tesg's guide to big chain road food consumption

CHAIN -- Subway
Owner -- Doctor's Associates
Primary Operating Region -- Nationwide
Number of Locations -- 23,483 in 80 countries (June 2005)

"People were selling them on E-Bay."

That's what the "sandwich artist" said about the discontinuation of the Sub Club cards, where you got a paper card and stamps you saved up for free sandwiches.  Subway has offered this program for years.  

The guy was had part of the store.  Subway claims counterfeiters were duplicating them...and selling the duplicates on E-Bay.  Subway is looking at a new sub club using an electronic system where you get plastic cards that accumulate points in a database, much like Qdoba's Q-Card.  This, of course, would allow Subway to track people individually and collect all sorts of information that could lead to customized promotions designed for specific customers...or maybe even a surprise visit from Jared who just stopped by to say "Couldn't you lay off the mayo at least once a week?"

Sandwich chains have exploded in recent years. Quizno's, Panera Bread, and others are popping up everywhere, and people are flocking. Hamburger chains aren't falling off the edge of the Earth…yet. They're a target for people wanting an alternative, sure. But the chain with the most to lose, easily, is Subway.

That doesn't mean that the nation's largest restaurant chain is in any danger. Subway passed McDonald's in number of domestic locations in 2001, and has subsequently done so in Canada and Australia as well. Subway has added a line of specialty breads, sandwiches, and sauces to their menu. Subway has a new look that is every bit as classy as Panera or Quizno's.  Subway now toasts sandwiches upon request.  Subway continues to grow at an astonishing rate.

Subway claims that its new interior design, called "Tuscany", was inspired by the family heritage of chain co-founder Fred DeLuca.  In 1965, DeLuca, freshly graduated from high school, asked family friend Dr. Peter Buck (a nuclear physicist...get it?  Nuclear subs...submarine sandwiches?  Okay so that's probably not where the idea came from but it's WITTY) if he had advice on how to earn money to go to college.  Buck's response was that DeLuca should open a submarine sandwich shop, and he wrote him a check for $1000 as his part of the investment.  The first Subway was born (as "Pete's Super Submarines"...the "Subway" name debuted with the opening of the fifth store in 1968).  The whole reason for Subway's existence was accomplished in six years...DeLuca got his B.A. in Psychology in 1971.  DeLuca still helms the chain (I was unable to find info on Buck).  Today, Subway's headquarters is pretty much a franchise support center...There are no company-owned Subway's.

Subway is an extremely attractive concept for potential franchisees.  Development costs are relatively cheap, there isn't a lot in the way of cooking, and they serve a fresh product that can be significantly healthier than burgers (depending on what you actually order).  It also helps that a foot-long sub looks very impressive for what you pay.

The chain's advertising really took off with the debut of Jared Fogle, who lost 245 pounds pretty much by switching from a diet of burgers and pizza to a 6-inch Turkey Sub (hold the mayo and cheese) for lunch and a foot-long Veggie Sub for dinner...daily.  The story was first featured in an article in "Men's Health".  Fogle eventually became a paid spokesperson for Subway.  Subway has milked the story for all its worth (even though Subway's own dietician calls the diet "extreme" and suggests skipping breakfast was a bad thing.)  Several follow-up commercials featuring people with similar stories have aired (he's Henry!  Clay Henry!) and Fogle has become something of a celebrity.

The Subway sandwich is served on "Fresh Baked Bread" right in the store.  Sandwiches are made to order assembly-line style, allowing patrons to choose exactly what they want on the sandwich as it is prepared.  Yet the sandwich is distinctively Subway.  You could instantly recognize where it came from on appearance alone, assuming you've actually seen one before.  The chewy bread and generous ingredients make for a sandwich full of flavor.  Have chips or a cookie and a soda with your sandwich.  Subway on a national basis unfortunately hasn't caught on to things like soups or juices (though some local franchisees have) whereas at Quizno's combo meals with soups are encouraged and an extensive line of bottled juices/water/etc and prepared salads are available.

You have to be pretty good to top McDonald's, and there's a reason no other chain has accomplished that task.

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