Learnings

The service expectations from a QSR like Subway are:

o Quick service
o Price should be within acceptable limits
o Special focus on the quality and variety of the service
o Proper packaging of the product
o Instructions and information for the customers
There is a difficulty in defining standards for the service level. Although time is considered
as one of the major determinants of the standards for a service like QSR, there must be
other ways to define the service levels as well. Involvement of customers in defining a
service standard and creating a perfect match between service desired and service
delivered to the customers is a prerequisite for the success of Subway
For a Fast food industry which is a product industry, there are certain intangible
components which are equally important in the eyes of the customer as are the tangible
products provided. Therefore its very important to provide an adequate balance of tangible
and intangible services provided to the customer.
Performance of the service depends on customer, employees and organization.
Zone of Tolerance for a customer varies for different service dimension.
Most of the fast food restaurants are focusing on either Market Development or New
Product/Service Development. Market development involves entering into Tier-II or Tier-III
cities whereas Product development involves innovation and coming up with a new product
in frequent interval of time.
Demand and Supply management is a very difficult process in the service industry as it has
to be simultaneous. Thus, proper synchronization is very important.
Factors such as Reliability, Assurance, Tangibility, Empathy and Responsiveness are the
criteria on which the customers evaluate a service offering. In terms of Subway, Reliability
and Assurance are related to the quick service and quality of food. Tangibility refers to the
store design, the dress of the staff, store ambience and the location as well. Empathy refers
to the courtesy and personalized attention that the staff gives to the customers in taking
their orders and helping them in case of a problem.