Franchise Success: Domino’s vs. Subway in 2025

In the competitive landscape of the fast-food industry, franchises like Domino’s and Subway have carved out significant niches. As of 2025, both brands have evolved their business models and strategies to adapt to changing consumer preferences, economic conditions, and market challenges. This article will explore the franchise success of Domino’s and Subway, focusing on their business models, profitability, and the challenges they face in the current market.

Overview of the Brands

Domino’s

Domino’s, primarily known for its pizza, has established itself as a leader in the quick-service restaurant (QSR) sector. The brand has focused on technology and innovation, which has played a crucial role in its growth. With a strong emphasis on delivery and carryout options, Domino’s has invested heavily in its online ordering system and mobile app, making it easier for customers to place orders. In addition, the company has expanded its menu to include a variety of side items, desserts, and beverages, appealing to a wider audience.

Subway

Subway, on the other hand, has built its reputation on fresh ingredients and customization. The brand offers a range of sandwiches, salads, and wraps that cater to health-conscious consumers. In recent years, Subway has focused on revamping its menu to include more nutritious options, responding to the growing demand for healthier fast-food choices. The brand has also embraced technology, introducing mobile ordering and delivery services to enhance customer convenience.

Business Models

Domino’s Business Model

Domino’s operates primarily on a franchise model, which allows for rapid expansion while minimizing capital expenditure. Franchisees pay an initial fee and ongoing royalties based on sales, which provides a steady revenue stream for the company. The brand’s focus on technology and data analytics has enabled it to optimize its supply chain and improve operational efficiency. Additionally, Domino’s has implemented a successful loyalty program that incentivizes repeat business, further enhancing customer retention.

Subway Business Model

Subway also utilizes a franchise model, but its approach emphasizes the flexibility of store formats. Franchisees can open traditional locations, kiosks, or even mobile units, allowing them to adapt to various market conditions. Subway’s commitment to fresh ingredients and customization has set it apart from other fast-food chains, attracting a loyal customer base. The brand has also diversified its product offerings to include breakfast items and plant-based options, catering to evolving consumer preferences.

Profitability

Domino’s Profitability

As of 2025, Domino’s continues to report strong financial performance, with consistent growth in both sales and profits. The company’s investment in technology has paid off, resulting in increased efficiency and reduced delivery times. Furthermore, Domino’s has successfully navigated the challenges posed by the COVID-19 pandemic, with a significant shift towards digital ordering and contactless delivery options. The brand’s ability to adapt quickly to changing consumer behavior has solidified its position as a market leader.

Subway Profitability

Subway has faced challenges in recent years, with fluctuating sales and a need to revitalize its brand image. However, the company has made strides in improving its profitability by focusing on menu innovation and enhancing the customer experience. The introduction of new products, such as plant-based proteins and healthier options, has attracted a broader audience. Additionally, Subway’s efforts to streamline operations and reduce costs have contributed to improved financial performance, although it still lags behind competitors like Domino’s in overall profitability.

Market Challenges

Challenges for Domino’s

Despite its success, Domino’s faces several challenges in the market. Increased competition from other pizza chains and fast-casual restaurants has intensified pressure on pricing and customer loyalty. Additionally, rising food costs and labor shortages have posed operational challenges, requiring the brand to find innovative solutions to maintain profitability. Moreover, the growing trend towards healthier eating may necessitate further menu adaptations to meet consumer demands.

Challenges for Subway

Subway’s challenges are more pronounced, as the brand has struggled to maintain relevance in a rapidly changing market. The rise of fast-casual dining and increased competition from other sandwich chains have impacted Subway’s sales. Moreover, the brand has faced criticism regarding the quality of its ingredients and the healthiness of its offerings. To combat these challenges, Subway has invested in marketing campaigns to promote its fresh ingredients and healthier options, but the effectiveness of these efforts remains to be seen.

Consumer Preferences and Trends

Consumer preferences are shifting towards healthier, more sustainable food options, which has implications for both Domino’s and Subway. Domino’s has responded by expanding its menu to include more diverse offerings, while Subway has focused on promoting its fresh ingredients and customizable options. The trend towards plant-based diets has also influenced menu development, with both brands introducing new items to cater to this growing market segment.

Conclusion

In summary, both Domino’s and Subway have established themselves as prominent players in the fast-food industry by leveraging their unique business models and adapting to market trends. While Domino’s has enjoyed strong profitability and brand loyalty, Subway is working to revitalize its image and improve its financial performance. As the fast-food landscape continues to evolve, both brands will need to remain agile and responsive to consumer preferences to ensure long-term success. The competition between these two franchises highlights the importance of innovation, customer experience, and adaptability in the ever-changing food industry.