Case Study-1

Submitted To
MD. Asif Hossain
Department of Management
Submission Date: 20.11.2022

Submitted by
1. Nuzhat Tabassum ID: 2221489630
2. Tasnuba Rahman Nura ID: 2212399630
3. Nasum Shakib ID: 2131519630
4. Athina Tabassum Mim ID: 2212883630
5. Piash Halder ID: 2212141030

Contribution

Question number #1
1. Tasnuba Rahman Nura - Subway`s Success
2. Nuzhat Tabassum - Subway`s Downfall

Question number #2
1. Nasum Shakib
2. Athina Tabassum Mim
3. Piash Halder
 Question number 1

Subway is one of the most famous and reputed international fast food chains of the USA. It is the
only chain that has about 42000 restaurant locations in more than 100 countries. The restaurant
was rebranded as Subway in 1968 from its founding name, Pete’s Super Submarines. Some
reason for the success of subway is highlighted below.
 Refined and fresh fast food and its serving which made it seem better and more
preferable prior to any other fast food chains of that time. Live kitchen and customer
preferable items make customized product had great impact in business.
 Subway’s prospering had huge number of franchises around the globe. Its store locations
to reach 13200 in number within eight years along with number of sales peaked up to
about 2.1 billion.
 The brand advertised its healthy yet delicious fast foods with introduce by Jared Fogle
story, high time obesity had become a stressed situation for the Americans.
 Launched “5 dollar foot long subs” for branding its subs newly at the time of recession of
the 2008s. For that reason, the meantime achieved 17% increase in the sales of the USA
with a gross profit of 3.8 billion.

From 2014, Subways` downfall started to begin. In few years subway had to close 1000 stores in
the US and their business has dropped by 25%. The key reasons of this downfall was_
 Other restaurants was bringing more healthier and fresh product every day. When a lot of
Subways` locations was brining fresh product once or twice a week.
 Subways` competitors started to provide healthier options to the consumers. They
innovated their menu according to the wants of the mess. Moreover they tried to attract
new customer along with its old ones. On the other hand subway failed to do so.
 Flexibility of franchising had turned on them. Locations were started to open in every
corner. Those shops were cannibalizing each other’s sales. And very soon it affect
subways` total sales notably.
 In 2015, the face of subway, Jared Fogle, who was embodied subways` “Eat Fresh”
mission was charge of various crimes and sentenced to fifteen and a half years in federal
prison. Though subway cut ties with him, this incident costed heavily.
 Question Number 2

Yes, subway can overcome this current situation and can get back to their previous position of being the
worlds biggest food chain by taking some steps.

Subway is a multinational fast food restaurant they can bounce back cause they are established with a
huge number of customers and has high brand value and it has a good brand recall so brand name can
help them to recover from this situation. Also it is an international brand it has more reach as compared
to other local brands which might help subway to attract consumers in foreign market as well.
Eventually it may increase sales and market share. So, if subway starts focusing on what customers
want and demand, it can quickly bounce back from its current situation.

 Subway need to start focusing on customers want, it can quickly bounce back from its current

situation. Given the poor condition of sales Subway corporates has decided to give franchise owners
$10,000 funds which will cover up to 25% of the costs of upgrading older stores to adopt its Fresh
Forward and redecorate the existing outlets as the design of a restaurant is one of the important factors
that influence customer satisfaction. When Customers enjoy the interior tent to stay in the restaurant
longer, place more order. So If subway want to bounce back they need to think like a customer in terms
of decorating their interior design. Updating menu and bringing new foods. Selling the almost same
types of foods since its beginning and not innovating foods and flavors is one of the major reasons of
their falling. They have to continuously update their menu to survive in that competitive market.

 As Subway is a health brand so it should prioritize the health of their customers. Moreover they

should focus more in the freshness of their personalized sandwiches and other foods by bringing
fresh product everyday as they promised. Furthermore they have to improve there marketing
strategy by being creative. And the price has to be customer friendly which will help to capture the
attention of consumers. Previously they made an effort to enhance the food's flavor which they
should continue.

 One of the way of bounce back from current situation they need to give proper training to
franchise for maintaining the quality. The success of a company can only be achieved through
franchise training. So Subway have to give proper training to franchise for good quality service
to the customers and should serve a high quality product to their customers to maintaining their
 quality. On the other hand Subway have to work on their franchise model. From taking more
monthly profit from the franchises than its competitors, maltreating employees.
 They have to stop false marketing. The Subway slogan “Eat Fresh” implied that Subway foods
were healthier and superior to other fast-food brands. In reality, Subway foods are just as
loaded with cards, salts, sugars, and various other unsavory ingredients. Improving
advertisements. Poor and unethical tactics of advertising brought loss and defame to the
company instead. Investing on advertising will bring back the customers they loss.


If Subway wants to recover, they have to follow all the strategies. They need to expand outlets and
increase outlet sales. Introducing this methods in subway management and in product development
they can still save their future and bounce back from its current situation.