Subway has called an emergency meeting with the franchisees who run the company’s 19,000 restaurants amid declining sales and profits.
The sandwich chain – with more locations than McDonald’s, but a much lower turnover – has announced that it wants to attract more customers with, for example, offers and new products.
All fast-food chains have suffered in the past year as inflation-weary Americans have eaten much less. McDonald’s, Burger King and Wendy’s have all launched $5 meal deals.
But Subway has been hit particularly hard, with sales down 9 percent amid complaints about huge price hikes and tired stores. And it has yet to roll out a competitive national offering like rivals.
“Maybe Subway is calling an emergency meeting because no one wants to pay $12 for a mediocre sandwich they can make at home for $3,” wrote Douglas Boneparth, president of Bone Fide Wealth on X.
“I paid almost $20 for a footlong with chips and a drink at Subway the other day. Cheaper to go to Publix and the sandwich is better,” one consumer wrote in agreement.
Subway Gas called its franchisees for a last-minute meeting to discuss sales and traffic
Consumers complain about Subway sandwich price increases
Others lamented the sharp rise in prices in recent years, while others complained about the quality.
“I’m old enough to remember the glory days of the $5 footlong. And glorious they were,” one person commented on Boneparth’s post.
“You mean you don’t want paper-thin “meat” that’s been soaking in water for who knows how long and bread that’s part yoga mat and costs $12-15?” asked another.
In an invitation sent to local store owners, the company said it would outline plans to win back customers and increase its faltering market share.
“This conference is essential,” read the invitation, which The Post saw.
‘Come and see us… to discuss the state of the industry and get an update on our activities.’
The invitation sent out last week reminds franchisees of the promotional offers being tested.
Some franchisees have criticised the ‘crazy’ discounts given when store visits decline.
“They’re handing out crazy coupons,” they told the Post.
‘Our gross turnover is not even at the 2012 level, while profits then were five times as high as they are now.’
“They charge $6.99 for each sandwich when it’s $11 on the menu,” they complained about a recent promotion.
Subway N doesn’t release overall sales figures, but sales in its eastern U.S. region of about 1,000 Subway cars fell 8.7 percent between June 25 and July 16 compared to a year earlier. the New York Post reported.
A spokesperson for the chain denied that the conference was an emergency, stressing instead that “we consistently and proactively communicate with our franchisees to share business updates and plans.”
Some franchisees claim the ‘crazy’ promotions are not good for their business
McDonald’s introduced a $5 meal deal earlier this summer in an effort to provide value
All Subway locations are franchises, with the company receiving an 8 percent royalty from the owners.
In April, the company was sold for $9 billion to Roark Capital, which also owns Dunkin Donuts, Arby’s and Baskin Robins.
According to sources, the company is now facing high interest payments on its debt and cannot afford a drop in earnings.
Subway joins a number of fast food and fast casual chains promoting value-added deals in an effort to boost sales among discerning consumers after years of price increases.
Wendy’s, Burger KingStarbucks, Popeyes and Taco Bell have also recently launched deals, all of which have recently rated by experts for value.