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Subway franchise expands

by Subway Systems Australia P/L
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Kate Strong bought an existing Subway store in the Sydney suburb of Rozelle in November 2006. Since then, store improvements, direct marketing and the intro­duction of EFTPOS have seen sales, customer numbers and productivity increase.

Kate Strong said that simple renovations to her Subway store, including the installation of an outdoor seating area and some simple signage advertising daily specials, have increased sales by approximately 30 units per day.

"Some customers just didn't know what Subway did, or that we were even there! I still have some signage and visibility improvements to make, so this will only be positive," Strong said.

Since November, Strong has organised four mail drops to 13,000 households in the suburb. She estimates the redemption rate for each mail drop is 1.5 per cent, which equates to 195 customers.

"I have met these mail drop visitors and at least 70 per cent are new customers. By ensuring my staff is courteous, quite a few of these people have now become regulars," Strong said. The Rozelle Subway store also offers free lunch time delivery to businesses located within a 300 metre radius of the shop.

"I have introduced myself personally to each shop within a 300 metre radius offering the store's free delivery from 12-2pm. They may be unable to leave their store to get lunch, but we could take two minutes to take their lunch to them," Strong said.

And the new EFTPOS facility means customers who want to use this method of payment can do so without being directed to the nearest ATM machine.

"The bank was only 150 metres away but customers are lazy. If they have a choice between a shop that accepts cards and one that doesn't, they'll visit the easiest one. I know. I do it myself! There are also competitors closer to the cash machine, so customers had to walk past them twice to revisit us," Strong said.  

The Result
- Unit sales are up 48 per cent
- Customer count is up 48.2 per cent
- Gross sales are up 43.3 per cent
- Productivity is up 45.4 per cent 25.07.2007
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