McDonald's loses fast-food stores crown to Subway

10/3/2011

http://www.smh.com.au/small-business/franchising/mcdonalds-loses-fastfood-stores-crown-to-subway-20110308-1blzr.html
Subway now has more retail outlets than MacDonalds. "The company said some of its success was due to its private ownership. Subway was founded in 1965 and is not listed on any stock exchange" Do you think that Subways' company structure really has any affect on its success, or is it possibly a marketing gimmick? Does MacDonalds franchise structure have any impact on its success or otherwise? If legal structure is not the answer what do you think is the reason for the sudden change in MacDonalds fortunes?
Due Monday March 21, 2011

24 Comments

Jack Beedaman

13/3/2011 03:22:30 am

I don't think the structure of the company would make much of a difference really...

McDonalds is a huge franchise, and will always be more popular than subway simply due to the nature of the food.

If i owned Facebook, and you owned Twitter, would Facebook win because of its overall popularity? Or twitter because of its public company structure? You decide.

Alright, what about this.
-Subway vs. Little Morsels Cafe @ Castle Hill

Are you going to pick the world famous franchise that operates in 95 countries and Territories? or the little bite size cafe run by my cousins...obviously, you go with a trusted brand, a famous brand. Subway.

Its up to experience. You like Maccas? Go to Maccas. You like Subway? Go to subway. The more you go, the more revenue, the more restaurants. Thats the way it goes.

I prefer maccas, who doesn't love greasy fat-filled salt-dunked oil-covered potatoes on a hot summers day?

My two cents
peace

ally davis

13/3/2011 11:36:22 am

i don't think it would make much difference. maccas will always be a more well known company and richer than subway as it is world wide famous. marketing gimmicks always have a part in how successful a business can be, however.

Ansa

14/3/2011 12:25:57 am

i think that McDonalds will always be more richer than subway because it is alot more popular than subway, however I think that maybe the marketing gimmicks may have a part in how successful subway is or can be.

terence

14/3/2011 02:40:43 am

i dont think subway is much popular than maccas , and they are 2 completely different products served at both restaurants with different logos and colours etc they are not similar so it would not effect the popularity of subway. maccas is the best

nicole

14/3/2011 09:35:33 am

mcdonald's a world known business and eve though at the moment they are a little bit behind subway they will catch up. And i dont believe many people will focus on the gimmicks rather than what they prefer as a meal. Sure gimmicks help but food is always more important. I dont believe legal structure really matters because half the people dont really know much about the technical parts of a business they are much more concerned with the food.

Anita

14/3/2011 10:11:38 am

I don't think that Subways' company structure has had an affect on how successful it is. I believe that the marketing gimicks have had an affect on it's success as it has captured peoples attention and convinced them to buy their products.

Tim

14/3/2011 10:58:48 am

Personally, when out with my friends, the last thing i think of eating is subway. Maccas seems to be the younger generations first choice of food. However, my parents are the complete opposite, and will always choose subway over maccas. It all depends on who the target market is

Eleanor

14/3/2011 12:30:31 pm

Maybe subway is more concentrated on the product, but I don't think their success is due to their structure.
In recent years obesity has become a well known problem in the western world, causing more concern about health. I think this is the reason subway popularity is on the rise.
I still believe Macdonalds have a larger amount of customers, but perhaps Subway makes a larger profit.
Perhaps Macdonalds would benefit from a better controlled management, I have often heard people complain of the standards of different franchises, some having fresher food than others, some being dirtier than others. Being more concentrated on money might be the cause of lower standards.
I think the main cause in Macdonalds recent decline in popularity would be health concerns.

kalmer henrico

14/3/2011 03:58:33 pm

I think that subway has ovetaken mac donalds, not because of gimmicks or legal structure, but because it is simply a more healthier choice. Australia is a very healthy country, if you look around you, on almost every street and beach you will see people keeping fit or healthy in one way or another. and eating is an essential to keeping healthy, and what better to keep healthy when it comes to eating subway...

lucas

15/3/2011 11:01:07 am

I think that mac donalds have been over taken by subway,becuase of gimmincks ie "east Fresh" and alsobecuase of health concerns, that most people today are watching.
People want healthy choices and macdonalds are far behind subway in that department.
Macdonalds have started bringing in healthy choices with the "red tick" salads and burgers,but that could be a gimmick to help encourage a new range of customers to try there products and that could help put Macdonalds back on top in the near and possible future.

gibbson

16/3/2011 01:31:27 pm

subway i think has taken over maccas, because the healthy choices it proivdes to there consumer.
no i dont think maccas has anything to do with subways sucess, its just what the people want, and most people wants to have healthy choices of food.
maccas are now providing with healthy choices of food such as salads, this could help them within the future.

Ekua

17/3/2011 09:28:03 am

I personally don't think that it would make much of a difference as McDonalds is a lot more well-know and wealthier than Subway. However Subway is slowly catching up as it provides a healthier range of food which people are more willing to purchase.

Angie

17/3/2011 11:57:53 am

It's no doubt that Maccas will, for a long time, be a desired choice of take out but the fact that subway is on its way to opening more stores (and hopefully gaining more clients) is quite admirable and should be an applauded effort as expanding is always a good stratergy. Also, its a much healthier option and the product being sold should always be a bussinesses main priority, i think they've done well to achieve a healthy satisfying product.

Aisha

20/3/2011 08:24:12 am

I think that Subways company structure doesnt have an effect on its success but people just like the product and Subway are realizing that they are more successful and are opening more stores. McDonalds however i think will always be more popular as they are well known and people are used to going there, but Subway is also a healthier option.

Lahiru

20/3/2011 12:44:38 pm

Mcdonalds will always be the major choice of take out. Mcdonalds offers drive through service while subway does not, this impacts subway because most people prefer fast take out food if they are in a rush and Mcdonalds offers that. Although Subway offers healthy food choices, Mcdonalds has also countered that with their own range of healthy food choices.

Ryan

21/3/2011 01:22:57 am

I think that subway isn't as popular as Mc'Donalds and they both sell very different types of food. They're are completely different companies so if would not effect the popularity of subway

Kasey

21/3/2011 02:22:21 am

I believe that Subway's company structure has litte impact on the popularity of it,but the marketing gimmicks that it develops is the a dominating reason to their success. Likewise for Mcdonalds, structure of a company does not always secure their success it is merely how the company is portrayed and the standards and quality products and services it supplies. I believe that it is notmerely a sudden change for their future-Mcdonalds has itself become the dominating figure of the fast food industry purely as a result of the quality and food they offer. Both subway and Mcdonalds are a member of the fast food industry yet I dont believe they can actually be indefinitely compared as they targettwo different audiences. Maybe Mcdonalds change in popularity is due to societys changing wants for a healthier lifestyle. I believe Mcdonalds is beginning to acknowledge this and target this particular audience through the new food products that are added to the menu.

Nick

21/3/2011 06:32:25 am

I think that their companys structure does not affect their sucess even though they are becoming more sucessful than Mcdoanlds.
You would think Mcdonalds would be more sucessful because of their popularity but not in this case at the moment. I think Mcdonalds is going to expand even more now to overtake Subways 33,749 stores worldwide just to prove that they will always be on the top.

Thomas

21/3/2011 03:42:29 pm

I think its the marketing gimmick that has an affect on Subways success, the whole "ehh were healthier than everyone else" attracts people.
Mcdonalds is successful because of their popularity and their name. The Mcdonalds name is known by all, and its just amaaaaazing, i dont think its affect largely by the franchise structure.
I think the range of healthier options introduced are one of the big reasons why Mcdonalds fortunes are changing, for the better of courseeee, more money is good $$$

peter sabbagh

21/3/2011 03:49:00 pm

i think there marketing gimmicks is the real reason for success mainly when they had that guy who lost a massive amount of weight by apparently eating subway and they always lead people to believe that they always have fresh food with thier advertisements, but truthfully it is not very fresh at all. I think the reason for macdonals success all comes down to how amazing the food tastes and thats pretty much it. People want to eat things that taste good, maccas makes tasty food. they also contionously bring in new foods and different things to keep customers happy. I believe that Macdonalds is still more successful than Subway and it will continue to be for a very long time. also adding an example at norwest there is a macdonalds and a subway within about 30 metres of eachother the subway recently closed down while the lines at macdonalds lunch time were like being in peak hour traffic.

Marcus

22/3/2011 04:12:52 pm

The structure of Subway in comparison to Mcdonalds is irrelavent.
The problem and hand here is that people are so caught up the lie that Subway is at all healthy. The marketing gimmicks associated with the company leave society with a false image in regards to what the nurtitional values of the companies foods really are - not 'healthy' by any means.

What will happen is that eventually Subway will take over the fast food industry because people are ignorant (for lack of a better word), but then the opposite will happen again; Mcdonalds will do what they can to regain the throne of the fast food kings, and then society will buy into that as usual.

zac

23/3/2011 01:01:12 pm

No i believe that McDonalds have a stronger company structure and i think it is just the type of food and healthiness that brings subway the success.. and i think maccas structure does have an effect on their success e.g franchise

Alec

20/5/2011 05:02:09 am

McDonalds are a much larger company and everybody knows exactly what's on the menu anywhere in the world but subway does have a much healthier range of food and it is slowly bringing subway up to compete with large fast food companys such as mcdonalds.

irene

11/6/2011 06:42:10 am

i dont think that gimmocks will work on people for too long, especially if they like the food from another food outlet. macdonalds is a huge international business and has been around for years, people like them and subway can only compeit with them for a period of time.

McDonald's loses fast-food stores crown to Subway

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