 128000 130000 132000 135000
es 130000 135000 195000 204000 215000 245000
s 10000 9400 11500 14500 12000 15800

Operating Exp -400000 -410400 -474500 -488500 -499000 -535800

EBT 200000 379600 425500 453500 512000 484200

Tax -34000 -64532 -72335 -77095 -87040 -82314

Net Income 166000 315068 353165 376405 424960 401886

ROI= Net Profit / Total investment* 100

2037484/7770000 = 0.26*100

ROI= 26%
200000 Net Income
Jan Feb Mar Apr May Jun

• Shehar Yar (Manager Operation) Subway Multan.