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Subway
Subway logo
Company type	Private company
Industry	Restaurants
Founded	Bridgeport, Connecticut (1965)
Headquarters	Milford, Connecticut
Key people	Fred De Luca, President
Products	Sandwiches Salads Other food products
Revenue	$9.05 billion USD (2005)
Number of employees	150,000 (2003)
Website	http://www.subway.com/

File:Subwayrestaurant.jpg

Exterior of a typical Subway restaurant

Subway is the name of a multinational restaurant franchise that sells sandwiches and salads. It was founded in 1965 by Fred De Luca and Dr Peter Buck. The corporate name of Subway is Doctor's Associates Inc. (DAI). The company operates over 25,000 sandwich restaurants in 83 countries and is the fastest growing franchise in the world. This rapidly growing chain added over 2,000 locations in 2005 and now operates more locations than McDonald's in the U.S., Canada, Australia and New Zealand.

Subway's main operations office is in Milford, Connecticut, and five regional centers support Subway's growing international operations. The regional office for Europe's 1,000 stores is in Amsterdam, Netherlands. Australia and New Zealand, with over 1,100 outlets, is supported from Brisbane, Australia. The 300 Middle Eastern locations are supported from Beirut, Lebanon. Singapore supports the 300+ Asian locations. The Latin America support center in Miami assists over 1,100 restaurants.

Many restaurant analysts attribute Subway's fast growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg) with a diet made up mostly of Subway sandwiches. The story is used by Subway as a large part of their marketing campaign. Jared has emerged as a spokesman for Subway, furthering their image as a health-conscious restaurant chain.

History

In 1965 Fred DeLuca and Peter Buck opened their first location in Bridgeport, Connecticut and named it "Pete's Super Submarines". Soon thereafter the name was changed to "Pete's Subway" and then to "Subway". The chain punningly used the New York City Subway as its decorative motif (old New York City subway maps and skyline views of Manhattan dot their interior wallpaper of most stores from before the late 1990s, when newer stores and remodeled older stores took on a more stylish food environment), and has a sandwich named the BMT after the Brooklyn-Manhattan Transit subway line, although in advertising this has been described as "Bigger, Meatier, Tastier." After the success of Subway, Fred De Luca wrote a book titled "Start Small, Finish Big: 15 Key Lessons to Start—and Run—Your Own Successful Business" in 2001. Subway has been voted as #1 franchise in Entrepreneur magazine 14 times as of 2006.

Operations

Subway uses the advertising slogan "Eat Fresh" to explain how every sandwich is made on fresh baked bread, using fresh ingredients, in front of the customer to their exact specifications.

In 2000 Subway added seasoned breads and a line of gourmet sauces to its menu. In 2003 Subway switched from Pepsi to Coke. In 2004 Subway gave customers the option to have their sandwiches toasted, probably in response to increased competition from rival sandwich chain Quizno's, which popularized toasted sandwiches.

In addition to traditional restaurants, Subway operates in many non-traditional locations. For instance, there are over 900 Subway locations inside of Wal-Mart stores and 200 on military bases. There's even one located inside the Pentagon.

There is at least one adults only Subway located at Foxwoods Resort & Casino. It is accessible only after entering a gaming area which is restricted to guests 21 and over.

In addition to its strong positioning as a more health-conscious restaurant, much of Subway's rapid growth can be attributed to its somewhat unique business model. Unlike most franchisors, the parent company does not operate any restaurants. Local franchisees operate the stores, and in most markets Subway enters into a contract with a franchisee to be its Development Agent for that market. The Development Agent is then responsible for developing new locations, evaluating stores on a monthly basis, and assisting franchisees with whatever needs they may have. 8% of sales at each location go to royalties, while 4.5% of sales go into a fund, the Subway Franchisee Advertising Fund Trust, also known as SFAFT which is operated by a board of directors voted on by Subway Franchisees.

Among lawyers, Subway has become well-known for its aggressiveness in enforcing the arbitration clauses in its franchise agreements. One case even went all the way to the U.S. Supreme Court (and the company won). See Doctor's Associates, Inc. v. Casarotto, 517 U.S. 681 (1996).

Subway is the corporate sponsor for two NASCAR Nextel Cup series stock car races: the Subway Fresh 500, held at Phoenix International Raceway; and the Subway 500, held at Martinsville Speedway. In addition, Subway is the primary sponsor of the NASCAR Nextel Cup number 16 car, driven by Greg Biffle. Biffle has appeared in advertising for Subway. They also sponsor a pro-cycling team. Subway has a teen comedy site as well, located at http://get-sa.com

The Subway menu

A Subway restaurant in Dar es Salaam, Tanzania

The menu which Subway offers may differ from store to store based on a few factors. Most of the items sold on the menu are "core" items, and must be offered by every Subway. Subway, like other Fast-food restaurants also offers limited time offers or LTO from time to time. As of March 2006, Subway is offering the Chicken BLT sub as an LTO. Each Subway market may also vote to have additional sub(s)or ingredient(s) as an option. Additionally, an individual store (or group of stores owned by an individual franchisee) may choose to carry a few "local" subs or ingredients, but Subway limits the amount of non-standard items they may carry.

The country or part of the world that a store is located may also dictate what is on the menu at any given Subway. For example, turkey is a component of many subs in North America, but turkey is uncommon in some parts of the world, such as Africa or Asia, so Chicken is often substituted. In the Muslim countries of the Middle East and in Israel, subs made with pork are not on the menu. In India subs made with beef are not on the Subway menu. Subways in Germany serve beer.

Subs offered

As of December 2005 the following were offered as subs at every United States or Canada Subway (All come cold, toasted or microwaved on request):

Subway Club (Turkey Breast, Ham, and Beef)
Italian BMT (Pepperoni, Genoa Salami, Ham)
Cold Cut Combo (Turkey-Based Ham, Turkey Based Salami, Turkey Based Bologna)
Turkey
Ham
Roast Beef
Tuna (with mayonnaise)
Savory Turkey Breast & Ham
Veggie Delite (Vegetables and optional cheese, no meat)
Subway Melt (Turkey Breast, Ham, and Bacon)
Chicken Breast (Roasted Chicken)
Chicken Teriyaki
Southwest Chipotle Cheese steak (Philly Style Steak and Southwest Chipotle Sauce)
Chicken and Bacon Ranch - (Chicken and Bacon, recommended with ranch dressing)
Chicken Parmesan (Breaded Chicken, Marinara Sauce, Cheese, and Parmesan)
Chicken BLT (Breaded Chicken and Bacon, recommended with lettuce, tomato, and mayonnaise)
Meatball Marinara (Beef based meatballs and Marinara sauce)

Some items which may be listed on the menu as a market or store option (some may not be listed, but can be made, if the store has the ingredients):

Seafood Sensation (formerly Seafood & Crab)
Chicken Pizziola (Roasted Chicken, Pepperoni, and Marinara Sauce)
BBQ Beef/BBQ Rib
Veggie Patty/Veggie Max/Garden Burger/Veggie Burger
Spicy Italian (Pepperoni, Genoa Salami)
Pizza (Pepperoni, Marinara (Pizza) Sauce)
Pastrami
BLT (Bacon, typically with lettuce and tomato)

Sub of the Day / Daily Special

Some Subway restaurants may offer a "Sub of the Day" (also known as the Daily Special) where a particular 6" sandwich can be purchased for $2.49 each. Alternatively, some offer a footlong sub for $4.29. It is not available at all restaurants, and is usually done on a local market-wide basis. The selection of daily specials offered on any given day of the week varies by market, although almost all markets that offer this promotion offer Tuna Mayonnaise on Friday.

In the United Kingdom, the Sub of the Day is available at all stores for £1.99. A number of adverts are currently featured on television about the sub of the day.

Deli (round) sandwiches

These sandwiches can come with the Subway Kids Pak which includes the sandwich, a juice box (or soft drink), a fruit roll-up (or cookie), and a toy. All come with or without cheese, and salads offered in the store on request. The selection includes:

Turkey
Ham
Roast Beef
Cheese
Tuna
Pizza

Some Subways may offer a local deli sandwich (such as peanut butter and jelly.)

Salads and Wraps

Subway can make any 6-inch selection into either a salad or low-carb wrap for an additional price.

Toppings and Condiments

The following toppings are available at Subway (may vary by location):

Lettuce
Tomatoes
Pickles
Green bell peppers
Olives
Onions
Mild or Hot Peppers, type may vary- typically banana, cherry, or jalepeno. (on request)
Carrots
Cucumbers
Baby spinach

Some local toppings you may find at a local Subway:

Avocado (Guacomole)
Sprouts
Grape Tomatoes
Pineapple
Mushrooms
Diced Eggs
Romaine/Iceberg Lettuce Mix

The following condiments are typically available at Subway:

Mayo (Regular and Light)
Ranch Salad Dressing
Thousand Island
Mustard (Yellow and Spicy Brown)
Honey Mustard
Blended Olive Oil
Red Wine Vinegar
Chipotle Southwest sauce
Sweet Onion Dressing
Salt, pepper, oregano, parmesan cheese

Also at some Subways:

Asiago Caesar Dressing
Raspberry Vinagrette
Red Wine Vinagrette
Ketchup, A-1, BBQ, Hot and other assorted sauces.
Garlic sauce
HP Sauce

Cheeses

In the US, White American cheese is available at all Subways. In Canada, processed white cheddar is available. In both, Monterey cheddar is available. White processed cheese is served as standard in the United Kingdom, with a grated Chedder and Monterey Jack blend available as an optional extra. All Other countries may vary. In North America, in addition to the required cheese, two more of these options for cheese are available:

Pepperjack
Swiss
Provolone
Cheddar
Feta
Grated Parmesan

Bread Options

In the summer of 2000, Subway introduced flavored bread options to the menu in addition to the standard Italian (White) and Wheat (Brown):

Parmesan Oregano
Italian Herbs and Cheese (Parmesan and Oregano with Monterey Jack Cheddar blend cheese)
Hearty Italian (Cornmeal on Italian Bread)
Honey Oat (Honey and Oats on Wheat Bread)
Sourdough
Country Wheat (Cornmeal on Wheat Bread)
Monterey Cheddar
Asiago Cheese
Roasted Garlic (Garlic Seasoning and Cornmeal on Italian Bread)

Other Subway Items

Subway is always testing various menu items at various locations around the world. They also allow expanded menu items and co-branding (such as with TCBY) to increase the menu selection.

Subway Breakfast Program breakfast sandwiches, baked goods (donuts, bagels)
Subway Expanded Breakfast Program includes omelets and French toast.
Fruizle fruit smoothies now being phased out.
Pizza now being tested at various locations.
Cookies Choc Chip, Double Choc Chip, White Choc Chip and Macadamia Nut, M&Ms, Oatmeal & Raisin
Muffins Blueberry, Choc Chip, Double Choc Chip
Doughnuts Chocolate, Sugar

Also, several Subways in the Manchester area in the North West of England have applied for a license to serve alcohol for varying periods of time at night.

Sub Club program

In 2005 Subway announced that the popular Sub Club customer rewards program would be phased out due to counterfeiting. Another reason, which was not stated by the company, for the discontinuation of the program was that there was a large amount of internal theft of stamps by Subway employees and affiliates, including the sale of rolls of the stamps online at places such as eBay. Customers will also be able to get 40 cents per stamp during a phase-out period which varies by market.

A new program, which was tested in some markets over the past few years, will replace the Sub Club program with an electronic swipe card; however, this program has been voted on by the franchisees of each market, and most markets have opted out of going with the new program.

In 2006 Subway will replace their paper gift certificate program with a plastic electronic swipe card system, although older paper gift certificates will still be honored indefinitely.

In Canada, this included discontinuing the CAA discount.

Criticism

The book Fast Food Nation is critical of Subway's franchising policies. It claims that in the 1990s, Subway was involved in many legal disputes with franchisees, usually over encroachment (overly aggressive expansion, in which one Subway is so close to another they end up competing), and high royalties.

The book blames the "Development Agents", who are given the task of growing the company regionally. They are rewarded greatly for profits and punished for losses, so it is claimed that it is in their best interest to saturate markets with Subway restaurants in a region, despite the effect it will have on an individual one. Although this may lead to lower profits per Subway, it leads to overall higher profits in the region, and therefore the entire chain.

Pop culture and Subway

Subway began appearing in movies and television heavily during the mid 1990s.

In the 1989 film Lethal Weapon 2 the characters Martin Riggs (played by Mel Gibson), Roger Murtaugh (played by Danny Glover) and Leo Getz (played by Joe Pesci) go to a Subway drive thru. However Leo is mistakenly given a Tuna sandwich which he does not like to eat. This resulted in Leo going into a tantrum including Leo saying the well known catchphrase "They fuck you at the drive thru".

In the 1993 parody film Hot Shots! Part Deux, a Subway appears in Tibet, from which Richard Crenna's character orders a "pig-snout sandwich". An HBO spoof documentary of the making of the film, The Making of Hot Shots! Part Deux: A Filmmakers' Apology, also features the restaurant, which director Jim Abrahams supposedly works at while the film's production is shut down. Producer Pat Proft orders a sandwich from him.

In the 1993 Saturday Night Live spin-off film Coneheads, the characters portrayed by Chris Farley and Michelle Burke dine at a Subway, wherein Burke appears to eat an entire "footlong" sandwich in four to five bites.

In 1995, Subway teamed up with the producer's of the Jim Carrey film Ace Ventura: When Nature Calls for product placement advertising (a billboard advertising the chain can be seen as Carrey's character drives through Africa). At the time, Subway ads also featured trivia from the movie.

The Adam Sandler comedy film Happy Gilmore, released in 1996, featured Sandler's character Happy Gilmore using his celebrity status as a golfing pro to sell Subway sandwiches. Included in his commercial is the "cold cut combo" sandwich. As compensation for the commercial, Gilmore receives a fictional "free Subway for life" card, allowing him to eat free at any Subway restaurant.

The 2002 Mike Myers film Austin Powers in Goldmember saw the character of Fat Bastard lose a great deal of his signature weight after going on the "Subway diet," an obvious parody of that which was undertaken by Jared Fogle.

Subway has long had a sponsorship deal with World Wrestling Entertainment that continues to this day. In 2002, after the WWE split up its rosters into two brands, the GM's of those two brands at the time (Eric Bischoff for WWE RAW and Stephanie McMahon for WWE SmackDown!) were in a dispute over the one being on each other's show, as well as the show's respective roster during the two brand's free agency period. Upset that Stephanie showed an ad for SmackDown! during a RAW commercial break, Bischoff fired back later that week by appearing in an "ad" for Subway during a commercial break for SmackDown!, with Bischoff saying how much he loves Subway and was eating a sub during the "ad".

In the 2005 movie Just Friends, there is a line that goes "He was nerdier than the dork from Subway" (or similar). This is a reference to the 2005 Subway commercial campaign featuring a man named Jared who told how he lost weight by eating at Subway. He was hated by most of America.

References

Subway Web Team (2006). "Official Subway Restaurants FAQs". Subway Restaurants. Retrieved February 17. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)
"Subway Passes McDonald's as Biggest U.S. Restaurant Chain". Associated Press. February 01 2002. {{cite news}}: Check date values in: |date= (help)
Subway Web Team (2006). "Subway Restaurant News". Subway Restaurants. Retrieved February 17. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)

External links

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