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Analysing Profitability of Opening a Subway Sandwiches Franchise in Stockbridge.

Extracts from this document...

Introduction

OCR 2878 Business Studies Coursework Analysing Profitability of Opening a Subway Sandwiches Franchise in Stockbridge Fraser Anderson Contents: Page Section Title 1 - Cover Page 2 - Contents Page 3 1.1 Introduction 5 1.2 Objectives 6 1.3 Research 8 2.0 Secondary Objectives 8 2.1 Competitors 9 2.2 Suppliers 10 2.3 Customers 13 2.4 Brand Image 15 2.5 Finances 19 3.1 Conclusion 20 3.2 Appendix 1.1 Introduction Where is a suitable restaurant that serves fast food and has healthy options in Stockbridge? Currently, there is none of this kind of dining experience. Due to the increase in percentage of people nationwide that are trying to eat a healthier diet and run healthier lifestyle, it seems as though there is a slight niche in the market here. When this niche is contemplated, one restaurant brand immediately springs to mind that would probably best satisfy customers in the area whilst retaining a fair sum of profit is the brand named Subway's Sandwiches. They offer made to order healthy sandwiches with fast service and high quality. This brand is very well known in the United States and is becoming increasingly popular in the United Kingdom. There are many fatty fast food restaurants in the area, such as Franco's and Pizza Hut but no healthy food can be bought in these two places. Subway is a sandwich making restaurant which the sandwiches are highly customizable so is made exactly to the customer's desires. After some browsing the Subway website�, I found that it was a franchise which has many advantages and some disadvantages as well which will be looked at throughout this feasibility study. Stockbridge is a small area with one main street which mainly consists of tertiary sector small retail stores and many housing area around this central street. The retail stores bring consumers into the area with cash to buy goods with and some of this money will be spent on meals while the consumer is out of their home. ...read more.

Middle

Stockbridge is a very affluent area with 3.5 times more people earning �40,000 per annum than the national average. This will mean there is more professionals in the area than in other places. Professionals take their jobs very seriously and do not have long lunch breaks so fast service is very important along with the healthy lifestyle the majority of people now lead. Leisure activities are very popular in the area as people are very active. According to ACORN, they do lots of sports so probably live by the attitude of a healthy body is a healthy mind. One part of having a healthy body is the food they eat, eating at Franco's (an unhealthy restaurant in Stockbridge) would not be a common option for healthy eaters, instead they would probably prefer a healthy sandwich. The results of my survey indicated that most people questioned in my random sample were between the ages of 20 to 39 as shown in the below distribution graph. These ages are also the type of age which most commonly care about their general health, so it is very promising when these are the sorts of people the target market for the sandwich restaurant would be. Most of the people in the survey turned out to live in the area. Each person who answered that they would visit the restaurant if one were to open in Stockbridge and also said they lived in the area may become regular customers due to the ease of being able to reach the restaurant and they also expressed an interest in visiting the store. Repeat customers are vital to the success of a business and make up most of the total number of sales a business will receive. This market seems to have vast amounts of young professionals in it which are the main target market. The healthy choice Subway provides would well suit the healthy attitude that most of the people of Stockbridge seem to live on so therefore there is a fairly high demand for healthy fast-food but there is no supply. ...read more.

Conclusion

City Centre ? Other How would you rate the service and environment inside Subway branches? ? 1 (best) ? 2 ? 3 ? 4 ? 5 (worst) What is your gender? ? Male ? Female What is your age? ? 5-9 ? 10-14 ? 15-19 ? 20-29 ? 30-39 ? 40+ Questionnaire Results: Sample size: 50 people Have you heard of Subway Sandwiches? No: 2% (1) Yes: 98% (49) Have you ever purchased anything from Subway? Yes: 54% (27) No: 46% (23) If you answered NO to the last question, if one branch were to open in Stockbridge would you ever visit it? Yes: 17% (4) No: 83% (19) How often would you visit a Subway branch per month if one were to open in Stockbridge? Would area do you currently live in / closest to? Stockbridge: 23 Pilton: 3 Granton: 1 Inverleith: 11 Blackhall: 0 City Centre: 11 Other: 1 If you have visited a Subway restaurant, how would you rate the service and environment inside Subway branches? What is your gender? Male: 58% (29) Female: 42% (21) What is your age? 5-9: 0 10-14: 1 15-19: 7 20-29: 14 30-39: 20 40+: 9 Other information collected: Property Prices: Stockbridge Average- �154,052 Scotland Average- �82,319 Information from http://www.ros.gov.uk/ ACORN profile: Microwave purchases- Low 2+ Car ownership- High Socio-economic profile- Educated population, nearly 3 times the national level of professionals Attitudes- 60% more likely to be a vegetarian Financial- affluent areas - 3.5 times more people earning �40,000 per annum than national average Leisure- Winter holidays are 73% more popular and long holidays are 2.7 times more popular than national average. Eating out is extremely popular here, particularly in the evenings. All types of cuisine are popular (excluding English). Very active people- do lots of sports and activities. Food and Drink- consumption of meat products is well below national average. Most popular grocery products are ground coffee, dog food, mineral water, fresh fish and fresh fruit. People- 448,624 people in Edinburgh. 47.6% of people are 20-49 years old. 6,954 young pros in Stockbridge. � http://www.subway.com/ � http://www.entrepreneur.com/franchise500 Fraser Anderson Business Studies Coursework 2 ...read more.

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