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Going off track: Subway franchisees decry discounts as hospital-bound CEO struggles to right course
The New York Post ^ | August 29, 2013 | Josh Kosman

Posted on 08/29/2013 3:04:09 PM PDT by 2ndDivisionVet

This summer wasn’t the best time for Subway sandwich shops — the world’s largest restaurant chain — to stumble.

Founder and owner Fred DeLuca — the driving force and vision behind the Milford, Conn., chain’s growth into a 40,000-unit chain — is in a Connecticut hospital getting treatment for leukemia and, he has told associates, is awaiting a bone marrow transplant.

Still, the 65-year-old billionaire businessman is directing the chain’s operations from a hospital bed.

The hands-on owner is still in daily contact with regional managers trying to find new ways to reverse the sales decline, a Subway development agent told The Post.

Same-store sales at the closely held company dipped 2 percent last month and are down over the last several months — the first declines in recent memory, sources close to the company tell The Post.

Faced with the business setback, DeLuca is not letting his hospital stay stop him from continuing a recent discount marketing blitz aimed at igniting revenue growth, the sources said.

DeLuca in June launched a $4 lunch special — a six-inch sub, beverage and chips — and plans the re-introduction next month of its popular $5 footlong campaign....

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: Connecticut; US: Florida; US: New York
KEYWORDS: economy; employment; fastfood; food; recession; subway; unemployment
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Why would a company with such relatively inexpensive products be having trouble during the great Obama recovery?
1 posted on 08/29/2013 3:04:09 PM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

Jarad been putting on weight again?


2 posted on 08/29/2013 3:06:36 PM PDT by DManA
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To: 2ndDivisionVet

I love $5 foot longs. 5 days a week.


3 posted on 08/29/2013 3:07:29 PM PDT by LowTaxesEqualsProsperity
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To: 2ndDivisionVet

Subway is way over priced...I bought from that joint about 5 years ago and felt totally ripped off by what I got for the prices.

Never been back.

BTW, most franchises are now owned by foreigners and Muslims.


4 posted on 08/29/2013 3:08:23 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 2ndDivisionVet
I'll buy a foot-long roast beef on wheat subway every day of the week for $5.00 a pop.

I will buy ZERO foot-long roast beef on wheat subways every day of the week for $7.00 a pop.

No more complicated than that.

5 posted on 08/29/2013 3:08:37 PM PDT by E. Pluribus Unum (Who knew that one day professional wrestling would be less fake than professional journalism?)
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To: 2ndDivisionVet
Why would a company with such relatively inexpensive products be having trouble during the great Obama recovery?

Because even inexpensive is out of reach for many people. Not everyone on hard times is eligible for food stamps, or other programs.
6 posted on 08/29/2013 3:10:02 PM PDT by Nepeta
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To: 2ndDivisionVet
"Margins at a typical store, where revenues are about $400,000 a year, are now between 8 percent and 10 percent, the franchisee said."

Sheesh! How would you like to be a restaurant owner and only clear 32K a year before taxes?

7 posted on 08/29/2013 3:11:11 PM PDT by SeeSharp
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To: 2ndDivisionVet

because the franchisees think their stores margins should somehow be the highest in the industry, rather than the average, which is 10%.


8 posted on 08/29/2013 3:12:24 PM PDT by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: E. Pluribus Unum; LowTaxesEqualsProsperity

Try the always $5 Cold Cut sandwich, toasted, with added bacon.


9 posted on 08/29/2013 3:13:45 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: SeeSharp
How would you like to be a restaurant owner and only clear 32K a year before taxes?

Yeah, I feel real sorry for all the Muslims who own these slop joint franchises.

10 posted on 08/29/2013 3:14:14 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Nepeta
A Subway owner on a recent John Stossel show said many of his customers came in with exact change!
11 posted on 08/29/2013 3:16:03 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: 2ndDivisionVet

It’s my fault...I haven’t eaten (almost) any bread since last October. That means no more Subway sandwiches.


12 posted on 08/29/2013 3:16:08 PM PDT by Night Hides Not (The Tea Party was the earthquake, and Chick Fil A the tsunami...100's of aftershocks to come.)
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To: 2ndDivisionVet
Give me my Jersey Mike's (#13 Mike's Way). Subway sucks at any price imo. I grew up in the hoagie belt (central PA). What Subway does isn't subs.


13 posted on 08/29/2013 3:17:06 PM PDT by FlJoePa ("Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good")
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To: Night Hides Not

Best deal the Meatball Subs


14 posted on 08/29/2013 3:18:19 PM PDT by Hojczyk
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To: 2ndDivisionVet
The franchisers around here cut corners. They don't put enough vegetables, they've substituted cheaper ingredients in some cases, and their bread isn't wholesome enough.

Around here there's a DiBellas. They have fantastic fresh bread, ingredients are top-notch and fresh, everything is cooked or baked there, and for $7 I can get a medium sub that's two meals.

15 posted on 08/29/2013 3:18:43 PM PDT by grania
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To: All


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16 posted on 08/29/2013 3:18:59 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: dragnet2; SeeSharp

I’ve met more than a dozen Subway owners and none seemed like Muslims to me. Where are you seeing this?


17 posted on 08/29/2013 3:19:22 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: 2ndDivisionVet

McDonalds has been very aggressive with its Dollar Menu, I wonder if that’s digging into sales.


18 posted on 08/29/2013 3:20:20 PM PDT by colorado tanker
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To: SeeSharp
Sheesh! How would you like to be a restaurant owner and only clear 32K a year before taxes?

Or worse, only clear 32K before your employees strike to get their wages doubled?

19 posted on 08/29/2013 3:20:22 PM PDT by Vince Ferrer
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To: dragnet2
most franchises are now owned by foreigners and Muslims.

What country are your reporting from?

20 posted on 08/29/2013 3:20:31 PM PDT by nascarnation (Democrats control the Presidency, Senate, and Media. It's an uphill climb....)
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To: 2ndDivisionVet

They reduced the meat per sub.

WaWa


21 posted on 08/29/2013 3:20:41 PM PDT by VeniVidiVici (Play the 'Knockout Game' with someone owning a 9mm and you get what you deserve)
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To: FlJoePa

Ever had Lenny’s or Quiznos?


22 posted on 08/29/2013 3:21:53 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: dragnet2; E. Pluribus Unum; LowTaxesEqualsProsperity

I love subway, but a footlong and large drink can be between $8 and $10. This is still less than was it was 20 years ago in real terms.


23 posted on 08/29/2013 3:22:18 PM PDT by Perdogg (Cruz-Paul 2016)
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To: 2ndDivisionVet

Are you kidding?

How do ya think owns most of the hotel chains, the jackball franchises, chicken lickens, and 711 greedymarts etc?

You need to get out more.


24 posted on 08/29/2013 3:23:05 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: colorado tanker

Del Taco has a .50, .75 and $1 menu.


25 posted on 08/29/2013 3:24:29 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: 2ndDivisionVet

No, and bleh...the only other chain I visit is Jimmy Johns, which is ok, but over priced imo.


26 posted on 08/29/2013 3:26:49 PM PDT by FlJoePa ("Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good")
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To: dragnet2

Yeah, but they usually lease out that space. The Subway up the road a the Shell station changed to an independent guy. Nice young guy, but subs aren’t any good. Bread sucks.


27 posted on 08/29/2013 3:28:41 PM PDT by FlJoePa ("Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good")
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To: dragnet2

Some of the motel chains (especially the inexpensive one) and many of the convenience stores are owned by Indian Hindus, not Muslims. They’re not the same thing at all. Or do you just assume that all foreigners are Muslim?


28 posted on 08/29/2013 3:28:48 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: 2ndDivisionVet
$4.00?Gordon Ramsay photo: 073.png 073.png
29 posted on 08/29/2013 3:29:04 PM PDT by tumblindice (America's founding fathers: All armed conservatives.)
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To: FlJoePa

there’s a Jimmy Johns in a convenience store across the street from the senior center here. I’ve never tried it, but now that I know it’s a chain I might give it a shot.


30 posted on 08/29/2013 3:30:22 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: VeniVidiVici

Haven’t noticed that here in Texas.


31 posted on 08/29/2013 3:31:10 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: dragnet2

BTW, most franchises are now owned by foreigners and Muslims.”

I don’t know who owns any of the three that are relatively close to my area. I do know that all their employees are Mexicans and on my last two visits at two different ones I was the only one there who spoke English as their first language. Price and quality are not an issue as far as I’m concerned and at least you can watch your sandwich being prepared. Not speaking English and the possibility that the employees are not American citizens are deal breakers.


32 posted on 08/29/2013 3:33:15 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: 2ndDivisionVet

After their George Bush slam in their advertising in Germany and their slam against homeschoolers, I will never eat at a Subway.


33 posted on 08/29/2013 3:34:48 PM PDT by jps098
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To: 2ndDivisionVet

Jimmy Johns are good, but the subs are much smaller than Jersey Mikes for around the same price. They do have an “unwich” where they wrap the sub in lettuce leaves for those on a low carb diet. If you like Italian subs, get the “Vito”. They do have a good vinaigrette.


34 posted on 08/29/2013 3:35:06 PM PDT by FlJoePa ("Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good")
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To: nascarnation
Listen, if they dared list the names of all the franchise owners from greedy marts, Jackbox, McDonalds, gas stations, and places like Subway, you think you were in Afgagastan...

Most of these places are not owned by mom and pop from Kansas..They cost big bucks....These foreigners come into the U.S. and buy 5, 10 or more of these franchises...Then they generally hire their own to run them so they can avoid labor laws, workers comp etc...

This is no secret.


35 posted on 08/29/2013 3:36:03 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: FlJoePa

There’s a “New York Sub Hub” here that I think is about as good as Jersey Mike’s but 1/3 cheaper.


36 posted on 08/29/2013 3:37:35 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: dragnet2
the jackball franchises, chicken lickens

Sorry...no such franchises in America

37 posted on 08/29/2013 3:37:54 PM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: 2ndDivisionVet

Is it a chain 2nd? If not, where at?


38 posted on 08/29/2013 3:39:17 PM PDT by FlJoePa ("Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good")
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To: dennisw

39 posted on 08/29/2013 3:40:56 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Grams A

Almost all “back of the house” people in restaurants are now Mexican or Central American, whether it’s Subway, McDonalds on up to Ruth’s Chris, gourmet 5 star or whatever. Been that way for at least 20 years now. If you’re going to boycott restaurants due to that, you’ll be eating a lot of home-cooked meals.


40 posted on 08/29/2013 3:41:12 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: dragnet2; dennisw

Those prices are in rupees (Rs. 595) so that store is probably in India , not here!


41 posted on 08/29/2013 3:43:27 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: Night Hides Not

They have wraps now too, and flatbread if you want to cheat just a little.


42 posted on 08/29/2013 3:44:52 PM PDT by Boogieman
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To: FlJoePa

Just a small chain here in North Texas, I think. Denton is the one I go to, but they have other locations in Corinth, Lake Dallas, Dallas and elsewhere.


43 posted on 08/29/2013 3:46:35 PM PDT by 2ndDivisionVet (I aim to raise a million plus for Gov. Palin. What'll you do?.)
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To: 2ndDivisionVet

It probably depends on where you live. Around me, he would be about right, because every Subway is owned by either Pakistani Muslims or Hindus. Though, when I visit Arizona, I have only seen white-owned Subways.


44 posted on 08/29/2013 3:47:41 PM PDT by Boogieman
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To: 2ndDivisionVet

And if you could see the back of the house in most these places, that’s exactly what you’d be doing.

Works well for me BTW!

Bon appetit!


45 posted on 08/29/2013 3:47:47 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 2ndDivisionVet

Uh, the point is when your fatcorps like Pizza Hut open up in Muslimville, who do ya think they’ll pander their franchises to here? You rub my back.......

Come on...


46 posted on 08/29/2013 3:50:03 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 2ndDivisionVet

If you’re going to boycott restaurants due to that, you’ll be eating a lot of home-cooked meals.”

And we do eat most of our meals at home.

Chick-filet-A at the end of our street hires a lot of great high school students who work in the afternoons and evenings and older people who work during the day. Have yet to see a Mexican among them. Our local Poppa John’s has no Mexican employees, the local Carl’s Jr. and the DQ seem to hire only Blacks. That still leaves us with a lot of choices in addition to food from Grandma’s kitchen.


47 posted on 08/29/2013 3:50:33 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: 2ndDivisionVet

Ever since they put baloney on the BMT, I have never been back.


48 posted on 08/29/2013 3:50:56 PM PDT by not2be4gotten.com
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To: Grams A

You’re in Texas?

Sure I believe all that...lol


49 posted on 08/29/2013 3:55:28 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: FlJoePa

Agree on Jersey Mike’s and Jimmy Johns. They’re my two favorite chains. Jimmy Johns has especially good white bread. I’m also lucky to have a little Italian deli a few blocks away that’s got great sandwiches (and great everything else too).


50 posted on 08/29/2013 3:56:02 PM PDT by Yardstick
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