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No, Subway's biggest differentiator was and continues to be the low cost of building one, compared to a McDonalds. You can build out a Subway for $200,000 in so
by paggle 7y ago
No, Subway's biggest differentiator was and continues to be the low cost of building one, compared to a McDonalds. You can build out a Subway for $200,000 in some cases compared to $1-2 million for a McDonalds. That's why they're the most popular franchise restaurant.
- zaphirplane 7y agoThat’s from the sellers point of view and doesn’t translate into consumer demand to keep the ventures profitable and have a competitive ROI. A 100 cheese and tomato sandwich shops are even cheaper and would probably go broke or a paper airplane franchise ...etc I suppose there is a relationship between profits and the establishment cost however customer demand is king
- nostrademons 7y agoIt could be related - a low franchise cost means a Subway on every corner (there're 3 within a 5 minute driving radius of my home), which increases the chain's brand recognition. Same strategy that Starbucks uses, opening a store on every corner, even to the point where they cannibalize each others' sales. Familiarity has an advertising benefit all on its own.