Subway's Sustainability Practices: PESTLE Analysis & Benchmarks
This paper examines Subway's sustainability practices within the context of the fast food industry. Beginning with an overview of the company's franchise model and global reach, the paper applies a PESTLE framework to identify the political, economic, social, technological, legal, and ecological drivers shaping Subway's environmental policies. It then surveys Subway's actual sustainability initiatives — including eco-stores, supply chain efficiency, and waste reduction — and benchmarks these against industry peers such as McDonald's and Starbucks. The paper concludes with an evaluation of program effectiveness and a set of practical recommendations for improving Subway's sustainability culture, supplier standards, and public reporting.
- Introduction: Subway's Business Model and Sustainability Scope: Subway's franchise model, global reach, and paper scope
- PESTLE Analysis of Subway's External Environment: Six external forces shaping Subway's sustainability policies
- Subway's Current Sustainability Initiatives: Eco-stores, supply chain, and waste reduction efforts
- Industry Benchmarking: Fast Food Sustainability Standards: Comparing Subway to McDonald's, Starbucks, and niche chains
- Evaluating the Effectiveness of Subway's Sustainability Program: Financial, reputational, and community impact assessment
- Recommendations for Improving Subway's Sustainability: Reporting, sourcing, energy, and culture change proposals
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What makes this paper effective
- Applies a recognized strategic framework (PESTLE) systematically to a specific company, giving the analysis clear external structure and demonstrating that environmental policy does not exist in a vacuum.
- Grounds claims in concrete data — gallons of gas saved, truckloads eliminated, pounds of resin reduced — which strengthens credibility and makes the sustainability audit tangible.
- Balances internal company evidence with external benchmarking, acknowledging that Subway outperforms most peers while still criticizing the overall low bar set by the fast food industry.
Key academic technique demonstrated
The paper demonstrates effective use of comparative benchmarking as an analytical tool. Rather than evaluating Subway in isolation, the author positions it within a competitive peer group (McDonald's, Starbucks, Le Pain, Pizza Fusion) and against standards such as ISO 14000 and LEED certification. This comparative lens prevents both unfair criticism and unwarranted praise, and shows how industry context shapes what counts as adequate performance.
Structure breakdown
The paper is organized into six logical sections: an introduction establishing company background and scope; a PESTLE analysis covering all six dimensions; a descriptive inventory of Subway's actual initiatives; a peer benchmarking section; an effectiveness evaluation; and a conclusion with actionable recommendations. This progression — context → framework → evidence → comparison → evaluation → prescription — is a sound model for applied business analysis papers.
Introduction: Subway's Business Model and Sustainability Scope
Subway was founded in 1965 when a medical student named Fred DeLuca opened a submarine sandwich shop in Connecticut to help pay for his education. The business became a full-time venture, and the company began to expand. Soon, the franchising model was adopted. Forty years later, Subway had grown to 34,000 locations around the world and had become one of the world's largest fast food restaurant chains (Subway.com, 2011). Most of the company's locations are in the United States (24,152) and Canada (2,616), but the company's global reach also creates interesting issues with respect to sustainability. Subway operates in a total of 98 countries.
Almost all Subway restaurants are franchised operations. The company supplies nearly everything that the franchisee needs, save for the labor. Subway provides its restaurants with frozen bread as well as packaged meats, cheeses, sauces, and vegetables, so that the individual restaurant only needs to bake the bread and assemble the sandwiches. The food is provided by an approved vendor, and all franchisees must order from the list of approved vendors (Subway.com, 2011). The company's other activities include national and regional advertising campaigns, franchisee support, and training. Because Subway franchisees receive standardized store designs, the company also bears some responsibility for the waste management practices of its outlets, as it has the means to initiate recycling and other sustainability-related programs.
This paper examines sustainability at Subway. It provides an overview of what Subway does with respect to sustainability, benchmarks those practices against industry best practices, and analyzes the company's sustainability program in that context. The paper also discusses the prevailing legal and regulatory environment in which the company operates, focusing on US operations since two-thirds of all Subway stores are located in the United States.
Sustainability is a broad concept, so this paper focuses on the key areas most applicable to fast food restaurants: waste management, water usage, ethical food sourcing, ethical treatment of workers, and public relations. Subway's policies with respect to each area are analyzed in the context of the prevailing regulatory environment and industry benchmark best practices.
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