OPERATION AND MARKET RESEARCH AT

SUBWAY
(TEAM INDIA MANAGERS LTD)

By
Siddhesh S Parab
Roll No: 46
(Operations)
Introduction

Introduction Team India Managers Ltd.

Team India Managers (TIM) Group has been in
business for a decade.
Currently 700+ employees are associated with
TIM.
We mainly focus on 3 sectors: Food &
Beverages, Vocational Education and
Financial Services.
The company is well capitalized by over INR
140 million in F & B Division, entirely promoter
funded & run.
Debt free company
We believe in global best practices. Ex.: ISO
9001-2008 certification already achieved.
Members of The Federation of Hotel And
Restaurant Associations of India.
Member of Bombay Caterers Association

Introduction to Subway
Opened on August 28, 1965
Entrepreneurs, Fred DeLuca and Dr. Peter Buck team up to open their first submarine
sandwich shop in Bridgeport, Connecticut. Originally called Petes Super Submarines, they
sell 312 sandwiches the first day.
Doctors Associates Inc.
1968 year marks the first time the name "SUBWAY" is used.
First SUBWAY Restaurant In India opened in December 2001 at Saket, New Delhi.
First SUBWAY Restaurant In Mumbai In 2002 first SUBWAY.
In 2009 The SUBWAY brand is ranked as the #1 franchise opportunity in Entrepreneur
Magazine's 2009 "Annual franchisee 500.
Currently in July 2014 there are around 448 subway restaurant in India
On 1
st
July 2014 Subway launched its 1
st
restaurant in Sri Lanka.




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 ones own Sub
Location
Sustainable Competitive Advantage
Financial Strategy
Service- Scape HRM Store Management Merchandise Planning
Retail Market Strategy
Systems & SCM Financial Strategy
Service- Scape HRM Store Management Merchandise Planning
Retail Market Strategy
Growth Opportunities
0
2
4
6
8
10
12
2008 2009 2013 2018
Unorganised
Organised
Systems & SCM Financial Strategy
Service- Scape HRM Store Management Merchandise Planning
Retail Market Strategy
Organization Structure
INDIA OFFICE
(DELHI)
FRANCHISEE 1 FRANCHISEE 2 FRANCHISEE 3
MAHARASHTRA
STORE(MUMBAI)

Financial Strategy
Systems & SCM
Financial Objectives
Higher Number of bills
Higher Billing Amount
Targets
Pricing
Royalty
Service- Scape HRM Store Management Merchandise Planning
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
Systems & SCM
Capital Investment
Capital Investment ranges from Rs 52 Lakhs to Rs 60 Lakhs
Depending upon the store size
including all the capital equipment's and machinerys
Total Payback Time
Service- Scape HRM Store Management Merchandise Planning
Retail Market Strategy Financial Strategy
The total payback period is 2 to 2.5 years avg.
E.g
food cost 42%
Labour 11%
Subway 12%
Other 10%
Monthly profit is Rs 2,50,000 * 12 month = Rs 30,00,000/-
therefore, 60,00,000/30,00,000 = 2years avg.

Information Systems &
Supply Chain Management
Information Systems
Sub-shop 2000 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


Service- Scape HRM Store Management Merchandise Planning
Financial Strategy Retail Market Strategy Systems & SCM

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 Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning




Vendor Relations
The main third party vendor is Jyoti International Ltd
Majority of inventory is provided by Jyoti International Ltd
as per the rules and regulations of Subway.
Other vendors for vegetables are generally whole-sellers,
purchased from the local vendor



Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Sauces are provided by a third party vendor i.e Jyoti
International Ltd.
Jalapenos, Olives and Pickles are bought tinned packed
Meat and Breads is sourced from Delhi
All the purchasing is done centrally
Capsicum, Cucumber, Onion and Tomatoes etc. are sourced
from the Prabhadevi market
Lettuce is sourced from Jyoti International , but in case of
emergency it is purchased from local vendor




Sourcing

Warning

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

-Issued in the Public Interest
Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Assortment
Veg Subs
Traditional
Favorites'
Local
Salad
Breakfast
Extras
Cookies
Beverages
Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Assortment
Veg Subs
Traditional
Favorites'
Local
Salad
Breakfast
Extras
Cookies
Beverages
Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Assortment
Veg Subs
Traditional
Favorites'
Local
Salad
Breakfast
Extras
Cookies
Beverages
Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Assortment
Veg Subs
Traditional
Favorites'
Local
Salad
Breakfast
Extras
Cookies
Beverages
Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Assortment
Veg Subs
Traditional
Favorites'
Local
Salad
Breakfast
Extras
Cookies
Beverages
Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Assortment
Veg Subs
Traditional
Favorites'
Local
Salad
Breakfast
Extras
Cookies
Beverages
Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Store Management Merchandise Planning
Assortment
Veg Subs
Traditional
Favorites'
Local
Salad
Breakfast
Extras
Cookies
Beverages

Store Management

Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape HRM Merchandise Planning Store Management
Store Layout
Walk-In Fridge
(SKU)

Backup Area (Kitchen)
Sitting Area
Outer Passage
Veg- counter
Non veg counter Bill sys
Upper SKUs
R.F
Ice-mc oven
Coke mc
Bread
keeping unit
Baker
Door
Trash
Systems & SCM
Equipment's Used
Financial Strategy Retail Market Strategy
Service- Scape HRM Merchandise Planning Store Management
1. Deep Freezer
2. Chiller
3. Toaster
4. Baking Center
5. Ice cube Machine
6. Table Top Freezer
7. Cookie display
8. Refrigerator
9. Vegetable Slicer



Systems & SCM
Materials Used
Financial Strategy Retail Market Strategy
Service- Scape HRM Merchandise Planning Store Management
Materials such as
1. Sauces
2. Jalapenos
3. Olives
4. Pickles
5. Chickens
6. Breads
7. Lettuce
8. Coke
9. Cups , Bags, Tissues etc
All the purchasing is done by Jyoti
International Ltd.

Materials such as
1. Tomatoes
2. Onions
3. Cucumber
4. Capsicums
All the purchasing is done from Local
Vendor
And also in case of emergency Lettuce,
Olives are purchased from local vendor

Systems & SCM
Inventory
Financial Strategy Retail Market Strategy
Service- Scape HRM Merchandise Planning Store Management
Inventory at Subway
Inventory management is one of the important processes of
subway.
As been and food and beverage related company it is
necessary to maintain the correct number of stock in SKUs.
In subway the inventory check is carried out by both manual
and computerized process.
Subway has its own unique software name Subway Shop
2000.
This software is directly connected to the centralized system
which is at Subway Delhi HQ and Subway Singapore HQ,
so once the inventory details filled properly by the manager the
generated report get automatically submitted with them.

Systems & SCM
Inventory
Financial Strategy Retail Market Strategy
Service- Scape HRM Merchandise Planning Store Management
Inventory at Subway
Inventory management is one of the important processes of
subway.
As been and food and beverage related company it is
necessary to maintain the correct number of stock in SKUs.
In subway the inventory check is carried out by both manual
and computerized process.
Subway has its own unique software name Subway Shop
2000.
This software is directly connected to the centralized system
which is at Subway Delhi HQ and Subway Singapore HQ,
so once the inventory details filled properly by the manager the
generated report get automatically submitted with them.

Systems & SCM
Inventory
Financial Strategy Retail Market Strategy
Service- Scape HRM Merchandise Planning Store Management
The inventory carried on the bases of LIFO & FIFO manner
The Prabhadevi store contains a walk-in Fridge
Which contains of a
a. Deep Freezer of capacity 2 tons
b. Chiller of capacity 1 ton
Some of the other SKUs are the
a. Counter Area
b. Storage (Upper)
Control Sheet

Human Resource
Management
Systems & SCM
Rercuitment
15 member staff working in 2, 8 hr long shifts
Team meetings happen at every thursday, where the
incoming and outgoing staff discuss
Recruitment is handled centrally in Forti by the Heads.





Financial Strategy Retail Market Strategy
Service- Scape Merchandise 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




Systems & SCM Financial Strategy Retail Market Strategy
Service- Scape Merchandise Planning Store Management HRM
Motivation
A part of profits on achieve Sales Targets is shared with
everyone
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
Financial Strategy Retail Market Strategy
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

Financial Strategy Retail Market Strategy
Merchandise Planning Store Management HRM Service- Scape



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



Financial Strategy Retail Market Strategy
Merchandise Planning Store Management HRM Service- Scape




Customer Service
Systems & SCM Financial Strategy Retail 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 whos fault it is)






A new Complimentary Sub is served






Conclusion
1. The cost can be reduce of the inventory by purchasing the stocks from local vendor
but at the same time the same quality can not be maintained
2. The above statement can not be achieved as per the rules and regulation of
Subway and mentioned in operation manual 2014 it is must to purchase the
material from the third part suggested.
3. As per the there is no warehouse in specific for the store , there are various SKUs
implemented within the outlets where the stock can be kept
4. All the equipment's used are advanced
5. Improvement on the productivity can be achieved by proper handling of while
making the sandwiches
6. As this might also keep the food cost under control
Thank You