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Case
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Reference no. 306-350-1
Published by: IBS Research Center
Published in: 2006

Abstract

Quiznos was a fast-food sandwich chain specialising in toasted submarine sandwiches in North America. Though still a fraction of the size of Subway, it had over 4400 outlets in the US alone, over 300 in Canada, and 100 other outlets scattered in 13 other countries. The company was aggressive at expansion; it opened a new store every 16 hours. The Subway restaurant chain was the world''s largest submarine sandwich franchise chain and had held the number one position since 2001. By February 2006, Subway had opened more than 25,000 restaurants in 83 countries. Subway and Quiznos were locked in an unusual competition. They competed for the same market. At the same time, they shared a common goal of luring customers away from the burger joints. One analyst believed Quiznos offered a better product than Subway but might have limited its growth potential by positioning itself between fast food and fast casual. Quiznos'' aggressive movements signalled intentions similar to Subway''s early ambitions. Could Quiznos uproot Subway from the number one position in the sandwich franchise market? The case discusses the growth and expansion of a small company, which of late posed a threat to the number one company in the same segment. The case also discusses different advertising campaigns of the company to gain consumer attention and highlights the unique business model adopted by the company.
Location:
Industry:
Size:
4,800 outlets
Other setting(s):
1981-2006

About

Abstract

Quiznos was a fast-food sandwich chain specialising in toasted submarine sandwiches in North America. Though still a fraction of the size of Subway, it had over 4400 outlets in the US alone, over 300 in Canada, and 100 other outlets scattered in 13 other countries. The company was aggressive at expansion; it opened a new store every 16 hours. The Subway restaurant chain was the world''s largest submarine sandwich franchise chain and had held the number one position since 2001. By February 2006, Subway had opened more than 25,000 restaurants in 83 countries. Subway and Quiznos were locked in an unusual competition. They competed for the same market. At the same time, they shared a common goal of luring customers away from the burger joints. One analyst believed Quiznos offered a better product than Subway but might have limited its growth potential by positioning itself between fast food and fast casual. Quiznos'' aggressive movements signalled intentions similar to Subway''s early ambitions. Could Quiznos uproot Subway from the number one position in the sandwich franchise market? The case discusses the growth and expansion of a small company, which of late posed a threat to the number one company in the same segment. The case also discusses different advertising campaigns of the company to gain consumer attention and highlights the unique business model adopted by the company.

Settings

Location:
Industry:
Size:
4,800 outlets
Other setting(s):
1981-2006

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