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Freshening up Subway

Phil Waterhouse looks at the fast food giant through the lens of key business theories, including Porter’s generic strategies, the Boston matrix and the product life cycle

It might come as a surprise that the world’s largest fast food chain is not McDonald’s, but Subway. The company overtook the burger chain in 2010 and now operates over 44,000 units globally. It is hoping to become the first business to have over 100,000 stores across the planet. This is perhaps overly ambitious but is symptomatic of the ambition of the original owner, Fred DeLuca, who opened the first store in 1965.

Subway opened its first UK store in 1996. The business plan is similar to that of Starbucks, and it is likely that every mediumsized town in the UK has at least three Subway branches. A Subway can operate in 33 square metres of space, and as well as high street stores the company has opened operations within petrol stations and local convenience stores.

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