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Introduction

Innovation brought about a new era of change and numerous opportunities. Apart from improved efficiency, innovation novelty to business operation, and as a subsequence, increased revenue and market share. Equally proportional to other service industries, innovation impacts the performance of restaurants (Li et al., 2021; Yun et al., 2020). Subway particularly capitalizes on innovation to be globally renowned for its superior quality services, ambiance, and at its specialty, the submarine sandwich. Consequently, Subway attracts relatively high demand and as such, a key strategy proposed by the management involves the installation of slicers to increase cost effectiveness and productivity (Maze, 2022).

However, the use of slicers may adversely affect franchise relationships and operations, increase labor costs, and reduce profitability. While the innovative solution might potentially cut costs, the risks outweigh the advantages. The report culminates in a management plan examining the strengths, weaknesses, opportunities, and threats (SWOT) of installing the slicers, which are tested on the six-sigma principle. Subways long-term success and sustainability require a successful evaluation of the proposed installation of slicers on the premises.

Subway Restaurant Franchise

Innovative solutions rest on the premise that businesses must change to remain competitive in the current market. Subway, a fast-food restaurant franchise, adopted an innovative culture to blend the local and global customer needs, allowing modification of its services to expand and grow in various markets. Given the growing competition in the restaurant industry, it is imperative for Subway to develop proactive solutions. Maze (2022) mentioned that among the effective ways Subway plans on enhancing its competition includes cutting the cost of meat. In effect, this demands the installation of slicers on the premises. Primarily, the slicers yield portion-controlled food, in Subways case, meat. Apart from its efficiency, the slicers minimize waste and cross contamination, in turn, cutting the cost of sliced meat (Handayani et al., 2021). However, introducing slicers poses a threat to Subways long-term growth and sustainability.

SWOT Analysis

Subway is globally renowned for its sandwiches and toasters, gained market share. Management plans on adding slicers across Subways restaurants in a series of innovative solutions for menu improvement and cut on costs (Maze, 2022). However, the automatic slicers may negatively affect overall operation and franchise relationship among other factors. Conducting a SWOT analysis will reveal the internal and external factors that might potentially affect the introduction of slicers on Subways premises. Most importantly, the analysis helps the management get visibility on the negative implication of meat slicers, gaining an in-depth understanding of overall franchise performance.

Strengths

The strengths of installing a meat slicer focus on the key aspects of the innovation that gives Subway a competitive advantage. Some of the key factors in the companys strength include its brand image, product and service uniqueness, financial position, and other intangible assets (Ganatra et al., 2021). The introduction of slicers would potentially reinforce these strengths. For one, meat slicers can be conveniently used at any time. In this view, operators can slice meat when needed without wasting unused meat. Senin et al. (2019) asserted that given that the slicers function automatically, it reduces workload while increasing efficiency. Furthermore, the company plans on placing the slicers out front to allow customers to see the process (Maze, 2022). Additionally, the slicers would improve Subways reputation since customers take note of the freshly sliced meat. The company currently slices meat at its central facility and then ships the product to restaurants. However, the change will allow the company to collaborate with other vendors, reducing franchisees costs.

Weaknesses

Food slicers are typically electrically powered threatening occupational health and safety. For this reason, the slicers can only be operated by people older than 18 years of age. Slicers are equipped with a rotary blade, on and off switch, food holder, feeding tray, and thickness adjustment (Handayani et al., 2021; Senin et al., 2019). Operators use a pushing device to apply pressure to the meat against the feeding tray and slicer blade as they push it into the grinder and the cutting plate. As such, the procedure is cumbersome and might increase labor. Cleaning or maintaining the meat slicer might require employees to remove protective guards that may potentially increase injuries. Moreover, a mechanical issue might adversely affect the operation and mechanics are often few and costly. Petropoulos (2021) contended that automation further minimizes the need for labor, resulting in layoffs. Management must ensure that operators get training under close supervision until they can independently safely. Operator training including equipment specification would increase the companys operational cost, affecting operation.

Opportunities

Meat slicer converts raw meat into ready-to-eat meat forms as per customers demand. The equipment helps remove toxins, enhancing the consistency of the meat and preserves the food (Handayani et al., 2021; Senin et al., 2019). Following these assertions, slicers affect the chemical and physical characteristics of food products, including processing aids and food essence. The use of meat slicers would result in process automation that would streamline processes and increase accuracy, resulting in minimal waste. Introducing slicers further implies reduced lead times leading to improved process control (Senin et al., 2019).

Innovative solutions are based on unique business needs due to increased output. In this view, introducing slicers would allow Subway to compete on a global scale. Likewise, the flexibility of the machines would improve production and quality. The slicers function with minimal variability than the human workforce resulting in greater quality consistency and control during demand fluctuations. Streamlined and consistent production would allow franchisees to reliably estimate costs.

Threats

While the introduction of slicers presents some opportunities for the company, the threats appear greater. For instance, the use of slicers demands a set of skills for operation that meet food safety standards, which Brown et al. (2020) stated involves training costs. The resulting over-specialization would increase the risk of layoffs. Another factor is high installation and maintenance cost; meat slicers are often expensive and the cost of operation and break-down may be relatively high (Handayani et al., 2021; Senin et al., 2019). Furthermore, setting up and operating meat slicers can be challenging especially without previous training. Repairing the equipment during the breakdown would add to the cost of the companys working system. Additionally, introducing slicers poses the threat of monotony since the equipment will relieve some workers of their jobs. Similarly, the use of meat slicers would reduce employees morale and affect their enthusiasm and creativity. Therefore, the introduction of slicers threatens franchise relationships, and smooth operations, and heightens issues in operations.

Six Sigma

In line with growing technological advances and increased globalization, Subway must accelerate the pace of operation to remain competitive. Installation of slicers introduces opportunities and threats and the company should strive for increased operational efficiency. According to Ishak et al. (2019), Six Sigma serves as a process and quality improvement methodology that eliminates defects in any process as traced back to the adoption of slicers. Additionally, Six Sigma reduces variations for improved quality levels and waste elimination in process steps (Widodo & Soediantono, 2022). However, Lean Six Sigma follows a more holistic approach in streamlining and improving process efficiency. Execution of Lean Six Sigma uses DMAIC (define, measure, analyze, improve, and control) as a structured method of addressing problems (Widodo & Soediantono, 2022).

In defining the problem, Subways management should establish the primary reason for installing the slicers and the anticipated benefits. Likewise, the benefits must be weighed against the threats and weaknesses to identify the target goals associated with using meat slicers. The new equipment would change normal operations, the roles and responsibilities of each employee.

Measurement is key throughout the installation of the slicers and as management focuses on cutting costs. In addition, the measure maps out current processes, capacity for change, potential barriers, process performance, and baseline metrics. Therefore, the second phase would entail data collection, including benchmarking and customer feedback (Ahmed, 2019; Widodo & Soediantono, 2022). Getting input from employees on how the new equipment affects their work would help the management gain insight into its adverse effect on operational efficiency and franchise relationship.

In the third phase, analysis, Ishak et al. (2019) highlighted that the collected data is reviewed to verify the implication of installing the meat slicers within the premises. Furthermore, the step will entail defining performance objectives and determining the relationship between reduced costs and the use of slicers. After examining the factors identified in the measure phase, the management can list concerns within the installation of the slicers. Further, this will allow the franchisees to take advantage of customers feedback and employees insight. The transformation of this information into visuals would allow the management to communicate the risks of installing the new equipment within the premises.

Improve phase focuses on eliminating defects and re-evaluation potential solutions. Introducing meat slicers would reduce costs in the short term but would adversely operation and the companys profitability in the long term. Therefore, the management team should identify a more structured process improvement that would lead to innovative solutions. The managements effort at this phase would potentially produce numerous ideas based on quality improvement while reducing costs (Ishak et al., 2019; Widodo & Soediantono, 2022). While the team can employ various improvements to the franchise, they must choose between conflicting options. With solutions to cut costs will maintain the quality of its services and operational efficiency, management can draw an improved map of business processes to guide employees efforts. Successful implantation demands careful planning, thus, management must consider training, communication, and maintenance plans. After implementing the most effective solution, Subway should place necessary controls to guarantee long-term improvement in franchise relationships and operational efficiency.

Conclusion

Fast-food restaurants fall within a unique service industry and thus, largely embrace innovative solutions to streamline operations. The sandwich giant, Subway, has particularly harnessed the advantage of innovation to stay ahead of its rival companies. The company plans on introducing slicers to improve productivity while cutting costs. However, a comprehensive SWOT analysis revealed that the threats and weaknesses of introducing the new equipment within the premises outweigh the strengths and opportunities. Integrating the Lean and Six Sigma approach can improve Subways quality performance and effectively save on the cost by increasing customer satisfaction and employee engagement. Therefore, management should implement the Lean and Six Sigma method in Subways production process that would improve the production quality by reducing costs.

References

Ahmed, S. (2019). Integrating DMAIC approach of Lean Six Sigma and theory of constraints toward quality improvement in healthcare. Reviews on Environmental Health, 34(4), 427-434. Web.

Brown, L.G., Ebrahim-Zadeh, S.D., Hoover, E.R., DiPrete, L., Matis, B., Viveiros, B., Irving, D.J., Copeland, D., Nicholas, D., Hedeen, N. and Tuttle, J. (2021). Restaurant date-marking practices concerning ready-to-eat food requiring time and temperature control for safety. Foodborne Pathogens and Disease, 18(11), 798-804. Web.

Ganatra, V., Utama, A.G.S., Puran, P., Pandey, R., Qi, L.M., Kee, D.M.H., Ling, I.S.A., Sien, L.H., Tien, T.J., Ramadhan, H.S. and Sin, L.G. (2021). A study of Subway marketing 4P strategy. Asia Pacific Journal of Management and Education (APJME), 4(2), 47-64. Web.

Handayani, B. R., Widyastuti, S., Hidayati, A., Werdiningsih, W., & Rahayu, T. I. (2021). The use of a very small business-scale oven to enhance quality of readyto-eat Beef Jerky. Conference Series: Earth and Environmental Science, 712(1), 1-6. Web.

Ishak, A., Siregar, K., & Naibaho, H. (2019). Quality control with Six Sigma DMAIC and grey failure mode effect analysis (FMEA): A review. In IOP Conference Series: Materials Science and Engineering, 505(1). Web.

Li, B., Zhong, Y., Zhang, T., & Hua, N. (2021). Transcending the COVID-19 crisis: Business resilience and innovation of the restaurant industry in China. Journal of Hospitality and Tourism Management, 49, 44-53. Web.

Maze, J. (2022). Subway is adding a new weapon as it fends off competitors: Slicers. Restaurant Business. Web.

Petropoulos, G. (2021). Automation, COVID-19, and labor markets. Asian Development Bank Institute, 1-19. Web.

Senin, N. A., Ramli, N., & Zalilah, M. N. A. T. (2019). A design of automatic meat slicing machine. Journal of Engineering and Technology, 112-120. Web.

Widodo, A., & Soediantono, D. (2022). Benefits of the Six Sigma Method (DMAIC) and implementation suggestion in the defense industry: A literature review. International Journal of Social and Management Studies, 3(3), 1-12. Web.

Yun, J. J., Park, K., Gaudio, G. D., & Corte, V. D. (2020). Open innovation ecosystems of restaurants: Geographical economics of successful restaurants from three cities. European Planning Studies, 28(12), 2348-2367. Web.

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