Chapter 1

Introduction to Entrepreneurship

An Entrepreneur may be defined as an individual who organizes as well as operates a

business or businesses with a financial risk involved. Entrepreneurship may be defined as the

quality of being an entrepreneur or the one who undertakes an enterprise. Hence it

emphasizes on the risk and effort taken by individuals who both own and manage a business.

He may bring about innovation into the business.

In the recent years, the same term has been extended to include social and political forms of

activity. When entrepreneurship is describing activities within a firm or large organization it

is referred to as intra-premiership and may include corporate venturing, when large entities

spin-off organizations.

In this project I have undertaken detail study on Mr. Fredric DeLuca as an Entrepreneur and

Subway as an Enterprise. Study emphasis on entrepreneurial Growth Story (Subway)

Franchising as an Entrepreneurial Model

Franchising is one of the booming channels for entrepreneurial growth. Franchise is a

contract between two parties, especially in different countries involving transfer of rights and

resources.

The franchisor enters into a contract with the franchisee, whereby, the franchisor agrees to

transfer to the franchisee a package of rights and resources.

Subway is a classic example of a corporation with franchise contracts around the world.

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Chapter 2

Introduction to Subway

Subway is an American fast food restaurant franchise that primarily sells submarine

sandwiches (subs) and salads. It is owned and operated by Doctor's Associates, Inc. Subway

is one of the fastest growing franchises in the world with 40,043 restaurants in 102 countries

as of 27 August 2013. It is the largest single-brand restaurant chain and the largest restaurant

operator globally.

Subway's main operations office is in Milford, Connecticut; five regional centers support

Subway's growing international operations. The regional offices for European franchises are

located in Amsterdam, Netherlands; the Australia and New Zealand locations are supported

from Brisbane, Australia; the Asian locations are supported from offices located

in Beirut, Lebanon, and Singapore; and the Latin America support center is in Miami,Florida.

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History

In 1965, Fred DeLuca borrowed $1,000 from friend Peter Buck to start "Pete's Super

Submarines" in Bridgeport, Connecticut, and in the following year they formed Doctor's

Associates Inc to oversee operations of the restaurants as the franchise expanded. The

holding company derives its name from Fred DeLuca's goal to earn enough from the business

to pay tuition for medical school, as well as Peter Buck's having a doctorate in

physics. Doctor's Associates is not affiliated with, nor endorsed by, any medical

organization.

In 1968, the sandwich shop began using the name "Subway" for the first time.The first

Subway on the West Coast was opened in Fresno, California in 1978.  The first Subway

outside of North America opened in Bahrain, in December 1984. In 2004, Subway began

opening stores in Wal-Mart supercenters, and surpassed the number of McDonald’s locations

inside US Wal-Mart stores in 2007. Since 2007, Subway has consistently ranked

in Entrepreneur magazine's Top 500 Franchises list.

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In March 2011, Subway was named "the most loved fast food chain in the US" by

Amplicate.com, based on their analysis of opinions expressed on social media websites.

At the end of 2012, Subway became the largest fast food chain worldwide, with 33,749

restaurants – 1,012 more than McDonald's. In terms of revenue, McDonald's still led

Subway. Subway is one of the fastest growing franchises in the world with 40,043 restaurants

in 102 countries as of 27 August 2013. 

Products

Subway's core product is the submarine sandwich (or "sub"). In addition to these, the chain

also sells wraps, salad and baked goods (including cookies, doughnuts and muffins). While

some menu items vary between countries and markets, Subway's worldwide signature sub

varieties include:

Italian B.M.T.

Roasted Chicken

Subway Club

Tuna

Meatball Marinara

Subway Melt

Chicken Teriyaki

Steak & Cheese

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Subway's best-selling sandwich, the B.M.T., contains pepperoni, salami and ham. The name

originally stood for Brooklyn Manhattan Transit, but now stands for "Biggest, Meatiest, and

Tastiest".

Subway also sells breakfast sandwiches, English muffins and flatbreads.

A 2009 Zagat survey named Subway the best provider of "Healthy Options" (in the "Mega

Chain" category). Subway was also first in "Top Service" and "Most Popular" rankings. It

placed second in "Top Overall", behind Wendy's.

Regional Variations

Subway's menu varies between countries, most significantly where there are religious

requirements relating to the meats served.In 2006, the first kosher Subway restaurant in the

United States opened, in a suburb of, Ohio. Subway’s spokesman attended the opening.

A press release stated, "With slight modifications Such as no pork-based products, and the

use of soy-based cheese product, the menu is virtually identical to that of any other Subway

restaurant."  Subway opened its first restaurant in India in 2001 in New Delhi.

Subway restaurants in India do not serve beef and pork products in deference to Hindu and

Muslim beliefs respectively, and sell an extended vegetarian range due to the large number of

vegetarians in the country. There are 390 Subway restaurants in 65 cities of India as of

January 2013. On September 4, 2012, Subway opened its first all-vegetarian outlet on the

campus of Lovely Professional University (LPU) in Jalandhar, Punjab.

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Nutritional Content

In 2011, Subway introduced gluten-free bread and brownies to some locations in Texas. It

also cut the salt content of its sandwiches by 15 percent.

In the UK and Ireland, Subway has reduced salt content across its entire range by 33% and

has committed to further reductions, in line with government targets. Subway's range of

"Low Fat" subs is endorsed by the charity Heart Research UK

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Objectives of the Study

To undertake a complete study on Franchising as an Entrepreneurial model with

special reference to Subway.

To undertake a study on Growth story of Fred DeLuca as an Entrepreneur and his

various Entrepreneurial Traits.

To find out the reasons behind what provoked DeLuca to give up his Dreams of

becoming an medical practitioner and become an successful Entrepreneur .

To study and analyse Expansionary strategies adopted by Subway

To analyse current position of Subway with Respect to Global Presence.

To survey and analyse current customer preferences towards Subway in india.

Research Methodology

Collection of data

Primary data:

Primary data were collected through E-Questionnaire and through personal interview

with the respondents. The questions multiple choice, rating and ranking scale

questions, and open ended questions.

Secondary data:

The methodology for collection data with reference to the secondary data was taken

from the different Published Books, Journals, Articles, Magazines and E-Data.

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Scope of the Study

As the study emphasizes on Fred DeLuca as an Entrepreneur and Subway as its growing

Enterprise, the study throws light on entrepreneurship which itself is has a wider scope in

both developing as well as developed nations, especially in a country like India scope for

upcoming entrepreneurs with their unique innovative ideas, concepts, products and

entrepreneurial qualities are on welcoming phase. Every nation demands for Entrepreneur’s

with urge to gain universal benefits which come along with entrepreneurial business

mentioned below…

Economic development

Economic welfare

Raise GDP

Increases Exports

Raise Standard of living

Raise Global Economies

Limitations of the Study

Due to lack of resources detailed analysis of other competitors’ and Rivalries could

not be undertaken

Due to short period of time detail study on Functional areas with respect to host

countries where Subway has its presence could not be undertaken

Study reflects only Franchising as an entrepreneurial model while other models are

not depicted in the findings.

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Chapter 3

Introduction to Frederick DeLuca

Frederick "Fred" DeLuca (born 1948) is an American entrepreneur, best known as the co-

founder of the Subway sandwich shop franchise restaurants. He was born in Brooklyn, New

York, and after several moves, the family landed in Bridgeport, Connecticut.

Subway is thought by many to be one of the most successful businesses in the world with

over 40,043 restaurants in 102 countries as of 27 August 2013. . Fred Deluca worked very

hard to get his business started so he could raise enough money to go to college. Fred was

working at a hardware store, but the pay wasn't sufficient to pay for college. Fred spoke with

a family friend named Dr. Peter Buck. Buck told Fred to open up a submarine sandwich shop

in his hometown. At the age of 17, Fred and Dr. Peter Buck partnered up. They started their

business with a single sandwich shop in 1965. Buck loaned Fred $1000 to open up "Pete's

Super Submarines" in August of 1965. Within a few years, new stores were opened up in

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new locations. It was also at this point that they decided to shorten the shop's name to

“Subway". In 1995, thirty years later, 11,000 restaurants had been established in the US.

Why he Started the Business

As an ambitious 17-year-old high school graduate, Fred was looking for a way to make

enough money to pay for his university tuition learning to become a doctor. He was not

earning enough money to pay for college working in a local hardware store making only

$1.25 per hour, so his business partner, Dr. Peter Buck, suggested opening a sandwich

shop. He explained to Fred that such a business had been quite successful in his home town.

He lent him $1000 to help get the business started. The first shop opened on August 28, 1965

at a mediocre location in the city of Bridgeport, Connecticut. The first year of business was a

learning experience and a challenge. His decision to start a sandwich shop would not only

pay for his education, but mean financial independence for him and many other people

around the world. Today, "Subway" has become a global company with over 40,043

restaurants in 102 countries as of 27 August 2013 around the world. It has become one of the

largest food chains on the planet. The first Subway shop was originally called "Pete's Super

Submarines" until it was shortened to Subway a few years later.

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Entrepreneurial Traits

Fred DeLuca started his first subway in 1965, at seventeen years old Fred DeLuca had

many entrepreneurial qualities that many entrepreneurs now a day would kill for. These

qualities include but are not limited to perseverance no one would have ever thought that the

seventeen year old Fred DeLuca would turn his sandwich shop into the biggest franchise in

the world.

Innovator: He was an innovator to come up with unique style of marine and sandwiches.

Opportunistic: He saw a demand for healthy food that still had great taste, and Fred DeLuca

supplied this need.

Deterministic: Creating a new business is very difficult, especially for a young boy only 17

years old. Fred DeLuca, the founder of Subway, worked very hard with great determination

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to get his restaurant started with his business partner Dr. Peter Buck so that he could earn

enough money to go to college to become a doctor.

Willingness to take Risk and passion to earn/work: He was willing to take on the risk of

starting Subway in order to help out is family financially. He knew that they could not afford

to send him to college, but he was not going to give up on his dream of going. 

At seventeen with 1,000 dollar loan from a friend DeLuca had limited opportunities, it was

either succeed or fail, he needed money for college, and quick! DeLuca had a lot riding on

this sandwich shop, his education, 1,000 dollars, and his reputation. And he belives that all

these risks are part of the reason DeLuca was so passionate about having a successful

business, which in the end his passion was what brought him to his success. 

Persistence and Focus: He stayed very concentrated even when the first few restaurants

weren’t doing as well as he would have liked. The first store was struggling when the

two decided to open up a second store. This second store struggled as well as first. Instead of

giving up, they opened up a third store and it all went up hill from there.

Starting a business is not easy, but if you stick with it, it can be done. Fred Deluca worked

very hard, took the risk, and stayed concentrated and it paved off. He has created one of the

most successful businesses in the US with the help of Dr. Peter Buck.

Salesmanship: DeLuca was also a good salesman, without his salesmanship he wouldn't

have expanded his location.

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His-Story

In 1965, Fred DeLuca was preparing to attend the University of Bridgeport, where he wanted

to study medicine. He had gotten a job in a hardware store to put him through college, and

was only making enough to buy lunch at fast-food restaurants like McDonald's.

This experience and his interest in medicine gave him the idea of a "fast-food venture that

provided a healthier, less fattening bill of fare." At this point, Fred was only 17 years old and

his primary focus was how to fund his college education.

Although Fred was born in Manhattan in 1948, he grew up outside Albany in Amsterdam,

New York. While living there, his family met Peter Buck, a nuclear physicist. The DeLucas

moved to Bridgeport, Connecticut, while Buck had a home in nearby Armonk, New York.

The families became friends.

Peter had been invited to a DeLuca family barbecue where he and Fred got into discussions

about his healthier fast food idea and his financial predicament concerning college funding.

DeLuca was hoping that Peter Buck would reach into his pocket and pull out a big stack of

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hundred dollar bills. Instead, Buck offered something more valuable - a business propostion.

Instead of a gift or loan, he would partner with Fred and give him the money to open up a

sandwich shop so Fred could work his way through school.

The initial $1,000 investment was enough to open a sandwich shop in Bridgeport, which he

named Pete's Submarines, after Buck. But in the radio ad he bought, people were confused

and thought he was saying, "Pizza Marine," and were surprised when they showed up and

saw a sandwich shop instead. The name was changed to "Pete's Super Submarines." Later,

thinking of the transportation system in nearby New York, DeLuca changed the name to

play-on-words "Pete's Subway."

The first shop opened on August 28th, 1956 at a mediocre location in the city of Bridgeport,

CT. The first year of business was a learning experience and a challenge. A year later they

opened their second location, having realized that visibility and marketing were key factors

to success. DeLuca believed that the biggest mistake he made was where he set up his very

first shop as it was a "crummy location. The third outlet was highly visible location and the

location is still there today.

DeLuca continued to attend the University of Bridgeport while running Subway, and, making

a bit of a shift from his original medical-school plan and getting his degree in psychology.

In 1978, Subway's 100th store opened, and reached the 1,000 store mark in 1987. Explosive

growth continued with Subway opening over 1,100 units in 1993 alone. As of now, company

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counts over 40,043 restaurants in 102 countries as of 27 August 2013,  Subway, however,

doesn't actually own a single location but collects 8% of revenue from each franchisee. The

chain is known for its popular ads featuring formerly obese student Jared Fogle and the ever-

popular $5 footlong.

While his partner and fellow billionaire Peter Buck's role has become less active over the

years, DeLuca continues to oversee the day-to-day operations of the company. DeLuca drives

a 10-year-old Lexus convertible and has identified Vege Delight and Turkey as his favorite

Subway sandwiches. Subway added 24,000 jobs in 2011. 

Today, Fred is 65 years old, lives in Ft. Lauderdale, Florida is married with one child. Forbes

magazine named DeLuca number 242 of the 400 richest Americans with a net worth of $1.5

billion. Today, Subway is one of the most popular franchise restaurants.

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Chapter 4

Franchising as an Entrepreneurial Model (Subway)

Entrepreneur's Hall of Fame: Fred Deluca

Fred Deluca is founder of Subway Sandwiches and Salads. With over 40,043 restaurants in

102 countries as of 27 August 2013.Subway is thought by many to be the most successful

overall franchise system in the entire world!

The Subway "system" utilizes thousands of owners, store employees and vendors providing

the system a net worth in the billions!

Entrepreneurship at an Early Age

As Fred Deluca started with a single sandwich shop in 1965 at the age of 17. He was looking

for a means to supplement his minimum hourly wages. He discussed his thoughts with family

friend, Dr. Peter Buck. Buck, a nuclear physicist suggested a sandwich shop as such a

business had been quite successful in his home town.

Fred knew he needed some capital to finance the shop and Dr. Buck provided Fred with

$1000 in capital and thus the partnership was made. The shop was even called Pete's Super

Submarines after Peter Buck!

Why DeLuca choose Submarine Sandwich as n Opportunity

Before attending the University of Bridgeport, Fred needed to make money for school where

he planned to study medicine. He sought out an old friend of his parents, Dr. Peter Buck, a

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physicist. Buck liked the idea of a shop that offered healthier food because at the time,

burgers and pizza were the standard on nearly all fast-food menus. DeLuca seized the idea of

submarine sandwiches - a novelty food named because the long oblong bun shape.

About Subway and Franchising Model

For Fred and Peter, it wasn't a free lunch! In fact, the first store was struggling when he

decided to open a second store. This second store struggled as well. Instead of throwing in

the towel, in a bold move many experts would think ludicrous, a third store was opened in a

highly visible location. Three was a charm for the partnership.

The rest is history with the first "franchised" store opening in Wallingford, CT in 1974. The

first international franchise came 10 years later in Bahrain, off the coast of Saudi Arabia.

Franchising was the plan created to provide exposure to the brand, business expansion, and

opportunity for individuals wishing to open a "business system" themselves.

Subway developed a "system" such that barrier to entry is relatively simple compared to

other franchises and business in general. Through economies of scale, the system is able to

provide tremendous cost savings passed on to franchisees. The cost of the franchise was

relatively low per average store. The equipment, financing, supplies, training and more is

supported by the franchisor to give the franchisee the best opportunity for success.

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What made DeLuca to choose Franchising as a Channel for Expansion Worldwide?

DeLuca earn his degree from the University of Bridgeport, but was hooked on the

entrepreneurial life. They had hoped to have 30 stores opened in the first 10 years but they

fell short by half. In 1974, they decided to start franchising.

The goal was 32 stores and franchising would let them open stores farther away. They knew

nothing about franchising. First they asked $5,000 for a franchise but when there were no

takers, they lowered the fee to a $1,000 (they raised it back when they had more success). In

eight years, they had grown from 16 stores to 200. DeLuca set a goal of 5,000 stores by 1994.

They set up a program for a select group of franchisees where they paid them for getting new

stores open and supporting other franchisees in their region. It worked! They had 1,000 stores

in 1987 and by 1990, they had 5,144 locations, with a goal of 8,000 by ’95. They had 10,000

stores by then.

Complications Faced during Expansion through Franchisee

Holding 1,000 stores in 1987 and by 1990, they had 5,144 locations, with a goal of 8,000 by

’95. They had 10,000 stores by then. There were some hiccups during this time.

There were complaints to the Federal Trade Commission about who they could and could not

sell a franchise to. There were complaints that they would sell to anyone, whether or not they

could read or write English and were doomed to fail.

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There were also issues with cannibalization. These problems were solved with a review

process to that let existing owners speak up if a new store was planned close by.

Continues Innovations Leading to Fame and Failure

Innovation had been ongoing, like reducing salt, adding spinach and adding egg-white

patties, which made a terrific sandwich. Visiting stores is an integral part of DeLuca’s job.

He is known to drive cross-country for a tour of anonymous visits, in which he simply orders

a sandwich. Owners or employees rarely recognize him. With over 10,000 outlets in the

United States alone, he tries to pack in as many visits as his day permits and sometimes eats

half-dozen subs a day. He says, “If the sandwich is made properly, I can eat one for every

meal and never get sick of them.”

Subway Countering its Major Competitor

Subway is one of the fastest growing franchises in the world with 40,043 restaurants in 102

countries as of June 14, 2013. They had nosed out McDonalds in 2010 for the most stores

Worldwide. Subway is now already well ahead of the world’s second largest restaurant

chain, iconic American hamburger joint McDonald's MCD   -0.27% , Subway is currently

opening about 50 new sandwich shops each week on its way to the firm’s stated goal of

100,000 stores.

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Chapter 5

Balanced Effort Reward Relationship Culture in Subway

A Day at Billionare Fred DeLuca Subway Headquarters

Five budding entrepreneurs from around the world were brought to Subway world

headquarters in Milford, CT on one day morning to meet and share ideas with the executive

team that runs the biggest restaurant chain on the planet. Founded by billionaire Fred

DeLuca.

Member guests were the grand prize winners of the company’s recently concluded Build

Your Own Virtual Subway Global Challenge, in which thousands from around the world

built virtual Subway restaurants and peddled electronic five dollar footlongs across the

internet while competing in a variety of business challenges. The five Subway Challenge

champions included Aline de Souza Rodrigues of Brazil, Holger Staerz of Austria, Andreas

Chiou of Greece, Agratha Dinkaran of India and 23 year old James Doyle of Florida, who

sold more virtual subs than any other competitor to come in first place globally.

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Fast View (DeLuca’s original idea of opening a submarine sandwich shop Fast View)

Like DeLuca’s original idea of opening a submarine sandwich shop way back in 1965,

Doyle’s big idea was a relatively simple one. Instead of just placing his virtual Subway in a

densely populated area, Doyle targeted a location on the water in St. Petersburg, FL that he

considered a destination in and of itself, and used his Subway restaurant as a vehicle through

which customers could experience the location while getting an affordable meal. He calls his

concept “Fast View”, where diners can “eat fast food and have a nice view.”

Andreas Chiou’s idea was even more unconventional. The Greek architect designed a

striking floating Subway restaurant that could travel between the 1,200 islands of his

homeland, selling subs to bathers and boaters at each of the country’s some 6,000 beaches.

Doyle, Chiou and the rest of the Global Challenge winners spent the day meeting with

various Subway executives and touring the company’s headquarters. Though Buck and

DeLuca did not participate in the day’s sessions, the winners did meet with Subway’s Chief

Development Officer and Richard Pilchen, who was Subway’s very first employee, has done

nearly every job there is to do within the Subway organization, from making sandwiches to

placing Subway in the 1996 Adam Sandler classic Happy Gilmore. In addition to working in

the corporate office, Pilchen is also a franchisee who owns six Subway locations.

The company’s bucolic Connecticut campus is open, airy and not as large as one might

expect given that the employees that work there are responsible for running the largest

restaurant operation in history, a business that did $18.1 billion in revenue last year. The

crowded flags that line the building’s lobby, one representing each of the 102 countries in

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which a diner can currently get a Subway sandwich, are a visual reminder of just how

massive an outfit Subway really is.

However, not a single Subway location is owned by Doctor’s Associates, the company that

holds Subway and its trademarks, so named in a nod to Dr. Peter Buck’s background as a

nuclear physicist.

The company cafeteria is outfitted with the latest Subway restaurant decor and serves nothing

but Subway products. And because it is free and self service, every employee is guaranteed

to always be up to speed on the most essential part of Subway’s business: making a quality

sandwich.

Conclusion

The above given article clearly depicts the employee motivation and empowering strategies

adopted by Mr Deluca, and the Balcend Effort Reward Realtionship culture adopted in this

Empire.

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Educational Campaigns Undertaken by Subway to Encourage Entrepreneurship

Globally

Subway is taking part in a campaign to educate young entrepreneurs in 100 countries about

how franchise businesses operate. That effort is being spearheaded by Young & Successful

Media, a Los Angeles-area organization founded by Jennifer Kushell that bills itself as a

social network for young entrepreneurs around the globe.

A 65-year-old Subway leader Deluca was taking part in Kushnell's effort. Deluca spoke to

the small group gathered at the Hudson Hotel in Manhattan

"I think that franchising is a big, big category of business and so for folks who are learning

about business, no matter what country they're in, they should be exposed to it and they

might get involved in some way."

He shared about how His own sandwich economy came around again when he talked about

the goals for the program: as Jen's big goal, was she wanted to educate people about

franchising, so I'm on board with that. For us, there's the short-term and the longer-term goal.

On the longer term, some of the people are who are involved with the project, the might

become franchisees or have a job within the company. In the very short term, they might buy

more sandwiches. And both are good for me.

Given the global nature of the franchise campaign, when Deluca was asked during the small

group session to talk about how Subway moved into international markets.

The real thing is how you actually establish a beach head in a new country, he said. It's hard

as hell to even open a store in the next town where there are no customers so how do you go

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to a new country where there's no supply line, no customers, no employees, no franchisees,

you don't know the laws, you just have to start over again.

Deluca freely acknowledged that how Subway messed up for the first time when they tried

to expand globally because it tried a strategy of selling distribution rights to an entire country

to a single individual, making them in effect a master franchisor who in turn would handle all

other Subway restaurants in that country. After a few years, I said to myself 'you know what?

I'm going to stop this. I don't care if we never open another store internationally, but this does

not work," he said, explaining that the problem was that the master franchisors were opening

high-overhead offices, not high-earning stores.

In their conversation after his talk, an interviewer asked Deluca if that was one of the biggest

mistakes of his career and what he might do differently if he had a second shot at his

business. Here again, Deluca impressed with his down-to-earth nature.

"The people who won't make a mistake are the ones who don't do things. You don't do

anything? You won't make a mistake. The minute you start doing stuff, something are going

to go wrong. And the more you do, the more mistakes you make, Deluca said, before adding

a "Butterfly Effect" twist when he said he wouldn't change his mistakes.

Sometimes, if you change what you do, you get a different result. Sometimes the different

result can be fatal, he said. Now, I don't know the problems I dodged along the way, but I

ended up in a pretty good place. If I had to start over again on the journey, I might change

one little thing and it could end up being a horrible state of affairs. So I wouldn't change a

thing. All of the experiences are well worth it.

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Chapter 6

Presence of Subway in India

Restaurant chain Subway is targeting to raise the number of its outlets in India from the

existing 390 to 1,000 by 2015 with an investment of $58 million.

The US-based company, present in 50 cities, will be targeting smaller Indian towns.

It aims to generate employment opportunities for another 15,000 people through this

expansion in India.

“India is a promising business destination with a young, educated population having growing

disposable income. Increased awareness and purchasing power are making the people seek

quality products and aspire for better lifestyle,”

Fred DeLuca, president and co-founder of Milford, Connecticut, US headquartered Subway,

said in a statement.

“Subway will continue to evolve and adapt its product offerings to suit the Indian taste. Our

focus however would always be health, freshness and quality,” DeLuca said.

He said the company aimed to expand its presence in India through franchise route. “Indians

are entrepreneurs par excellence. That is what makes Subway positive on achieving its

targets for India.”

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Data Interpretation and Analysis

Following given analysis is been prepared from data derived from primary data collected

with the help of E-questionnaire.

With the sample size of 20 respondents following analysis has been prepared

Out of 20 respondents 16 i.e. 80% prefer to have only those sub’s which were 97%

Fat free Such as Chicken Ham Roasted Chicken, Chicken Teriyaki, Veggie Delight

and Subway Club, Whereas only 4 respondents that is 20% preferred other Sub’s

which were less fat free such as Aloo patty, Chicken seekh, Paneer Tikka, Chicken

Tandoori and Italian B.M.T.

Among variety of sub’s preference are classified 15% i:e 3/20 Chicken Ham, 5% i:e

3/20 Paneer Tikka, 5% i:e 3/20 Roasted Chicken,10% i:e 2/20 Italian B.M.T, 10% i:e

2/20 Veggie Delight, whereas 30% i:e 6/20 each preferred Subway Club, Aloo patty,

Chicken Seekh, Chicken tandoori, Chicken Teriyaki..

Among other subway products survey revealed 20% i:e 4/20 Preferred Breakfast

Meal, 25% i:e 5/20 were delighted by the Varity of sauces served here, 10% i;e 2/20

preferred all other products ,35% i:e 7/20 i:e majority of the respondents from varied

age brackets prefer variety of Salads served here, and 10% i:e 2/20 preferred cookies

and Beverages served at Subway.

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When asked about quality of servings on 4 scale rating i:e very-bad, Bad, Good,

Very-good, 10% i:e 2/10 rated average,60% i:e12/20 rated it to be good enough

whereas 30% i:e 6/20rated it as very-good.

When surveyed about the hygiene and nutritional content on the grounds of healthy

and non Healthy,95% i:e19/20 perceive all subway servings to healthy enough

whereas only one respondent termed it as a Healthy-Junk.

When inquired about the pricing of subways offerings only 5% i:e 1 respondent found

it cheap price wise whereas 65% i:e 13/20 respondents fount it to be reasonable and

30% i:e 6/20 respondents found it expensive.

In terms of Quality of wrapping and Packing 30% of respondents i:e 6/20 found it to

be average i:e to be acceptable whereas 70% i:e 14/20 respondents were very satisfied

with the style and quality of wrapping i:e good.

Conclusion

The survey revealed that subway sub’s are highly acceptable and delightful \for

Indian customers and the market for subway’s is widening day by day due to quality

of serving for existing and prospective customers.

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Chapter 7

Lessons from Fred Deluca

 The Little Submarine That Could: DeLuca Takes Subway to the Top

1: Beginning as a Beginner is Okay

The tremendous success of the Subway chain is a testament to the fact that you do not need

to know everything about the business before you open up shop. When DeLuca first got into

the sandwich-making business, he was doing two things he had never done before; not only

had he never ran a business, but he had never even made a submarine sandwich before.

 

2: Know Where You Want to Go, and then Worry about the Way

As soon as DeLuca heard the story about Mike Davis he began setting in stone his own goals

for himself. Davis was the owner of a sandwich shop chain in New York who had begun

from nothing and grown his operation in a string of 32 stores. From thereon out, DeLuca’s

goal was to match that number.

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3: Put Yourself in Your Customers’ Shoes

Hindsight is 20/20. Looking back on the success – or lack thereof – of his first Subway store,

DeLuca acknowledges that his biggest mistake was its “crummy location. In February, the

store was doing so bad that we were thinking of closing up.” But together with his partner,

Buck, the pair decided to try something even more eccentric: they decided to open up a

second store. “We talked ourselves into building the second store,” says DeLuca.

4: The Name of the Game is Profit or Perish

In Subway’s early days, DeLuca maintained a close watch over all of his expenses, making

sure that they were always kept to a minimum. He also made sure that he never ran out of

money; he knew that a cash flow crisis was one of the top reasons why businesses failed. He

was personally in charge of opening Subway’s first nine stores. But as Subway’s franchises

began to multiply and its revenues soar, DeLuca came into a different kind of crisis, one that

he had not been ready for.

 

5: Make Business Personal through Your Relationships

When DeLuca opened up his first Subway store, it was a one-man operation. Occasionally,

however, he would convince his mother to help him out. Together, they would drive around

town every Friday to visit their four main vendors – the people who supplied them with all of

their meat, bread, vegetables and paper. But it was not to pick up any of the supplies.

 

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Conclusion

Franchising is most notably associated with large organizations such as Subway. But each of

these businesses started with a sound product that will be nationally and internationally

sought after. Of course, there are very successful regional franchises as well.

A franchise system must allow an owner to "stick to the knitting" of the business. A

successful franchisee at Subway, for example, must be able to provide an optimum eating

experience for its customers as defined by the guidelines of the company. While there are

costs to franchise systems, franchising is the most successful means to start a business and

franchise systems constitute more than 42% of all retail sales.

Statements given by Fred Reflecting Entrepreneurial Qualities

"It's not necessary to be so structured in this world. With all the people who work here

(Subway), whether you are real structured or not, it is not going to affect how much work

they do. People have inside of them a certain work ethic, and, if you appeal to them nicely,

they'll respond and give all they can give".

"My parents didn't deprive me but we were poor- poor isn't the right word. Back then I dont

think there was a lot of expendable income, so kids pretty much figured out how to make

their own way" Fred did make his own way even as a youth servicing 95 of the 108

customers in his paper route territory."I passed by lots of doors that were not my customers. I

have to sell to these people because it doesn't take any more time to drop the papers in front

of these doors-I'm walking by anyway".

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Each one of us has the opportunity to be a Fred Deluca or Peter Buck. We can each chose to

set and reach lofty goals. Fred could not have imagined that after store number 1, 2, or 3 that

Subway would become the enterprise it is today. Not only should we understand our own

goals but we must also be open to the passion and entrepreneurial drive in others. Fred

Deluca needed a start to pursue his vision. Most small businesses, including Subway was

financed by friends, family, and personal funds.

So what can we learn from Fred's experience?

A journey starts out with a beginning and in most cases a destination. Sometimes during this

journey we may hit a fork in the road that may take us in an entirely new direction with a

different and often better outcome. This is what happened to Fred. His journey started as a

way to fund college and the sandwich shop was just a vehicle to help him get there. His

initial destination was a college education and a degree in Medicine. But during his journey,

he took a detour and created a sub shop empire. 

When we at The Entrepreneur's Source work with a client, we take them on a journey of

discovery. We have them start their journey with an open mind so they can discovery what

type of business would be a good fit for them. Sometimes they start their journey looking for

a job, but discover that a business of their own would give them a better and more secure

career. The important point here is that it's beneficial to start your journey even when you're

not sure of the destination.

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Bibliography

Books:

Sunny Fernandez, Entrepreneurship and management of small and medium

Enterprises, as per second edition 2012, Rishubh Publications.

Michael Vaz, Entrepreneurship Management, Manan Prakashan Publications, as Per

First Edition April 2009, June 2012.

Web-links:

http://storiesofentrepreneurs.blogspot.in/2013/05/subway-fred-deluca.html

http://www.evancarmichael.com/Famous-Entrepreneurs/2095/The-Sandwich-King-

The-Early-Years-of-Subways-Fred-DeLuca.html

http://entrepreneurwiki.com/index.php/Fred_DeLuca

http://www.forbes.com/sites/edwindurgy/2013/07/09/a-day-at-billionaire-fred-

delucas-subway-headquarters/

http://www.ltbn.com/hall_of_fame/Deluca.html

http://storiesofentrepreneurs.blogspot.in/2013/05/subway-fred-deluca.html

http://freddeluca.weebly.com/index.html

http://www.evancarmichael.com/Famous-Entrepreneurs/2095/The-Sandwich-King-

The-Early-Years-of-Subways-Fred-DeLuca.html

http://en.wikipedia.org/wiki/Subway_(restaurant)

http://upstart.bizjournals.com/entrepreneurs/hot-shots/2013/03/04/subway-fred-

deluca-on-global-franchising.html?page=all

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Appendix

Questionnaire

Name: Profession:

Age:

To know consumer preference towards variety of products served by Subway

Which sandwich do you eat often and like the most?

Vegetarian subs

Veggie Delight

Veggie Patty

Paneer Tikka

Veg. Shammi

Aloo Patty

Local Subs

Chicken Tikka

Chicken Seekh

Chicken Tandoori

Chicken Achari

Vegetarian Subs

Traditional sub

Subway Club

Italian B.M.T

Turkey

Subway Melt

Turkey & Chicken

Ham

Chicken & Bacon

Ranch

Favorites

Tuna

Chicken Ham

Roasted Chicken

Chicken Teriyaki

97% Fat Free subs

Chicken Ham

Chicken Teriyaki

Roasted Chicken

Turkey

Subway Club

Chicken Tikka

Turkey & Chicken Ham

Veggie Delite

Veg. Shammi

Salads

Sauces

Breakfast meals

Rich Chocolate

Truffle

Cookies beverages

Submarine

sandwiches

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What do like the most among other Subway products?

Salads

Sauces

Breakfast meals

Rich Chocolate Truffle

Cookies beverages

Submarine sandwiches

All of the above

How would you rate Quality of serving here? (1-very bad,2-average 3-good 4- very good)

How would you rate Subway Products Health (Hygiene, Nutrition) wise? ( 1-Non-Healthy,

2-healthy)

How would you rate pricing of sandwiches here? (1-Cheap, 2-reasonable, 3- expensive, 4-

very expensive)

How would you rate wrapping and packaging of sandwiches here? (1-poor, 2-average , 3-

good )

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