February 26, 2018

Why Subway Isn't Failing, According to Subway

Subway built a system that's marginally profitable for franchisees and are paying the price

1 comment:

Anonymous said...

The most interesting part of that article is 44,000 locations only serving 7.5 million customers a day; if my math is right that is slightly less than 200 customers per day per location on average. Probably have a lot of underperforming locations, closing some can only help.

They are at a cross road in their business being a mature restaurant company, the next five years will be critical for them. They still have strong brand recognition and could do well.

At least they sell drinks at full margin unlike are brilliant OPNAD & Marketing folks that have 45% food cost items and $1 drinks.