FACILITY DESIGN

Subway follows a fixed path plan i.e. product layout. This design helps Subway in the
following ways:

1. Operating cost is lowered

2. Operation is handled more effectively.
3. Per unit cost of moving is low
4. Low requirements of labour skills
5. Processing time is shortened

MTO (Made to Order)

 Production is started when the customers have given the order

 Its advantage is that inventory won’t contain any finished goods.
 Recurring production could act as a disadvantage.
 Orders completed on time, quality control methods and time are important factors for
measuring performance.
 Customers can make choices among 22 varieties
 Every sandwich is custom-built according to the customers’ needs.
 The bread used in the sandwich is baked every day. This process acts as a fragrance
for sales increment.
 Variety of sauces and toppings is available that makes sandwiches tastier.
LEAN MANUFACTURING

Subway uses lean philosophy for running their operation activities, removing activities that
are of no value and enhancing the services and quality of products.

 When the customers arrive at a Subway, they see a single counter. To avoid
confusion Subway has signs which show marked in and out. This is done for the free
movement of customers in the restaurant. Sandwich making is completed in an
assembly line. This process includes 3 peoples. Customers move across the assembly
line as soon as one process gets over. 1 st employee looks after the meat, bread and
cheese order. 2nd employee put vegetables on the sandwich. 3rd employee looks after
the payment when the sandwich is finished. During the peak hours, store managers
can assign 1 or 2 more members to assembly to fasten the process. When the
 sandwich is made and the customer arrives at the cash counter, the last employee in
the assembly line put the wrapped sandwich in a packet containing tissue papers.
This “one-piece flow” process reduces overproduction and eliminates defective
orders.
 Subway follows the FIFO strategy to maintain its inventory fresh for a longer
duration. Subway has a pre-filled carton so that in case if any elements run out, they
can refill it. The employee places a newer carton at the back of the inventory. The
sandwich is prepared at the same time when the customer’s order. They have all the
ingredients prepared before opening of the store. Cutting of vegetables, baking bread
and slicing bread are done in advance. These prior arrangements help Subway to
prepare a sandwich of the same size (“12 INCHES or 6 INCHES”) which helps in
controlling inventory.
 Subway adopted the 5S methodology to analyse waste. The Subway workflow
operates smoothly. Sorting of stations, smooth arrangements, functioning related to
meats, salads, etc are done efficiently. Subway has clear view panels that help
customers in choosing the correct ingredients while making a sandwich. Subway has
a “Pay here” sign, choices of bread (“White, Whole-meal, Flat, Bread, etc”), choices
of meats (“Ham, Tuna, Chicken, etc”) and a variety of sauces or salads.
 Customers can select which ingredients to include and which ingredients to leave out
while the employee is making the sandwich. Extra ingredients thar customers add to
their sandwiches cost them an extra amount which is mentioned on the blackboard.
Some customers demand a grilled sandwich then that customer is pulled back. The
sandwich is shifted to the grilling machine and the employee gets busy making other
orders. When the sandwich is grilled, it is passed to the next station for finishing and
after that, it is handed to that pulled back customer.
 At Subway experienced employee trains, new employees. A new employee stands at
a position where the customers and the experienced employee demonstrate all their
operational activities.
 Subway has attached sensors to each counter which emulate amount as sandwich
passes from one counter to another. When the customer has selected the desired
sandwich, its cost is displayed on the screen. This is done to make the process easier.
Different types of veggies, meat and cheese have the different amount which is
already fixed. So that customers have clarity while choosing different ingredients.
SERVICE MARKETING
CUSTOMER RELATIONSHIP MANAGEMENT
Subway has developed an internal division called Digital which helped them building an
omnichannel approach. This digital division made customer experience meaningful and latest
across various channels. This digital division was done to focus on menu strategies, customer
experience and products. Customers’ expectations are enhancing and this digital division
figures out possible technologies from loyalty plans to the backend.

Subway launched the “MyWay Reward Program”. This program changes feature of an older
version and are available on mobile or online. This program helped customers to interact with
Subway more and they saved a lot of money. This reward program is better than all the
loyalty programs of Subway which covered 1/3rd of Subway’s market. Through this program,
Subway provided their customer what they wanted, when they wanted and how they received
it. MyWay program brought more customer interaction. There was an increase of 16% in the
loyalty program of Subway.

Subway has also introduced a self-service booth. It was done to provide a facility to those
customers who don’t want to interact with staff. To find that this method achieved success or
not Subway crosschecked order tickets and found out that customers spend more. Though
from this facility customers bought smaller sandwiches they spent more on add-on
ingredients.

Subway has come up with a card that will look after the customer payment. This card will
provide loyalty rewards point and target promotion which can be easily traced by the
customers. This card includes a 16-digit number that can be used from the point of purchase
to maintaining relationships. This card helped the Subway to trace their customer behaviour
and provide rewards according to it. This card provided information regarding the visit of the
customers. Whether they are visiting once in a week or once in a month. With the help of this
card program, Subway provided compelling discounts that attracted big numbers. Subway
was able to track the behaviour of the customers when the customers register themselves
through their mail-ids on the Subway websites.

SERVICE BLUEPRINT
  Physical Evidence for Subway Restaurant: It can be buildings, sign on the roads,
service area, lobby, menu board, the menu on dinning, product, cups/ liquids, take
away and feedback form.
 Customer experience for Subway Restaurant: A customer-first chooses the
restaurant then that customer goes to the restaurant and decides the order. The
customer customizes the dish by choosing different ingredients. Pay for the order.
Wait till the order arrives. Enjoy the dish and exit from the restaurant. This area
comes under the line of interaction.
 Employee actions of Subway Restaurant (Onstage): The employee at the Subway
looks after the maintenance. They take orders from the customers. They help
customers in deciding their dishes. They arrange ingredients on the sandwich,
assemble it and present food to the customers. This area comes underline of visibility.
 Employee actions of Subway Restaurant (Backstage): It includes housekeeping,
management of cash, taking the order of sandwich, supply stock and maintenance of
ingredients and bread.
 Support Process of Subway Restaurant: It includes supply chain, back-office
systems and maintenance systems.

SERVICESCAPE

 Subway has a basic architecture with “yellow and white” shades. The exterior facility
of the Subway gives freshness look and it is located mainly in shopping malls in food
courts among other outlets.
 The outlet size of Subway is small and they don’t have branding on their glasses.
Even at the windows or door panel Subway don’t have wide ranges of advertisement
as in the case of MacDonald.
 Subway outlets have minimal seating capacity. They don’t have an exclusive bright
light in their store. The green colour in the store depicts freshness. The employee
working in the Subway outlet have a proper uniform. The employee who takes the
order, the same employee prepare the sandwich. The vegetables used in the Subway
outlet coincide with the “Eat Fresh” strategy.
SERVICE GAP (OUR EXPERIENCE)

 When our learning team visited the Subway outlet, we found a nutrition chart and we
concluded that we will have a low-calorie food. But some of the members are looking
for a normal diet so they have a separate counter for “VEG and NON-VEG”. These
separate counters have different preparation counter. This was a tangible cue for us.
 Subway has a decent ambiance. They have good music, the employee was nicely
dressed, the area was clean and hygienic. After watching this we had an “assurance”
that quality food will be delivered to us. If something unusual happens they will
replace the dish from their side which is not the case for many outlets.
 Our learning team when to order the dish. Here we have many “physical evidence”
which helps us to finalize the dish. “Sub of the day” information was available and if
customers need extra information Subway employees were assisting them. After
billing we went to the next counter where we got our customized sandwiches. The
employee was adding different ingredients according to our preferences. After
finishing our sandwiches an employee came and cleaned the table.
 Talking about “tangible cues” the employees were wearing a hair cap and gloves.
They have served fresh plates. The quality of the food was maintained because it was
prepared in front of our eyes only. All products made up of plastic and paper were
recycled. This reduces the “performance gap”. There was no “standard and
specification gap” because they deliver food on time. “Listening gap” doesn’t exist
because they prepared food according to our requirements. Since they were only 2
people and the crowd were there so they have to rush in which “empathy” was not up
to that level but the employees were polite. The employees were quite “responsive”.
As soon as we finish the food, they immediately clean the table.
 If there is a rush in the Subway outlet, they won’t provide you with the time in which
you will receive the order. You have to wait for a long time. There was no television
and magazine to pass time and common sitting arrangements causes a “standard gap”.
CUSTOMER JOURNEY MAP (SURVEY)

Subway has become a fast and available brand. But Subway is losing its emotional value. The
customers visit Subway not very frequently in Lucknow.

 Subway in Lucknow is found only in posh areas. They are not available at every
corner just like other fast-food brands (MacDonald). This unavailability hinders the
sales of Subway. If the Subway offers sandwiches just like MacDonald offers burgers
people will visit Subway more.
 Subway doesn’t have enough sitting arrangements and they lack in social space
which sort of disinterests the customers. They feel uncomfortable while eating.
 Many of the customers believe that Subway provides many varieties in bread, sauce,
etc but few of them feel that they are not getting enough for what they paid. The 6
inches sandwich is quite heavy and expensive. Thus, the size of the sandwich is a
problem for some of the customers.
 Many customers of Subway believe that Subway’s sandwich-making process is too
slow. Customer service is not up to the mark in Lucknow Subway.
 The loyalty program that Subway provides in Lucknow is not better than other fast-
food brands. Even in Lucknow, Subway doesn’t advertise or promote their loyalty
membership as compared to other states.