Customer Feedback

I went to the Wangsa Walk Subway to see how the respond towards this outlet was. As promised, they started in 10am sharp. I noticed most of the workers were ready and some of them came earlier to prepare the ingredients and baking bread. I was late to investigate, everything get done in less than 1 hour.

Lucky the customers were very friendly to me and here is the review:

Customer 1, Male Chinese, Age = 30+

I’m from Hong Kong. I choose Subway because of first impression. I’m hungry and Subway is right in front of me. I don’t like to hang around to search for food. As you can see, no restaurant is ready to serve their breakfast. I don’t want to take the risk to test other food. I believe the quality food provided by Subway. Well, for this outlet, the customer service is slightly slow compares to Hong Kong. Overall, I’m quite satisfied with the sandwich.

Customer 2, Male Chinese, Age = 18+

I’m a student who goes for jogging. After my excise in the morning, I prefer bread as my breakfast. I hate oily food like we eat in morning market or “kopitiam”. The bread is soft, fresh and aroma. I choose Subway because of the price, healthy food, quality and environment. I enjoy the sandwich with a cup of tea to read newspaper. I love this outlet very much.

Customer 3, Female Chinese, Age = 50+

Subway provides healthy food. Even though there is variety of breakfast in my area, Subway is my first choice. I like to hang around with my old friend and gossip in this quiet and warmly place. I’m not very happy with the customer service here. They never smile. Maybe I look old and ugly.

Customer 4, Female Chinese, Age = 15+

I’m here to help my family to take away Subway sandwich. For me, it is nothing different but my family likes it a lot. I prefer hotdog and egg in the morning.

Customer 5, Female Indian, Age = 20+

No restaurant is ready to serve the food and I’m pretty hungry. I try to avoid Subway because the price is expensive. Luckily my boy friend pays for me. My budget will be around RM3 for breakfast. The sandwich is nice and tasty.

After conducting the research, I use an hour to count the sale in this outlet. In average, 2 customers every 5 minutes, and I assume they work continuously 12 hours with minimum purchase of RM7, the sale will be RM2,000 per day (2 x 12 x 12 x RM7).

The interior design in the Wangsa Walk Subway

The environment is decorated with brick and stone

Lack of worker to serve the customer

People is waiting

This is the Ramadan Meal set, only in Malaysia

The nice cookies

Test 1: I try to mix the menu again, they refuse.

Test 2: I want all the ingredients. The staff looks normal, which mean I am not the only one who ask for full ingredients.

Test 3: They are so kind, I cancel the cucumber once they put on the bread. They take out one by one.

Test 4: I request all the sauce and they provide.

Is empty in the morning

Here's my order.

Interview: The manager of Subway Wangsa Walk

An interview was carried with the manager of Wangsa Walk Subway, Encik Aizat Ismail as the representative for his franchiser. Below is the Q&A.

Q: What is the working hour?

A: It depends on the outline. As you know there is traditional and non-traditional outlet available. In general, for traditional outline will fix the time with the shopping centre working hour. Wangsa Walk Subway is 10am to 10pm, while non-traditional outlet will base on the crowd and management.

Q: Are you pleased with your investment I this franchise?

A: Yes definitely. We are making money. The Wangsa Walk outline almost 3 year and a half years. We used 6 months only to break even. We earn RM8,000 every day. Comparing with last year, our sale was better. Since the KL Festival City Mall built up (another shopping centre), our sale is dropping from RM10,000 to RM8,000.

Q: Has the franchiser lived up to its promises?

A: So far is good. For example, we had a case to push the sale when started the business. We need brand awareness and request for coupon to bring the crowd. The idea is effective and the Subway deliver the coupon very fast. It helps us to boost the sale.

Q: What was your greatest disappointment after getting into this business?

A: No. Subway offer good opportunities and well manage.

Q: How effective was the training you received in helping you run the franchise?

A: Mr. Kamal, the franchiser and I went for training in other Subway outlet in Setiawangsa for 2 months. You may curious the e-brochure stated in 2 weeks time. It is not true. No one able to catch up the learning process in a month. A lot of procedure, operation plan, guideline, case study and marketing strategy need time to go through.

Q: As a leader for Subway outlet, what is your job description?

A: Push the sale and monitor the workers. Food industries grow faster and never die. Everyone walk out for food. We need food every day. Our staffs in Wangsa Walk are well trained to serve each of the customers in peak season.

Q: What is your franchise’s cash flow like?

A: No convenient. We earn more than 50% for all the sandwishes.

Q: How much money are you making on your investment?

A: In average, we earn RM10,000 per week for Wangsa Walk outlet.

Q: Is there a franchisee advisory council that represents franchisees?

A: Dato Vincent Choo is the highest level of management. He is the representative for Malaysia Subway. Our head quarter in Singapore which is belonging to Southeast Asia.

Q: Knowing what you know now, would you buy this franchise again?

A: Mr. Kamal and I plan to buy a few Subway franchise located in east Malaysia. Our target is 10 outlets in these 5 years.

Q: What is the benefit being Malaysia Subway franchise?

A:  The vegetable especially the olive is free for topping. Malaysian like to put all the ingredients into their sandwich. Unlike Japan, you have to pay if you need all the ingredients and sauces.

Q: How do you manage your food supply?

A: For bread, it must be fresh, the day you bake, the day you sell it. We never sell another overnight bread. This is very serious if we do not follow. While for the vegetables except the pickles, chili and olive, we renew everyday. Pickles can be store for 5 days.

Q: How much do you invest for Wangsa Walk Subway? (show him the estimate cost from e-brochure)

A: The cost is correct. We spend RM600,000 which is considered very affordable. Baking oven is the most expensive equipment in Subway. Extra seat, extra pay.

Q: Are you happy with the floor plan sent from Subway?

A: No comment. There is a branding guideline we need to follow. We merely follow and listen to advisor.

Q: Do you allow to change the menu? Do you suggest anything?

A: No. The term and condition stated very clear that franchiser is not allowed to change or modify the menu. We have to follow all the instruction provided by Subway. For example, the Ramadan Set, Subway dropped an e-mail with step-by-step and marketing planning. Once they deliver the advertising material like flyers and buntings, we need to launch on the day provided by Subway.

Q: Who is your for competitors?

A: McDonald’s. They are the biggest and only one competitor in Malaysia and my outlet. In our culture, including Malay, Indian, Chinese, they prefer cooked meal. Basing on my research carried in 2009, customers define Subway provides raw food and undercook. They do not believe the nutrient and freshness. In my opinion, Subway sandwich is better than any food in market. First, consumer know what we put in the bread. Second, it is fresh. Third, it cooks from raw food. Forth, we reject processed food. This is the reason why Subway is growing faster than any franchise in the world.

Q: How is the team work?

A: Top level will be franchiser and manager, follow my assistant and supervisor. The workers divided into senior and junior.

Q: Do you provide part time?

A: Yes. With minimum RM4.00 per hour for fresh graduate.

Financial Plan for Franchising

Basing on the e-brochure, below is the estimate costing in MYR:

Initial Franchise Fee

RM34,000

Property Acquisition Fees

RM14,000 – RM40,000

Store Fit-Out and Service Utilities

RM80,000 – RM320,000

Security System (not including monitoring costs)

RM4,000 – RM20,000

External Signage

RM12,000 – RM40,000

Opening Stock

RM10,000 – RM16,000

Insurance

RM4,000 – RM8,000

Supplies (stationery, cleaning and etc.)

RM2,000 – RM8,000

Training Expense ( 2 weeks in existing Subway outlet, including travel and lodging)

RM6,000

Legal & Accounting

RM10,000 – RM20,000

Opening Advertisement

RM2,000 – RM12,000

Miscellaneous (Planning applications, utility deposits & small wares)

RM10,000 – RM16,000

Additional Funds – 3 months (Wages, training & rent)

RM40,000 – RM100,000

Estimated total investment – RM320,000 – RM1,000,000+

The figures above are estimated of the complete investment in setting up a Subway store and opration for 3 months only. It is necessary to add in the exceed costs in any of the areas listed, final costs will depend matters including but not limited to location, amount or renovation, type and size of premises, local law and etc. To know more you may download the application form from the link below:

Application Form
Subway Malaysia

Subway will provide a disclosure document including the complete guideline. 

My Second Chance

8:00am - I took LRT to KLCC, walked through convention hall to Pavilion and headed to Jalan Bukit Bintang to search for Subway Kuala Lumpur office. One hour of searching finally I reached. The office inside the Hotal Tachii. I noticed there was a lorry loaded in “Indo Coffee” carton by carton to Subway. Supplied by “IndoCoffee”?

Subway Kuala Lumpur Area Office

10:30am - The Subway was not yet started doing their business. When I asked the helper, she told me that you may walk-in. I tried but the door closed. I called Ms Adelaide, she refused my visit and rejected all the question that I asked. She kept on telling me that the Dato Vincent Choo was busy and she will not going to entertain student. With 5 minutes talk, it stands for nothing. I was very disappointed with their customer service. The tone changed when I told her I am a student. I expected before I came.

11:00am - While I was walking back to college, I passed through a Subway outlet in Pavilion. It was a good chance for me to test their service. It was funny to play around when them. I talked to them in English, unfortunately, no one able to communicate.

Subway Pavilion Outlet

I asked them to mix with different menu, they pretended like fools and did not understand what I was trying to order. They assumed I was ordering 2 or 3 pieces.

The interior design for Subway Pavilion Outlet

As usual, they provide the nutrition fact for reference.

Subway was offering the warm soup. I asked for free, they refused.

I asked for extra topping, they refused and asked for extra pay.

When I paid at the counter, I get surprised that they charged me extra. It should be RM6.30 for morning breakfast set. Cashier told me that I had to tell them earlier. The atmosphere was so bad when I planned to rejected the service. At the end of the day, I paid and finished the meal as soon as possible and get away.

12:30pm - I tried to visit the manager for Wangsa Walk outlet, hopefully he can change his mind and joined my interview. This time, it was lucky, he approved my request and asked me to come forward by 4:00 pm. It was good news.

1:30pm - Browsing through the Malaysia website, I dropped an email to get the reference and initial capital cost. I received e-brochure sent down from Singapore, again, they tried to keep it confidential and asking me to fill up the application form. Well, I should hold back before get into trouble.

4:00pm – The interview was very successful, Aizat willing to share everything he could. He refused to answer some of the question especially on pricing. Nonetheless, it was good talk to him and I changed my perception towards the Subway. Not everyone is bad person.

First Step

PWTC Franchising International Malaysia 2012, some of my coursemates planned to switch to other franchise to run the evaluation.

I went to the outlet that I selected for franchising evaluation. Since Subway is not available in PWTC Franchising International Malaysia 2012, I had to walk-in to the Wangsa Walk outlet to look for information.

It was fasting month and I would like to take this opportunity (less work) to investigate. The cashier was asking me to go to Carrefour outlet because both outlets under the same franchiser, Kamal, including the manager.

The Subway outlet in Carrefour,
near to Wangsa Walk

When I moved to Subway, Carrefour, they seem like not user friendly and planned not to entertain student. The manager, Aizat, was not welcoming me to run the research and wanted me to show the consent letter. He needed a day before interviewing and will get the approval from the franchiser, Kamal. Aizat tried not to get into trouble and asked me to search from Internet through their Malaysia Subway website. He did not recommend me to interview.

I went back home and called up the Kuala Lumpur area Subway office which is under Dato Vincent Choo. Again, I faced the problem when talking to the lady, Ms Adelaide. She refused to answer any question and asked me to meet her in their office in Bukit Bintang if possible. Which mean the commercial world is not welcome any student to run the research? Are they worry me is one of their competitors or the employee tried not to get involve? I get treated like a spy!

How to get the Subway franchise?

Subway in Wangsa Walk

Visiting or browsing through the website will help you to get better understanding definitely. You have to seek for information by downloading the brochure and read through it. Once you complete the application form attached in the brochure, a disclosure document will be emailed to your mail box. This document included the information about Subway franchisor, steps, guideline, deal of effort and expense to the franchisor and so on. This document is private and confidential.

Subway Offical Website

Next, you have to walk in or talk to Subway franchise owner to learn and research. The headquarter office is available in different country. You should ask them why Subway, how it works and experience towards this brand.

Once you complete the investigation that you carried, you can now decide to join or not to join the terrific team to support their brand and passion. You must go through the capital requirements very clearly before starting your investment.

Now, you own the franchise, you need to go through the process step by step to ensure that you fully understand the business operation and team management. Subway provides the services which are divided into two - before and after you opening the store.

Before you open the store, you need to:

1. Attend the training provided by the local agent. You and your head in the restaurant or manager will take part in Subway intensive approximately two to eight weeks program depending on the learning process.

2. Selecting the location to set up the restaurant which is divided into traditional and non-traditional outlet. Traditional location stands for shopping centre or on the street corner, while non-traditional outlet will be located in an airport, hospital, service station, college, bus terminal or other sites associated with another business.

3. Choosing the interior design. Once you decided the location, Subway will provide with floor plans for your specific location. The design will base on corporate branding guideline. The decoration of Subway is more like the look of natural building with the materials of brick, wood and stone. The purpose is to convey the message of warmly family mood.

4. Ordering equipment to kick start the process of making. You will receive the guideline to order the necessary equipment to operate your restaurant and meet the standard of baking.

After you open the store, you need to:

1. Monitoring your business basing on manual provided. The book covered full range of topics important to running your business and assisting you to make profit.

2. Supporting will be provided from the same field. A nearby local representative will assist you to start the business and serve as advisor to provide ongoing operation evaluations in the earlier stage.

The Support: Franchise World Headquarter

Ongoing support: The local Subway team

3. Franchisee serving. An agent or coordinator in your area will come and serve as your main contact person by using phone call or emailing. The regular newsletters, voice-mails, and additional learning tools are available to support your business.

The Risk

There is no guarantee from Doctor’s Associates Inc. In general, the most important factors for performance are depends on the location selected and how the employee to run your business. These concerned factors are unknown and subjective. In fact, Subway has a policy that no staff or agent can provide you the financial projection to increase sales, earning or to break even. The information can be obtained about the typical franchise experience from previous franchiser as mentor. A full set of information will be given to support your business.

I know Subway, I don't know the history

Taking about Subway history, we should back to 1965 when Fred DeLuca and Dr. Peter Buck opened the first restaurant in Bridgeport, Connecticut, United State. Few years later, this company was joined with another name of Doctor’s Associates Inc.

The report shows that Subway franchising is growing tremendously in worldwide by promoting its healthy food. Comparing with others in food industry, they are emphasizing healthy lifestyle instead of fast food chain. They are the No. 1 global franchise among franchises in the world. Basing on research, they promote thousands of new job opportunities around the world each year, for example like manager, baker, assistant, supervisor, cashier and so on.

The aim of Subway is focusing on making fresh sandwiches everyday for consumer. They want to be the top in both consumer and targeted market. Most of the customer later turned into franchise owners due to believe in Subway’s product and passion.

The main product of Subway is the daily warmly baked gourmet breads which included hearty Italian, parmesan oregano, wheat, honey oat, Italian bread and the latest wrapping sandwich. Customer allows selecting the ingredients to be put on the bread with an array of meats, vegetables and sauces. Fresh meal, fast services and quality food are the base of Subway to win all the potential consumers who patronize their business.

For more detail:
The link