FRANCHISING

When a franchise is growing , there is always a fear that your business will get too large too quickly — you could risk oversaturation to the point where consumers will grow fatigued with your brand and will stop showing up , leading to a drop-off in profits and no other choice but to close unsuccessful units and take a loss . But looking at Subway ’ s growth plan is enough to consider that taking that leap of faith to grow quickly and densely is a risk worth taking . In a 2013 discussion with Franchise Times , Chief Development Officer Don Fertman and other regional growth developers explained that density isn ’ t a problem for Subway . In fact , density is part of its key to growth .

“ At a density of about 1 store per 200,000 people ], things start to accelerate ,” Fertman told Franchise Times , explaining that this tactic of familiarity has helped Subway propel its growth in international markets just as it had in domestic markets . “ We have boots on the ground . We have brand awareness . People understand the concept and what we ’ re about . Suddenly , things take off .“

As another developer told Franchise Times , it ’ s actually easier to build locations closer together as the brand ’ s reputation and popularity grows . The only danger is in building them so close together that your brand starts to compete with itself . So density is not the enemy : if the reputation you build is a positive one , density can work with you to help you grow .

10 June 2015