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Aarihant Aaryan

Prev- Founder & CEO ... • 1y

Subway failed in India, infact their global revenue is $17Billion and their Indian businesss contributes less than 5% to their global revenue But how did subway fail even after being in the market for 23 years? Subway entered the India market in 2001, For any FMCG company, there are only 2 ways to scale in India that is by launching company owned outlets or franchise owned outlets For example, a company like starbucks has company owned stores, subway has franchise owned stores And both are very different, When you operate with a company owned store you get the entire profits, but when it's a franchise you get royalty on revenue What went wrong for subway India is their franchise store positioning, Subway franchises went terribly wrong at this, they were placed in low foot fall areas and all their franchises were placed extremely closer to each other because of which no franchise could make equal revenue Since, it's a commission based franchise model, subway couldn't make money as their franchise outlets didn't make enough money

9 replies22 likes
Replies (9)

Gautam Ambani

Money Magnet • 1y

Could be true. But, you know what..?? The closeness of stores can be found in Canada as well. ( Mostly owned by gujju community ) More over, the strictness of food authorities makes huge role. In Canada, a customer can lodge a complaint directly to the higher authority and they take action against it effectively. ( Even if you forgot to put 1 bacon 🥓 they directly complain about it without giving a chance ) Plus, there is streamless & stric process of how you make a subs. Plus, cleanness, every stores do cleaning 2-3-4 times every day. Plus, routine checking by authorities, They do check cleanness, temprature, storage area, how an employee make subs ( yes, if an employee don't make sub with the proper process, then the stores points will be cut ), proper equipments, sanitization ( employee has to clean his/her hands for each sub they make ) etc. In India, non of this things appears to be followed.

0 replies2 likes

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