Subway's Value Meals are a Hit for Everyone
According to Franchise Times, Jim Underwood, owner of eight Subway stores in Alabama said “I’m paying a little extra food costs, and am getting a little less on the bottom line as a percentage, but I had the best year ever, profit-wise, in 2008. So how could I really complain too much? It worked.”
He’s not the only one who had a good year. Subway’s sales were up 17 percent last year, according to the restaurant-consulting firm Technomic—a hefty amount for such a giant chain. Much of the credit goes to Subway's $5 promotion, timed perfectly at the outset of a recession that would turn diners into value-conscious consumers.
Many companies that are not offering value meals are suffering in this economy. So I guess these value meals are a "win-win-win" for the franchisee, the franchisor and the consumer.
I have worked a great many different types of “fast” service restaurants in the past and have always believed that while people have their favorites, they are more concerned about speed and value.
With Subway’s operating method coupled with the new $5 footlong promotion in a down economy, It is no wonder they are seeing increases in revenues.
A Great many other companies could learn from a streamlined process, an increase in marketing, and a focus on increases in sales quantity.
Just my 2 cents
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