Subway (restaurant)
Overview
 
Subway is an American restaurant franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 that primarily sells submarine sandwich
Submarine sandwich
A submarine sandwich, also known as a sub among other names, is a sandwich that consists of a long roll of Italian or French bread, split lengthwise either into two pieces or opened in a "V" on one side, and filled with various varieties of meat, cheese, vegetables, seasonings, and sauces. The...

es (subs) and salad
Salad
Salad is any of a wide variety of dishes, including vegetable salads; salads of pasta, legumes, eggs, or grains; mixed salads incorporating meat, poultry, or seafood; and fruit salads. They may include a mixture of cold and hot, often including raw vegetables or fruits.Green salads include leaf...

s. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands
Yum! Brands
Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide....

 (35,000 locations).

Subway's main operations office is in Milford, Connecticut
Milford, Connecticut
Milford is a coastal city in southwestern New Haven County, Connecticut, United States, located between Bridgeport and New Haven. The population was 52,759 at the 2010 census...

; five regional centers support Subway's growing international operations.
Encyclopedia
Subway is an American restaurant franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 that primarily sells submarine sandwich
Submarine sandwich
A submarine sandwich, also known as a sub among other names, is a sandwich that consists of a long roll of Italian or French bread, split lengthwise either into two pieces or opened in a "V" on one side, and filled with various varieties of meat, cheese, vegetables, seasonings, and sauces. The...

es (subs) and salad
Salad
Salad is any of a wide variety of dishes, including vegetable salads; salads of pasta, legumes, eggs, or grains; mixed salads incorporating meat, poultry, or seafood; and fruit salads. They may include a mixture of cold and hot, often including raw vegetables or fruits.Green salads include leaf...

s. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands
Yum! Brands
Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide....

 (35,000 locations).

Subway's main operations office is in Milford, Connecticut
Milford, Connecticut
Milford is a coastal city in southwestern New Haven County, Connecticut, United States, located between Bridgeport and New Haven. The population was 52,759 at the 2010 census...

; five regional centers support Subway's growing international operations. The regional offices for European franchises are located in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...

, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

; the Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

 locations are supported from Brisbane
Brisbane
Brisbane is the capital and most populous city in the Australian state of Queensland and the third most populous city in Australia. Brisbane's metropolitan area has a population of over 2 million, and the South East Queensland urban conurbation, centred around Brisbane, encompasses a population of...

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

; the Asian locations are supported from offices located in Beirut
Beirut
Beirut is the capital and largest city of Lebanon, with a population ranging from 1 million to more than 2 million . Located on a peninsula at the midpoint of Lebanon's Mediterranean coastline, it serves as the country's largest and main seaport, and also forms the Beirut Metropolitan...

, Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...

, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

 and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 and the Latin America support center is in Miami, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...

. In the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 and Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...

 the company hopes to expand to 2,010 restaurants by some time in 2011.

Doctor's Associates

Doctor's Associates, owners of Subway, was founded by Fred De Luca and Peter Buck
Peter Buck (restaurateur)
Peter Buck is a physicist, restaurateur, and philanthropist. He co-founded the Subway fastfood restaurant chain.-Education:A native of South Portland, Maine, Buck graduated from Bowdoin College in Brunswick, Maine in 1952. He then earned master’s and doctoral degrees in physics at Columbia...

 in 1966, when they opened the second Subway restaurant in New York. The name comes from the fact that Buck holds a PhD. Despite their name, Doctor's Associates has nothing to do with any medical organization.

History

Fred De Luca borrowed $1,000 from family friend Peter Buck
Peter Buck (restaurateur)
Peter Buck is a physicist, restaurateur, and philanthropist. He co-founded the Subway fastfood restaurant chain.-Education:A native of South Portland, Maine, Buck graduated from Bowdoin College in Brunswick, Maine in 1952. He then earned master’s and doctoral degrees in physics at Columbia...

 to start his first sandwich shop on August 28, 1965.
Subway restaurants have been consistently ranked in Entrepreneur magazine's Top 500 Franchises, and Subway was selected as the No.2 overall franchise in 2008. Additionally, it was ranked as the No.3 "Fastest Growing Franchise", and the No.1 "Global Franchise" as well. In March 2011, Subway was ranked the most popular Fast-Food Restaurant in the United States of America in a poll of over 43 thousand social media users.

At end of 2010, Subway restaurant surpassed McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...

 restaurant with 33,749 restaurants across the globe and 32,737 restaurants respectively, but by revenue McDonald's was still ahead of Subway.

Products

Subway's core product is the submarine sandwich or "Sub", a long roll akin to a soft baguette and filled with meat, cheese and vegetables. In addition to these, the chain also serves wraps and salad as well as baked goods including cookies, donuts and muffins. Menu items vary between countries and markets, however Subway's worldwide signature products include:
  • Italian BMT
  • Steak & Cheese
  • Meatball Marinara
  • Chicken Teriyaki
  • Subway Club
  • Chicken & Bacon Ranch


The chain's biggest selling sandwich., the BMT contains pepperoni, salami and ham and the name originally stood for Brooklyn Manhattan Transit
Brooklyn-Manhattan Transit Corporation
The Brooklyn–Manhattan Transit Corporation was an urban transit holding company, based in Brooklyn, New York City, United States, and incorporated in 1923. The system was sold to the city in 1940 and today, together with the IND subway system, form the B Division of the New York City Subway...

, but now stands for Biggest, Meatiest, Tastiest.

In 2006, the first kosher Subway restaurant in the United States opened in a suburb of Cleveland, Ohio
Cleveland, Ohio
Cleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...

. Subway spokesman Jared Fogle
Jared Fogle
Jared S. Fogle , also known as The Subway Guy, is a spokesman employed by Subway Restaurants in its advertising campaigns...

 was in attendance at the opening. "With slight modifications, such as no pork-based products, and the use of soy-based cheese product, the menu is virtually identical to that of any other Subway restaurant." Since then, kosher Subways have opened in New York, Los Angeles, Kansas City
Kansas City, Missouri
Kansas City, Missouri is the largest city in the U.S. state of Missouri and is the anchor city of the Kansas City Metropolitan Area, the second largest metropolitan area in Missouri. It encompasses in parts of Jackson, Clay, Cass, and Platte counties...

, and Baltimore
Baltimore
Baltimore is the largest independent city in the United States and the largest city and cultural center of the US state of Maryland. The city is located in central Maryland along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. Baltimore is sometimes referred to as Baltimore...

, as well as Livingston, NJ, and plans have been announced for Milwaukee, Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...

.

Most Subway restaurants in Muslim countries offer a halal
Halal
Halal is a term designating any object or an action which is permissible to use or engage in, according to Islamic law. The term is used to designate food seen as permissible according to Islamic law...

 menu for its local consumers. Non local customers must purchase from an alternative menu. There are also at least two Subway restaurants in the United States that do the same, three in Canada, and over one hundred in the United Kingdom. Subway is planning to open more halal restaurants.

Subway also offers items other than sandwiches; breakfast items include such baked goods as bagels, egg & sausage sandwiches, and as of July and August 2006, "personal pizzas" are available in select markets to their menu. The personal pizzas are made upon order (as with their sandwiches) and heated "in less than 90 seconds" (cooking for 85 seconds) as advertised on televised commercials. Breakfast and pizza items are only available in some stores. Most stores offer additional toppings upon request. In November 2009, Seattle's Best Coffee announced that they'd signed an agreement to serve freshly brewed coffee as part of Subway's breakfast offerings.

The 2009 Zagat Fast-Food Survey
Zagat Survey
Zagat Survey was established by Tim and Nina Zagat in 1979 as a way to collect and correlate the ratings of restaurants by diners. For their first guide, covering New York City, the Zagats surveyed their friends. As of 2005, the Zagat Survey included 70 cities, with reviews based on the input of...

 rated Subway as the best provider of "Healthy Options" in the Mega Chain category. Subway was also first in the "Best Service" and "Most Popular" categories, although it was second overall behind Wendy's
Wendy's
Wendy's is an international fast food chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, United States. The company decided to move its headquarters to Dublin, Ohio, on January 29, 2006. It has been owned by Triarc since 2008...

.

Nutritional content

In 2011, Subway introduced gluten-free bread and brownies at some locations in Texas. The company also cut the salt content in its sandwiches by 15 percent.

In the UK and Ireland, the Subway chain has reduced salt content across its entire range by 33% and has committed to further reductions in line with government targets, the only fast food chain in the UK to do so. Additionally, the chain's range of Low Fat Subs is endorsed by the charity Heart Research UK.

Advertising

Subway uses the advertising slogan "Eat Fresh" to explain how every sandwich is made from freshly baked bread, using fresh ingredients, in front of the customer to their exact specification, by employees whom Subway terms "Subway Sandwich Artists".

In November 2007, Subway's US commercials featured the Peter Griffin
Peter Griffin
Peter Griffin is a fictional character and the protagonist of the animated comedy series Family Guy and the patriarch of the Griffin family. He is voiced by cartoonist Seth MacFarlane and first appeared on television, along with the rest of the family in the 15-minute short on December 20, 1998....

 character from Family Guy
Family Guy
Family Guy is an American animated television series created by Seth MacFarlane for the Fox Broadcasting Company. The series centers on the Griffins, a dysfunctional family consisting of parents Peter and Lois; their children Meg, Chris, and Stewie; and their anthropomorphic pet dog Brian...

in which he extols the virtues of its new Subway Feast sandwich. Subway has also used instant win competitions based on the game Scrabble
Scrabble
Scrabble is a word game in which two to four players score points by forming words from individual lettered tiles on a game board marked with a 15-by-15 grid. The words are formed across and down in crossword fashion and must appear in a standard dictionary. Official reference works provide a list...

 as promotional tools.
Subway was also seen in the 1996 film Happy Gilmore
Happy Gilmore
Happy Gilmore is a 1996 sports comedy film directed by Dennis Dugan and produced by Robert Simonds for Universal Studios. It stars Adam Sandler as the title character, an unsuccessful ice hockey player who discovers a talent for golf. The screenplay was written by Sandler and Tim Herlihy...

.
Subway also has a product placement
Product placement
Product placement, or embedded marketing, is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, music videos, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the...

 television advertisement campaign for the US series Chuck
Chuck (TV series)
Chuck is an action-comedy/spy-drama television program from the United States created by Josh Schwartz and Chris Fedak. The series is about an "average computer-whiz-next-door" named Chuck, played by Zachary Levi, who receives an encoded e-mail from an old college friend now working for the Central...

, ongoing since its first season. As ratings dwindled in the second season, a campaign to "save Chuck" was launched by fans, which involves purchasing a foot-long sandwich from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, reportedly called it the best product placement the restaurant chain has done "in several years."

$5 Footlongs

In 2008, Subway began to offer "Five Dollar Foot-long" submarine sandwiches in the continental United States and Canada as a limited time only promotion. All footlongs were available for $5, excluding premium and double meat subs. "Five Dollar Footlongs" quickly became the company's most successful promotion ever. Upon the initial program's completion, customer response prompted Subway to create a permanent "Five Dollar Foot-long Everyday Value Menu" that includes some footlong sandwiches for $5 a piece. As of 2011, there has been a monthly rotating $5 footlong. Which subs are permanently priced at $5 varies by market.

In October 2011 a similar promotion was launched in the United Kingdom. Customers can choose from a range of nine Subs and any drink for the price of £3 and £5 for the 6" and Footlong respectively.

In Australia there is a permanent $7 Subway Footlong menu including: Meatballs, Seafood, Tuna, Vegie, Ham and Pizza.

Sub Club

In early June 2005, Subway announced that the popular customer rewards program would be phased out due to counterfeiting. Officially the Sub Club program has been discontinued in the US and Canada by Doctor's Associates.

Participating Subway restaurants in U.S. and Canada now offer a "Subway Card" to customers, which functions as a stored-value cash card. In some states and provinces, the card also functions as a "Subway Rewards Card" allowing customers to earn points for free food and sandwiches. Unlike the Sub Club program, no other purchase is needed when redeeming points, and registered cards which are lost or stolen can be replaced. Subway runs periodic promotions that provide free subs for preloading a Subway Card with certain dollar amounts, which are usually listed at mysubwaycard.com.

All stores in the United Kingdom and Ireland participate in the Subcard scheme, a loyalty card offering customers points with each spend at a Subway store, redeemable for free Subs and snacks. Unlike the US scheme, these cards cannot be used to store cash. The scheme is due to be rolled out in Germany and other parts of the EU from 2012.

Sandwich size

On February 2, 2007, KNXV-TV with the help of the Arizona Department of Weights and Measures, reported that three Giant Sub Subway sandwiches, nominally each 3 feet (91.4 cm) long, were only 2 in 8 in (81.28 cm), 2 foot, and 2 foot long. The maximum variance in length allowed in that state is 3%, which on a 3-foot sub is 1.08 inches (2.7 cm). Upon further study, the report showed that the box designed to store Subway's 3-foot sandwiches were only 2 foot in length; shorter than the maximum allowable variance. In response to the report, Subway stated that they are currently in the process of reevaluating their advertising, promotional, training and packaging materials with regard to the specific or implied length of Giant Subs and are taking steps to advise their franchisees to only discuss with customers the approximate number of expected servings and not a specific length of measurement.

Franchise relations

In 1995, Subway Sandwich Shops, Fred DeLuca, Peter Buck, and Doctor's Associates, Inc. were found guilty of a breach of contract. An Illinois jury awarded more than $10 million in damages to Nicholas and Victoria Jannotta after finding lease and contract violations.

The U.S. House of Representatives' small-business committee studied the franchise industry 1992 to 1998. Dean Sagar notes: "Subway is the biggest problem in franchising and emerges as one of the key examples of every abuse you can think of." In 1989, the U.S. Small Business Administration refused small-business loans to Subway franchise owners until Subway removed a contract clause giving Subway Corporate the power to seize and purchase any franchise without cause. John 'Mike' Weible, an award-winning franchise owner, was refused the purchase of a second unit. Weible withheld $25,000 in royalties. A Subway Corporate audit of his books indicated that Weible was underreporting sales and owed about $4,700, however an independent audit concluded that Subway actually owed him $200. A week later the company evicted Weible and sold his store for more than $70,000. Weible sued Subway for fraud and breach of contract. In 1993, a panel of arbitrators ruled in Weible's favor and awarded him $220,000.

The Dallas Morning News reported on Subway's seizure of a soldier's Subway stores while he was deployed to Afghanistan in 2006. The stores were owned by Leon Batie, Jr., an Army reservist, who was called up to Operation Enduring Freedom in March 2005, three years after he bought his first Subway. Batie alleged that Subway violated the U.S. Servicemembers Civil Relief Act. A federal lawsuit filed by Batie against Subway was dismissed. Batie then filed suit in state court in Dallas County, Texas. Both parties involved agreed to "mutually agreeable terms" confidentially in a January 2010 settlement.

UK VAT treatment

In October 2010, Subway franchisees in the UK lost a high court appeal against paying standard VAT on all toasted subs, as enforced by HM Revenue and Customs. The result of this is that in the UK, a toasted sub attracts VAT, whereas a cold sub, eaten off the premises, does not. Competitors such as Greggs, Quiznos and McDonalds do not pay VAT on similar food.

Casey's trademark case against Subway

On January 31, 2011, Subway lawyer Valerie Pochron wrote to Casey's General Stores
Casey's General Stores
- External links :* *...

, a chain of Iowa-based convenience stores, demanding they cease using the term "footlong" in their advertisements for 12-inch sandwiches. Consequently, in February 2011, Casey's General Stores Inc. filed a lawsuit against Subway in U.S. District Court in Des Moines
Des Moines, Iowa
Des Moines is the capital and the most populous city in the US state of Iowa. It is also the county seat of Polk County. A small portion of the city extends into Warren County. It was incorporated on September 22, 1851, as Fort Des Moines which was shortened to "Des Moines" in 1857...

, seeking a legal declaration that the word "footlong" does not violate Subway's rights. Casey's further sought a declaration that the word "footlong' is a generic description of a sandwich measuring one foot, and that Subway's attempt to assert trademark rights is "frivolous litigation."

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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