FINALT SMALL BUSINESS PROJEC

III. Company History

a. Company history

With more than 35,000 locations in 97 countries, the SUBWAY® brand is the world’s largest submarine sandwich franchise, and has become a leader in the international development of the quick service restaurant industry.

SUBWAY® restaurants first ventured outside North America when the first location opened in the small Middle Eastern island nation of Bahrain in December of 1984. Since then, the SUBWAY® concept has gone around the world, with restaurants opening from Argentina to Zambia.

Wherever SUBWAY® restaurants are located, the core menu stays relatively the same — with the exception of some cultural and religious variations. World travelers can expect the same high quality of ingredients regardless of what nation they are visiting. You can enjoy a foot-long Turkey Breast Sub, with your choice of a variety of vegetables and condiments served on bread baked right in the restaurant in Jamaica, then travel to New Zealand and get the same foot-long Turkey Breast Sub! This spread has reached Central America and in Nicaragua only there are 11 restaurants.

VI. Industry Profile and Overview

A. Industry analysis

1. Industry background and overview

In the fast food industry in Granada City we find some competitors that are not necessarily the strongest ones which are Pizzeria Don Lucas, Roadhouse Restaurant and Mona Lisa. In the past there was a franchise of subway in Granada which was managed improperly and got several troubles.

2. Major customer groups

Subway customer groups are middle and high class people, without differences of ages.

Significant trends

As for the Nicaraguan market, people are looking for healthier and cheaper ways to acquire meals however; there is not enough supply of these type of foods. Broadly speaking, restaurants include in their menus. By year end, Subway may be considered the biggest fast food chain in the world, indicating that something is working well with it, which can throw beneficial results for this specific franchise as well.

3. Growth rate

A 10% growth rate in sales is considered realistic.

4. Barriers to entry and exit

There are few barriers to enter due to the competition in Granada regarding this type of healthy food style is very few.

5. Key success factors in the industry

As for this type of restaurants themselves the main success factors are the customized service, low prices and top of the line nutritional value.

6. Outlook for the future

B. Stage of Growth (start-up, growth, maturity)

Subway restaurants are at its maturity stage.

V. Business Strategy

A. Desired image and position in the market

We want to be positioned as a healthy sandwich restaurant, that offers its customers a quick, tasty, healthy and portable meal, prepared just the way the customer wants. We will provide various nutritious choices, affordable, value focused menu and an attentive customer service. This market is attuned with the health benefits of their eating habits, more conscious of their buying habits than the general population, an more importantly, they have higher incomes and are willing to pay more for a better fast food choice. Our goal is to be that choice in the Granada area.

B. Company goals and objectives

1. Operational

Our first objective is to open the Subway franchise four months from the day that we are granted the loan from the bank and sign the franchise agreement. The loan from the bank would be confirmed by January, and the Franchise Contract in February, so the Subway would be up and running by May 2012.

2. Financial

The subway will turn a profit by the end of our first year of operations. We will pay down our U$ 100,000 loan to U$ 90,000 by the end of year one, and repay it completely within eight years. Our net profit for year one will be of U$ 20,830 dollars.

3. Other

To succeed with our goal, and to encourage a healthy lifestyle, we will sponsor local sporting events, and give 3% of profits to local charities. We will build roots into the community. We will also market our products with local businesses, the famous International Poetry Festival of Granada, to local hotels, and offer catering services through local party supply stores and through close ties to local hotel managers and executives.

Our community is as important to us as making a profit. We will devote 1% of profits to “APROQUEN” (Asociacion Pro Niños Quemados), 1% to “Los Pipitos” and 1% to “La Providencia” Granada's Nursing Home. This idea is founded on the concept that good works and good deeds not only serve the needs of the community, but will also keep our company healthy and committed to the success of its customers.

C. SWOT analysis

1. Strengths

 Healthy menu

 Affordable value based products

 Centralized location with high traffic rates

 Highly skilled and creative management team

 Fast, clean and attentive service

 Attractive décor

 International reputation for its quality and perceived value

2. Weaknesses

 Fast food restaurant doesn’t match the “sit-down” restaurant segment in the area.

 No alcoholic beverages

3. Opportunities

 80% of traffic is comprised of foreigners

 Tourists feeling homesick and trying to eat something from their country

 Tourists that can't eat autochthonous food or from low-hygiene restaurants.

4. Threats

 Tourists preferring autochthonous food

 People preferring unhealthy food such as “fritangas”

D. Competitive Strategy

1. Differentiation

We are approaching our customers through a differentiation strategy. We are providing them a with sandwiches with a unique customer service, healthy and tasty that are valued and perceived by our customers to be better and different from any other sandwiches the competition has to offer. This extra value that we are adding to our subways for their uniqueness in the market, may allow us to charge a premium price for them, but still very affordable to our customers because of it's value based pricing.

VI. Company Products and Services

A. Description

1. Product or service features

• Fast, tasty and portable meals.

• Warm and cold sandwiches and salads.

2. Customer benefits

• Personalized service and customized orders

• Healthy and nutritious

...