From the article -- <<<<“We sent a letter to the leadership of Subway on August 14 outlining our six biggest issues, and the first thing we addressed was the discounting of food. What it’s doing is killing our bottom line as franchisees and making it very difficult to operate at a sustainable profit,” said Bill Mathis, the chairperson for the NAASF, which says it represents 10,000 of the 20,000-plus Subway restaurants in North America. The $6.99 footlong promotion by Subway, which ran from August 26 to September 8, was the latest in a series of corporate initiatives that drew criticism from franchisees who feel their input is being ignored in favor of aggressive pricing and other troublesome strategies.>>>>
SOUND FAMILIAR???? Where are you OPNAD??? NFLA??? NOA??
John Gordon, principal of Pacific Management Consulting Group, which provides analysis on chain restaurant earnings said. “I’m pretty sure they got some more traffic with their promotions, but traffic and profit are two totally different things. “What we’ve found is that discounting over a long period of time degrades the store value and brings in customers who have no loyalty to you because after they’ve taken your product, they’re going to look down the street to the next brand that offers an extreme discount,” Gordon said.
McD is going to have to get some skin in the game (participate monetarily) if they want our continued participation in propping up their sales to our detriment and the expense of our bottom lines and our cash flows
Independent franchisee associations matter. They banded together and refused to honor a money losing promo. The $6.99 applied to even the most premium subs, with double meat and cheese etc, not just a basic sub, like it should have done.
6 comments:
Meanwhile , the feckless NFLA, firmly in the grasp of McDonalds Corp, is silent while we suffer the same fate as Subway.
From the article --
<<<<“We sent a letter to the leadership of Subway on August 14 outlining our six biggest issues, and the first thing we addressed was the discounting of food. What it’s doing is killing our bottom line as franchisees and making it very difficult to operate at a sustainable profit,” said Bill Mathis, the chairperson for the NAASF, which says it represents 10,000 of the 20,000-plus Subway restaurants in North America.
The $6.99 footlong promotion by Subway, which ran from August 26 to September 8, was the latest in a series of corporate initiatives that drew criticism from franchisees who feel their input is being ignored in favor of aggressive pricing and other troublesome strategies.>>>>
SOUND FAMILIAR???? Where are you OPNAD??? NFLA??? NOA??
John Gordon, principal of Pacific Management Consulting Group, which provides analysis on chain restaurant earnings said. “I’m pretty sure they got some more traffic with their promotions, but traffic and profit are two totally different things.
“What we’ve found is that discounting over a long period of time degrades the store value and brings in customers who have no loyalty to you because after they’ve taken your product, they’re going to look down the street to the next brand that offers an extreme discount,” Gordon said.
DUHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
This story looks far too familiar to the situation with Mcdonalds
McD is going to have to get some skin in the game (participate monetarily) if they want our continued participation in propping up their sales to our detriment and the expense of our bottom lines and our cash flows
Independent franchisee associations matter. They banded together and refused to honor a money losing promo. The $6.99 applied to even the most premium subs, with double meat and cheese etc, not just a basic sub, like it should have done.
Post a Comment