Wednesday, May 27, 2015

Subway bet on breakfast and new store formats

Thirteen years after his return to Brazil, the network of u.s. Subway Diners paves the way to surpass 2,000 stores in operation in the country this year — so far are 1,875 — and reach 20 000 by 2025. The numbers are part of the strategic planning of the mark for Brazil in the coming years.
One of the stimuli for a goal so audacious comes from the fact that, in 15 years of operation, the network have opened more stores than its competitors in the country, which already occupies the fourth place in the world rankings in the group, behind United States, Canada and England. Incidentally, England could lose his post this year for Brazil.
The good results are bringing physical changes and novelties to the menu, said Roberta Damasceno, Subway's National Manager.
"We have a pilot project of change of shops, which refers to cafes and have bolder design. Metro Concept calls, they will be in various regions where we have restaurants. At first, in units open longer. We are testing in Curitiba, São Paulo and Belo Horizonte, to then start effective deployment. The idea is that they are airy, with modern furnishings, unique lighting, wi-fi and all the attributes that make people want to stay longer, "says Roberta.
In addition to shops more beautiful and functional, the brand will also start serving breakfast in Brazil, item that is already present on the menu in other countries. In tests, the service depends on the supplier of coffee that will be chosen by the company in Brazil.
"We don't want to have instant coffee in stores. That's why we're seeking a company that can offer the kind of coffee you want. Let's include American menu items for breakfast and desserts also. The goal is to generate movement at times when, in Brazil, we have a downtime, i.e. in the period from 9:0 to 11:30 and 3:30 pm to 5:30 pm ", completes the Executive.
The implementation of new menu options and a new look for the points of sale happens depending on the model of management that the company developed in the country, where the stores vary on average 50 square metres to 150 square meters and the cost to the franchisee revolves around r $ 300 thousand.
"Having less formats plastered favored the rapid growth of the network in Brazil. The other is the cost of the franchise, which requires less investment and personal — ten employees, on average, per store. And not least, the figure of regional development agents, to support the choice of the franchisees and the shops. Are 14 in Brazil in all regions of the country, "says Roberta. This year, were opened 110 stores and other 350 contracts have already been signed.
With a predominantly public class B and C, in the range of 14 to 50 years, the network has in selling sandwiches "customized" the flagship. Some were created exclusively for the Brazil and begin to be "exported". If the taste smoked chicken with cream cheese, ever found in Mexico.
For the power supply Committee Coordinator of the Brazilian Franchising Association (ABF), John the Baptist, the model can be adapted to street shops, malls, galleries or any other format possible for opening a store, combined with a lower cost than the competition, are the differential of the Subway in Brazil. "In a similar movement, we have the Cocoa Show that, despite not being in the business of meals, has the flexibility to be at various points, affordable prices and lower deployment costs. The challenge of any fast food network or power supply is changing paradigms and these companies have found a formula for success ", highlights Baptista.
Brasil Economico News Item translated automatically
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