subway

Retail Management

Structure

Introduction

Retail Market Strategy

Financial Strategy

Information Systems & SCM

Merchandise Planning

Store Management

Recruitment and Staff Motivation

Service-scape

Introduction

A leading sandwich chain, with 22,361 restaurants, spread across 78 countries out of which 200 are in India

Its USP lies in its association with both health & taste

It serves nutritious subs, salads, wraps among others

It makes your food in front of you and you get to pick what you want

Systems & SCM

Target Market• Young, Urban, Health Conscious

Retail Format

• Franchise Model

• Upscale areas preferably near residential colonies and offices

• Unique association with Health & Taste• Lets choose one’s own Sub

Location

Sustainable Competitive Advantage

Financial Strategy

Service- ScapeHRMStore ManagementMerchandise Planning


Systems & SCMFinancial Strategy



Growth Opportunities

2008 2009 2013 20180

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6

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12

Column1Unorganised

Systems & SCMFinancial Strategy



Organization Structure

INDIA OFFICE (DELHI)

FRANCHISEE 1 PINK PAPAYA FOODS FRANCHISEE 3

SOUTH HEAD STORE(BANGALORE)

Financial Strategy

Systems & SCM

Financial Objectives• Higher Number of bills • Higher Billing Amount

Targets

Pricing

Royalty


Retail Market Strategy Financial Strategy

• Monthly, weekly & daily targets are allotted• In terms of Sales and COGS (Max 35% of sales)

• Varies across cities, purely as a function of logistics

• Avg. monthly prices are paid to vendors for veg

• 8% of revenues is paid as royalty fee• 4.5% is allocated to marketing funds

Information Systems &Supply Chain Management

Information Systems• Sub-shop is installed at point of sales for billing • Daily Sales figures are updated & maintained on Spread sheets• Past 3 years data is looked-at for sales

forecasting on YoY basis• Customer Data-base is maintained by call-

centre


Financial StrategyRetail Market Strategy Systems & SCM

Supply Chain Flow



• Breads• Sauces• Meats

DELHI

• Vegetables• Warehouse

for all others

BANGALORE• Breads• Vegetables• Sauces• Meats

CHENNAI(Royapetah)

Supply Chain at local level

• Pink Papaya Food franchisee owns vehicles to source from central warehouse and inter outlets

• Orders are placed on Tuesdays and received on Fridays



Logistics for home delivery• Orders are taken up by the centralized call

center• From there information is passed onto the

nearest Subway outlet• The delivery is done by staff members only

there are no separate delivery boys• Each store has 3 delivery bikes

Merchandise Planning

Systems & SCM

Forecasting• By taking past 3 years data and comparing it

with past 3 weeks data• Orders are given for 7 days worth of materials

needed and an additional 3 days as buffer• Weekends see and over and above 10% extra

order

Financial StrategyRetail Market Strategy


Vendor Relations

• Vendors for vegetables are generally whole-sellers, who in turn source from various famers

• These vendors have a long term contract with the company

• After first few trades, they learn what size and quality of vegetables are taken by Subway

Systems & SCMFinancial StrategyRetail Market Strategy


• Sauces are provided by a third party vendor• Jalapeños, Olives and Pickles are bought tinned

packed• Meat is sourced from Delhi• All the purchasing is done centrally• Capsicum, Cucumber, Onion and Tomatoes are

sourced from the Koyambeddu market• Lettuce is sourced from Coimbatore daily by the

7am train

Sourcing

Warning

Following few slides may make you salivate. So, you might wanna look away!

-Issued in the Public Interest



Assortment

Veg Subs

Traditional

Favorites'

Local

Breakfast

Cookies

Beverages



Assortment

Veg Subs

Traditional

Favorites'

Breakfast

Cookies

Beverages



Assortment

Veg Subs

Traditional

Favorites'

Local

Salad

Breakfast

Cookies

Beverages



Assortment

Veg Subs

Traditional

Favorites'

Local

Breakfast

Cookies

Beverages



Assortment

Veg Subs

Traditional

Favorites'

Local

Breakfast

Extras

Cookies

Beverages



Assortment

Veg Subs

Traditional

Favorites'

Local

Breakfast

Cookies

Beverages

Store Management

Systems & SCM

Wash Mechanisms


Service- ScapeHRMMerchandise Planning Store Management

• Each store has a cleaning bay for vegetables

CLEANSE ICE WASH

Human Resource Management

Systems & SCM

Rercuitment• 15 member staff working in 2, 8 hr long shifts• Team meetings happen at 5-6pm , where the

incoming and outgoing staff discuss• Recruitment is handled centrally in Chennai by

the Royapettah HR department


Service- ScapeMerchandise Planning Store Management HRM

Training• Online training of employees is done by the

University of Subway• Each employee has to complete certain number

of modules with specified time• A new staff member is trained in cutting,

baking, sandwich assembly, packing, customer interaction

• They are also trained to “Up-Sell”


Service- ScapeMerchandise Planning Store Management HRM

Motivation

• A part of profits on achieve Sales Targets is shared with everyone

• A monthly “dinner” and “movie night” is organized

• The concept of employee of the month is also practiced to promote healthy competition

• All the employee are treated fairly, specially in front of the customers

Service Scape

Systems & SCM

Atmospherics


Merchandise Planning Store Management HRM Service- Scape

Presentation Techniques

• Two bays: one non-veg and the other veg with billing counter in the center

• Customers and can see what is being made and can also customize their subs

• The layout allows a sequential flow from ordering, making of the sub to billing

Systems & SCM

Atmospherics

• Color: The colors green and brown are pre-dominantly used to signal healthy/hygenic premises

• Music: There is no one particular genre which is played

• Lighting: White Lighting is used which is fairly uniform throughout the store



• All the interior designs and layout are standardized across all stores by Subway International

Uniforms

• All the employees are quite smartly dressed in Black Subway T-shirts

Systems & SCM

Website

• Custom website for India

• It includes• Menu• Offers• Restaurant

locator• How to Order• Franchise

details



Customer Service

Systems & SCM Financial StrategyRetail Market Strategy Merchandise Planning

Store Management HRM Service- Scape Customer Service

Principles of Customer Interaction• “ No arguments with the customer” • “The customer is always right”• “always smile”

Service Recovery• In case of service failure such a wrong order, mistake is admitted by the employees (no matter who’s fault it is)• A new Complimentary Sub is served

Thank You

subway

Business

health tasteit

unique association

retail management

nutritious subs

residential colonies

upscale areas

indiaits usp