Subway Franchise

Authors Avatar

Introduction

Fred Deluca, a seventeen-year-old college freshman, and a family friend Doctor Peter Buck founded subway Franchise in 1965.  The first restaurant opened on August 28th 1965.  The first franchised Subway unit opened in 1974 in Wallingford.  Subways target market is for adults between the ages of eighteen and forty-nine who eat quick meals and are looking for good tasting options.  Subway is a private limited company and is not traded on the stock exchange.  Subways main competitors are other fast food services such as KFC, Mc Donald’s and Burger King.

How the Franchise has grown over the years

Subway Franchise was established in 1965 and since then has become increasingly popular.  Subway has chains all over the world and is continuing to grow.  Chains have recently been established in several towns and cities in Britain.  In Northern Ireland, for example, Subway stores have recently opened in Portadown, Londonderry, Ballymena, Belfast and Lisburn.

Advantages of Subway Franchise to the franchisee

  • It enables entrepreneurs to have an opportunity to provide a known product from an established brand.
  • The business which you are starting already has a good reputation and strong brand name therefore you don’t have to start from scratch.  This means the chance of failure is reduced.
  • The Franchisor of the business helps you with the setting up, marketing etc of the business.
  • You will be seen as less of a risk running a well-known franchise therefore more likely to be lent loans from the back etc.
  • The franchisor might advertise and promote the product nationally.
  • Services such as training and administration may be carried out by the franchisor.

Disadvantages of Subway Franchise to the franchisee

  • You must pay money to the franchisor out of your profits known as a royalty payment.
  • You have to decorate the way the franchisor wants you to.

Advantages of Subway Franchise to the Franchisor

  • They get paid royalty payment from the franchisee even if a loss is made by the franchisee and they don’t have to do any work for this payment.
  • The market share for Subway Franchise is constantly increasing.
  • Risks and uncertainties are shared among the franchisee and franchisor.

Disadvantages of Subway Franchise to the Franchisor

  • If you give permission to someone to open a franchise and they have poor management qualities, marketing skills etc they may ruin the reputation of the whole franchise, not just the one business.

 

Interesting facts of the Subway Franchise

  • There are more than 21,000 franchises in 75 countries, these employ more than 150,000 people.

  • The most popular subway sandwiches are tuna and turkey although it varies depending on the season, as does the actual demand for Subways service.

  • There are nearly two million different sandwich combinations on the menu.

  • The chain serves approximately 7,900 sandwiches every sixty seconds.

  • If you place all of the sandwiches made by subway in one year, end to end, they would wrap around the world six times.

I have chosen this business as this is where I am employed as part time staff, I really enjoy working there as the environment is very nice and friendly.  When I started there I was not interviewed, just simply told to start work, I found this very unprofessional.  A fellow worker trained me for all of about ten minutes, I was just told the absolute basics.  It was in time that I picked up the rest of the work involved.  This is why I feel that this business is perfect for me to base my coursework on as I can definitely recommend improvements on their recruitment, selection, training and appraisal methods.

Recruitment

The purpose of recruitment is to obtain and retain the best employees to meet the needs of the organisation.

The process of recruitment begins with a decision to recruit an employee for a new vacancy or to replace an employee who has left, been promoted or been transferred.

Job analysis is the process of examining a job in order to identify its key requirements.

Job analysis should include:

  • The activities and tasks that have to be preformed in the job.
  • The skills and qualities that an employee needs in order to be able to perform these activities and tasks.
  • The ways in which an employee can require these skills.

Job analysis is quite difficult as it can be a slow process, also employees, when asked to describe a job may leave out important parts of it because they take them for granted.

Once a job analysis has been completed, the business can turn to the writing of the job description and person specification.

A job description is a broad statement of the purpose, duties and responsibilities of the job.

Join now!

A job description is sent out to those who make enquiries about applying for the job to help them see if they are suitable for it.

These usually include:

  • The title of the job.
  • Part time/Full time.
  • The role and duties of the employees.
  • To whom and for whom the employee is responsible, if anyone.
  • The working conditions of the job.
  • Criteria for measuring performance.

Advantages of a job description

  • It allows the firm to tell the candidate for a job what is expected of them.
  • It also helps personnel officers to ...

This is a preview of the whole essay