This case tests the candidate's ability to diagnose profitability issues through financial analysis and cost structure decomposition. The case progresses from high-level strategic analysis (examining revenue and profit margins across competitors) to operational problem-solving (identifying non-food variable costs as the culprit) and finally to quantitative modeling (calculating savings from a napkin dispensing machine). The inclusion of optional estimations (number of Subway restaurants and sit-in customers per location) allows flexibility in case length and tests market sizing capabilities.