Social Responsibility

The SUBWAY system is committed to providing a variety of great

tasting, nutritious food choices while reducing our environmental
footprint and creating a positive influence in the
communities we serve around the world.

We are on a journey. Our vision is to make our restaurants and

operations as environmentally and socially responsible as
possible. Every day, we strive to conduct business in a way that
has a positive impact on the environment while improving the lives
of our customers, franchisees, employees, vendors and
communities worldwide. We believe that using good,
environmentally sound business practices help increase our
franchisees' profitability, improve our customers dining experience
as well as help protect the planet. We are committed to:

• Continue to evolve our menu of great tasting, nutritious options as well

as provide access to nutrition and healthier lifestyle information
• Ensure our food meets the highest quality and safety standards;
• Find sustainable and cost effective solutions that serve the business
needs of our franchisees;
• Focus our sustainability initiatives on energy efficiency, water &
resource conservation, waste reduction, sustainable sourcing and
supply chain management;
• Encourage our franchisees to contribute to their communities, promote
diversity and choose "environmentally friendly" options and business
practices.
As a nutritional leader, the SUBWAY brand is committed to
offering a
full range of great tasting options for our customers around the
world.
Nutrition information is available on-line so customers can make
better informed meal choices. We are working continually to
improve our menus and the nutritional benefit of our food.

Halal issues
All Subway products and restaurants are certified as Halal by
Islamic Food Research Centre Asia, Malaysia and Asia Region
(IFRC), based on Malaysian Standard (MS 1500:2009), Halal Food
– Production, Preparation, Handling and Storage – General
Guidelines. All our products have already been certified by
Jabatan Kemajuan Islam Malaysia (JAKIM) . We are in the
process ensuring our services will meet JAKIM’s stringent
standards.

Nutritional Leadership
The Subway brand understands the importance of offering a
variety of options and providing access to complete nutritional
information for our customers.

Environmental Leadership
Over the past several years, we have switched to products and
practices that improve energy efficiency, water conservation, food
and water quality and reduce our waste stream.

Sustainable Sourcing (Quality)

From streamlining our supply chain or using a strict Vendor Code
of Conduct that ensures our high food quality and safety standards
are met, we not only help reduce energy, water usage and waste
but we’re taking care of the environment too.

Our People, Our Communities

We know that it takes more than just good food to nourish people
and build vibrant communities. It starts with taking care of people,
the heart and soul of the SUBWAY experience.
Financial Budget

Break –even analysis

The break-even analysis is based on estimate of fixed costs.

Average fixed costs will be RM 20,000 per month. This figure
includes the cost to lease the building, equipment leases and
various other equipment costs and fees. Variable costs include the
cost of labour, food inventory, and other product – related costs.
The variable cost estimate is RM 49,596.50 per month, although
the number may be revised up as actuals determine changes in
the coming months.

Monthly Overheads (Total 4 outlets) Amount

Rental MYR20,000.00
Utilities MYR4,000.00
Marketing MYR4,000.00
Manager MYR2,800.00
Staff MYR14,400.00
EPF & SOCSO MYR2,284.00
Total Overheads for the Month MYR47,484.00

Gross Sales Per Month MYR69,900.00

Cost of Goods Per Month MYR22,112.50
Total Monthly Expenses MYR69,596.50

Net Profit After Expenses MYR 305.50


Item Amount
69,9000 x 12 =
Total Sales Revenue For The Year MYR838,800.00

Total Monthly Overheads For The 69,596.5 x 12=
Year MYR835,158.00

Net Profit/Loss MYR3,642.00
Taxation (19%) MYR691.98

Net Profit After Tax MYR2,950.02
Action Plan 1: Break-even point for total of four outlets.
Monthly break-even on unit sales is 2,400 unit for kids’ sub ala
carte and 6,000 unit for kids’ sub combo ( estimation). The basis
for this break-even point is kids’ sub ala carte and kids’ sub
combo. The average per unit is (RM6.90+RM8.90)/ 2 = RM 7.90.

The majority revenue will be generated through kids’ sub ala carte
or kids’ sub combo. The breakdown revenue by products as below:

Cost of Selling Gross Profit

Revenue Good Price Margin Sold Per Day
Kids’ sub ala
carte MYR3.00 MYR6.90 MYR3.90 80
Kids’ sub
Combo MYR4.0 MYR8.90 MYR4.90 200
Total Per
Day

Sold Per Cost Of Goods Sold Cost Of Goods

Day Per Day Sales Per Day Sold Per Month Sales Per Month
80
(Kids’ sub
ala carta) MYR240.00 MYR552.00 MYR7,200.00 MYR16,560.00
200
(Kids’ sub
combo) MYR800.00 MYR1,780.00 MYR2,400.00 MYR53,400.00
Total Per
Day MYR724.50 MYR1,836.00 MYR18,112.50 MYR69,960.00
Action Plan 2 : Sales per day / month in order to break-even.

To achieve MYR69,960 per month, each outlet needs to achieved

MYR 17,490 per month, MYR 583 per day. In order to achieve
MYR 583 per day , we need 85 customer @ RM 6.90 per person
or 66 customer @RM 8.90 per person for the total 4 outlets.


Conclusion

Subway is regarded as the topmost name in healthy fast-food
industry. There is no doubt that subway has been dominating the
healthy fast-food industry worldwide for a long time.
By introducing subway kids’ meal in Malaysia will give subway
business a boost. After accessing the above facts, it is clear that
subway possesses good marketing mix strategies and has veen
able to use 4Ps to the maximum effect.

To sustain in a very highly competitive world, subway will continue

to keep revising its pricing policies, management strategies and
new product promotion and product management.