Fast-food restaurants wage a breakfast food war Subway has entered into the breakfast food war. They are no longer just serving five dollar subs, but breakfast sandwiches. They will be facing both threats and opportunities in the future. They will have to continue to use different strategies to compete with other businesses. Their key performance indicators are effective, but they will need to improve them. Subway entered into the fast-food breakfast market hoping to bring up sales. Subway brings employees in early to make their fresh bread for the day however; they didn’t open stores until later.
Since they already have someone there, they can open the store earlier to serve breakfast. They are facing competition from many other restaurants that have breakfast. When people think of Subway, they don’t think of breakfast. Subway needs to bring in more customers that will want to buy breakfast and lunch in one stop. Subway will not be considered for breakfast unless they can bring customers in to try their breakfast. The threat they face is that they are not a drive-thru restaurant. Many fast-food customers like the drive-thru feature because it allows them to quickly get their food and go on their way.
The opportunity they face is that customers who want to eat healthy will buy from Subway. Subway needs to bring in new customers. They can do this by offering a breakfast/lunch combo meal at a discounted rate. Customers can get both meals in one visit while saving money buying both. Breakfast is a big part of many people’s lives. Making breakfast easily accessible will bring customers to Subway. They do not offer a dollar menu however; they do offer breakfast for $2. 50 which includes a 16oz coffee. The regular day menu is also available in the morning. They hope that people will buy from the lunch menu as their breakfast.
Not everyone eats breakfast foods for breakfast, but customers that are coming off of the night shift may want a meatball sub. Subway has seating available all day, which allows for customers who don’t want to eat and drive to relax at one of their tables. Subway is considered a fast-food restaurant however; the food is freshly made right in front of the customers. Some people think that ordering breakfast from Subway is gross. Customers are offered the same kind of breakfast meals that one would find at a Dunkin Donuts. Perhaps they could offer more selections of coffee choices like Dunkin Donuts.
Offering more selections of coffee choices will make customers feel like Subway is also a good place to stop for breakfast. Competition is a threat they will always face. They will need to stay competitive in the market in as many ways as possible. Entering into the breakfast market will help them stay competitive. Their key performance indicator is offering healthy food in a fast-food market. A fast-food market doesn’t always have to mean that customers are going to get just greasy, unhealthy food. Subway is a very healthy-conscious restaurant. They are new to the breakfast market, which means they still have room to grow.
They will need to continue to offer breakfast choices that will make their healthy-conscious customers happy. Revenue is a big key performance indicator for Subway. Sales have rose 6% for the Subway restaurants that offer breakfast. This is a good start for them in this market. Subway is no longer just serving five dollar foot longs, but offering healthy breakfast choices. The threats they face from competition will always be there. The opportunities they have will satisfy their health conscious customers. They will, however, need to change their strategies in order to compete with Dunkin Donuts, McDonalds, etc.