In March 2011, sandwich chain Subway surpassed the world’s largest hamburger chain, Mcdonald’s in terms of the number of stores globally. In 2002, around nine years ago, Subway had already surpassed McDonald’s in number of stores in the U.S. However, McDonald’s still rules in terms of revenue with $24.1 billion, as compared with $15.2 billion for Subway last year. Read McDonald’s International Innovations
Subway – Rapid growth strategy – opening outlets in non-traditional locations
Subway has opened around 8000 outlets in non-traditional and unusual locations. E.g. in Automobile showrooms, Goodwill stores, high schools, zoos, appliance stores, ferry terminals, riverboats, and even a church. In China it has around 200 stores and has plans to expand it to around 500. Subway has competitive advantage over other chain restaurants as it costs less for it to open and operate a smaller format store.
McDonald’s Versus Subway
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