Posted on 05/06/2016 6:31:27 AM PDT by JoeProBono
Subway Revenue Drops as It Closes Hundreds of U.S. Restaurants
Subway Restaurants revenue fell in 2015 for the second straight year, a sign one of the fast-food industry’s stalwarts is losing ground to newer chains.
Revenue dropped 4.3 percent to $1.11 billion last year, according to the company’s Franchise Disclosure Document, which was filed with the Minnesota Department of Commerce last week. Subway owner Doctor’s Associates Inc. also is slowing its pace of new restaurant openings and shuttering hundreds of underperforming locations.
Fast-casual chains such as Panera Bread Co. have been taking share from Subway restaurants in the U.S., bringing its once-torrid growth phase to a halt. Founded in 1965 by Fred DeLuca and Peter Buck, the submarine sandwich shop had expanded quickly over the decades by aggressively franchising.
It now has more than 44,000 locations worldwide. Lately, though, Subway has struggled to keep pace with more modern rivals, which cater to millennials with items such as quinoa salads and Greek yogurt.
While Subway opened 911 new locations in the United States last year, it closed 877. That means it netted just 34 restaurants in 2015, a slowdown from 313 the year before. Subway had a total of 27,129 domestically at the end of 2015, all of them franchised.
Net income declined 87 percent to $1.15 million from $9.19 million in 2014.
Last year, the company said it was putting new store development on the back burner while it focused on making its restaurants more profitable. “That hasn’t changed,” Subway said in a statement on Tuesday.
“The outlook for 2016 is more optimistic based on the terrific feedback we received from our guests about our culinary improvements and exciting new menu offerings,” the company said.
Still, Subway is feeling more pressure from traditional fast-food chains. McDonald’s is luring back customers with an all-day breakfast push and aggressive discounts, such as offering two sandwiches for $5. To fight back, Subway just started promoting a buy-one-get-one-free sandwich deal in the morning during May.
The Milford, Connecticut-based chain had a tumultuous 2015. DeLuca, the co-founder and chief executive officer, died in September, putting the company in the hands of his sister, Suzanne Greco. In November, former spokesman Jared Fogle was sentenced to more than 15 years in prison after pleading guilty to child-pornography charges, capping a scandal that had rocked the sandwich chain for months.
In December, the company named former Coca-Cola Co. veteran Joseph Tripodi as its global chief marketing officer, a sign it’s looking to revamp its image. Subway’s longtime “Eat Fresh” slogan lost cachet in an industry where most every chain now touts its ingredients.
Boy Freepers love to have an easy piñata set in from of them
Subway is everything people here complain about
But for those of us who are very busy it fills a need of expediency and the Italian variety subs are ok
And the cheese bread
But the processed meats do suck
Those of us who work all the time on the go freeping at red lights like me get tired of fast food
Plus it’s a regional thing like pizza
The northeast or Chicago and Milwaukee there are delis everywhere
Not so elsewhere
Try Montana or Mississippi
For chain subs I agree Firehouse are excellent
And Publix does well too
I get the 12” when it’s on sale and then just move over the meat and cheese to one side. It’s a smaller sandwich but it isn’t all bread.
Maybe they should be more than 100 yards apart.
“Those of us who work all the time on the go freeping at red lights like me get tired of fast food”
The light is green.
Just sayin” ;)
“Try putting some meat in the sub.”
Winner. I won’t eat there because the sandwich is skimpy to say the least. Easier and cheaper to buy a pre made from Starbucks.
I eat at Subway frequently. It’s cheap, and isn’t horrible. Unlike McDonalds or BK, the food is consistent from one location to the next. Togo’s is better tho.
Their cheese sub is a joke. Where's the cheese?
Mmmmm Tubby’s.
I used to go to Tubby’s #1 at Harper and 13 mile.
Pizza steak and cheese.
Every time I’m home I buy several and freeze them.
This.
They’re another one that hasn’t changed with the times. They used to be a breath of fresh air in the fastfood market, but they’re still basically the same restaurant they were 20 years ago, and the field has changed.
Honey oat footlong chicken bacon ranch toasted with shredded cheese.
Lettuce, tomato, onion, mayo, ranch, oil, vinegar, and oregano.
It ticks me off if the bread is crunchy stale on the ends.
After I found Jersey Mikes , I’ve never been back to subway. Sub-par subs, and crappy service, without a smile.
You’re correct.
I’m not a Publix shopper as I think they’re too pricey with groceries.
However, they make dang goods subs at a VERY fair price.
one of the cheapest franchises to get into.
That’s why they are everywhere.
or were everywhere...
I visited Subway once and I think it was in 1996 .Plus I just can’t get that picture of an employee drying her socks in their oven .
I quit after the Food Babe expose about rubber yoga mat type material used as filler in their bread. Subway claimed they took it out after a couple months but,...fool me once...
A study showed their sandwiches DO cause pedophilia.
Their bread, to keep it soft, has something like plastic or wood pulp in it, can’t remember. Bread is not supposed to have the consistency of cotton.
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