Sub Way Analysis (GM Plan)

International Business Administration
Group of Bclass
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Section II
External Analysis
2.1
Environmental Analysis: Major Trends and Issues
2.1.1
Regulatory Trends and Issues
Business law is the implementation of regulations that oversee the

implementation of activities in business or economic activity. In the
setting of the included business law ordinances and procedures on
how to run a real business habits. To understand business law, is
useful to first understand civil law and commercial law in general.
Because the field of civil and commercial law is the basis of
business law. This is important, so that we shall have no difficulty in
understanding the basic business law.
Business law can be defined as the rules were made in
order to manage business activities in Indonesia. The business
activities can be run fairly. For more details, business law can be
interpreted as written regulations made by the government in order
to manage, protect and monitor all business activities whether it is
trade or industry or service or other activities related to finance and
business sectors.
Communications sector can develop due to the rapidly
growing technological advances as well. This can be seen in the
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production of goods such as mobile phones and the internet.

Businesses in this sector are thrilled to see the interest of the
community is very high.
Another kind of business is rapidly expanding franchises
(franchise) which was once dominated by foreign businesses, such
as KFC, Mc Donald's and Pizza Hut. Currently it has come also
competing local businesses such as Indomaret, Ice Teller77 and
others. In addition the property business also began to squirm that
hit major cities such as Jakarta has many built luxury apartments
designed for middle and upper class society. In other cities in
Indonesia is also developing residential development business,
shops and shopping centers. Economic development in Indonesia
can be seen from the data development of micro small and medium
enterprises. Data in 2006 showed all business units in Indonesia
has reached 45.7 million units in June and in 2011 growing to 51
million units.
Conditions mentioned above background birth business
law as law in Indonesia. The law is the law of social control so
expect businesses are also able to organize and supervise the
escort business in this country. With the presence of business law
in the midst of society, it is expected that businesses can avoid
business losses. In addition, business law are also expected to be
able to prevent monopolistic practices early. Business law is
expected to provide protection and security for all businesses,
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consumers and the wider community. Therefore, businessmen and

the private sector and the public basically does require the
presence of business law.
Business law also aims to create peace in the conduct of
business. However, business law will also provide tough sanctions
against those who violate the rules in business law. Sanctions are
to provide legal certainty, justice as well as to bring awareness to
the community. Thus people will be convinced that the existence of
business law really useful and can protect them.
Business law regulating and protecting the perpetrators
from engaging in fraudulent practices such as monopolies and
competition, tax evasion, and so forth. In addition, business law are
also intended to provide protection to the community. People as
consumers of goods and services in the market should get the
attention of business law. Society has often been the victim in the
business world. It has been often found that businesses create and
market products under the standard and dangerous to the
community.
Government Regulation Number 16 of 1997 on Franchise

(Franchise)
The regulation of franchise issues in Indonesia in particular
regulated in Government Regulation No. 16 of 1997 on Franchise
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(Franchise), which was passed on 18 June 1997, as The

government assumes that this franchise system is one way are
effective to increase the economic activity of our country was slow
and gave the opportunity to the public especially to the
economically weak groups to try to carry out its business, because
of That the Government issued the regulations.
Book of the Law of Civil Law
All regulations governing franchise should remain subject to the
rules and provisions of the Civil Code. Provisions on agreement the
Civil Code was set in book III have an open nature, which with its
open it will provide freedom of contract to the side, with the
principle freedom of contract allows for any person to make any
kind of agreement. License Agreement shall be subject to the
general provisions of civil law Article 1319 Civil Code which
contains "all agreements, both have a special names, and that is
not known by a particular name, subject to the general rules, which
are contained in this chapter and ago ". Agreement to be made by
the parties where there is an agreement between the parties to the
agreement.
2.1.2
Economic Trends and Issues
The economic situation in Indonesia in 2012 is expected to

stabilize. The state of the Indonesian economy expected to remain
steady in 2012 if they meet specific conditions prevailing in the
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world strong economy, though by no means outcome riding stable

economy because of the years 2008 to 2012 Indonesia's economic
situation deteriorated because the amount of budget that should
belong to the people completely lost because of corruption cases,
the increase in price without any logical reason, and there are
many other cases. After a decline in 2010, Indonesia is expected to
play with the stability of the economy that are not too into account
the state budget, and do not take into account the cases that
occurred in 2008 because it could be a factor and the reason for
the loss of state money One That case has not been finished until
now Century is the case. Indonesia has become the emerging
economy, and economic power to the 16 world. Indonesia became
a middle-income country, with poverty and unemployment levels
are successfully lowered gradually. By overcoming the challenges
of economic development through the implementation of policy
measures as described above, as a nation, we must trust and
believe, in time, we can have a stronger economy and justice,
democracy and stable quality, as well as civilization developed
nation and superior as we seek together.
Global economic environment is expected to impact on
the business environment in Indonesia includes a micro-enterprise
development spending in developed countries, changes in
appetite / demand and the global policy change as the exchange
rate of some currencies that dominate the international financial
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markets. Spending patterns of development as in the United

States, which tends to lead to balance the budget deficit will affect
the US Dollar exchange rate against other currencies. We have
observed the fall of the exchange rate against the U.S. dollar in the
period 1994-95 Yendaka, reaching a rate below 90 yen per dollar.
Besides, it should be observed in the direction where government
spending is removed, as this can affect the pattern of demand for
imported goods originating from developing countries. If the
development expenditure is followed by the participation of the
private sector output growth rate the economy can be improved.
This development will usually be followed by the development in
the construction sector, real estate and technologically advanced
industries, so that imports of raw materials and other input goods
from developing countries will increase. Demand for goods and
services in developed countries, especially luxury goods, may
change with the shifting tastes and lifestyle of the people in the
country. Some of the economic activities that will be affected by
climate change that happens every year in specific geographic
areas of the economy, including the demand for building materials,
garments and tourism activities. Finally, in the era of globalization,
foreign currency exchange rates are likely to fluctuate, especially
the dollar, yendaka, pounds, deutchmark and the
other major
foreign currencies. Factors causing fluctuations in currency

exchange rates is the imbalance trade balance of the two countries
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(bilateral), the budget deficit of political, economic growth and the

threat of international political conflict.
Until now, the IMF international financial institutions are
not able to create stability in the exchange rate, given that most
international control of the stock of money in the hands of the
owners of global capital. The implications of exchange rate volatility
is the financial management of exporting firms is the uncertainty
factor in estimating revenue streams and cost flows in a particular
period. Of course, the use of international financial consulting
services managers are strongly advised to avoid the risk of loss
from any calculation of the exchange rate.
EVOLUTION GLOBAL ECONOMY
1. Economy Agriculture, until two hundred years ago the world
economy is agrarian in which one is the main characteristic of the
soil is the most dominant factor.
2. Industrial Economics, after the industrial revolution, the invention
of the steam engine, the global economy has evolved toward an
industrial economy with its main characteristic is the capital as the
most important factor of production.
3. Economic Information, currently, men tend to occupy a central
place in the production process, because the stage we are entering
the economy is based on knowledge (knowledge based) and
focuses on the information (information focused). In this case the
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role of telecommunications and informatics as a key technology

(technology enabler).
Advances in information technology and telecommunications so
rapidly, allowing the implementation of new ways for more efficient
production, distribution and consumption of goods and services. It
is this process that brings people into the Society or Information
Economy. This new society is also often referred to as postindustrial society. Whatever we call it, in the information age,
physical distance or geographical distance is no longer a factor in
human relations or inter-agency effort, so that the universe
becomes a hamlet universe or "Global village". So often we hear
the term "distance is dead" or "distance is dead", which more and
more fulfilled. In our lives in the future, information technology and
telecommunications sector is the dominant sector. Anyone who
mastered this technology, it will become a leader in the world.
GDP - per capita (PPP) (US$)

Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Indonesia 2,800 2,900 3,000 3,100 3,200 3,500 3,600 3,900 3,600 3,900 4,000 4,200 4,700
Definition of GDP - per capita (PPP): This entry shows GDP on a

purchasing power parity basis divided by population as of 1 July for
the same year.
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This is a chart of trend of gross domestic product of Indonesia at

market prices by the IMF with figures in millions of rupiah.
Year
GDP
1980
60,143.191
1985 112,969.792
1990 233,013.290
1995 502,249.558
2000 1,389,769.700
2005 2,678,664.096
2010 6,422,918.230
USD
Inflation
exchange
index
(rupiah)
(2007=100)
627
10
1,111
11
1,843
16
2,249
24
8,396
53
9,705
83
8,555
121
Nominal Per
PPP Per Capita
Capita GDP
GDP
(as % of USA)
(as % of USA)
5.25
5.93
3.47
5.98
3.01
6.63
4.11
8.14
2.32
6.92
3.10
7.51
6.38
9.05
For purchasing power parity comparisons, the US dollar is

exchanged at 3,094.57 rupiah only. Mean wages were $2.32 per
manhour in 2009.
(Images source: www.latifahinspirasikehidupanku.blogspot.com)
2.1.3
Global Marketing
Socio-Cultural Trends and Issues

Group of Bclass
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Indonesia, which is an independent state and a recognized world

has a constitution that governs the social system of Indonesian
culture, not only in Indonesia it is known that there were four (4)
pillars of nationhood as the bearer and container of socio-cultural
systems of Indonesia. The four pillars are the Pancasila, the 1945
Constitution, Homeland, and national unity.
Social and cultural dynamics, it does not hit the exception
of Indonesia, despite broad spectrum and speed vary. Similarly,
society and culture of Indonesia has been growing rapidly in the
past, although today's development is lagging when compared with
developments
in
other
developed
countries.
However, the
community and the diverse culture of Indonesia were never

stagnated as the embodiment of the active response to the
challenges arising from the changing environment in the broad
sense
and
the
change
of
generations.
There are a number of forces that led to the development of

Indonesia's social culture. Categorically there are 2 forces social
change, First Instance, is the power of the people themselves
(internal factors), such as change of generations and various local
discovery and engineering. Second, is the power from outside the
community (external factors), such as the influence of contacts
between cultures (culture contact) directly or distribution (element)
culture and environmental changes, Which in turn may stimulate
the development od social and cultural community should
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deprogram them. No matter how fast or slow the development of

socio-cultural hit, and any factor cause, any change would cause
reaction of the pros and cons of the community or nation
concerned. The size of the reaction to the pros and cons of it can
threaten the stability and even
can
also lead to
social
disintegration, especially in a pluralistic society with multiple

cultures like Indonesia.
Indonesian society today is undergoing a period of
transition that is very powerful as a result of a thorough reform
demands. Moderate reform demands that originate on national
development activities that apply advanced technologies to
accelerate their implementation. On the other hand, without
realizing it, the application of advanced technologies that require
reference to cultural values, social norms and new orientation. It is
not surprising that Indonesia's diverse multi-cultural with it as if it
had kelimbungan to reorganize the social order, politics, and
culture today. Social events that are changing at the moment in
Indonesia include the entry of the baby boom cohort in 1950, 1960
and 1970 in the Indonesian labor market. Their entry into the
workforce can affect purchasing power, spending patterns and the
different demands of a cohort to another cohort. By modernization
which then influences the behavior and their lifestyle, as well as
symptoms of urbanization and rural-urban migration continues to
consider with carefully. Similarly, the inclusion of a large workforce
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trend woman work in factories and in offices that bring different

cultures work that interesting to watch. Modernization and freedom
of the press has been printing and media affect purchasing power
and spending patterns of everyday factory workers, middle-class
consumers and the jet set of the metropolitan area. Shifts in
demographic components such as distribution according to age,
distribution by region, age structure, the structure of employment,
migration patterns and decreased fertility and mortality rates should
be
observed
carefully,
especially
the
impact
on
market
segmentation, purchasing power and behavior expenditure on

goods and services. Currently interesting to watch the baby boom
cohort trip generation 1945 and 1950, who had begun to enter
retirement and decreased productivity.
2.1.4
Technological Trends and Issues
Indonesia is one of the few developing countries in the world. Even

today, Indonesia is one country that has considerable influence in
the world.
One of the important means of communication today is
the media, mass media, print media, electronic media, and so on.
Among the various media which show significant role of the print
and electronic media. Through the media, we can find out about the
issues and events happening both inside the country and abroad.
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Currently, the media play an important and active to help

build the nation. It can be seen from several aspects. Previously,
maybe only a few people can access the internet and understand
what it is about the internet. But now, many people cannot live
without it seems the internet. Even in the village also have many
internets now enter the village.
This event is one of the development of communication
technology is excellent. But some of those Internet users do not
know exactly to what the actual use of the Internet. The average
Indonesian people use the Internet simply to exist or practically
bandwagon. This occurs because the rise of social networking sites
spread across the internet.
Internet is one of the receptacles for learning, not just to
play in social networking. Usually the students are using the
internet to assist them in completing their tasks. There are even
some teachers who use the internet to collect the assignment.
With search engines on the Internet, then we can easily
find anything we're looking for it. Today, the Internet is not only
used for learning or social networking. Some companies even use
the internet as a promotional tool. Internet is one of the good
access to promotion because not only can be accessed in
Indonesia, but from all over the world.
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Currently, the development of communication technology

in Indonesia comes from different parties and elements of society.
Not only those from the Internet, but many other factors that led to
the development of communication technology in Indonesia. Some
of the other factors are the use of various electronic devices such
as smartphones, PCs / laptops, a variety of events from electronic
media such as television and radio, print media, and more.
Previously, many people simply use the phone to call or
send a short message to simply ask the news to family or relatives.
But this time, the phone not only serves as a medium to call or
send a message, but has become a mini computer that can have
many functions. A wide range of mobile phones in circulation today
is a kind of smartphone that has a lot of additional features and
their respective uses.
This is one of giving access information very quickly and
accurately. With the TV, then all sorts of events that exist both
outside and within the country can be easily identified. The average
population of Indonesia is pick the TV at home, so this is the media
plays an important role in the advancement of communication
technology in Indonesia.
In addition to the many positive things from the
development of communication technology, of course there are
negative as well. Some of the negative things that can happen with
the development of communication technology in Indonesia among
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others, dependence on the internet would result often they use the
Internet. In addition, easy access to, adult sites because of the lack
of government action means. There are also other problems such
as cybercrime or crimes committed in cyberspace.
2.1.5
Regional Trends and Isuues
Indonesia has become one of the countries with the largest urban
population in East Asia and the Pacific. In 2010, there was 49.8
percent of Indonesias population live in urban areas. Such a rapid
pace of urbanization is opening a number of great opportunities for
Indonesia. If managed well, urbanization has the potential to
increase productivity, provide new opportunities in the field of
economics, as well as to increase the income of the urban
population. This study examines the structure, performance, and
obstacles facing the city and metropolitan area in Indonesia, and
how Indonesia can reap the benefits of urbanization. The study
shows the urgent need to direct urban development strategy on the
following two points:
Spatial planning and investment priorities should be consistent at
each level of government (central, provincial, city).
Urban development strategies must be adjusted to the city
concerned.
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Connectivity between metropolitan areas, as well as

between urban and rural areas also needs to be improved
considering Indonesia's diverse geography stretching. Furthermore,
to align with the urbanization trends Master plan for the
Acceleration and Expansion of Indonesia's Economic Development
(MP3EI), development planning should focus on improving the
efficiency of urban areas and efforts to reap the benefits of
urbanization.
Development strategies that focus will be both more
profitable growth in urban areas compared to a strategy based on
the development of new growth centers or especially Economic
Zone.Yogyakarta Special Region level is a province in Indonesia
that is a fusion of the former (State) Yogyakarta Sultanate and the
[State] Duchy Paku Alaman. Yogyakarta is located in the south
central part of Java Island and bordering Central Java province and
the Indian Ocean. Special District has an area of 3185.80 km2
consists of one city and four counties, which are subdivided into 78
districts and 438 villages / wards. According to the 2010 census
has a population of 3,452,390 souls proportion 1,705,404 men and
1,746,986 women, and has a population density of 1084 people per
km2.
The mention of Yogyakarta nomenclature that is too long
causes the frequent occurrence of condensation nomenclature to
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Yogyakarta or DIY. Special District is often identified with the city of

Yogyakarta so inaccurately called Jogja, Yogya, Jogjakarta, and
Jogjakarta. Despite having the second smallest after extensive
Jakarta Special Region is renowned nationally and internationally.
Yogyakarta becomes a prime tourist destination after Bali.
Yogyakarta addition to the area worst by the earthquake on 27 May
2006 and the eruption of Mount Merapi in mid-October to
November 2010.
Consideration aspects of demographic, social and cultural
rights in ALB study includes all the demographic characteristics of
population
growth,
urbanization,
seasonal
migration,
ethnic
behaviors and customs, social structure, urban lifestyle patterns,

consumer perceptions, consumer buying patterns Indonesia, social
conflict, aspects of pollution the natural environment, environmental
sustainability and many other factors to mention individually.
Consumer lifestyle patterns may vary between regions depending
on the ethnic background of culture, demography, religion,
education, and geographic location.
2.1.6
Summary of Major Environmental Trends and Issue
Environmental analysis is relatively qualitative and involves the

identification of and analysis of environmental variables, which
affect the business. Based on environmental analysis about
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Indonesia condition nowadays, we have found that regulatory

trends, economic trends, socio cultural trends, technological
trends and regional trends in Indonesia is different from the another
country. Indonesia has the uniqueness that makes it different. The
regulatory business in Indonesia is business law. It can be defined
as the rules were made in order to manage business activities in
Indonesia. Business law can be interpreted as written regulations
made by the government in order to manage, protect and monitor
all business activities whether it is trade or industry or service or
other activities related to finance and business sectors.
Indonesia has become the emerging economy, and
economic power to the 16 world. Indonesia became a middleincome country, with poverty and unemployment levels are
successfully lowered gradually.
Indonesia, which is an independent state and a
recognized world has a constitution that governs the social system
of Indonesian culture, not only in Indonesia it is known that there
were four (4) pillars of nationhood as the bearer and container of
socio-cultural systems of Indonesia. The four pillars are the
Pancasila, the 1945 Constitution, Homeland, and national unity.
The
development
of
communication
technology
in
Indonesia comes from different parties and elements of society. Not

only from the Internet, but many other factors that led to the
development of communication technology in Indonesia. Some of
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the other factors are the use of various electronic devices such as
smartphones, PCs / laptops, a variety of events from electronic
media such as television and radio, print media, and more.
Indonesia has become one of the countries with the
largest urban population in East Asia and the Pacific. In 2010, there
was 49.8 percent of Indonesias population live in urban areas.
Such a rapid pace of urbanization is opening a number of great
opportunities for Indonesia. If managed well, urbanization has the
potential to increase productivity, provide new opportunities in the
field of economics, as well as to increase the income of the urban
population. Government has the regulation to align with the
urbanization trends Master plan for the Acceleration and Expansion
of Indonesia's Economic Development (MP3EI), development
planning should focus on improving the efficiency of urban areas
and efforts to reap the benefits of urbanization
2.2
Industry Analysis
2.2.1
Size and Growth
The industry size of fast food in Indonesia can be accounted in

different ways; one being the total sales of fast food, but in this
context another way could also be to look solely at sales of fast
food in chained restaurants. By isolating the sales made in chained
restaurants, a picture of the overall attractiveness of franchises
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should be clearer. Both the total and the chained fast food sales will
be considered in this section.
Total sales of fast food from 2002-2007 can be seen here:
While the overall market for fast food has been performing well,
times have been even better for chained restaurants such as
McDonalds, Burger King, Sunset Boulevard etc. In 2002 sales
were million 2,145 and in 2007 the revenue was 3,613.3. This is a
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growth of 68.6 percent. The annual CAGR for chained restaurants

has been 11 percent from 2002-2007, which is a 3.1 percent bigger
growth than that of the overall fast food market. This indicates that
chained restaurants are well received in the Danish market.
The figures show that historically the market for fast food
has been growing every year. For Subway, this means that it can
expand in a market that has been growing over recent years.
Market saturation has not happened yet which is definitely an
advantage as it decreases some of the pressure of performing
within the market. A saturated market usually leads to fierce
competition since companies fight over the very same customers.
Market growth
Appendices three and four are forecasts of sales and growth from
2007-2012.
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To a large degree, the figures in that table are more important than
those of 2002-2007 as they are more contemporary. Both total
sales and chained restaurant sales will be considered as in the
foregoing section.
From 2007 to 2012 total sales are expected to rise from million
7,922.1 to 8,575.5 which is a total growth of 8.2 percent. This is
equal to a CAGR of 1.6 percent. The prospects, however, are
somewhat better for chained restaurants. Here sales are expected
to rise from million 3,617.3 in 2007 to 4,180.7 in 2012. This is equal
to a CAGR of 2.9 percent or a total growth of 15.6 percent.
Assessing these figures, it seems clear that although growth is not
expected to rise as significantly as in 2002-2007, the market is still
expected to experience growth especially within the subsector of
chained restaurants. An analysis of the product life cycle (PLC) will
here be used to look more in depth at the development within the
market.
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2.2.2
Structure Porters Five Forces
2.2.2.1
Power of Buyers
We delight every customer with great value through fresh,

delicious,
made-to-order
sandwiches,
and
an
exceptional
experience so they want to tell their friends.

Our Food is prepared fresh daily and temperatures are
monitored regularly. Gloves are required to be worn during all food
handling procedures.
All SUBWAY restaurants follow the Gold Standard
policies regarding prepared food and produce manufacturing and
inspection
specifications.
All
franchises
are
provided
with
information on proper food handling procedures in order to properly

train our crew members.
The SUBWAY brand is involved with various civic,
educational, and charitable organizations such as the United Way,
March of Dimes, Habitat for Humanity, and Junior Achievement.
The SUBWAY brand also partners with the American Heart
Association and the American Red Cross on initiatives such as
sodium reduction to make our healthy menu options even healthier.
On a local basis, SUBWAY franchisees are involved with
countless schools, religious and community organizations.
2.2.2.2
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Power of Suppliers
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We have our own suppliers in Indonesia so we don't need overseas

suppliers. We will make sure we got the best suppliers in order to
support our product quality.
2.2.2.3
Threat of New Entrants
We think it's possible if someday there will be new entrants and

become our new competitor. We will anticipate it with give our best
service and best quality of our product in order to make us stay in
our customer's mind.
2.2.2.4
Threat of Substitutes
There are so many fast food restaurants already opened now. They
become the alternative product than can substitute us. But with
great value through fresh, delicious, made-to-order sandwiches,
and an exceptional experience that we provide, we think we still the
best one.
2.2.2.5
Nature of Rivalry among Competitors
Nowadays, phenomenon appears in the fast food industry (fast

food) in Indonesia is increasing the number of fast food restaurants
which cause the level of competition is more intense among the
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companies. Each of companies tries to give a good service and

product in order to attract the consumer. And also it depends on
their strategy. In every business always have the competition, so in
this business industry also has the competition. There is so many
competitors in fast food industry came from this country even the
company from foreign country or it was called franchising company.
2.2.3
Distribution Channels
We distribute our product directly to our customer in the restaurant

and also offer delivery service. First we just open a store in our
local area, then when we have reach our breakeven point and
already get the benefits from this business, we will open the new
branch store in other region. For the customers who are willing to
purchase our products but who are not in a position to reach the
restaurants, one of the most effective ways in which we can deliver
the products is through delivery service. We try to give same
impression for those who order directly in restaurant and for those
who order by delivery.
2.2.4
Cost
With location flexibility and an easy-to-run operation built on

simplicity and efficiency, our start-up costs are lower than most
restaurants. The initial franchise fee is $15,000, and total
investment can be as low as $78,600. Individual costs vary.
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(www.subway.com)
2.2.5
Trends
There are so many fast food restaurants in whole Indonesia. Fast

food nowadays is not only become a need but also become a
lifestyle. There are so many busy people in Indonesia, and they
want to eat something that fast and easy to serve and no need to
wait for a long time. Not only busy people want something fast and
easy to get but teenagers or young people also looking for food that
fast and easy to serve.
Fast food means an establishment where consumption is
paid first before they serve and where there are no waiters.
However, the arrangements for food service and fast food can be
divided into several categories: To lead, in the same restaurant or
at home.
The fast food industry has long ceased to be an American
phenomenon and extends across the globe at enormous speed,
totaling more than 88,000 outlets spread around the world.
The menu for a fast food business is varied may range
from cakes, tacos, pizzas, burgers, sandwiches, hot dogs.
These are characteristics of a fast food business
It served at a rapid rate
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It is easily accessible.
Prices are moderate.
Manage process standards, cymbals, management and
operation.
2.2.6
Key success
Fast-food restaurants provide quick meals to people on the go and

offer an alternative to traditional, sit-down restaurants. Opening a
fast-food restaurant in a rural area of the country has significant
advantages that could lead to exponential growth for the business.
Real Estate Costs
The less we spend for real estate, the more money we can spend
for other start-up costs.
Restaurant Competition
When open a fast-food restaurant in a rural place without much

competition, our restaurant will stick out to potential customers. We
have a purpose to open this business in remote area in this
country. Additionally, we can capture a large percentage of the
area's restaurant business and create a large group of loyal
Global Marketing
27

Group of Bclass
Batch 2010
customers. If other competitors come to the town, we will have had

the first-mover advantage because of our timing.
Food Deserts
Many rural areas and small towns are "food deserts" without any
grocery stores in the immediate vicinity. People who live in food
deserts must rely on groceries from small convenience stores or
dine out when they are hungry. If we open a fast-food restaurant in
a food desert, we are more likely to attract customers who do not
want to make a long trek to a grocery store or buy groceries from a
gas station's convenience store.
Advertising Costs
Compared to advertising media in larger cities, the cost to advertise

in rural areas is typically low. Opening a fast-food restaurant
requires sales working capital expenditures. Sales working capital
is the capital spent to drive sales and attract customers. If our fastfood restaurant spends less money for radio spots, print ads and
television commercials, we will earn more net income from
operations at the end of each fiscal period.
(www. smallbusiness.chron.com)
The others key success factor of fast food restaurants offered:
These foods are consumed by people of all ages.
Global Marketing
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Group of Bclass
Batch 2010
It is not difficult to prepare.

Always and when combined and consumed in moderation,
should not be harmful to health.
They are practical dishes when people do not have much time
to eat and little money.
Does not require a large space.
It can provide several services: Eating there to go and
delivery.
(www.taxday2009.com)
2.2.7
Summary of major industry influences
1.
Fast food restaurant in Indonesia now not only become a

need but also a lifestyle. Fast Food Industry in Indonesia
has increasing day by day.
2.
The SUBWAY brand is the world's largest submarine

sandwich chain with more than 37,000 locations around
the world.
3.
We have our own suppliers in Indonesia so we don't need

overseas suppliers. We will make sure we got the best
suppliers in order to support our product quality.
4.
We think it's possible if someday there will be new

entrants and become our new competitor.
Global Marketing
29

Group of Bclass
5.
Batch 2010
Nowadays, phenomenon appears in the fast food industry

(fast food) in Indonesia is increasing the number of fast
food restaurants which cause the level of competition is
more intense among the companies.
6.
We distribute our product directly to our customer in the

restaurant and also offer delivery service.
7.
The start-up costs are lower than most restaurants. The

initial franchise fee is $15,000, and total investment can
be as low as $78,600. Individual costs vary.
8.
Fast food means an establishment where consumption is

paid first before they serve and where there are no
waiters. However, the arrangements for food service and
fast food can be divided into several categories: To lead,
in the same restaurant or at home.
9.
Our key success in this business industry:

These foods are consumed by people of all ages.
It is not difficult to prepare.
Always and when combined and consumed in
moderation, should not be harmful to health.
They are practical dishes when people do not have
much time to eat and little money.
Does not require a large space.
Global Marketing
30

Group of Bclass
Batch 2010
It can provide several services: Eating there to go and

delivery.
2.3
Customer analysis
2.3.1
Market Segmentation
Based on strategies for market segmentation, we will segment our

market in four ways; we look from psychographic segmentation,
geographical
segmentation,
demographic
segmentation,
and
behavioral segmentation. For the first:
Psychographic segmentation: In our country, we can see

most of people like to try new things, see the restaurant from
the place, the luxurious quality, and healthy food with
affordable prices. So, we try to open the Subway restaurant
in Indonesia with a new look with different styles from some
of the existing restaurant. We focus on place and taste from
the food, for satisfy our customer.
Geographical Segmentation : in terms of geography is

perfect with Indonesian people currently, with so many
external cultures in Indonesia, we have the opportunity to
open a Subway restaurant in Indonesia that sells sandwich,
salad and other food which is typical food from other
countries. We hope many people will interest with Subway
restaurant.
Global Marketing
31

Group of Bclass
Batch 2010
Demographic Segmentation: in terms of demographics, we

will provide healthy food suitable for all people, at an
affordable price in accordance with the economic conditions
in Indonesia.
Behavioral Segmentation: based on the customers needs,

many customers like to order product with a simple way, so
we will provide order online for make customer easy to order
our product.
2.3.2
Customer Needs Analysis
Customers need a restaurant that are have a place that easy to find
and must be have a clean place. And about the taste, the food must
be match in consumer tastes. For the prices, consumers need a
cheap price. Therefore our product price must be affordable to the
economy consumer. And one of the important things that consumer
need is easy to order our product, so that we make order online
strategy for provide consumer needs, in anytime and anywhere
consumer can order our product.
2.3.3 Customer Groups Analysis

We provide a wide range of sandwiches. Specifically for customer
who is dieting we will give them special sandwich that are healthy
Global Marketing
32

Group of Bclass
Batch 2010
and low fat. And for the vegetarian customer we will provide a
vegetarian sandwich without meat just vegetables alone. Even
more facilitate consumer, consumers can design their own
sandwiches according to their individual tastes. And for consumers
who want a sandwich with a variety of flavors they can choose the
following options:
BLT, Black Forest Ham, Buffalo Chicken, Chicken & Bacon Ranch
Melt, Chipotle Steak and Cheese, Cold Cut Combo, Italian BMT,
Meatball Marianara, Oven Roasted Chicken, Roast Beef, Sweet
Onion Chicken Teriyaki, Tuna, Veggie Delite, etc.
2.3.4
Customer Buying Decision - Process Analysis
Researchers found out, that customers go through a five-stage

decision-making process in any purchase. Considering this process
is mandatory for marketers, because it covers more than only the
Global Marketing
33

Group of Bclass
Batch 2010
buying decision. Each customer passes through the following five

stages:
(1) Need recognition and problem awareness

Each buying process starts with a need, triggered by external or
internal stimuli. In the case of Subway, the internal stimuli will
mostly be identified as hunger, whether the external stimuli can be
caused due to each kind of marketing (for example mass media:
TV, Radio etc.), or the cognition of a smell. (Hollensen 2003, 118123.)
(2) Information search

The aroused customer will start to search more information to
compose his need. There are two different stages of arousal. The
first and milder stage is a demanded invigilation. In this stage, the
customer is very comprehensive for information. During a walk
through the city, a customer in this phase will draw strong attention
to food-advertisement. The second and stronger stage is the active
Global Marketing
34

Group of Bclass
Batch 2010
information search. Customers within this phase search very

actively, where they can fulfill their needs (catch some food).
(Hollensen 2003, 118-123.)
The information about fulfilling the need can be gained
from different sources for example, personal sources (family,
friends), commercial sources (advertising, posters, and flyers)
public sources (mass media) and experimental (using the product).
The biggest amount of sources is obtained by commercial sources
whether the independent public and personal sources are more
effective. (ibid. 118-123.)
Furthermore, while gaining information, the customer is
only able to focus on the food, of his choice, which is available. As
the following graph shows, gaining information about fast food is
limited to the awareness. In the following example, the chain Pizza
Hut is not located in the customers city. For this reason, he has to
choose his preference between the remaining food stores.
Although there is a Burger King available, the customer is
not in the mood to eat this kind of fast food. Continuing from the
processed set the customer has to make his first (consideration
set) and second (Sunset Boulevard) preference, while McDonald's
has been rejected. According to Subways statement on their
website The goal of the chain's current advertising campaign is to
increase the brand presence in the consumers "consideration
set"--that is, which fast-food restaurants consumers consider when
Global Marketing
35

Group of Bclass
Batch 2010
deciding where to eat. This graphic shows an example of how

customers information research during the buying process of fast
food and how it can take place and affects their buying behavior.
(3) Evaluation of alternatives

The next step is the cognitive process valuation, about the product
and offers. The consumer anticipated advantage convenience of
one product. The review of the advantages will be based on
personal experience, the brand image and the weighing of the
product characteristics. (Hollensen 2003, 118-123.)
(4) Purchase decision

Previous purchasing decisions often sub decisions must be made
concerning brand, dealer, quantity, payment method and timing and
risk avoidance. Because the fast food industry covers only lowinvolvement purchasing, the risk avoidance factors will not be
considered.
However, two more factors can influence the buying process
between the purchasing purpose and the purchasing decision.
Positive or negative approach of a third
Global Marketing
36

Group of Bclass
Batch 2010
For example a customer of the target food stores complains that he

did not enjoy his meal; a visitor of another food restaurant (possibly
hold set) says, that they have very good offerings Unforeseen
events
Due to lack of money the customer might have to choose a
cheaper restaurant; the customer meets a friend who invites him to
a dinner. (Hollensen 2003, 118-123.)
(5) Post purchase behavior

After buying the product, satisfaction or dissatisfaction will arise.
This dements on what has been suggested from the products and
the actual outcome. Even if the customer was enjoying the Subway
sandwich during the stay in the restaurant, other criteria like
interior, cleanliness and service of the restaurant can influence his
or her opinion. Even afterwards, while leaving the restaurant
satisfied, the frame of mind can change when seeing a comparable
offer for a lower price, at a competitor s restaurant. Awareness of
the fact that dissatisfaction leads into more communication than
satisfaction, is mandatory. Due to the word of mouth and opinion
leaders, dissatisfaction in post purchasing should be prevented due
to after sales service customer hotlines and quality guarantees.
(Hollensen 2003, 118-123.)
Global Marketing
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Group of Bclass
Batch 2010
The fast food industry and the offered products do not

obtain high involvement like for example the market of racing cars.
This has two reasons. To buy fast food, the customer must not be
aware of any technical knowhow and does not have any risk
(besides several diseases which might occur when eating too much
fast food) when choosing the wrong product (meal). The price level
is compared to other products, low. These factors make the
decision making process (with information research) not relevant
compared to high technical or high price products.
2.3.5
Summary of Major Customer-Related Issues
Subway restaurant is a one of franchise that focuses for sell food,

such as: sandwiches. Our way in attract customers, start from the
strategic place, cleanliness of the place, and sandwiches with
different tastes, affordability prices, and a restaurant with modern
style.
1.
Based on strategies for market segmentation, we will segment

our market in four ways; we look from psychographic
segmentation,
geographical
segmentation,
demographic
segmentation, and behavioral segmentation
Global Marketing
38

Group of Bclass
2.
Batch 2010
Customers need a restaurant that are have a place that easy

to find and must be have a clean place. And about the taste,
the food must be match in consumer tastes. For the prices,
consumers need a cheap price. Therefore our product price
must be affordable to the economy consumer.
3.
Specifically for customer who is dieting we will give them

special sandwich that are healthy and low fat. For the
vegetarian customer we will provide a vegetarian sandwich
without meat just vegetables alone. Consumers can design
their own sandwiches according to their individual tastes. And
many more taste options that we offered to our customers
4.
First when they search for the information they will find about
our product through the advertisemen that we have made,
then in the evaluation process, customers can know well
about us when their friend told them about Subway quality in
the another country. Next step is purchase. After they
purchase product from our store, they will feel different
because of the product that we offered has the high quality
and great taste ever.
2.4
Competitor Analysis
2.4.1
List of Major Competitors and Any Potential Competitors
Global Marketing
39

Group of Bclass
Batch 2010
- Major competitors: According to our opinion, the existing

competitors for now namely the restaurant that sells products like
sandwiches in other restaurants such as: burger king, McDonald's,
KFC.
- Potential competitors: KFC, McDonald's, and Burger King, that
three restaurant has great potential to become our competitors.
Because, at this time many people in Indonesia are very familiar
with that restaurant, almost in every town in Indonesia has the
franchise. One of the main factors also the restaurant is the largest
chain in the world.
2.4.2
Identification and Analysis of Strategic Groups
According to some people, KFC has a high price compared to

McDonald's. Although McDonald's has a low selling price, but the
composition of the food that they give more than McDonalds. Most
people also agree that KFC has higher calories compared with
other competitors. Thus, they prefer to go to McDonald's. However,
KFC is a fast food restaurant that better known by many people, so
between KFC and McDonald's have different values. While Burger
King, is a famous fast-food restaurant with their burger. KFC and
McDonald's also provide a burger, but not complete like in Burger
King Restaurant. Because this restaurant more focus in selling
Global Marketing
40

Group of Bclass
Batch 2010
"Burger" so compared to KFC and McDonald's are also selling

burgers on their menus, most of people that like burger prefer to
eat burger in Burger King fast food restaurant. So, the three
restaurants have different advantages.
2.4.3
Major Competitors
2.4.3.1
Size, Growth and Profitability
A.
SIZE
1.
KFC: KFC have restaurant in 109 countries and territories
around the world. KFC operates more than 5,200 restaurants in the
United States and more than 15,000 units around the world.
(www.kfc.com)
2.
McDonalds: McDonalds is the leading global food
service retailer in the world with more than 30,000 restaurants, in

more than 100 countries.
(www.mcdonalds.com)
Global Marketing
41

Group of Bclass
3.
Batch 2010
Burger King : Burger King is the second largest chain in
the world with more than 11,200 restaurants in 69 countries. 90% of

Burger King restaurants are independent franchises.
(www.bk.com)
B.
GROWTH
1. KFC :
1960: The Colonel Sanders hard work on the road begins to pay
off and there are 190 KFC franchisees and 400 franchise units in
the U.S. and Canada.
1963: Sanders had franchised to more than 600 outlets in the
United States and Canada.
1964: KFC has more than 600 franchised outlets in the United
States, Canada and the first overseas outlet, in England.
1967: KFC had become the U.S.'s sixth largest restaurant chain by
volume. By 1968, Kentucky Fried Chicken was the largest fast-food
business in America.
1970: KFC grew to 3,400 fast food outlets
Global Marketing
42

Group of Bclass
Batch 2010
1979: KFC cooks up 2.7 billion pieces of chicken. There are

approximately 6,000 KFC restaurants worldwide with sales of more
than $2 billion.
1987: KFC still had room to grow in the Northeast and Mid-Atlantic
regions. The company planned opening 150 outlets. Japan is a
major market, had 520 stores, Great Britain had 300, and South
Africa had 160.
2001: Kentucky Fried Chicken was the most recognized foreign
brand in China, where the company had 500 restaurants. KFC also
had about 300 outlets in Thailand, and more than 150 in Indonesia.
2006: KFC had 1,700 restaurants in China
In 2007: there were more than 1,800 KFCs operating in over 400
cities throughout China.
2010: there add about 600 outlets
In 2011: there were over 17,000 KFC outlets in 105 countries and
territories around the world.
2. McDonalds :
McDonald's grew slowly for its first three years. By 1958, there
were 34 restaurants. In 1959, however, Kroc opened 68 new
Global Marketing
43

Group of Bclass
Batch 2010
restaurants, bringing the total to 102 locations. In 1968, McDonald's

opened its 1,000th restaurant. In 1987 the company opened 600
new restaurants. And the 10,000th unit opened in April 1988. In
1995 McDonalds opened 1,130 units. Incredibly, the company
reached the 20,000-restaurant mark in only eight more years, in
mid-1996. Only about 400 new McDonald's were built in 1997. By
the end of 1997 the total had surpassed 23,000, and by that time
McDonald's was opening 2,000 new restaurants each year, an
average of one every five hours. By the early 1990s the company
had established itself in 58 foreign countries and operated more
than 3,600 restaurants outside the United States. Growth in sales
at stores open more than a year (known as same-store sales) fell in
both 2000 and 2001. Late in 2001 the company launched a
restructuring involving the elimination of about 850 positions, 700 of
which were in the United States, and some store closings. The
2002 quarterly loss, which included the closure of more than 700
restaurants (mostly in the United States and Japan), the elimination
of 600 jobs, and charges of $853 million. McDonald's continued to
curtail store openings in 2004 and to concentrate on building
business at existing restaurants. Much of the more than $1.5 billion
budgeted for capital expenditures in 2004 was slated to be used to
remodel existing restaurants. McDonald's also aimed to pay down
debt by $400 million to $700 million and to return approximately $1
billion to shareholders through dividends and share repurchases. In
Global Marketing
44

Group of Bclass
Batch 2010
July 2011, McDonald's announced that their largest restaurant in

the world will be built on the 2012 London Olympics site. The
restaurant will contain over 1,500 seats and is half the length of an
American Football field. Over 470 staff will be employed serving on
average (during the 2012 Olympics) 100,000 portions of fries,
50,000 Big Macs and 30,000 Milkshakes. This restaurant will
overshadow the current largest McDonald's in the world in Moscow,
Russia. In January 2012, the company announced revenue for
2011 reached an all-time high of $27 billion, and that 2400
restaurants would be updated and 1300 new ones opened
worldwide.
3. BURGER KING :
Even though the company had rapidly expanded throughout the
state until its operations totaled more than 40 locations in 1955. In
1959, they ran the company as an independent entity for eight
years (eventually expanding to over 250 locations in the United
States). In 1967, BK had grown to 274 restaurants in the United
States and had an estimated value of $18 million (USD). By 1970
the company had grown to over 350 store across the country. By
1971 they owned 351 stores with sales of $32 million. In 1982
Burger King directly attacked its competitors, alleging that Burger
King's grilled burgers were better than McDonald's and Wendy's
Global Marketing
45

Group of Bclass
Batch 2010
fried burgers. Both competitors sued over the ads, and Wendy's
challenged Burger King to a taste test (a challenge that was
pointedly ignored). In return for dropping the suits, Burger King
agreed to phase out the offending ads gradually, but Burger King
came out the winner in its $25 million "Battle of the Burgers": the
average volume of its 3,500 stores rose from $750,000 to $840,000
in 1982, sales were up 19 percent, and pretax profits rose 9
percent. In September 1989, Grand Met acquired several
restaurant properties from United Biscuits (Holdings) plc, including
the Wimpey hamburger chain, which included 381 U.K. outlets and
148 in other countries. By the summer of 1990, 200 Wimpeys had
been converted to Burger Kings, bolstering the company's foreign
operations, a traditional area of weakness. Over the next several
years, Burger King was much more aggressive with its international
expansion, with restaurants opening for the first time in Hungary
and Mexico (1991); Poland (1992); Saudi Arabia (1993); Israel,
Oman, the Dominican Republic, El Salvador, Peru, and New
Zealand (1994); and Paraguay (1995). By 1996, Burger King had
outlets in 56 countries, a dramatic increase from the 30 of just
seven years earlier. While Burger King lags behind McDonald's in
international locations by over 12,000 stores, as of 2008 it had
managed to become the largest chain in several countries including
Mexico and Spain. At the end of fiscal year 2011, Burger King
reported it had more than 12,400 outlets in 73 countries; of these,
Global Marketing
46

Group of Bclass
Batch 2010
66 percent are in the United States and 90 percent are privately

owned and operated. At the end of its 2011 fiscal year, Burger King
is the second largest chain of hamburger fast food restaurants in
terms of global locations. The company plans to add over 250
stores in these Asian territories, as well as other places such as
Macau, by the end of 2012.
Margins % of
Sales
C.
PROFITABILITY
1.
McDonalds
2002-12
2003- 2004- 2005- 200612

12
12
12
2007-12
2008- 2009- 2010- 201112

12
12
12
TTM
Revenue
100.00100.00100.00100.00100.00
100.00100.00100.00100.00100.00
100.00
COGS
49.78 49.78 49.18 69.09 67.64
65.31 63.27 61.35 59.97 60.43
60.63
50.22 50.22 50.82 30.91 32.36
34.69 36.73 38.65 40.03 39.57
39.37
31.10 30.60 29.93 10.85 10.83
10.39 10.01
Gross Margin
SG&A
8.86
9.08
Other
5.41
3.10
2.31
0.40
0.93
7.28 -0.68 -1.25 -0.70 -0.88
-0.79
13.72 16.52 18.57 19.66 20.59
17.02 27.39 30.08 31.04 31.58
31.08
-2.93 -2.83 -1.77 -1.56 -1.29
-1.35 -1.21 -1.56 -1.96 -1.92
-1.94
10.79 13.69 16.80 18.09 19.30
15.68 26.18 28.52 29.08 29.67
29.14
2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 201112
12
12
12 12 12
12
12
12
12
TTM
40.31 35.72 28.85 29.70 31.04 34.63 29.96 29.84 29.34 31.32
31.89
Net Int Inc &

Other
EBT Margin
Profitability
Tax Rate %
Net Margin %
5.80
Global Marketing
9.69
R&D
Operating
Margin
9.82
8.58 11.95 12.72 16.42 10.51 18.34 20.01 20.55 20.38
47
19.85

Group of Bclass
Margins % of
Sales
2002-12
2003- 2004- 2005- 200612

12
12
12
Batch 2010
2007-12
2008- 2009- 2010- 201112

12
12
12
TTM
Asset Turnover
(Average)
0.66
0.69
0.71
0.71 0.73 0.78
0.83
0.83
Return on Assets %
3.84
5.95
8.54
9.00 12.01 8.20 14.91 15.51 15.90 16.94
16.48
Financial Leverage
(Average)
2.33
2.13
1.96
1.98 1.88 1.92
2.29
2.44
Return on Equity %
9.04 13.22 17.40 17.73 23.16 15.58 30.10 33.20 34.51 37.92
40.01
Return on Invested
Capital %
4.62
20.54
2.
Margins % of Sales
0.81
2.13
0.78
2.15
0.77
2.19
7.01 10.10 10.69 14.41 9.88 17.90 18.88 19.49 20.75
Burger King
2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011TTM
12
12 12 12 12 12 12 12 12
12
Revenue
100.00 100.00
COGS
66.13 62.54
Gross Margin
33.87 37.46
SG&A
17.87 17.79
R&D
Other
0.48
1.29
Global Marketing
48

Group of Bclass
Margins % of Sales
Batch 2010
2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011TTM
12
12 12 12 12 12 12 12 12
12
Revenue
100.00 100.00
Operating Margin
15.52 18.38
Net Int Inc & Other
-10.61 -12.62
EBT Margin
Profitability
4.91
2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 201112 12 12 12 12
12 12 12 12
12
Tax Rate %
Global Marketing
23.19
5.76
TTM
23.74
49

Group of Bclass
Margins % of Sales
Batch 2010
2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011TTM
12
12 12 12 12 12 12 12 12
12
Revenue
100.00 100.00
Net Margin %
3.77
4.39
Asset Turnover
(Average)
0.42
0.39
Return on Assets %
1.57
1.72
Financial Leverage
(Average)
5.35
4.89
Return on Equity %
8.40
8.40
Return on Invested
Capital %
2.10
2.25
3.
Global Marketing
KFC
50

Group of Bclass
Margins % of
Sales
Batch 2010
2003- 2004- 2005- 2006- 2007- 20082011- 20122009-03 2010-03

03 03 03 03 03 03
03
03
TTM
Revenue
100.00100.00100.00
100.00
COGS
52.64 53.72 54.97
47.36 46.28 45.03
SG&A
43.15 42.30 42.32
R&D
Other
0.02
Operating
Margin
4.21
3.98
2.71
-0.30 -0.47
0.12
2.40
2.83
2.40
2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 201203 03 03 03 03 03 03
03
03
03
TTM
Gross Margin
Net Int Inc &

Other
EBT Margin
Profitability
3.91
3.50
Tax Rate %
47.27 39.22 55.79
Net Margin %
2.06
2.13
1.25
1.02
Asset Turnover
(Average)
2.94
2.13
2.14
2.22
Return on Assets %
6.06
4.54
2.68
2.25
Financial Leverage
(Average)
1.72
1.76
1.79
1.74
Return on Equity %
10.43
7.89
4.74
3.86
Return on Invested
Capital %
10.28
7.77
4.67
3.81
Global Marketing
57.72
51

Group of Bclass
2.4.3.2
Strengths and Weaknesses
1.
Mcdonals
Batch 2010
Strengths
It is market leader in both domestic and international market.
Has its worldwide presence while having huge impact
It has been facing long term economic growth and is taking

advantage by expanding itself globally.
Weakness
Market saturation has made the expansion difficult for
McDonalds
McDonalds is very slow in the process of product innovation.
2.
KFC
Strengths
Brand Equity
Only to McDonalds in Foreign Sales$550M
Strong Cash Flows
Generate $1B each year
Very strong Internationally UK, Middle East, Thailand, China,
Japan, Korea, Mexico
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52

Group of Bclass
Batch 2010
Strong Franchise and License Fee revenues for cash flow.

Interactive relationship marketing
Strong trademarks recipes
Ranks highest among all chicken restaurant chains for its
convenience and menu variety.
Weakness
Recent drop in sales for KFC
Failed to rank in top 20 in growth in 2000.
Same Store sales declined
Lack of point of scale scanning system
Admitted inability to provide quality service
Lack of knowledge abut their customers
Lack of relationship building with employees , customers and
suppliers
Lack of focus on R&D.
Global Marketing
53

Group of Bclass
3.
Batch 2010
BURGER KING
Strengths
Huge popular brand name and high brand loyalty
Burger King serves a lot of burgers that is typically not available
in other fast food restaurant.
Product differentiation with large size.
Growth model not very capital intensive.
Strong brand equity in fast food.
Weakness
High fat and high calorie food not good for health conscious
people
Franchise management
Burger King does not advertise their products like their
competitors
Lesser international appeal.
2.4.3.4 Cost structure

1.
Global Marketing
KFC
54

Group of Bclass
Batch 2010
Initial Investment
Free Standing Outlet
Name of Fee
Low
High
Building Construction Costs
$425,000
$565,000
Equipment, Signage, and Dcor
$216,000
$366,000
Site Work
$100,000
$250,000
Miscellaneous Permits, Utility Deposits, Licenses,

$50,000
and Architectural Costs
$100,000
Application & Background Check Fee
$500
$300
Initial Franchise Fee
$45,000
Development Services Fee
$0
$35,000
Real Estate
$400,000
$1,000,000
Grand Opening Expense
$5,000
Start-up Inventory
$10,000
Training Expenses
$2,500
$9,500
Miscellaneous Opening Costs
$5,000
$10,000
Additional Funds
$50,000
$75,000
Total Estimated Expenditure
$1,308,800 $2,471,000
Ongoing Fees
Type of Fee
Amount
Royalty
The greater of 5% of gross revenues or a

minimum of $825, whichever is greater per
month (minimum fee subject to adjustment
based upon the Consumer Price Index).
Local Advertising
2.5% of gross revenues (or as agreed to with

local advertising co-ops).
National Cooperative
Advertising
4.5% of gross revenues.
Renewal
$6,750 (subject to adjustment based upon the

Consumer Price Index)
Transfer
For existing franchisees $3,375 for first outlet

and $1,688 for each additional outlet in the
same transaction.
For new franchisees $6,750 for first outlet and
$3,375 for each additional outlet in the same
transaction.
Audit
Entire cost of audit, including expenses of

auditing personnel.
Administrative
$500 services fee for each transaction in which

KFCC processes changes to franchisees
corporate structure or when processing other
approved modifications
Additional Services
$0 - $2,000
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Costs, expenses and

attorneys' fees
Will vary
Indemnification
Will vary
Late royalty payments
1- 1.5% per month
Food Standards
Consultations (FSC)
$265 per follow-up assessment.
Support Services and

Software Maintenance for
KFCC's MERIT System
$160.34 per unit per month.
Year of FDD: 2012
(http://www.franchisedirect.com)
2.
McDonalds
Initial Investment:
Name of Fee
Low
High
$45,000 - Traditional
$22,500 - STO & STR

$0 - Satellite
$500 - Satellite
Base Rent
Real Estate and Building 3

months rent
Signs, Seating, Equipment, and

Dcor
Opening Inventory
$450 - Traditional
$750 - STO & STR
$41,100 - STO & STR
$1,425 - Satellite
$47,450 - Satellite
Percentage Rent
0% - Traditional
42.5% - Traditional
4% - STO & STR
17.3% - STO & STR
4.25% - Satellite
24.5% - Satellite
$707,700 Traditional
$1,353,600 Traditional
$604,400 - STO &

STR
$819,000 - STO &

STR
$50,000 - Satellite
$396,000 - Satellite
$12,000 - STO &

STR
$25,000 - STO & STR
$9,000 - Satellite
$17,000 - Satellite
Miscellaneous Opening Expenses $60,300
$61,600
Travel and Living Expenses while

$3,000
training
$23,000
Additional Funds 3 months
Global Marketing
$182,000 Traditional
$120,000 - STO &

STR
$239,000 - STO &

STR
$91,000 - Satellite
$112,000 - Satellite
56

Group of Bclass
ESTIMATED TOTALS
Batch 2010
$822,950 - STO &

STR
$1,231,200 - STO &

STR
$214,725 - Satellite $657,500 - Satellite

Ongoing Fees:
Name of Fee
Amount
Service Fee
4% of Gross Sales
Rent
Varies
Advertising and Promotion
Not less than 4% Gross Sales
Audit/ Inspection Fee
Cost of Audit
Satellite Annual Fee
$500 to $2,500
Satellite Rent
Varies
STO Rent
Varies
BFL Rent
Varies
Relocation Contribution
$50,000
New POS Integration Fee
$1,000 integration fee (one-time fee); $200

annual integration fee
Restaurant File Maintenance

(RFM) Fee
$150
R2 D2 Software Maintenance
Fee
$125
New POS Software Fee
$1,600 license fee (one-time fee); $400

annual software maintenance fee
Next Gen Cashless Fee
$216 license fee (one-time fee); $154 annual

maintenance fee
Help Desk Support Fee
$2,040
Microsoft Subscription License $449

Restaurant System
Management (RSM)
$250
Restaurant Integrated Data

Movement (RIDM)
$75
e*Restaurant Fee
$54
Identity Management Fee
$75
Store Mail (email account) Fee $79.80
Date of FDD: 2012
3.
King Bruger
Initial Investment
For the Edge-60 Building Type (Several Other Building Options, Smaller and
Larger, Available in FDD)
Name of Fee
Low
High
Franchise Fee
Global Marketing
$50,000
57

Group of Bclass
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Travel and Living Expenses while Training
$0
$25,000
Real Property/ Occupancy Charge
$300,000
$750,000
Civil & Architectural Drawings / Professional Fees
$25,000
$45,000
Zoning Expenses
$5,000
$25,000
Improvements / Construction
$550,000
$900,000
Landscaping
$25,000
$55,000
Equipment
$192,000
$236,000
Decor Package
$40,000
$75,000
Signage & Drive-Thru
$60,000
$115,000
Pre-Opening Wages
$52,000
$56,000
Opening Inventory
$6,000
$8,000
Cash and Inventory Control System
$35,000
$50,000
Insurance
$14,000
$22,000
Working Capital / Additional Funds
$45,000
$90,000
Business Licenses, Utility Deposits, Lease Deposits,

$10,000
and Payments
$20,000
Total
Ongoing Fees:
Name of Fee
$1,409,000 $2,522,000
Amount
Royalty
4.5% of monthly gross sales
Advertising
4% of monthly gross sales
Rent (where property leased

from franchisor)
Varies
Building Improvement
Payments (certain BKLs only)
$500 per month
Late charges/ interest/stamp

tax
Lesser of 18% per annum or maximum rate

allowed by Florida law
Transfer of Interests
$2,000
Application Fee
$250 - $5,000
New Franchisee Training Fee
$2,000
Entity or LLC Fees
Up to $5,000 per Entity; plus up to $1,000

per restaurant transferred to Entity or LLC
Franchise Extension Fee
$2,500 annually
Investment Spending
(marketing)
Collectively agreed upon amount
Sales Transfer Study
Minimum $5,000; Maximum $8,000;

Average $6,400 - Per potentially affected
Restaurant
Sales Impact Contribution
Varies
Gift Card Services
Varies
Miscellaneous Reimbursements,
Varies
Purchases, Services
Walk-Thru
$500
One Time Cure Fee
Varies depending upon whether franchisee is
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under the TRA or the MTRA

Audit Expenses
Will vary under circumstances
Indemnity
Costs and Attorneys' Fees
Date of FDD: 2012
2.4.3.4
Organization and Culture
1.
KFC Profile
KFC is the one of the world's largest fast-food chains, the company
owns and franchises more than 16,200 outlets in about 100
countries. (More than 5,100 locations are in the US.) The
restaurants offer the Colonel's trademark fried chicken (in both
Original Recipe and Extra Crispy varieties) along with chicken
sandwiches, chicken pot pies, crispy chicken strips, mashed
potatoes and gravy, and potato wedges. Its locations can be found
operating as free-standing units and kiosks in high-traffic areas.
More than 25% of the restaurants are company-operated.
President and Chief Concept Officer: Roger Eaton
COO: Laurance (Larry) Roberts
Chief Marketing Officer: Jason Marker
Policies :
KFC collect information from and about you.
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Group of Bclass
Contact
information.
For
Batch 2010
example,
KFC
might
collect
customer name and street address. KFC also collect their

phone number or email address.
Payment and billing information. For example, KFC collect

customer credit card number and zip code when they buy one
of KFC products.
Demographic information. KFC may collect information about

their services to customer
like or products they buy. KFC
might collect this as part of a survey, for example.
KFC collect information in different ways.

KFC collect information directly from you. For example, if the
customer register for a promotion. KFC also collect information if
they post a comment or make a request.
KFC collect information from the customer passively.
KFC get information about you from third parties. For example, if
you use one of the integrated Facebook features on KFC websites,
Facebook will give KFC certain information about you.
KFC use information to respond to your requests or questions. For
example, KFC might use your information to confirm your
registration for a program or contest, or fulfill prizes or premiums in
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a promotion. KFC may use your friends email address if you send
them features on they site.
KFC use information to improve they products and services. KFC
might use your information to customize your experience with KFC.
KFC use information to look at site trends and customer interests.
KFC may use your information to make their website and products
better. KFC may combine information they get from you with
information about you they get from third parties.
KFC use information for security purposes. KFC may use
information to protect their company, their customers, or their
websites. For example, in the event of a breach, they may use your
contact information to contact you about that incident.
KFC use information for marketing purposes. For example, KFC
might send you information about special promotions or offers.
They might also tell you about new features or products. These
might be their own offers or products, or third-party offers or
products their think you might find interesting.
KFC use information to send you transactional communications.
For example, KFC might send you emails about a purchase you
made with they. KFC might also contact you about this policy or
their website terms.
KFC use information as otherwise permitted by law.
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KFC may share information if they think they have to in order to

comply with the law or to protect theirselves. For example, KFC will
share information to respond to a court order or subpoena. KFC
may also share it if a government agency or investigatory body
requests. Or, KFC might also share information when they are
investigating potential fraud. This might include fraud they think has
happened during a sweepstakes or promotion.
KFC and they vendors use several common tracking tools. These
may include browser cookies. KFC may also use web beacons and
similar technologies. KFC use these tools:
To track new and recognize past customers.
To store your password if you are registered on our sites.
To improve our website.
To provide you with advertising content in which we think you
will be interested. To do so, we may observe your behaviors on
this website and other websites. We may also collect
information about your browsing history.
To better understand the interests of our customers and our
website visitors.
2.
McDonalds Profile
McDonald's is the largest chain of quick service restaurants in the

world. McDonald opened their first restaurant in Ireland in 1977 on
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Dublin's Grafton Street and now they operate 83 restaurants

throughout Ireland. They serve 150,000 customers per day and
directly employ over 4,000 people. McDonald's are an equal
opportunities employer. They hire from all age, culture and ability
groups and provide employment to parents, students, teenagers,
people with disabilities, senior citizens, people seeking part-time
jobs with flexible hours and those looking for a long term career.
Honorary Chairman: Fred L. Turner
Chairman: Andrew J. (Andy) McKenna Sr.
Vice Chairman and CEO: James A. (Jim) Skinner
Policies:
1. Types of Information McDonalds Collect and How It Is Used
McDonalds only gathers personal information, such as, first and
last names, addresses and email addresses, when voluntarily
submitted by you.
For example, personal information may be
collected from you in order to get your feedback on their web sites
and their products or to enter you in one of their contests or
sweepstakes.
2. McDonalds Sharing of Personal Information
McDonald's may share personal information within the McDonald's
Family. The McDonald's Family includes McDonald's Corporation,
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their franchisees, their subsidiaries and their affiliates. Of course,

any use of this information by the McDonald's Family will comply
with this policy. Occasionally, with your permission, they will send
marketing information to you, such as discount coupons,
information about new product offerings, etc. If you do not select to
receive such materials, they will not send to you.
Companies may be engaged by McDonald's to perform a
variety of functions, such as, fulfilling orders, assisting with
promotions, providing technical services their web sites, etc. These
companies may have access to personal information if needed to
perform such functions. However, these companies may only use
such personal information for the purpose of performing that
function and may not use it for any other purpose.
McDonald's does not sell, transfer or disclose personal
information to third parties outside the McDonald's Family.
However, with your permission, they will, on occasion send
marketing information on behalf of one of their business partners
about products or services they provide that may be of interest to
you. You may be asked if you wish to receive marketing materials
from McDonald's business partners. If you elect to receive such
materials, McDonald's will not share your personal information with
such partners but rather will send a mailing or e-mail on behalf of
the partners.
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McDonald's reserves the right to use or disclose any

information as needed to satisfy any law, regulation or legal
request, to protect the integrity of the site, to fulfill your requests, or
to cooperate in any law enforcement investigation or an
investigation on a matter of public safety.
3. Childrens Privacy Notice
McDonald's understands the importance of privacy to visitors to
their Web sites. KFC are especially committed to protecting the
privacy of children who visit they Web sites.
This Childrens
Privacy Notice is designed to answer your questions regarding their

practices with respect to personal information they collect through
their Web sites from children under the age of 13.
3.
Burger King Profile
This king rules one whopper of a fast-food empire. Burger King

Worldwide operates the world's #3 hamburger chain by sales
(behind McDonald's and Wendy's) with more than 12,500
restaurants in the US and more than 80 other countries. In addition
to its popular Whopper sandwich, the chain offers a selection of
burgers, chicken sandwiches, salads, and breakfast items, along
with beverages, desserts, and sides. Many of the eateries are
stand-alone locations offering dine-in seating and drive-through
services; the chain also includes units in high-traffic locations such
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as airports and shopping malls. Investment firm 3G Capital took the

company in private in 2010 before taking it public again in mid2012.
EVP and Chief Brand and Operations Officer:
Jonathan (John) Fitzpatrick
EVP and CFO
: Daniel S. Schwartz
Director Business Development
: Jim Schwandt
Policies
BURGER KING CORPORATION GENERAL ONLINE PRIVACY
POLICY
Burger King Corporation is sensitive to the privacy concerns of
visitors to its websites. The purpose of this General Online Privacy
Policy is to describe what types of personal information they collect
from
visitors
to
Burger
King
Corporations
website,
http://www.bk.com or any other site operated by Burger King

Corporation or by a Service Provider on behalf of Burger King
Corporation,
including
without
limitation
www.bkdelivers.com
(collectively the BKC Websites), the purposes for which they use
the information, what rights you have regarding your personal
information, and to whom and under what circumstances they
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disclose your personal information. This General Online Privacy

Policy applies to their information collection, use, and disclosure
practices for website visitors ages 13 and over.
COLLECTION OF INFORMATION
Collection and Use of Non-Personal Information
Certain non-personal information about BKC Website visits is

recorded by the standard operation of the Internet servers on which
BKC Websites are hosted. The non-personal information that they
collect may include IP addresses, the type of operating system in
use (e.g., Macintosh or Windows), the type of browser being used
by the visitor (e.g., Netscape or Internet Explorer), the number and
frequency of visitors to BKC Websites, and the site the visitor was
on immediately before visiting the BKC Website. When you view
BKC Websites or use website features, they may collect certain
non-personal information from you by using small text files known
as cookies. Burger King use cookies for several purposes, such as
to recognize visitors to their websites, to determine the number of
unique visitors to their websites, to ascertain which website pages
you visit, and to conduct internal reviews of they site. Burger King
may associate information they collect via cookies with the
personal information they collect online. Burger King may use the
combined information, for example, to personalize your experience
on the website.
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Collection of Personal Information
Burger King only collect personal information (which may include

first and last name, gender, birth date, home or other physical
address, e-mail address, home or mobile phone number, number of
children in the household, frequency of visits to BURGER KING
restaurants, credit card information, online account numbers, and
password) when you voluntarily submit it to they or voluntarily
register as a user of a BKC Website. For example, you may choose
to provide they with your personal information in order to participate
in a sweepstakes or contest, purchase gift certificates, gift cards, or
other
merchandise,
provide
content
submissions,
make
suggestions for the operation of they site, or participate in an online

interactive activity or marketing research.
Use of Personal Information
Burger King Corporation or Service Providers acting on its behalf

may use information collected from website visitors to for any of the
following
purposes:
(1)
to
send
marketing
and
other
communications to they visitors about BURGER KING products

or about the products and services of promotional partners that are
not owned or affiliated with BKC; (2) to allow visitors to
communicate with others, such as their friends, (3) to allow they to
notify visitors of upcoming events, promotions, or activities on they
site; (4) to conduct internal reviews of they site, to determine the
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number of visitors to the site (5) to help Burger King better

understand visitors' use of they site; (6) to fulfill prizes, awards and
purchases; (7) to respond to specific requests from they visitors; (8)
to provide any necessary notices to they visitors; (9) to conduct
marketing research; (10) to protect the security or integrity of they
site; and (11) in connection with inquiries regarding becoming a
franchisee of a BURGER KING restaurant or selling real estate to
Burger King Corporation. To opt out of emails or SMS
communications, please follow the instructions in the email or SMS
message.
Disclosured of information
Burger King Corporation will transfer or otherwise disclose the

information it collects from its website visitors to employees and
independent
contractors
of
Burger
King
Corporation,
its
subsidiaries, affiliates, and Service Providers if the disclosure will

enable that party to perform a business, professional, or technical
support function for Burger King Corporation, or if required to do so
by law. They will also transfer or otherwise disclose personal
information in response to judicial process, to comply with legal
requirements, and as permitted under provisions of law, to provide
information to law enforcement agencies or in connection with an
investigation on a matter related to public safety. They may also
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use your information as permitted by law to protect they rights or

property, a BKC Website, or its users.
Security of information
Burger
King
maintain
physical,
electronic,
and
procedural
safeguards to guard your personal information.
2.4.3.5 Current and past strategies

1.
KFC strategies
Market Development: KFC will introduce their present and new
products and services into new geographic/ demographic
areas.
Product Development : Bring back rotisserie chicken
Concentric Diversification : Add more to KFC product and
service variety to the patients
Company Strategy Primary objective is to take advantage of
the potential growth in other countries, to establish a strong
position and to develop their image. Key Success Factors are
ever continuing cost savings through R&D, innovations and use
of new technology to
work
efficiently. These success
techniques will lower costs and increase profits in the industry.
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KFC uses an integrated low cost/differentiation leadership,

since it can count on its brand name and original taste and
recipes to be unique while at the same time compete on price
using the benefits of cost savings from economies of scale.
2.
McDonalds strategies :
To serve good food in a friendly and fun environment
To be a socially responsible company
To provide good returns to its shareholders
To provide its customers with food of a high standard, quick
service and value for money
The low price and volume: Mc Donald's has in the world, a
policy of low prices and volume, major elements of its
competitive advantage. To deliver all meals daily, prices must
be affordable. McDonald's goal is to attract consumers the
most regularly possible, it should not propose menus at high
prices. Product prices are not identical in all countries and
within countries there are also different prices depending on the
location. So they vary according to local competition and
promotions, sometimes in each restaurant. Moreover, it should
be noted that 70% of McDonald's sales are made each day
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over a period of four hours. McDonald's has decided to try to

change eating habits to attract more consumers during the
peak hours for reduced rates. An example of this aggressive
pricing policy: making the second menu half-price for all menu
purchased the evening before 6 o'clock.
3.
Burger King strategies:

Burger King is creating a good amount of marketing buzz
around their new menu and the experience that consumers will
have. They have redeveloped their menu, which is somewhat
reminiscent of McDonalds to be more health conscious by
adding salad and wraps options.
They will somehow be
incorporating a touch screen into their point of sale and using

food trucks to get their product out to the masses.
Burger King continue to emphasizing its barbell strategy of
promoting both value and premium menu items and they
launch of its new breakfast menu will help increase traffic and
sales. Burger King executives expanded on these strategies.
Track their sales so they can make marketing programs to
tackle a downturn.
2.4.4
Global Marketing
Summary of Major Competitor Related Issues
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Group of Bclass
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According to some people, KFC has a high price compared to

McDonald's. Although McDonald's has a low selling price, but the
composition of the food that they give more than McDonalds. Most
people also agree that KFC has higher calories compared with
other competitors. Thus, they prefer to go to McDonald's. However,
KFC is a fast food restaurant that better known by many people, so
between KFC and McDonald's have different values. While Burger
King, is a famous fast-food restaurant with their burger. KFC and
McDonald's also provide a burger, but not complete like in Burger
King Restaurant. Because this restaurant more focus in selling
"Burger" so compared to KFC and McDonald's are also selling
burgers on their menus, most of people that like burger prefer to
eat burger in Burger King fast food restaurant. So, the three
restaurants have different advantages.
KFC
KFC have restaurant in 109 countries and territories around
the world. KFC operates more than 5,200 restaurants in the
United States and more than 15,000 units around the world.
McDonalds
McDonalds is the leading global food service retailer in the
world with more than 30,000 restaurants, in more than 100
countries.
Burger King
Burger King is the second largest chain in the world with more
than 11,200 restaurants in 69 countries. 90% of Burger King
restaurants are independent franchises.
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Analysis of Opportunities and Threats (swOT)
a.
-
Opportunities
Subway industry is still growing steadily despite of its
slowdown in the economy.

Subway can invest more to expand its business in the
international market and also make improvements in its
decoration and look to encourage dine-in.

The target costumer market group being from middle to
upper- middle class.

People turning healthier consciously.
Continue to revise and refresh menu offerings.
Signs of growth in the virgin market sector.
By improving the customer service model customer loyalty
and satisfaction can be increased.
b.
-
Threats
The company faces serious threats from some of the large
fast food chains in the world including brands like KFC,
McDonalds etc.
It had an easy entry into the industry being one the healthier
fast food chains.
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Subway has a large loyal customer base which developed
over the years.

Economic downturn is one of the major threats caused
because of the current economic recession. Sales of
sandwiches are growing 15 percent annually, outpacing the 3
percent sales growth rate for burgers and steaks. This
increase in sales of the sandwiches has been a result of
decreases in consumer interest in hamburgers and fries and
increases in demand for healthier options.
Section III
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Internal Analysis
3.1
Internal Analysis (SWot)

a.
Strength
Subway has positioned itself in places like hospitals,

churches, schools and popular retail stores like Home Depot
and Wal-Mart which makes the start-up cost of franchises low.
Because of such great strategies the company has become
the leading sandwich franchise world-wide in a very short
period of time.
Subway is known to be a company that offer healthy subs

sandwich that are preferred and are much better as compared
to food items offered by other fast-food chains like
McDonalds. The food menu of the Subway reflects the high
demand of healthy and fresh fast-food.
Also the marketing and promotional strategies adopted by

the company are an example of the positive focus on
demand, consumer preferences, innovative trends and
product leveraging.
Subway currently has more stores in the United States than

does McDonalds which adds to its strengths.
b.
Weaknesses
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Change is good in moderate amounts; however the company

must be careful by not believing that it must continually
change its offerings in order to remain the market leader. Too
much change too soon can cause a company to lose favor
with customers and Subway has already shown signs of too
much change, altering its menu multiple times in the last five
years.
The dcor and the look of the franchises seem to be old and
outdated.
Service commitment is not consistent from store to store.
This could be related to staff as the turnover rate of the

employees is very high which explains why they lack
motivation.
Other weaknesses include a small menu list, an increasing

operational cost of franchise etc.
3.1.1
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Marketing Skills and Resources
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Aside from being a proven business with a low start-up cost,

SUBWAY is continually ranked the #1 Franchise.
a. Worldwide Growth
When own a SUBWAY restaurant, were part of the worlds
largest restaurant chain and one of its most recognized brands, and
well get the support and experience that comes with it. Be part of a
winning brand that keeps customers coming back for delicious
meals made just the way they want.
b. Food
SUBWAY is the undisputed leader in fast, healthy food. Our easyto-prepare sandwiches are made to order right in front of the
customer, precisely the way they want - using freshly baked
breads, select sauces and a variety of delicious toppings.
c. Support Network
When join the SUBWAY family, get world-class support before
even make the first sandwich and well beyond. The franchise
support system features:
Training
Product development
Advertising
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Purchasing cooperative
Field support, and much more!
3.1.2
Finance and Accounting Skills and Resources
A SUBWAY stores start-up costs are exceptionally low for a

franchise of the size and stature and franchisees can often
purchase dependable outlet equipment through the SUBWAY
brands purchasing power. In fact, in some cases, traditional
SUBWAY outlets can be opened for as little as c. 100,000.
The total initial investment will depend on many factors
including location, rent, outlet size and equipment. The franchise
agreement is for 20 years and renewable for 20 years (subject to
terms and conditions).
An important consideration in purchasing first SUBWAY
outlet is how to finance investment. A good arrangement is to have
50% of the total capital requirements available in cash and
sufficient collateral to obtain funding for the balance. Below are
links to lenders that can offer support.
Royalties and fees paid to the SUBWAY brand are based on
gross sales minus sales tax. The royalties are 8% to the
SUBWAY brand. A 4.5% advertising fee is paid to the 'Franchisee
Advertising Fund (FAF)'. Franchisees in some markets may vote to
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increase the marketing fee percentage for local advertising

purposes.
The franchise fee of 10,000* for outlets is one of the lowest
on the market, despite the size of the chain.
One reason the costs are so low is that SUBWAY outlets
feature a very simple operation. No cooking is involved so
franchisees dont have to invest large sums in expensive grills and
fryers. Also, the dcor package is streamlined so that money isnt
wasted on non-recoverable assets.
3.1.3
Production/Operation/Technical Skills and Resources
Subway offers customers a wide selection of sandwiches also

called subs. Sandwiches are always freshly baked, and
customers can choose if they want their sandwiches toasted or
non-toasted. There are two different sizes of sandwiches, a six
inch. (15 cm) and a foot long (30 cm). Subway also serves soft
drinks along with the sandwiches. Cookies, chips, coffee and
chocolate can be ordered as accompaniments.
There are four types of bread to choose from, the Italian
white bread, the honey oat bread, the parmesan/oregano bread
and the 9-grain wheat. The 9-grain bread is the only bread, which
contains animal product if honey is considered an animal-derived
ingredient. Wheat free bread cannot be found in Danish Subways.
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All of the breads are milk free except the parmesan/oregano bread,
which contains cheese. (Subway menu 2009)
There is a specific order to the ingredients placed on a
Subway sub, which must be adhered to unless the customer
requests otherwise. The cheese goes on the sub first. Then the
meat (obviously the meat is excluded for vegetarian subs) is placed
on top of the cheese. Sauces such as mustard and mayonnaise go
above the meat. Vegetables go on next. The order to prompt a
person for "veggies" is: hot or mild peppers; pickles, peppers,
olives; lettuce, onion, tomato. Finally on the layer of vegetables are
applied the other condiments: oil, vinegar, salt, pepper. The lid to
the sandwich is situated on top. If the comestible is of the foot-long
variety, then it is cut in half before serving. Finally, the edible piece
of art is wrapped in paper and delivered to the customer.
The only thing left to do after making sandwiches is
preparation work. Employees must have all of the ingredients that
compose
sandwich
prepared
beforehand.
However,
the
ingredients have often been prepared by another employee on an

earlier shift. The workers must also keep the store in a clean and
orderly condition. The process involved in this is not difficult, as
usual. One preparatory activity is the washing of dishes. This falls
under the large category of unskilled labor. Other preparation jobs
include: cooking meatballs; cutting up onions, green peppers,
tomatoes; baking bread and cookies; distributing certain meats into
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paper trays. Some activities are only done at closing time, such as
sweeping and mopping the floors. At first, this might seem a bit
overwhelming.
3.1.4
Personnel/Human Resources Management Skills and

Resources
The SUBWAY franchise is the worlds largest submarine

sandwich franchise and the second-largest restaurant franchise in
the world. Here are just some of the diverse departments that are
required to run a truly world-class operation:
Executive
: This
team
supports
company-wide
operations at SUBWAY headquarters in

Milford, CT and includes departments like
Customer Care and the Business Process
Team.
Administrative
: This team is responsible for DAI employee

management and grounds and shipping
center oversight.
Franchise Brands: This team offers a diversified portfolio of

new and promising ideas that will improve
the SUBWAY experience for franchisees
and their customers.
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Group of Bclass
Development
Batch 2010
: This team works closely with potential

franchisees who wish to open a SUBWAY
restaurant and includes everything from
real estate planning to recruiting new
franchisees.
Operations
: This team enforces standards and provides

training and operational assistance to
franchisees and field staff.
Technology
: This team is responsible for implementing

and maintaining all technology systems
throughout the company and providing
technology initiatives so franchisees can
operate their businesses more efficiently.
Marketing
: This plank presents the public face of

SUBWAY. It includes departments like
Research & Development, which develops
and test markets the food that we serve,
and FAF (Franchisee Advertising Fund)
responsible for the creation and placement
of commercials and print ads.
International
: This plank supports franchisees outside of

the United States and Canada.
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Group of Bclass
3.1.5
Batch 2010
Organization and General Management Skills and

Resources
Subway is an American restaurant franchise that primarily sells

submarine sandwiches (subs), salads, and personal pizzas. It is
owned and operated by Doctor's Associates, Inc. (DAI). Subway is
one of the fastest growing franchises in the world with
approximately 34,003 restaurants in 95 countries/territories as of
February, 2011. It is the largest single-brand restaurant chain
globally and is the second largest restaurant operator globally after
Yum! Brands (35,000 locations).
Subway's main operations office is in Milford, Connecticut,
and five regional centers support Subway's growing international
operations. The regional offices for European franchises are
located in Amsterdam, Netherlands; The Australia and New
Zealand locations are supported from Brisbane, Australia; the
Middle Eastern locations are supported from offices located in
Beirut, Lebanon; the Asian locations from Singapore and India and
the Latin America support center is in Miami, Florida. In the UK and
Ireland the company hopes to expand to 2,010 restaurants.
In this system, employees report not only to a functional
manager but also to a project team leader or a product manager
with regard to product issues. A key feature of the matrix structure
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is this dual reporting, which violates a traditional principle of

establishing reporting relationships. This radical step is taken
because the special expertise of the functional worker is deemed
essential to the success of the project or product. The assignment
may be temporary or long term, depending on the nature of the
project.
The key to a robust design of this organizational performance
measurement process lays in its alignment with other two other
very important elements. These are the organizations strategy and
its rewards and compensation policy. This is a crucial consideration
as this measurement process should be revised whenever there is
a change in the strategy or a shift in the policy as to rewards and
recognition.
3.1.6
Profitability and Growth
The success of the project can be measured by profitability of the

branch in the first year of the opening. This time scale is adequate
because it will allow for time for customers to become regulars and
for the brand awareness to spread. A whole year is needed to
measure the success of the store because as the seasons chance,
so do people's habits so there will be fluctuations in consumer
spending patterns, for example right before Christmas when lots of
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people will go out to buy presents they may also buy a sandwich
while they are in the area so sales may increase.
3.1.7
Assets
There are more SUBWAY restaurants in the world than any other
restaurant chain, making Subway a leader in the global
development of the quick service restaurant industry.
Country
# of
Country
Stores
AFGHANISTAN
ANTIGUA AND BARBUDA
ARGENTINA
ARUBA
AUSTRALIA
AUSTRIA
BAHAMAS
BAHRAIN
BARBADOS
BELGIUM
BOLIVIA
BRAZIL
BULGARIA
CANADA
CAYMAN ISLANDS
CHILE
CHINA
COLOMBIA
COSTA RICA
CURACAO
CYPRUS
CZECH REPUBLIC
DENMARK
DOMINICA
ECUADOR
EGYPT
3
2
78
6
1349
12
7
14
2
17
10
1009
26
2867
6
35
348
95
52
7
2
9
8
2
16
5
Global Marketing
# of
Stores
MACAU
MALAYSIA
MALTA
MARSHALL ISLANDS
MARTINIQUE
MEXICO
NETHERLANDS
NETHERLANDS BES ISLANDS
NEW ZEALAND
NICARAGUA
NORTHERN MARIANA ISLANDS
NORWAY
OMAN
PAKISTAN
PANAMA
PERU
PHILIPPINES
POLAND
PORTUGAL
PUERTO RICO
QATAR
ROMANIA
RUSSIAN FEDERATION
SAINT KITTS AND NEVIS
SAINT LUCIA
SAINT VINCENT AND GRENADINES
2
116
3
1
3
640
116
1
247
11
3
18
15
36
43
9
10
65
13
208
17
10
480
1
2
2
86

Group of Bclass
35
105
399
599
3
12
42
22
28
13
23
313
99
3
4
12
3
385
9
66
5
1
13
EL SALVADOR
FINLAND
FRANCE
GERMANY
GRENADA
GUAM
GUATEMALA
HONDURAS
HONG KONG
HUNGARY
ICELAND
INDIA
IRELAND
ISLE OF MAN
ISRAEL
ITALY
JAMAICA
JAPAN
JORDAN
KUWAIT
LEBANON
LIECHTENSTEIN
LUXEMBOURG
3.1.8
Batch 2010
56
104
6
9
15
56
39
1
1
111
11
136
5
49
40
21
139
1482
25563
4
172
3
7
6
SAUDI ARABIA
SINGAPORE
SINT MAARTEN
SLOVAKIA
SOUTH AFRICA
SOUTH KOREA
SPAIN
ST MARTIN
SURINAME
SWEDEN
SWITZERLAND
TAIWAN
TANZANIA
THAILAND
TRINIDAD AND TOBAGO
TURKEY
UNITED ARAB EMIRATES
UNITED KINGDOM
UNITED STATES
URUGUAY
VENEZUELA
VIET NAM
VIRGIN ISLANDS, U.S.
ZAMBIA
Value Chain Analysis
Today the Subway chain is one of the most rapid developing fast
food chains in the world. Reach almost 1000 new stores annually.
And in 2005 Subway was called The worlds best franchising
system for the 14th time. (According to the Entrepreneurs
Magazines rate).
Today the Subway chain has more than 32,000 stores in
90 countries. Subway chain is a leader in a fast food industry. Our
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87

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sandwiches are famous as a healthy alternative to greasy fried

burgers.
The franchise chain Subway employs many people. There
are already more than 600 workers in Connecticut where Subways
headquarters and Doctors Associates Inc. (the franchisor of
Subway restaurants) are situated. Approximately 150,000 people
worldwide work for Subway. In 2006 Subways revenue jumped to
9.05 billion dollars ( 6,85 billion), and it still keeps growing rapidly.
Fred DeLuca has been a leader of the chain for 44 years. (Subway,
history 2009)
Chart 2 Subway restaurants in the world (Subway, Around the world)
As can be seen on the graph, most of the Subway restaurants are

located in North America. The second largest amount is situated in
Europe. Here most of the Subways are located in United Kingdom
(1,322 restaurants), and the Subway chain aims to have more than
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2,010 restaurants in the United Kingdom and Ireland by 2010.

Africa is the continent with the least restaurants.
3.1.9
Summary of Competitive Advantage (Elucidate)

Here are the competitive advantages that we offer to the
customers:
Its healthy Menu. The salads and sandwiches appeal much
more to the people as compared to fried chicken, burgers,
fries and pizzas. With its advertising and promotion, Subway
has long been highlighting its healthy food in advertising and
promotions and with the passage of time, it has established
itself as a healthy brand.
Traditional locations. Subway restaurants can be found in
more than 4,000 non-traditional locations such as food
courts, health clubs, hospitals, universities, amusement
parks or just about anywhere. In fact, Subway restaurants
can
even
be
found
in
automobile
showrooms
and
Laundromats! This global presence is indeed a sustainable

advantage for Subway and needs to be managed properly.
Subway's fresh food is also a competitive advantage
because unlike its competitors like McDonald's it allows its
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89

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franchisees to choose their own food suppliers, to ensure

they can access the freshest ingredients.
The SUBWAY brand is involved with various civic,
educational, and charitable organizations such as the United
Way, March of Dimes, Habitat for Humanity, and Junior
Achievement. The SUBWAY brand also partners with the
American Heart Association and the American Red Cross on
initiatives such as sodium reduction to make our healthy
menu options even healthier.
Food safety. All SUBWAY restaurants follow our Gold
Standard policies regarding prepared food and produce
manufacturing and inspection specifications. All franchises
are provided with information on proper food handling
procedures in order to properly train their crew members.
Customize by own self. Yes, customer can freshly made
sandwich however they want it. In fact, there are over 2
million sandwich varieties available from our menu choices,
so they can have the SUBWAY sandwich with any
combination of ingredients we offer. Consider those varieties
as 2 million delicious sandwiches and all with customers
name on them.
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3.2
Strategic Objectives
3.2.1
Recommendation (mode of Entry)
Batch 2010
In order to open this business, Subway restaurants in Indonesia,

We have chosen the franchising strategy. All of subway restaurant
in the world used this strategy to open its new market in new
country, because this strategy (mode) is the most famous strategy
for nowadays.
Franchising itself is the practice of using another firm's
successful business model. The word 'franchise' is of Anglo-French
derivation - from franc - meaning free, and is used both as a noun
and as a (transitive) verb. For the franchisor, the franchise is an
alternative to building 'chain stores' to distribute goods that avoids
the investments and liability of a chain. The franchisor's success
depends on the success of the franchisees. The franchisee is said
to have a greater incentive than a direct employee because he or
she has a direct stake in the business.
3.2.2
Justification (For Mode of Entry)
The reason why we choose franchising as our entry mode,

because franchising is a business model which has the key benefit
(risk minimization). All studies, measured of the percentage of
success of starting up new company, confirm this thing. Starting up
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91

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a new business is extremely risky thing. The competition on market

is not liberal to the newcomers that all statistics show that more
than 90 percent businesses fail within three years. Failing in
business can be a terrible experience.
The franchising business model is a guarantee of
success. New franchise business mostly has success and failure
usually caused because the franchisee did not follow all the
corporate guidelines.
Getting a franchise business makes less concern because all
investments can be carefully researched prior to any major
payments. It is extremely hard to calculate all aspects of the new
business, no matter how much research we're doing. But with a
franchise, the franchisor can give any information about the
business - from how to perform an advertising campaign, to the
best design of online store.
In brief, the main reason and motive to be a franchisee, in
opposite of starting up a non-franchise business, is to reduce risk
and increase our chances of success.
3.2.3
Establishment of Strategic Objectives and Priorities
We know what the company wants, how the company plans to do

it, and what they as employees need to do to accomplish these
goals. It makes the employees feel like they are all part of a unit
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working towards a common objective. This can have a positive

influence on work production because employees feel responsible
to reach the goal.
We are able to use these objectives to make decisions
with consistent outcomes in order to fulfill these objectives. This
helps steer us in the direction we wants to go, and reduces
complications due to other interests.
The Subways mission statement says Delight every
customer so they want to tell their friends. This relates to the
objective of the company because it shows the company wants its
reputation to grow and lead towards being the number one ranked
quick service restaurant. This mission statement also relates to
Subways tactics because it says Great value through fresh,
delicious,
made-to-order
sandwiches,
and
an
exceptional
experience. Both mission statement and tactics say they use fresh
and delicious food in order to become a more popular quick service
restaurant. So in order to fulfill the subway main objective, we have
to strive to be the most popular quick service restaurant in this
country also, but still consider about the quality of our products. We
concern more about the downstream strategy that focuses on
customer satisfy. When we will open this business is how we
maintain the positive influence on the society. The reason because
the good influence in society can increase our sales and improve
our customers in this country.
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3.2.4
Batch 2010
Key Targets to be reached
We have the simple target that is to bring customers into the stores
and keep them coming back. In other words, we want to make all
potential customers aware of our products, convince them to try it,
and by providing good value, and great fresh food, turn them into
regular satisfied customers. That is our primary target to reach the
high profit from this business by increase our customers.
Our companys next target also wants to expand our
business in future. Someday we have long term goal that we will
open this business in whole Indonesia. But for now, we just focus to
open and maintain the local store, especially in our region
(Manado). As the new entry in this franchise business, we are in
learning process, so we just strive to run business as well as we
can. Percentage of profits that we want to reach about 20-25%
profit is very possible, 35% is very unlikely.
3.2.5
Person Responsible
In making of this Global Marketing Plan in team form that consists

of 4 members, all of us have the responsibility to maintain and run
this business well. These are the members list:
Addien Afifah
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Group of Bclass
Eva Muntuh
Firsie Kalangi
Ryan Tanawal
Batch 2010
All of those names above have the responsibility to manage and

maintain this franchise business.
The SUBWAY system is committed to providing a variety of great
tasting, healthier food choices while reducing the environmental
footprint and creating a positive influence in the communities we
serve around the world. Based on Subways vision is to make
restaurants and operations as environmentally and socially
responsible as possible. So as the responsibility to this business,
we strive to conduct business in a way that has a positive impact on
the environment while improving the lives of our customers,
franchisees, employees, vendors and communities worldwide. We
believe that using good, environmentally sound business practices
help increase our franchisees' profitability, improve our customers
dining experience as well as help protect the planet.
3.2.6
Major Risks and Countermeasures
List of major risks when running this franchising business and a few
solutions to counter it.
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1.
Batch 2010
The requirement to pay the franchise fees and royalty to the

franchisor, which in some cases can be exaggerated. In order
to solve this risk, first we can use our own capital or we might
owe money from another party (bank).
2.
The transfer of all goodwill built in the local market to the

franchisor upon expiration or termination of the franchise
contract.
3.
The necessity of abiding by the franchisors operating

systems, standards, policies and procedures.
4.
Reduced corporate profit margin due to payment of royalties

and levies.
5.
When our customer begins bored to our products, then they

feel unsatisfied. To counter this risk, we can use some
strategy such as create some new products and also new
promotion.
6.
The competitors make something new in their business to

against us. Almost same like the risk before, we can make
some new in our company that the others competitors dont
offer to their customers. Through the corporate social
responsibility activity also can attractive the new consumer to
our business.
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3.2.7
Batch 2010
Cost and Benefit Projections
Subway offers an equipment leasing program available to all

franchisees in the United States (not including Puerto Rico, but
including Guam), except those who own an existing restaurant that
is not in compliance with the Operations Manual. Subway deems
the equipment lease to be a true lease and not a financing lease.
Subway offers to finance $10,000 of the initial franchise fee under
its minority loan program for qualified franchisees purchasing their
first franchise at the full franchise fee in the USA only. Subway also
offers finance programs for leased space and construction
programs through Subway affiliates, and may loan money to
franchisees in connection with a Subway restaurant. In addition,
Subway may guarantee a loan for a franchisee in connection with a
Subway restaurant. Subway may change or eliminate these loan
programs and equipment leasing program without any prior notice
to franchisees.
Term of Agreement and Renewal:
The length of the franchise term is 20 years, with the exception of
the School Lunch program with a term of 5 years. The franchise will
automatically renew for additional 20 year periods, unless either
party chooses not to renew. The renewal term for the School Lunch
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programs is 5 years. Subway has the right to refuse renewal if the

franchisee is not in full compliance.
Investment Tables:
Initial Investment of Subway Franchising:
For a Traditional Location:
Name of Fee
Low
Med
High
$15,000
Real property
$2,000
Leasehold Improvements
$59,500 $102,100 $134,500
Equipment lease security deposit
$4,500
$6,500
$7,500
Optional security system
$2,000
$3,500
$6,000
Freight charges
$3,000
$3,750
$4,500
Outside signage
$2,000
$4,000
$8,000
Opening inventory
$4,400
$5,225
$6,050
Insurance
$800
$1,500
$3,500
Supplies
$500
$900
$1,300
Training expenses (including travel & lodging) $2,500
$3,500
$4,500
Legal and Accounting
$1,000
$2,000
$3,500
Opening Advertising
$2,500
$3,250
$4,000
Miscellaneous Expenses
$4,000
$6,000
$8,000
Additional Funds three months
$12,000 $26,000
$42,000
Total
$115,700
$260,350
Ongoing Costs:
Name of Fee
$5,000
$188,225
$12,000
Amount
Royalty
8% of Gross sales
Advertising
4.5% of Gross sales
Additional Funds
Established by franchisees
Local Advertising
Established by franchisees
Grand Opening
Advertising
$2,000
Audit
Overdue amount, plus Audit costs and an UnderReporting fee equal to 100% of the overdue amount
may be charged depending on extent of underreporting
Fees for Unpaid

Balances
Interest charge of 12% (or maximum allowed by law

where the restaurant is located) per annum on
amount owed
Late Payments
Late fee of 10% (or maximum rate allowed by law

where the restaurant is located) per annum of
amount franchisee owes may be charged
Transfer
5% of buyout price
Location Rent
$1,000 - $5,000 ($1,000 - $6,000 for non-
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traditional) per month estimated

Equipment lease
$2.70 per month per $100
Equipment purchase
and Freight Charges
Cost of equipment and buffer to cover freight

charges, taxes, and other costs
Insurance
$800 - $5,000 per year
Indemnification
All liability, damages, and costs, including lawyers

fees, incurred
Incomplete violation
$15,000 for each competing store plus 8% of its

gross sales
Confidentiality violation Franchisors damages

Trademark violation
$250 per day
Operations Manual
$50, subject to change in the future

Half of arbitration fee, except franchisee will pay the
whole fee plus costs, including lawyers fees,
management preparation time, and travel expenses if
franchisee withholds money from franchisor or an
affiliate.
Dispute resolution
Probationary Case management fee $500,

probationary extension fee $250
Interim order case management fee $250
Litigation expense fee to permit sale of restaurant
5% of gross consideration received for sale of
restaurant, not to exceed $5,000
Non-Compliance with
operations manual
Charge of an additional 2% of gross sales
Optional training
deposit or fee
$100 - $200 deposit
Co-Brand continuing
fee
0% - 8% of total gross sales of a co-brand concept
Fees charged by cobrand franchisor
Fees and rates set by third party co-brand franchisor
Optional store listing

service
$100 for each 90 day period
Fees for software

license, maintenance,
and processing
$520 initial license fee if franchisee purchase the POS

system from Micros, Dell and Subtotal of $574 if the
franchisee purchases the Sub Shop/2000TM generic
install using a POS system from ParTech or another
supplier
A yearly $400 Sub Shop/2000TM maintenance fee
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payable to franchisor, plus $16.43 per year payable

to a third party for DBMS software
$20 to extend every 3 years

Credit Card Payment
Processing Fees
Processing Fee charged by approved credit card

processor of approximately $.0155 per transaction.
Interchange Fees charged by customers bank varies
estimated at 1.65% of transaction amount and $.04
per item.
Retail Technology
Varies as the franchisor implements various new

technology initiatives. Usually paid to a third party.
Customer complaint
resolution fee
$2 - $20 per incident
Taxes and other fees
Varies by state
Date of FDD: 2012
3.2.8
Strategic Controls
By considering ways to grow, there are four possible productmarket combinations. Subway expands with its existing products to
new markets (Market development). This happens through the
franchisees to whom Subway offers an easy concept. Subway is
not looking for new markets or places to open restaurants, the
franchisee contacts Subway.
In order to control all strategic including strategic objective
and key target to be reached, we have to make some strategic
control plans to evaluate all the objective that have been set up.
There are four types of strategic control:
Premise Control
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Every strategy is based on certain planning premises or

predictions. Premise control is designed to check methodically and
constantly whether the premises on which a strategy is grounded
on are still valid
Special Alert Control
A special alert control is the rigorous and rapid reassessment of an
organization's strategy because of the occurrence of an immediate,
unforeseen event. An example of such event is the acquisition of
our competitor by an outsider. Such an event will trigger an
immediate and intense reassessment of the firm's strategy
Implementation Control
Implementing a strategy takes place as a series of steps, activities,
investments and acts that occur over a lengthy period. As a
manager, should mobilize resources, carry out special projects and
employ or reassign staff. Implementation control is the type of
strategic control that must be carried out as events unfold. There
are two types of implementation controls: strategic thrusts or
projects, and milestone reviews
Strategic Surveillance
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Strategic surveillance is designed to observe a wide range of

events within and outside your organization that are likely to affect
the track of your organization's strategy. It's based on the idea that
we can uncover important yet unanticipated information by
monitoring multiple information sources.
(http://smallbusiness.chron.com)
3.3.9
Review Process and Period
Every year, we are going to review our franchising business

progress and performance about 3 times per year. So every 4
months we are as the person that has responsibility in this business
have to review the progress. We do the 3 times per year because
according to us that every 4 months there will be a something in our
financial and marketing management should be review and
evaluate.
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production of goods such as mobile phones and the internet.

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consumers and the wider community. Therefore, businessmen and

Government Regulation Number 16 of 1997 on Franchise

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(Franchise), which was passed on 18 June 1997, as The

Economic Trends and Issues

The economic situation in Indonesia in 2012 is expected to

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world strong economy, though by no means outcome riding stable

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markets. Spending patterns of development as in the United

foreign currencies. Factors causing fluctuations in currency

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(bilateral), the budget deficit of political, economic growth and the

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role of telecommunications and informatics as a key technology

GDP - per capita (PPP) (US$)

Definition of GDP - per capita (PPP): This entry shows GDP on a

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This is a chart of trend of gross domestic product of Indonesia at

For purchasing power parity comparisons, the US dollar is

(Images source: www.latifahinspirasikehidupanku.blogspot.com)

Socio-Cultural Trends and Issues

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Indonesia, which is an independent state and a recognized world

community and the diverse culture of Indonesia were never

There are a number of forces that led to the development of

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deprogram them. No matter how fast or slow the development of

disintegration, especially in a pluralistic society with multiple

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trend woman work in factories and in offices that bring different

segmentation, purchasing power and behavior expenditure on

Technological Trends and Issues

Indonesia is one of the few developing countries in the world. Even

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Currently, the media play an important and active to help

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Currently, the development of communication technology

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Regional Trends and Isuues

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Connectivity between metropolitan areas, as well as

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Yogyakarta or DIY. Special District is often identified with the city of

behaviors and customs, social structure, urban lifestyle patterns,

Summary of Major Environmental Trends and Issue

Environmental analysis is relatively qualitative and involves the

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Indonesia condition nowadays, we have found that regulatory

Indonesia comes from different parties and elements of society. Not

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Size and Growth

The industry size of fast food in Indonesia can be accounted in

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growth of 68.6 percent. The annual CAGR for chained restaurants

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