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Subway Breakfast Market Critical Analysis

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Subway

The Subway restaurant chain is the world’s largest submarine sandwich franchise with 36,352 restaurants in 98 countries. New Subway restaurants are opening all the time at a rate of 40 stores per week. Fred DeLuca, current president of Subway, and Dr. Peter Buck founded the chain in 1965. Doctor's Associates, Inc. (DAI) currently owns the Subway sandwich shops. DAI is a privately held company and is not traded on any stock exchange. Subway has been realizing steady sales growth in recent years and reported $15.2 billion in revenue for 2010. Although Subway surpassed McDonalds in terms of store locations, McDonald’s is still the industry's revenue leader and earned $24 billion in 2010. Subway’s mission is to delight their customers with great food and service. In April 2010, Subway joined its major competitors and began offering a breakfast menu. Although Subway has been extremely successful selling submarine sandwiches, the chain faces several issues by entering this new market. These issues include major competition from other well-known fast food and full-service restaurants, consumer perception, accessibility and menu variety and pricing.
McDonald’s has been the leader of fast food breakfast sales since 1975 with Dunkin’ Donuts and Starbucks being the next closest competitors in the market (Tice, 2010). These restaurant chains already have an established customer base for their breakfast products. On the other hand, Subway is widely known as the place with the five-dollar foot-long sandwiches customers enjoy for lunch and dinner. So introducing the idea of breakfast at Subway doesn’t always receive a positive reaction from everybody. Subway has to find ways to bring in customers to try their new breakfast sandwiches. To stir up customer interest in Subway’s breakfast products, it’s important for them to start out with good advertising and

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