Mangalore Shows Way out to American Fastfood 'Subway'


Mangalore Shows Way out to American Fastfood 'Subway'

By Melka Miyar
Daijiworld Media Network - Mangalore (MSP)

Mangalore, Jun 5: Subway, an American sandwiches  company that created a sensation in the initial stages of it's operations here, has closed it's outlet in the city. No one is able to reveal the reasons why Subway chose to leave the city. But it has given rise to a horde of questions in connection with the phenomenal growth of the elite fast food sector in the city and it's sustainability.

A new chapter started in the city's history with the entry of malls culture here a few years’ ago. These malls have been successful in attracting huge crowds since the very beginning. These malls also created a market for the western foods. A new type of  food culture set foot in the city after these developments. Subway had entered the city after analyzing all the positive  and negative factors and satisfied with it's feasibility. But it has since accepted the fact that it is unable to survive in the Mangalorean market and called it a day.

Unlike other sandwich companies, Subway was backed by a global brand, which enjoys good reputation in the global market. This company was formed in the year 1965 in the USA and global community has fair knowledge about this well-publicized company. Subway was all set to capitalize on these strong points in Mangalore city. But it appears, it failed at some level to build on these aspects and gain customer confidence.

The entry of fast food culture into the city has given rise to a hot debate in the city. The people, who accepted Americanization of their lifestyle, accepted this new trend wholeheartedly. Moreover, Mangalore is the only district headquarters which enjoys global connection to  a great extent and Americanization has been spreading here rapidly. A large number of NRI students come here for their educational purposes as this city is known for engineering and medical colleges. The growth of IT sector and call centers also  contributed immensely for the promotion of fast food culture in the city.

Meanwhile, there is a strong opposition from the traditionalists who argue that fast food is harmful to health. Moreover, India has a rich and healthy food culture which is globally famous and contributes to a healthy and long life.
In between all these debates and dicussions, Subway had been successful to attract large number of customers in the initial days. The customers used to crowd the outlet solely because of the reputation the Subway enjoys at the global level. The ‘SUBWAY’ chain is the single largest made-to-order foot-long submarine sandwich chain in the world. But it has not been able to retain the loyalty of customers owing to various reasons.

According to a few customers, Subway miserably failed to set itself apart from other sandwich companies which already existed in the city. Moreover, the quality of the products was not up to the expectations of the local customers. The customers were expecting something more, as the brand succeeded in etching out a separate slot for itself among the global brands.  It appears, that the lack of experience of the local franchisees here tarnished the image of Subway. The servers here were unable to deliver the right quality and  stand up to the expectations of it's customers. The customers didn’t come back again even though the prices fixed by the outlet were competitive.

Another contributory factor for it's exit might be the fact that it was located at a wrong location. It was opened on the third floor of Bharath Mall. Customers had to pay a visit to this floor specifically to taste the products of Subway. Meanwhile, other sandwich companies were successful in setting up base in the ground floor. That’s why the customers didn’t want to go through the bother of climbing up to the third floor. Finally, Subway had to leave the city. But it's exit has left a clear message to the other fast food outlets that, the customers here are choosy and the path is not as easy as expected by the multinational companies.

Also see - When Subway Entered Mangalore...

  

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Comment on this article

  • JoSua, M'lore

    Tue, Jun 10 2008

    REASON: Each subway sandwich costed 60 bucks for 6 inches. and 120 for 12 inches. having seen the eatin habits of Mangaloreans for years, i beleive.. that our people will try out anything new once, if its great twice. but daily, weekly, monthly naah.. not for that price.

    For eg. Rs.60bucks instead of eating a 6 inch subway, you could eat a parfait and a gadbud icecream at PABBAS, 2 shwarmas 1 coke at CHICKEN-TIKKA halal, 10 plates of shev, bhel, charmburis at SEETHANNA's, A whole mutton biryani chicken fry at BOMBAY LUCKY, some great grills and milkshake at CHERRY SQUARE, Half Rotissere Chicken at POP TATES, a full plate kori rotti ThumbsUp at Shetty's KORI-ROTTI, A supreme double decker burger at CHEFS, 2 special thali's at JANATHA DELUX.. a plate idlivada sambar Sheera Cofee at TAJMAHAL.. now you tell me... can subway survive. we eat healthy, we eat well, and we eat what its worth.

    DisAgree [4] Agree [5] Reply Report Abuse

  • PP, MANGALORE

    Mon, Jun 09 2008

    If talking about why subway has closed,its because of its location..subway outlet being on the top floor of bharath mall has not be observed by many...such outlets should be included in areas where there are food courts as provided in empire mall. I am not aware of any other outlets of Subway in Mangalore... compared to other sandwiches subway sandwiches are healthy as we can the kind of fillings.

    DisAgree Agree [4] Reply Report Abuse

  • Kishan Rai, Mangalore

    Sun, Jun 08 2008

    It’s a transition period, whether we like it or not(Healthy/Unhealthy), sooner or later, Subway will be back in Mangalore so as 100s of Fast food chains. Without demand, these fast food chains would not be here in India. Mangalore food/items have its own taste, significance and loved by most of Mangalorians.

    DisAgree Agree [4] Reply Report Abuse

  • ajay, uk

    Sun, Jun 08 2008

    Mr Richards comment is interesting but it is the Tier two cities and not the Metros that are transforming India's new consumer revolution. Mangalore as of today is the fastest growing non metro in the South(from established sources) and is getting the one of the largest investments amongst Indian cities.

    DisAgree [2] Agree [5] Reply Report Abuse

  • ajay, UK

    Sun, Jun 08 2008

    I beg to disagree with Richard.It is true that Metros do well with regards to fast food joints. This is mainly because they have a huge populace. It is also true that Tier two cities are in the forefront India's new consumer revolution and Mangalore is amongst the top 10 tier 2 cities in various aspects including buying power.Currently Mangalore is amongst the top non metro city in the south on par with even beating cities like Kochi,Vizag or Coimbatore.

    DisAgree [1] Agree [4] Reply Report Abuse

  • Richard, Abu Dhabi

    Sat, Jun 07 2008

    The fact is Mangalore is a C grade city(compare to Bangalore or any other Major cities) so fast food joints cannot sustain in the long run for so many reasons...

    DisAgree [3] Agree [4] Reply Report Abuse

  • ajay, UK

    Fri, Jun 06 2008

    I agree with Thomas Saldanha and RajaGopal. We should not make any comparisons between different foods as there are good and bad things in every food . In the West nowadays there is lot of health consciousness and every food that we buy are clearly coded with regard to how healthy they are/. When I first came to this country I did visit Mc Donalds very often but I havent been there for six years now.

    I have always found Subway different from McDonalds and much healthier ,that is if you opt to have the vegetables in it!We eat Indian food at home but do miss some other Indian food and go to proper South Indian restaurants to eat our dosas and Puris,pavbhaji's etc.

    I really love Golibhajees but we do not get it here in Birmingham! even though they are not that healthy. In life everything in moderation is fine whether it is desi or videshi. That is the most important thing to remember. Now to top it just to let you all know that Subway has booked space in the 4'th floor of City Centre Mall and mind you the Mc Donalds have booked space as well. So LET US PUT ALL SPECULATION TO REST.

    DisAgree [3] Agree [3] Reply Report Abuse

  • jessie, Mangalore

    Fri, Jun 06 2008

    I'm sorry to say this, but I can not stop myself. Why do you say that, mangaloreans can not afford poor sandwiches? There are more rich than poor in Mangalore. But they think, its not good for health to eat junk food. That could be the reason too. Never give your comments in a negative way.

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  • WILLIAM D'SOUZA, BIJAI-MANGALORE/MUSCAT-OMAN

    Fri, Jun 06 2008

     HI NEIL, ITS NOT FAIR ON YOUR PART TO MOCK AT MANGALOREANS BECAUSE OF THE CLOSURE OF SUBWAY. THERE MAY BE VARIOUS REASONS, SUCH AS THE ONE, IT WAS ON THE 3RD FLOOR OF THE MALL. IT'S NATURAL FOR ANYBODY TO ENTER AN OUTLET WHICH IS VISIBLE AND CLOSEBY RATHER THAN SEARCHING FOR A NEW ONE UNLESS IT'S SO NECESSARY.

    BUT YOU BEING AN INDIAN & WHICHEVER PLACE YOU BELONG, YOU CANNOT SAY TO MANGALOREANS "LET'S GIVE THEM GOLIBAJJE". DON'T FORGET, I'V SEEN EVEN FOREIGNERS WHO VISITED MANGALORE, DINING IN MANGALOREAN RESTAURANTS AND EATING GOLI BAJJES. HOPE YOU ARE NOT ONE OF THE WELWISHERS OF SUBWAY!!!

    MOREOVER, THERE ARE OTHER OUTLET SSUCH AS PIZZA HUTT ETC, THEY ARE STILL DOING WELL. YES, MAY BE YOU THINK ALL CAN AFFORD LIKE YOU. BUT ITS VERY FAR FROM TRUTH. DON'T MOCK AT OTHERS, BUT IF YOU CAN CONTRIBUTE SOMETHING TO THE SOCIETY, PLS DO. BUT DON'T MOCK & JUDGE OTHERS, FOR YOU WILL NOT BE JUDGED!

    DisAgree [1] Agree [4] Reply Report Abuse

  • Thomas Saldanha, Kanajar / Dubai

    Fri, Jun 06 2008

    All these problems for a little sandwich? We should refrain from making comparisons to Indian food and western food. If you really analyse (As our respectable Doctor said in this column), some of our Indian food is very unhealthy as compared to other food. It is true that in USA & other developed countries, due to hectic work schedule, people end up eating junk food at the outlets. The same is extended to Indian cities these days.

    But in India people have enough time to choose from a variety of junk food to healthy food. In my opinion, sub-way sandwich is a very nutritious food and people fail to realize it due to the fact that it is branded 'Videshi'. What about those hundreds of Indian food joints in US cities, are any westerners opposing? It is strange that majority of Indians are very eager to work & live in the US, bring their entire families to US (which is not bad), and when you come back to India you crib for 'Desi' food, support only desi ideologies and what not?.

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  • raj, mangalore

    Fri, Jun 06 2008

    Mangaloreian golibaje rocks ok . what do you know about it who eats Anna Saru in Bangalore?

    DisAgree Agree [1] Reply Report Abuse

  • vishwas kamath, Managlore

    Fri, Jun 06 2008

    think costly sandwiches with very little taste made it run under loss.

    DisAgree [1] Agree [1] Reply Report Abuse

  • ajay, UK

    Fri, Jun 06 2008

    Your inferences look reasonable. Moreover they are opening an outlet in the fourth floor of City centre Mall!

    DisAgree Agree [1] Reply Report Abuse

  • Ranjit, Udupi

    Fri, Jun 06 2008

    Unfortunate that there are people who still think that western eatables are great and ours are inferior.Of course there are no veg restaurants in Mangalore which serve very good quality dosas etc,though Mangaloreans are pioneerd restaurants business elsewhere.But most of us accept that dosas(if prepared properly) are tastier than pizzas.Good move in Tamilnadu by their govt. reducing tax on dosas and idlis.A common man can afford to take his family to restaurants there even the price rise is killing.

    DisAgree [1] Agree [1] Reply Report Abuse

  • Royan D'Mello, Falnir

    Fri, Jun 06 2008

    I am not surprised that SUBWAY has closed down. I guess that our city needs some time before it could accept other fast food joints.Since no reason has been given for the closure, i would refrain from fabricating theories of why it has closed down.

    DisAgree Agree [2] Reply Report Abuse

  • Neil Furtado, Bangalore

    Fri, Jun 06 2008

    lol, poor mangaloreans cant afford subway sandwiches.... Lets give them some Goli bajje's..

    DisAgree [1] Agree [2] Reply Report Abuse

  • Joel Pinto, Shirthady

    Thu, Jun 05 2008

    First of all, Subway didnt serve any fast food... it cannot be termed fast food and you CANNNOT compare it with McD or KFC... Subway has always been on a league of its own.... Also... I completely disagree to the opinion that Subway in Bharat mall closed because its in the THIRD floor... Doesn't Baharat Bharat mall have an Elevator? Maybe the HEALTHY sandwiches didn't go well with us Mangaloreans...

    DisAgree [1] Agree [1] Reply Report Abuse

  • shanta, USA

    Thu, Jun 05 2008

    I am not surprised that Subway couldn't sustain in Mangalore. I am a mangalorean and anyday I would prefer the veg plate meals to a subway sandwich for lunch. Since mangaloreans are mostly rice eaters, sandwiches may not sell much.

    DisAgree [1] Agree [1] Reply Report Abuse

  • Imran, Jubail

    Thu, Jun 05 2008

    even Subway got delicious taste like Mc Donalds and KFC,,, i dont know why mangalorean rejected this taste..

    DisAgree Agree [2] Reply Report Abuse

  • A.D'Cunha Shenoy, Mangaluru

    Fri, Jun 06 2008

    Here are my two bits. While I do not know the reason why this outlet shut off its doors, fast foods in general are extremely harmful to human health and obesity. Americans and and most western countries thrive on fast foods because they are cheap and if one wants to eat a good meal that will cost them too much. India is known for its food culture and its healthy aspects.

    Certainly some Indian foods have lots of oil contents but if consumed in moderation they are not all that bad. Most fast foods contain preservatives and these are cancer causing if consumed in the long run. I am glad that subway is out and hope other fast food outlets follow their foot. Indians must say goodbye to western type fast food and sandwich culture. Whats wrong with a masala dosa for lunch?

    DisAgree [1] Agree [1] Reply Report Abuse

  • ruchir agarwal, mangalore

    Fri, Jun 06 2008

    Indrabhavan has been serving fresh and hygenic food since past 50 years.I am daily customer of the place since the past 22 years and newer got a stale eatable or did i get a upset tummy.

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  • Sanzzz, mangalore / bangalore

    Thu, Jun 05 2008

    Whether it is indra bavan or Subway ....... neerdose, masaladose, kori rotti... rocks..... managlorean foods rocks around the globe

    DisAgree Agree [1] Reply Report Abuse

  • Melvin, Mangalore

    Thu, Jun 05 2008

    There must be a reason why people behind Indrabhavan. They dont serve anything free because theirs is not a charity organization. Here we are discussing about food and restaurants...

    DisAgree Agree [1] Reply Report Abuse

  • Raja, Ullal

    Thu, Jun 05 2008

    I think Mangaloreans are very much selfrespected and never wish to get free food but value for money.Indrabhanvan is indeed good but needs to be more higene.

    DisAgree Agree Reply Report Abuse

  • kevin, mangalore

    Thu, Jun 05 2008

    May I know why all the Mangalorean people behind Indra Bhavan? are they provide free food or any home made sandwitches?

    DisAgree Agree [1] Reply Report Abuse

  • ajay, UK

    Thu, Jun 05 2008

    I live in the UK but very much stilla Mangalorean. Every food has its positive and negative points. I have not visited a McDonalds joint for the past six years but I do have a subway Sandwitch in the afternoon for a quick lunch.

    As A doctor I can reassure you that the Sandwitches are very healthy with plenty of green vegetables in them especially the veggie delight. Indian food though very tasty could be very unhealthy especially in hotels where the oil used could be bad for the heart and one of the reasons for the high incidence of heart attacks at young age(coupled with lack of aerobic activity) in India and sadly often with fatalities as the paramedic culture is virtually non existent in most parts of the country. Some people have mentioned various Hotels like Indra Bhavan.

    They are all okay once in a while but very unhealthy on a long basis.There are lots of good points like some of the spices used in cooking,the high fibre (reduces incidences of colon cancer) etc. I personally prefer my Sandwitches in the afternoon . Atleast it will keep me awake in the afternoon while at work!

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  • Pavitra, Mangalore/Bangalore

    Thu, Jun 05 2008

    I completly second this. Melka you need to visit Indra Bhavan once and u'll agree desi is better than videsi.

    DisAgree Agree Reply Report Abuse

  • John B. Miranda, Modankap/Bantwal/Dubai

    Thu, Jun 05 2008

    As I am concerned about the fast food is not good as compared to the tradional Indian food & harmful for health. So, what I suggest is to open more Indian food outlets (Udupi style snacks) with reasonable price which will cater to all classes of the society.

    DisAgree Agree Reply Report Abuse

  • M Sunil, Bangalore

    Thu, Jun 05 2008

    Please give Hotel Indra Bhavan a try. You get fantastic dosas and other items there. It has got a home made flavour and is very very cheap. It is situated near Jyothi Circle and very old hotel.

    DisAgree Agree Reply Report Abuse

  • Ganesh, Mangalore

    Thu, Jun 05 2008

    It is high time to start small outlets of our own food items like,dosas,Beaten rice,south canara traditional foor items etc in a better way as these items are good to health and do not add high calories.Sure there will be high demand for such delicious items.

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  • Arun Kamath, Managlore

    Thu, Jun 05 2008

    Markets will determine the fate of the sellers and always buyer is the little king! Subway should have done its homework properly !!

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  • RAJAGOPALA,

    Thu, Jun 05 2008

    Hi, It is fact that, Sub Way has moved out of Mangalore recently. However , I will not accept some of the reasons mentioned in the article by the reporter. I feel strogly that, the following must be the reasons to close,

    a) Very high RENTAL in Mangalore. If you are planning to start think twice

    b)Very small population in the city. It might take few more years to develop such crowd in the city.

    c)Shortage of local man power !The Mangaloreans are not willing to work here.

    As a retailer , I will not think that the franchisee had spoiled the image of the brand.I think ,the same franchisee has outlets else where in Karnataka and doing well !

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