How did Subway move past McDonald's? | TigerDroppings.com

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Kafka
New Orleans Saints Fan
Remember landscaping the Alamo
Member since Jul 2007
75502 posts

How did Subway move past McDonald's?



LINK

quote:

March 8, 2011

It's official: the Subway sandwich chain has surpassed McDonald's Corp. as the world's largest restaurant chain, in terms of units.

At the end of last year, Subway had 33,749 restaurants worldwide, compared to McDonald's 32,737. The burger giant disclosed its year-end store count in a Securities and Exchange Commission filing late last month.







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MrBobDobalina
USA Fan
bad and rude, LA
Member since Oct 2011
1828 posts

re: How did Subway move past McDonald's?








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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: How did Subway move past McDonald's?


well duh! a 12 inch meatball on white is healthier than a mcdonalds burger! don't you watch the commercials?





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Black
Oklahoma State Fan
My own little world
Member since Jul 2009
21180 posts

re: How did Subway move past McDonald's?


It's the health movement





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bigberg2000
LSU Fan
houston, from chalmette
Member since Sep 2005
49101 posts

re: How did Subway move past McDonald's?


Well subway is a lot cheaper and easier to open. They are everywhere.





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lsu480
LSU Fan
Downtown Scottsdale
Member since Oct 2007
74246 posts

re: How did Subway move past McDonald's?


They are in the WalMarks out here....are they in all WalMarks now? If so that could help explain it.





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Rouge
USA Fan
TD.com HOF Member - Class of 2014
Member since Oct 2004
98442 posts

re: How did Subway move past McDonald's?


Smaller footprints, build in strip malls





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Tigerbait337
Notre Dame Fan
Louisiana
Member since Aug 2008
17995 posts

re: How did Subway move past McDonald's?


It's probabaly way cheaper to build a subway

Plus they have like 2 in my town.. And I don't even live in a big town

Lafayette probabaly has like 8






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Ellunchboxo
New Orleans Saints Fan
Pville
Member since Feb 2009
11648 posts

re: How did Subway move past McDonald's?


Strip Malls

/thread






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Biff Tannen
UNLV Fan
Member since Sep 2012
2508 posts

re: How did Subway move past McDonald's?


quote:

How did Subway move past McDonald's?


think about it, think about how much space/equipment is needed to operate a subway as opposed to the McDonald's

i believe Subway has been beating McDonalds in the US for quite some time now






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Pilot Tiger
Georgetown Fan
Washington DC
Member since Nov 2005
63082 posts

re: How did Subway move past McDonald's?


yep, lower operating costs, smaller real estate needs, etc





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BRgetthenet
LSU Fan
Golf Board Smash Lab™ CEO
Member since Oct 2011
66237 posts

re: How did Subway move past McDonald's?


They have the inside track on the health-fast food market.





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diat150
Tulane Fan
OPELOUSAS
Member since Jun 2005
19446 posts

re: How did Subway move past McDonald's?


seems like every subway I see is empty and mcdonalds is packed. that goes for international also.





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Breesus
New Orleans Saints Fan
House of the Rising Sun
Member since Jan 2010
28635 posts

re: How did Subway move past McDonald's?


College campuses and schools and hospitals and other public places are more willing to put a subway in them because they can say they are trying to be healthy. Also, people like to order a double meat footlong cheese bread bacon with cheese sandwich and say its healthy because Subway did an awesome marketing campaign and their name is now synonymous with health.





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shawnlsu
LSU Fan
Member since Nov 2011
6572 posts

re: How did Subway move past McDonald's?


Yep they are in every hospital in BR.
Smaller footprint = smaller investment = more people opening one or ten






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jimithing11
Texas Fan
Dillon, Texas
Member since Mar 2011
18121 posts

re: How did Subway move past McDonald's?


Don't really need a lot of people to operate a Subway either. Usually only three at Subway's, unless during lunch hour.

McDonald's has what, like 10+?






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Spankum
LSU Fan
Miss-sippi
Member since Jan 2007
33249 posts

re: How did Subway move past McDonald's?


quote:

Well subway is a lot cheaper and easier to open. They are everywhere.


agreed...you can open a subway in a small space with only one or two employees...eqipment is basically as series of chafing dishes and a toaster oven...

McD's are typically stand-alone buildings on high dollar property and take a half dozen employees any time the doors are open...equipment consists of major stuff, like fryers, etc...






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Joe
LSU Fan
North Jersey
Member since Jan 2005
5995 posts

re: How did Subway move past McDonald's?


Subways franchise rules are also more lax. They will give one to anyone and let you put it anywhere...even across from another subway. McDonald's gives territories and is more strict.





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BTHog
Arkansas Fan
Member since Jul 2012
8335 posts

re: How did Subway move past McDonald's?


That has zero to do with it.

If mcdonalds were the more wanted product the investment would be worth it. But they are not.

Their food is garbage. At least subway has a few tasty sandwiches.






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Iona Fan Man
Iona Fan
Member since Jan 2006
27462 posts

re: How did Subway move past McDonald's?


cost to franchise

don't you need like 1-2 mill to open a Mcd's.... "when you purchase a new restaurant (40% of the total cost)....The down payment must come from non-borrowed personal resources.....you need a minimum of $300,000 of non-borrowed personal resources to be considered to open a McDonald's franchise."



it's only like 100k for a subway
quote:

The initial franchise fee is $15,000, and total investment can be as low as $78,600.



you can own 4 subways free and clear, or 40% of a McDonalds with 600k left in debt






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