Company Production

Subway's main product is submarine sandwiches, although they serve much more than that today. Their main target in marketing is adults aged 18-49. (Retrieved from http://www.subway.com/ContactUs/StudentGuideEdits.pdf August 24, 2012).

Subway’s Stages of production at each restaurant are as follows:

·         Purchase fresh produce, meat, condiments, etc.

·         Bake the bread fresh daily used for the sandwiches.

·         Staff prepares and serves each meal as directed by customer.

There are many other steps to running a restaurant not directly related to producing the meal that the customer buys, but that contribute to the restaurant functioning and allow for it to remain in business. For example, the restaurant needs to be clean and maintained. Preparation goes into getting the food ready to be served so quickly before, after and during store hours – veggies need to be washed, diced, sliced and stored. Cheese and meat are packaged in the right amount for each sandwich so that it doesn’t need to be counted or weighed every time. All of this preparation contributes to the productivity of the store. Without these steps, the restaurant would not run efficiently.

New promotions often affect supply and demand. For example, when the $5 footlong promotion began, it “was so popular, so fast, that it caused inventory shortages throughout the company” (Retrieved from http://ahan-analytics.drduru.com/thoughtblog/2009/11/11/analytic-lessons-from-subway-5footlong-promotion/ August 27, 2012). Even though they were making less money per sandwich, the volume customers demanded of these items increased. The company was able to modify the amount supplied to meet the demand, and this was so successful that it went from being a local promotion in Florida to a company-wide promotion.