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How did Subway move past McDonald's?

Posted on 12/8/12 at 9:59 am
Posted by Kafka
I am the moral conscience of TD
Member since Jul 2007
141566 posts
Posted on 12/8/12 at 9:59 am
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.
Posted by MrBobDobalina
BRo.LA
Member since Oct 2011
2989 posts
Posted on 12/8/12 at 10:00 am to
Posted by WikiTiger
Member since Sep 2007
41055 posts
Posted on 12/8/12 at 10:00 am to
well duh! a 12 inch meatball on white is healthier than a mcdonalds burger! don't you watch the commercials?
Posted by Black
My own little world
Member since Jul 2009
22244 posts
Posted on 12/8/12 at 10:00 am to
It's the health movement
Posted by bigberg2000
houston, from chalmette
Member since Sep 2005
70002 posts
Posted on 12/8/12 at 10:00 am to
Well subway is a lot cheaper and easier to open. They are everywhere.
Posted by lsu480
Downtown Scottsdale
Member since Oct 2007
92876 posts
Posted on 12/8/12 at 10:00 am to
They are in the WalMarks out here....are they in all WalMarks now? If so that could help explain it.
Posted by Rouge
Floston Paradise
Member since Oct 2004
136793 posts
Posted on 12/8/12 at 10:00 am to
Smaller footprints, build in strip malls
Posted by Tigerbait337
Louisiana
Member since Aug 2008
20535 posts
Posted on 12/8/12 at 10:01 am to
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
Posted by ellunchboxo
Gtown
Member since Feb 2009
18777 posts
Posted on 12/8/12 at 10:01 am to
Strip Malls

/thread
Posted by Biff Tannen
Member since Sep 2012
2522 posts
Posted on 12/8/12 at 10:01 am to
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
Posted by Pilot Tiger
North Carolina
Member since Nov 2005
73142 posts
Posted on 12/8/12 at 10:01 am to
yep, lower operating costs, smaller real estate needs, etc
Posted by BRgetthenet
Member since Oct 2011
117676 posts
Posted on 12/8/12 at 10:02 am to
They have the inside track on the health-fast food market.
Posted by diat150
Louisiana
Member since Jun 2005
43454 posts
Posted on 12/8/12 at 10:03 am to
seems like every subway I see is empty and mcdonalds is packed. that goes for international also.
Posted by Breesus
House of the Rising Sun
Member since Jan 2010
66982 posts
Posted on 12/8/12 at 10:03 am to
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.
Posted by shawnlsu
Member since Nov 2011
23682 posts
Posted on 12/8/12 at 10:04 am to
Yep they are in every hospital in BR.
Smaller footprint = smaller investment = more people opening one or ten
Posted by jimithing11
Dillon, Texas
Member since Mar 2011
22471 posts
Posted on 12/8/12 at 10:04 am to
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+?
Posted by Spankum
Miss-sippi
Member since Jan 2007
55969 posts
Posted on 12/8/12 at 10:07 am to
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...
Posted by Joe
North Jersey
Member since Jan 2005
6326 posts
Posted on 12/8/12 at 10:08 am to
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.
Posted by BTHog
Member since Jul 2012
8335 posts
Posted on 12/8/12 at 10:11 am to
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.
Posted by Iona Fan Man
Member since Jan 2006
27462 posts
Posted on 12/8/12 at 10:12 am to
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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