OPS802 Operations Management of Subway Research Report 4 Sample
Assessment 4 requires you to write an individual research report that is focused on analysing the operation of an organisation that can be selected from a fast food organisation listed.
• KFC
• MacDonalds
• Red Rooster
• Subway Length
Maximum 2000 words (please note that the title page, table of contents, reference list and appendices are all part of the 2000 word count).
The recommended format is Arial Font 12, 1.5 line spacing.
You must use good research to support your answers. A references list is mandatory (seven (7) or more references is recommended).
Additional information on the assessment and questions to answer are available in the Assessment 3 briefing document.
Supplementary Assessment 3: Briefing Document
Overview
Assessment 3 is an individual research report that is focused on ensuring that students can do quality research (peer reviewed articles (most important), textbook, reports, etc.) into the fast food industry.
Students are expected to answer the following questions:
• Identify both established and emerging consumer value propositions within the fast food industry.
• Provide a process map (or flowchart) of a fast food order fulfilment process.
• Discuss the application of service excellence in fast food chains.
• Review the relationship between service quality and profitability for the fast food industry.
• Describe the current and potential operational challenges faced by managers in the fast food industry.
• Provide recommendations for improving the service operations of the fast Food restaurants.
To successfully complete the assessment, students will need to explain in depth and within the permitted word limit of 2000 words the stated questions. This word limit includes the title page, the table of contents and the references list. Students research must be done by undertaking quality research (peer reviewed articles (most important), textbook, reports, etc.) in order to achieve high marks for the ‘Research Section’ of the marking criteria which is worth 45%.
Please follow this structure :
The recommended report structure is:
Executive Summary
Table of Contents
1. Established and Emerging Value Propositions in the airline industry
1.1 ADD APPROPRIATE SUB HEADINGS
1.2 ADD APPROPRIATE SUB HEADINGS … ETC
2. Process Map of Passenger Departure Process
3. Application of service excellence 3.1 ADD APPROPRIATE SUB HEADINGS
3.2 ADD APPROPRIATE SUB HEADINGS
4. Relationship between service quality and profitability
4.1 ADD APPROPRIATE SUB HEADINGS
4.2 ADD APPROPRIATE SUB HEADINGS … ETC
5. Operational Challenges
5.1 ADD APPROPRIATE SUB HEADINGS
5.2 ADD APPROPRIATE SUB HEADINGS … ETC
6. Recommendations 6.1 ADD APPROPRIATE SUB HEADINGS
6.1 ADD APPROPRIATE SUB HEADINGS … ETC
7. Conclusion
8. List of References (Check formatting correctness by visiting the website http://uow.libguides.com/refcite/uowharvard)
NB: Please note that you will need to achieve a minimum of 50 over 100 on this major piece of assessment. The failure to achieve 50 over 100 will result in failing the subject.
It is expected that students familiarise themselves with the relevant theory and build a bridge between theory and the application in practice.
Additional Important Report Information
• Please pay attention to the Assessment Marking Criteria.
• The assessment must be UOW Harvard referenced, typed Arial 12 font, 1.5 spaced, and delivered in the report structure highlighted above.
• It is recommend using no less than 7 references for the report with many to come from peer reviewed journal articles.
• The assessment will need to be submitted to the Moodle site by the due time
Solutions
1. Introduction
Subway is an American multinational fast food restaurant, which is the chosen company of the report. This report aims at the operational difficulties Subway is currently facing in the fast food industry, such as overexpansion, the loss of marketing benefits, and greater competition. University Assignment Help, Its purpose is to offer Subway a strategic framework for enhancing its service operations and reviving its standing in a competitive market through analysis and recommendations.
2. Established and Emerging Value Propositions in the fast-food industry
2.1 Established Consumer Value Propositions
The flexibility to personalise one's meal and the use of fresh ingredients have long been at the heart of Subway's value proposition. Customers can make their own customised sandwiches, salads, and wraps due to this (Shamim, 2019). To give the impression of freshness and quality, the company utilises freshly baked bread and pre-cut veggies that are produced directly in front of the consumer. This is attractive to health-minded people since it gives them more say over the food they eat and guarantees that they are getting only the freshest components.
By offering a variety of fresh vegetables, lean proteins, and whole-grain bread options, Subway has positioned itself as a healthier fast-food option. In other words, this is aimed at customers who want to eat healthier but still want the convenience of fast food, which helps to increase customer satisfaction (Sochenda, 2021). Subway's dedication to its health-conscious customers is further demonstrated by the company's emphasis on nutritional transparency, including the release of calorie counts.
2.2 Emerging Consumer Value Propositions
Subway created a new value proposition based on sustainability in response to rising consumer awareness of environmental issues. Single-use plastics should be reduced, and sustainable ingredients and packaging should be implemented (Heidbreder et al. 2020). Subway can maintain its viability in a competitive market by appealing to customers who put an emphasis on eco-friendly purchasing decisions.
Subway adapted to meet the growing demand for plant-based diets by offering more vegetarian and vegan options, such as Beyond Meat and tofu. As meat consumption is being lowered for health and environmental reasons, this must be a boon to vegetarians and vegans (Hoogstraaten et al. 2023).
3. A process map (or flowchart) of a fast food order fulfilment process
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Figure 1: Flowchart of a fast food order fulfilment process of subway
(Source: Created by Author)
This process map details the typical steps taken by a fast food restaurant like Subway to fulfil an order. Customers start the process by entering the eatery and placing an order from standard fare including burgers, french fries, and drinks. Customers place orders and then head to a cash register to complete the transaction. Orders are sent to the kitchen, where they are carefully prepared, from heating the burgers and fries to assembling the final product. To make sure the order is up to par with the restaurant's standards, quality control is an essential checkpoint. The order is packed carefully for transportability after it has been produced and inspected. The consumer receives their packaged order either at the counter or through an automated food delivery system.
4. Application of service excellence
4.1 Service Excellence Through Customization and Efficiency
The devotion of Subway to service excellence is apparent in its dedication to customisation and efficiency. Subway has a strategy of personalised interactions with clients, so ensuring that every sandwich or salad is customised to cater to individual preferences. This approach cultivates a perception of worth and contentment among customers (Kukanja and Planinc, 2019). Concurrently, the emphasis on rapidity and effectiveness ensures that patrons are able to partake in a prompt dining experience without compromising the standard of excellence. The convergence of these elements culminates in a distinctively pleasurable gastronomic encounter.
4.2 Foundations of Service Excellence: Consistency, Hygiene, and Feedback:
Subway's commitment to maintaining high levels of service excellence is reinforced by its steadfast adherence to principles of consistency, cleanliness, and proactive customer feedback measures. The use of standardised processes across all sites guarantees the consistent delivery of high-quality service to customers (Naini et al. 2022). The prioritisation of hygiene in both eating and food preparation spaces contributes to the establishment of a secure and enjoyable dining atmosphere. Furthermore, Subway proactively solicits and appreciates consumer feedback, facilitating an ongoing process of enhancing and perfecting its service offerings. The combination of these fundamental components sets Subway apart within the highly competitive fast-food sector and cultivates enduring customer allegiance.
5. Relationship between service quality and profitability
5.1 Service quality of the company
When evaluating the quality of service, many professionals turn to the SERVQUAL methodology. Tangibles, dependability, responsiveness, assurance, and empathy are its five pillars.
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Figure 2: SERVQUAL model
(Source: Gabrow, 2021)
Tangibles: Subway's outward appearance and infrastructure are commensurate with what one would expect from a fast food chain. Cleanliness, adequate lighting, and a pleasant atmosphere are all standards in today's restaurants (Gabrow, 2021). Subway, however, could do more to improve this area by updating its decor and vibe to make the restaurants more welcoming.
Reliability: Subway has earned its customers' trust by consistently providing high-quality cuisine and quick service. Sandwiches, salads, and wraps are consistently high quality, so customers can trust their meals consistently no matter which store they visit.
Responsiveness: Subway's service members are highly responsive since they frequently initiate discussions with customers to learn about their ordering habits and preferences. Customers appreciate the effort, and it shows in the service they receive (Slack et al. 2021).
Assurance: Subway's open kitchen is a reassuring sign that you may eat with peace of mind. Customers have faith in the freshness and quality of the ingredients because they can watch their cuisine being made. Customers have faith in Subway since its employees are well-versed in the products they sell.
Empathy: Subway displays empathy by making adjustments to the menu to meet the needs of its customers, whether those needs involve special diets or other forms of personalization. As a rule, employees are warm and helpful, making clients feel valued and heard (Huang et al. 2020).
5.2 Service Quality and Profitability
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Figure 3: Sales of Subway restaurants in the United States from 2015 to 2021
(Source: Statista.com, 2022)
Subway is a worldwide QSR chain that is expected to bring in roughly $9.4 billion in 2021 (Statista.com, 2022). Subway is a key player in the quick-service restaurant industry in the United States, however the company's sales have been on the decline since 2015 (Statista.com, 2022). In 2020, the sales decline was especially severe, with Subway losing about $2 billion compared to the previous year (Statista.com, 2022).
The fast food sector has a complex and multifaceted link between service quality and profitability. It's crucial to remember that service quality is just one of many elements that can affect a company's profitability, even while the numbers highlight Subway's massive sales statistics and the large drop in 2020 (Statista.com, 2022). Increased sales and profits might result from satisfied customers who spread the word about your business's excellent service. However, if service quality is degrading, it could turn off clients and lead to a drop in business. Therefore, in light of recent sales difficulties, it is extremely important for Subway to maintain and improve service quality, as is the case across the fast food business as a whole.
6. Operational Challenges
6.1 Overexpansion and Franchisee Dissatisfaction:
Some markets become oversaturated as a result of Subway's aggressive expansion strategy over the past decade. The expansion of the company's operations created difficulties in preserving the high quality of service and the uniformity of the retail experience. Franchisees, who are essential to Subway's success, have reported feeling pressed to rapidly expand their businesses in order to safeguard the success of their existing franchises (Maze, 2018). In addition to putting a strain on franchisees, the brand's overall quality perception suffered as a result of the company's rapid development. Sales decline, labour expenses rise, and franchisees' bottom lines suffer as a result for many businesses. Franchisees' pushback against the company's promotional price schemes, such as the $4.99 special, has shed more insight into the tensions between the brand and its business partners (Maze, 2018).
6.2 Loss of Marketing Advantages
Subway's previously formidable marketing advantages have been whittled down by competitors' successful campaigns such as "Jared" and "$5 Footlong" (Maze, 2018). A major element of Subway's brand identity was its emphasis on healthy eating, however, this image was severely damaged by Jared Fogle's imprisonment in 2015 (Maze, 2018). In addition, customers' impression of value dropped after the $5 Footlong promotion was cancelled. In a highly competitive market, Subway has had a hard time coming up with viable marketing efforts to replace these classic promos (Maze, 2018).
7. Recommendations
Here are three essential suggestions for enhancing the service operations at Subway in the face of operational issues, including overexpansion, loss of marketing advantages, and greater competition, in the fast food industry.
7.1 Strategic Market Consolidation
? Subway should take a more deliberate approach to market consolidation by assessing the success and saturation of its current locations (Nikas et al. 2019). Underperforming locations should need to be consolidated or closed in oversaturated or decreasing markets.
? Instead of concentrating on expansion, the company should work to increase the profits of their current franchisees.
? Focus on expanding into promising new markets where Subway can establish and sustain its position as a market leader. Location is crucial, so plan carefully to avoid having their new store compete with an existing one.
7.2 Rebranding and Marketing Revival
? Subway should reevaluate its brand identity and marketing to restore its image as a healthy, affordable food option. Consider leveraging modern marketing strategies to communicate the brand's commitment to fresh and healthy ingredients (Liu et al. 2019).
? Create fresh advertising strategies in tune with the tastes of today's consumers (Wang et al. 2020). Emphasise Subway's dedication to personalization and choice, and feature menu choices that align with current thinking on health and sustainability.
? Work along with key opinion leaders or health professionals to restore faith in Subway's healthy menu selections. Promote and form alliances that are consistent with the brand's ethos.
8. Conclusion
The report identified several challenges such as overexpansion, the loss of marketing advantages, and increased competition have all contributed to serious operational issues for the previously dominant leader in the fast food business, Subway. Subway can revitalise its customer service by concentrating on three things: its brand, its menu, and its customers. Subway needs to take these measures in order to refresh its brand, boost customer satisfaction, and stay competitive in a dynamic market. Subway can regain its former dominance in the fast food industry if it focuses on its customers and improves the quality of its products.
References
Gabrow, R.Y., 2021. Evaluation of customer satisfaction and service quality using SERVQUAL model: the case of fast-food restaurants in Iraq. Periodicals of Engineering and Natural Sciences, 9(1), pp.336-345.
Heidbreder, L.M., Steinhorst, J. and Schmitt, M., 2020. Plastic-free July: An experimental study of limiting and promoting factors in encouraging a reduction of single-use plastic consumption. Sustainability, 12(11), p.4698.
Hoogstraaten, M.J., Frenken, K., Vaskelainen, T. and Boon, W.P., 2023. Replacing meat, an easy feat? The role of strategic categorizing in the rise of meat substitutes. Environmental Innovation and Societal Transitions, 47, p.100703.
Huang, Y., Zhang, M., Gursoy, D. and Shi, S., 2020. An examination of interactive effects of employees’ warmth and competence and service failure types on customer’s service recovery cooperation intention. International Journal of Contemporary Hospitality Management, 32(7), pp.2429-2451.
Kukanja, M. and Planinc, T., 2019. COST-EFFECTIVE SERVICE EXCELLENCE: EXPLORING THE RELATIONSHIPS AMONG RESTAURANTS'OPERATIONAL EFFICIENCY, SIZE AND SERVICE QUALITY. The South East European Journal of Economics and Business, 14(2), pp.67-81.
Liu, S.Q., Choi, S. and Mattila, A.S., 2019. Love is in the menu: Leveraging healthy restaurant brands with handwritten typeface. Journal of Business Research, 98, pp.289-298.
Maze, J. (2018). Why Subway is facing a crisis. Available at: https://www.restaurantbusinessonline.com/financing/why-subway-facing-crisis (Accessed on 23 August 2023).
Naini, N.F., Santoso, S., Andriani, T.S. and Claudia, U.G., 2022. The effect of product quality, service quality, customer satisfaction on customer loyalty. Journal of consumer sciences, 7(1), pp.34-50.
Nikas, K., Papadopoulou, N., Giantsidi, D., Karakostas, V., Goumas, G. and Koziris, N., 2019, August. Dicer: Diligent cache partitioning for efficient workload consolidation. In Proceedings of the 48th International Conference on Parallel Processing (pp. 1-10).
Shamim, K., 2019. Market research in fast food restaurant sector.
Slack, N.J., Singh, G., Ali, J., Lata, R., Mudaliar, K. and Swamy, Y., 2021. Influence of fast-food restaurant service quality and its dimensions on customer perceived value, satisfaction and behavioural intentions. British Food Journal, 123(4), pp.1324-1344.
Sochenda, S., 2021. Modeling of customer satisfaction and customer loyalty in fast food industry. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4).
Statista.com (2022). Sales of Subway restaurants in the United States from 2015 to 2021. Available at: https://www.statista.com/statistics/464277/subway-us-sales/ (Accessed on 23 August 2023)
Wang, B., Liu, S.Q., Kandampully, J. and Bujisic, M., 2020. How color affects the effectiveness of taste-versus health-focused restaurant advertising messages. Journal of Advertising, 49(5), pp.557-574.
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