Simple idea generates $3.8 billion in sales

Article from Businessweek

Subway's $5 footlong, the brainchild of an obscure Miami franchisee, is the fast-food success story of the recession.

Stuart Frankel isn't what you'd call a power player in the world of franchising. Five years ago he owned two small Subway sandwich shops at either end of Miami's Jackson Memorial Hospital. After noticing that sales sagged on weekends, he came up with an idea: He would offer every footlong sandwich (the chain also sells 6-inch versions) on Saturday and Sunday for $5, about a buck less than the usual price. "I like round numbers," says Frankel, a brusque New Yorker who moved to Miami in 1972 and owned a drugstore before opening his first Subway outlet in 1988.

Customers liked his round number, too. Instead of dealing with idle employees and weak sales, Frankel suddenly had lines out the door. Sales rose by double digits. Nobody, least of all Frankel, knew it at the time, but he had stumbled on a concept that has unexpectedly morphed from a short-term gimmick into a national phenomenon that has turbocharged Subway's performance...

In fact, the $3.8 billion in sales generated nationwide by the $5 footlong alone placed it among the top 10 fast-food brands in the U.S. for the year ended in August...

Full article
The Accidental Hero - BusinessWeek

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Thanks Steve, am thnking about the Steak and Cheese now with Honey Mustard sauce! Am on a diet to fit into DJ for xmas party! Grrrrrr

But just goes to show the power of a discount! Excellent read!

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Hmmm Subway.

I am having a homer moment. I need to eat subway now. dribble dribble
Thanks Steve.


Stack em high sell em cheap you cant beat a bit of good old fashioned volume selling.

speed dial to the local subway just pressed...

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What did you go for Stavros? Didn't think they did maggot kebab flavoured ones? :P

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Simplicity is the key to business success.

The most simple ideas tend to be the most profitable. Always something to consider when looking at your own businesses. Ask yourself, could I do or make this easier?

The more complex your route to market, the more expense you will incur.

You can take that advice to the bank! Very true Biz-Angel!

I think far too many people get emotionally involved in their business, which can lead to complications!

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Yep agree, but thinking more about Subway (must be dinnertime!) must be a hard business for the Franchisee.

Guessing there will be monthly franchisee costs, location is normally in a high rent area, and you have a lot of staff, so big wagebill. You must have to turn out a lot of subs to return a decent profit.

That said, I've heard of people running multiple franchises so guess there must be money in it. Not for me though, although did consider taking on a Dominos Pizza franchise a few years ago. Think that was belly over ruling business brain

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