Business

In the News

What lies behind Subway's success?

Geoff Riley

5th July 2017

The Subway franchise appears to go from strength to strength with news that the business plans to open another 500 stores in the UK by the end of 2020.

This BBC news article looks at some of the reason's behind the rapid organic growth of the Subway brand. 

Globally, at the end of 2016 there were 44,000 Subway branches compared to 35,000 in 2011.

There is plenty in the article for business students to munch on - ranging from objectives, organic growth, the role of franchises, meeting changing regulations, the minimum wage, social trends (including consumer preferences for healthier options), the impact of Brexit and the product life cycle in a fast-changing market.

What effect will Subway's market dominance and rapid growth have on local sandwich shops? 

Subway is a privately-owned business. Subway began franchising restaurants in the mid 1970s and today all Subway stores are operated by franchisees.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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