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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 wasnt the best time for Subway sandwich shops the worlds largest restaurant chain to stumble.
Founder and owner Fred DeLuca the driving force and vision behind the Milford, Conn., chains 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 chains 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?
To: 2ndDivisionVet
Jarad been putting on weight again?
2
posted on
08/29/2013 3:06:36 PM PDT
by
DManA
To: 2ndDivisionVet
I love $5 foot longs. 5 days a week.
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)
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?)
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
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
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)
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?.)
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)
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?.)
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.)
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")
To: Night Hides Not
Best deal the Meatball Subs
14
posted on
08/29/2013 3:18:19 PM PDT
by
Hojczyk
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
To: All
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")
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?.)
To: 2ndDivisionVet
McDonalds has been very aggressive with its Dollar Menu, I wonder if that’s digging into sales.
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?
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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