Abstract

The case is about the legal dilemma Subway faced on the status of its bread in Ireland. The Supreme Court of Ireland had passed the judgement that Subway’s bread could not be categorized as staple food because of its high sugar content and, so, it would not be eligible for VAT tax exemption. The case deals with the legal battle between the tax authorities of Ireland and the Subway franchise which had filed the case for tax exemption. A brief history of the company along with details of its operations in Ireland are put forth in the case. The case next discusses the court verdict and the opinions of the experts and dieticians on the sugar content in Subway’s breads. The case ends with the future plans of Subway to deal with the verdict of the court and to continue with its recipe for the baking of its signature breads. It remains to be seen whether consumers will continue to flock to Subway’s stores to indulge in its sandwiches despite the court ruling.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the concepts of product decisions for international markets
• Understand the concepts of product standardization vs. adaptation in international markets
• Understand the importance of the legal environment in international business.

Keywords

Cultural and Legal environment of Business; Subway Bread Issue; Jaffa Cakes; Bookfinders