8/28/23, 8:08 PM Subway SWOT Analysis 2023 - SM Insight

SWOT Analysis of Subway 2023

Last updated: March 30, 2023 by Ovidijus Jurevicius

This is Subway SWOT analysis. Learn how to do a SWOT analysis.

Company Overview

Name Subway

Founded August 28, 1965

Logo

Industries Fast food restaurants

served

Geographic Worldwide
areas served

Headquarters U.S.

Current CEO John Chidsey

Revenue N/A

Profit N/A

Employees N/A

Parent Doctor’s Associates, Inc.

Main McDonald’s Corporation,

Competitors Burger King Worldwide

https://strategicmanagementinsight.com/swot-analyses/subway-swot-analysis/ 1/5
8/28/23, 8:08 PM Subway SWOT Analysis 2023 - SM Insight

Inc., Yum! Brand Inc.,

Wendy’s Company.

Subway is an American fast food restaurant chain that mainly sells submarine
sandwiches (subs) and salads. It is owned and operated by Doctor’s Associates, Inc.
(DAI). Subway is the largest single-brand restaurant chain globally and is the second
largest restaurant operator globally after Yum! Brands.
You can find more information about the business in its official website or Wikipedia’s
article.

Subway SWOT Analysis

Strengths Weaknesses

1. Great degree of 1. Interior design of

subs customization the outlets often
2. Largest fast food looks cheap
restaurant chain in 2. High employee
the world by the turnover
number of outlets 3. Services are not
3. Marketing and consistent from
promotional store to store
strategies 4. Too much control
4. Choice of over franchisees
healthier meals
5. Partnerships with
Britain and American
Heart Associations
6. All restaurants are
owned by
franchisees
7. Low startup costs

Opportunities Threats

1. Increasing demand 1. Saturated fast food

for healthier food markets in the
2. Home meal developed economies
delivery 2. Trend towards
3. Changing customer healthy eating
habits and new 3. Local fast food
customer groups restaurant chains
4. Currency
https://strategicmanagementinsight.com/swot-analyses/subway-swot-analysis/ 2/5
8/28/23, 8:08 PM Subway SWOT Analysis 2023 - SM Insight

Opportunities Threats
4. Introduction of fluctuations
drive-thru 5. Lawsuits against
Subway

Strengths
1. Great degree of subs customization. Customers always like to choose and the
more choices they can make about their purchase the more satisfied they are
with it. Subway is better than any other large fast food chain in providing the
choice of meal customization.
2. Largest fast food restaurant chain in the world by the number of
outlets. Currently the comapny operates 38,181 restaurants in 99 countries, more
than McDonald’s or any other fast food chain operator.
3. Marketing and promotional strategies. Subway employs superior marketing
techniques and promotional strategies to attract and grow their customer base.
The most successful Subway’s promotional offer was to offer footlongs for only
$5, which became a new pricing standard of a sub.
4. Choice of healthier meals. Subway offers a range of low calorie, fresh and
nutritious food, which you can’t find in other fast food stores, at least not to such
an extent. This Subway strength meets current trend of eating healthier food.
5. Partnerships with Britain and American Heart Associations. Subway has
received certificates from both organizations that it serves health meal options,
which is a great reward and differentiates the business from other fast food
restaurants.
6. All restaurants are owned by franchisees. Subway doesn’t own any restaurants
itself so it experiences less risk and can focus its efforts on marketing and
growing the franchise.
7. Low startup costs. One of the reasons behind such a high growth rate of
Subway stores is the low startup costs. Subway stores are smaller and require less
money for leasehold improvements and equipment.

Weaknesses
1. Interior design of the outlets often looks cheap. Subway restaurants lack the
interior design and quality that would welcome everyone to stay and feel more
comfortable than in the competitor’s restaurants.
2. High employee turnover. Subway Sandwich Artists job is a low paid and a low
skilled job. It results in low performance and high employee turnover, which
increases training costs and add to overall costs of Subway.

https://strategicmanagementinsight.com/swot-analyses/subway-swot-analysis/ 3/5
8/28/23, 8:08 PM Subway SWOT Analysis 2023 - SM Insight

3. Services are not consistent from store to store. The business struggles to

ensure consistent services’ quality throughout it stores and so a service in one
store may please a customer when another may fail to do that.
4. Too much control over franchisees. Despite the fact that Subway fails to ensure
consistent quality throughout the stores it exerts too much control over its
franchisees. This is done through the contracts that are more favourable to the
franchisor. An example of such high control is seizeing of franchisee restaurants if
the later one is struggling to keep them open.

Opportunities
1. Increasing demand for healthier food. It’s an opportunity upon which Subway
already grows itself and could further introduce low fat, low salt and more
nutritious subs.
2. Home meal delivery. Subway could exploit an opportunity of delivering food to
home and increase its reach to customers.
3. Changing customer habits and new customer groups. Changing customer
habits represent new needs that must be met by businesses. So far, Subway has
only one variation of restaurants, different to its close competitor McDonald’s,
which tries to satisfy and reach previously untapped customer groups by
introducing McCafé, McExpress and McStop.
4. Introduction of drive-thru. McDonald’s already offer only drive-thru
restaurants, which is a great opportunity for Subway to jump.

Threats
1. Saturated fast food markets in the developed economies. The fast food
market in the developed countries is already overcrowded by so many fast food
restaurant chains and this already proves to be a threat to Subway as it finds it
hard to grow in the developed economies.
2. Trend towards healthy eating. Only part of Subway’s menu offers healthier
choices of meals, while the rest menu is rich in salt, contains many calories and is
accompanied by soft drinks. Customers who care about their food and well-being
may opt out for something else rather than Subway.
3. Local fast food restaurant chains. Local fast food restaurants can offer healthier
food and menu that exactly represents local tastes.
4. Currency fluctuations. Subway receives much of its income from foreign
operations. That income has to be converted into dollars and may affect the
company’s profits, especially when the dollar is appreciating against other
currencies.
5. Lawsuits against Subway. Subway has been involved and lost a few lawsuits in
the past because of the poor company policies regarding franchisees
https://strategicmanagementinsight.com/swot-analyses/subway-swot-analysis/ 4/5
8/28/23, 8:08 PM Subway SWOT Analysis 2023 - SM Insight

management. Lawsuits are expensive, time consuming and damages the firm’s
brand.

https://strategicmanagementinsight.com/swot-analyses/subway-swot-analysis/ 5/5