UNIVERSITI PERTAHANAN NASIONAL MALAYSIA

OPERATIONAL MANAGEMENT

SUBWAYS RESTAURANT

2080034 KHAIRUZZAINI IZAAN BIN SAWARI -------------

TABLE OF CONTENT

Chapter 1.0 2.0 3.0 4.0 6.0 7.0 8.0 9.0 10.0

Content Introduction Company History Location of Planning - Factor of location planning

Pages

1.0

Introduction In this study, one of the popular restaurant in Malaysia had been chosen as the subject for this study. The restaurant is SUBWAY that located at Plaza Sungei Wang, Kuala Lumpur. This subject had been chosen because, Subway is the one of the tops restaurant in Malaysia and the product is different if compared to the others restaurant. Normally, Malaysian food are very subjected to main food such as rice. But the Subway is trying to use another approach to enter the Malaysia food industry by introduced western food style. The main goods that been sold here are basically all based on bread, meat and vegetable. All this goods are very healty food. The main objective in this case study is to implement all the tools had been learned in the Operational Management subject. The focus is given to the how is the company or organization running their own product or services. Regardless about location, services, planning, promotion and so on. This study also focus on some of method that had been used by that company in order to run up the bussiness.

2.0

Company History Basically the establishment of Subway start in 1965, where there is a person name Fred DeLucac wanted to become a medical doctor but he is looking for someway that can help him to pay for his education cost. His family friend suggest to open submarine sandwich shop, and with the loan of $1000 from his friends, his had fully established submarine restaurant shop and became successfull young entrepeuner in his age 17 years old.

Today, the SUBWAY brand is the world's largest submarine sandwich chain with more than 34,000 locations around the world. Subway has become the leading choice for people seeking quick, nutritious meals that the whole family can enjoy. From the beginning, Fred has had a clear vision for the future of the SUBWAY brand.

3.0

Location Planning Location desicion is strategically important for othes reason as well. One is that they entail a long term commitment, which makes mistake to overcome. Location desicion also have impact on investment requirement, operating costs and revenues and operation. A poor choice of location might result in excessive transportation costs, a shortage of qualified labor, loss of competitive advantage, inadequate supplies of raw material, or some similar condition that detrimental to operations. In term of services, a poor location could result in lack of customers and/or high operating costs. And another reason is important for supply chain. In this study, there were some factor had been noted that contributed to the successful of this company. The factor will be discuss at the next section.

3.1

FACTOR OF LOCATION PLANNING

3.1.1 Location of markets Subway restaurant had established in Sungei Wang Plaza at the second floor in the plaza. The location is very strategic because based on my observation, majority of

visitor that come to Sungei Wang Plaza will entering the Plaza by using second floor entrance. According to the map of Sungei Wang Plaza, the location of Subway are very near to the entrance door. The entrance door also will become the exit to the basement carpark. Logically thinking, visitors that come to the Plaza will encounter the Subway restaurant first before meet the others restaurant. In addition, if the visitor wanted to leave the Plaza, they will using the same path as they enter the Plaza. So, basically the visitor will walk thourgh the Subway restaurant either they want to enter or leave the Plaza. This shown that the location of the Subway restaurant is quite strategic. In addition, Sungei Wang Plaza is quite famous among the Malaysian. So there no need to worries about the rate of visitors come to the Plaza. There were always have visitors come to Sungei Wang Plaza regardless day and time. Besides that, there were another plaza around it also such as Times Square, Low Yat Plaza and many more. This means that, around the place were fully surrounded by people. So when the people had tried to shopping they will find some place to eat and rest. And based on the strategic location of Subway, visitors were always being there to eat and rest before continue to shopping again. Moreover, the location of Subway is at the Sungei Wang Plaza and the Plaza is located near with the Bukit Bintang Street. Actually Bukti Bintang is quite famous among the foreigner and tourist. Everyday and night there were alot of tourists come to Bukit Bintang. In addition, the Subway were sell bread and vegetable as their product and that are the favourite for the western tourists. So when the tourists get exausted and hungry, normally they will find some food that very familiar with them, and based on my observation there, the tourist like to eat bread, so they will find a restaurant that

can fulfill their desire. That why, Subway had become their favorite place to eat. Besides that, the origin of Subway is at Bridgeport, Connecticut, United State.

3.1.2 Location of supplies Because of the location of Subway is within the Sungei Wang Plaza, so its become a common place for the supplier to supply the needs for Subway. Within the Plaza itself have alot of restaurant and company that run food bussiness such as BBQ Plaza, Ayam Penyet, KFC, McDonald and so on. All this company also used almost the same supplier for the basic indregrient such as ice cube, ketchup, drinking water(coca-cola etc) and so on. So it had reduced the burden to the management side to find all the supplier itself. Besides that, the supplier can deliver the goods in no time because it had familiar with all those environment around that place. 3.1.3 Quality of life According to the Operation Management, quality of life represent as the way of style known as lifestyle of the people around. The location of Subway had been decided are based on this factor also. Because, within this Plaza, there were alot of shops and offices there. So, each and every workers that works there have their own appetite of eat, whether they interested in Western food, Eastern or Fastfood itself. So, when their is alot of shops and offices, thats means there were also have alot of workers. So it become a culture to all of them to eat something simple as bread and vegetable as their lunch menu. Others than that, it also become a trend to Malaysian workers to find something is more healthier for their body, because nowadays people are getting serious about their own body.

3.1.4 Services It become very good strategy to open a restaurant within the Sungei Wang Plaza because the management side does not to worried about the satisfactory of the customer regarding about their normal instict as a human being. The means here is, the owner of the Plaza had prepared all the public service such as toilet, mosque, security team and much more. So the management side no need to invest money to make such that facilities in the restaurant because the owner of Plaza had prepared all that. In this context, the management can reduced some financial and the financial can be invest to others side. 3.1.5 Transportation In order to access to the Subway at Sungei Wang Plaza, there were alot of method and ways to get there. The available public transportation that available there are, Light Rail Transit (LRT), Monorail, Rapid KL buses, taxies and personal transport. All these transportation can acess to this place. Even by using personal transport, it also have main road that connect from the highway to the main road in order to access to the Sungei Wang Plaza. The fees for public transportation also are not very expensive. By using LRT and Monorail, the fees were not reach about RM2 to reach to nearest LRT station and if using Rapid KL buses, the fees only RM2 and the services can be use for the whole day. The fees are not very expensive and the visitor that want to come to the Subway can use all this kind of transportation without any hestiate about the fees because it very affordable. And the duration time to access are not exceed more than 20 minutes if using public transportation like LRT and Monorail.

This means that transportation factor also contributed to the location of planning due to the accessablity of customers to come to the restaurant by using alot of method for transportation. This also means that, the location had been choosen because the customer can easily reach by alot of ways. Besides that, it also contribute to the attendend of the workers to works. Because it make the movement for the workers more easily because it located at the main city and have alot of public transportation and communication.

From/to main road

From/to basement parking

SUBWAY