Subway used to be one of the most popular places to get a fresh sandwich but less people choose a meal from the franchise nowadays. Due to decreasing sales the sandwich chain had to close more than 900 stores in the US in 2017 which is three times as many as in 2016.
With over one third of the US stores not being profitable, multiple franchisees think the chain is facing a lot more closures in 2018. According to one franchisee the number of stores to be closed by the end of this year will be over one thousand.
Subway is trying to come up with a solution for the decrease in sales. The chain is remodeling store locations throughout the US but according to some franchisees the new game plan is not working.
“I can tell you that a large majority of the stores around here are for sale, even one of ours. But no one is buying because of the high cost of the remodel coming up. Even the owners know that Subway is dying,” said a Subway manager.
According to customers, franchisees, and workers the drop in sales has everything to do with the quality and freshness of the chain’s food. One franchisee complained about the fact that they only get two deliveries of fresh produce a week. “By the end of the week … the lettuce is just a massive problem,” she said.
Earlier this year Subway also had to deal with the allegation that their chicken consists of only 50% chicken and 50% soy. But CEO Suzanne Greco was quick to deny that claim. “The allegation that our chicken is only 50% chicken is 100% wrong,” she said in a statement.
Yet, these problems and allegations are not the reason Subway’s sales have dropped. “These are old issues, and there is no evidence that any one of these have had a long-term impact on sales,” a representative said.