Subway’s Market Share Grab

September 26, 20120 Comments

The world’s largest fast food chain, Subway, has 25,000 locations. With that kind of clout they figured they could go after more market share currently held by McDonald’s and Burger King.

How and where did they start? They quickly identified that there was ton of business to be had in the “morning day part” i.e., breakfast!  Subway determined they already stocked most of the food ingredients. They just needed to add eggs, some skill, and earlier hours of operation. Subway was able to concoct several tasty (and healthy) breakfast items.

Their customers were thrilled to be able to make Subway their one-stop morning place. The result of 2011 revenues topped $700 million….making a significant dent in the competition’s share.

It was a well-executed plan and capitalized on the market segment who already liked Subway…effectively getting more of their customer’s wallet. The upside for the customer was convenience, reliability, and high value. This is Ross Shafer for the RR.

Filed in: Relevant Report
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