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The industry of sandwich shops is a broad field of business in the United States. It is essential to analyze the trends in the industry and the overall direction of its development in the economy of a country to provide a relevant marketing plan for a particular shop. In this paper, a general overview of sandwich chop industry and a specific analysis of Subway will be provided.
Current Industry Overview
Sandwich store industry occupies a significant share in the American economy. The shops produce food for immediate consumption and non-alcoholic drinks without table service. The shops working in this sphere are growing each year, and their profits grow in correspondence with the popularity among customers. According to the IBIS report, the “industry revenue grew 4.3% and 6.0% in 2015 and 2017, respectively” (“Sandwich & Sub Store Franchises Industry in the US” par. 1). Such a success in performance was achieved due to some positive changes and adjustments of menu options to more healthy food items and concerns about meals containing a high level of fat. The flexibility in meeting customer requirements and preferences contributes to the overall efficiency of the industry participants.
Beside revenue growth, other parameters of economic advancement showed positive changes. Indeed, the number of businesses grew by 0.9%, as well as the number of employees working in the industry increased by 2.3% (“Sandwich & Sub Store Franchises Industry in the US”). Also, there are some threats that might undermine the success of the industry’s performance, such as consumer confidence affecting household expenditures and customer spending rates (“Sandwich & Sub Store Franchises Industry in the US”). If they decrease, sandwich shops might face economic difficulties and a decline in revenues. However, as IBIS predicts, sandwich shop industry is likely to proceed in competing with other food-related fields of business (“Sandwich & Sub Store Franchises Industry in the US”).
The leading company in the US Sandwich and sub store industry is Subway. The widespread net of shops located in every corner of the country ensures its high level of presence in the economy and its popularity among customers. Indeed, the brand obtains significant recognition and occupies a stable position in the market. Having more than 50-year history, the company still fosters its initial principles of high-quality menu items at a low price and the constant work for improvement (“Subway History”). The shop concentrates on making submarine sandwiches using quality ingredients to provide healthy and affordable food for everyone.
The strengths of the company are its recognizable brand name, quality of services, and endeavors for technology implementation in the working and customer-service processes. The system of franchising allowed for the rapid growth of the number of stores, and the popularity increases year after year. At present, there are 40,000 shops opened around the world which justifies Subway’s leading position among submarine sandwich stores worldwide (“Subway History”). However, when comparing the company to other fast-food stores, there is no online service available to facilitate sales. This issue might be regarded as a weakness but it is possible to be eliminated according to the policy of a company to prioritize constant improvement.
In summary, the number of businesses involved in the sandwich shop industry is growing each year and shows a tendency to be dependent on labor more than finances. Subway, as a leading company in the field, occupies the most prominent place among its competitors in the USA. It also shows a high rate of popularity and business performance in the world. However, its absence online diminishes the company’s prospects in future competitiveness.
“Sandwich & Sub Store Franchises Industry in the US.” IBISWorld, 2019, Web.
“Subway History.” Subway, n. d., Web.