Subway Will Close Over 500 U.S. Stores This Year

[Sherman A1]

https://www.msn.com/en-us/foodanddrink/restaurantsandnews/subway-will-close-over-500-us-stores-this-year/ar-AAwkUki

With its commitment to customizability and the catchy $5 footlong jingle, it’s no wonder Subway is the most ubiquitous food chain in the world. In fact, its nearly 26,000 nationwide locations even top Mickey D’s by more than 10,000.

But it might be time to make one last mad dash to your neighborhood sandwich shop. Due to recent underperformance in sales compared to other fast food giants, Subway recently announced that it will be closing 500 U.S.stores this year. “We want to be sure that we have the best location. We focused in the past on restaurant count. We’re focused now on strengthening market share,” the company’s CEO, Suzanne Greco, told Bloomberg.

In the past, Subway took pride in its overpowering amount of national and international franchises. Many of the restaurants are small and simple, featuring only the tools and food necessary to slap together a sandwich. But the company’s competition comes in many forms. Supermarkets and gas stations offering grab-and-go sandwiches are on the rise. Plus, restaurants like McDonald’s are rolling out new menu items and touch-screen ordering tools. In response, Subway is leaning on its loyalty program, which offers discounts, specials, and freebies for U.S. and Canadian diners.

Along with upgrading their own technology (touch-screen ordering is now available in select stores), Subway executives decided to rethink their approach in terms of the number of storefronts. “Store count isn’t everything. It’s about growing the business,” Greco explained, adding that the real opportunity for expansion is abroad. As the U.S. stores close, Subway aims to shift its focus to its global markets. It’s planning to open a thousand new locations beyond North America and focus on locations in the U.K., Germany, South Korea, India, China, and Mexico.

[Thrill]

1. Pocketing all that money in tax cuts. Who needs all those locations now?

[BigmanPigman]

2. Yep, now that they have their money they will

take their company overseas. Seems like it is a typical business maneuver.

[Crutchez_CuiBono]

5. We don't need no stinkin jobs.....

tax cuts....working like a charm for the populace who paid for them.

[mythology]

14. A poorly thought out tax cut isn't enough to keep that many stores open

They have 10,000 more than McDonald's. It's not sustainable given the way things are going. There is more competition among the step above base level fast food options. Chipotle, other sub chains, etc.

[A HERETIC I AM]

21. Exactly

They over expanded like there was no tomorrow. Way too many stores

[Blue_Adept]

66. I get the need to attack the foolish tax cuts

But you really have to think and realize that this does make business sense. The dynamics of many areas change and stores that once performed well simply don't anymore, sometimes because of too much increased competition or you have an area where there's a drop off in the number of people in the area. It makes zero sense to keep open a store that's just losing money. I'd even hazard a guess that a good percentage of these 500 will re-open elsewhere in the same period in better locations.

[RockRaven]

3. Honest Subway Slogan:

Mostly less gross than other fast food. Mostly.

[romanic]

4. I mean...

do we really need a Subway within 500 feet of each other (such as the case in my neighborhood)? They're more numerous than Mcdonalds and 711 combined.

[Raine1967]

6. I haven't gone to a subway in a long time.

We have local places that make a sun/Hero/hoagie even better for slightly more.

and when we travel from VA to NY I seek out WaWa. Wawa had the touch screen a while ago. They have amazing bread.

When I lived in Atlanta (about 10 years ago) I preferred Jersey Mike's over Subway.

I love a good Italian sub/hero/hoagie -- and I have not loved subway for a while.

[crazycatlady]

40. Wawa is AMAZING

While I'm not a sub person I miss their coffee. I also miss cheap full serve gas.

[Freddie]

57. We got a Jersey Mike's here

1000x better than Subway! Yes a little more $ but the quality of ingredients and ease of ordering/paying via app is more than worth it. Haven't been to Subway since Jersey Mike's opened.

[DesertRat]

7. Bummer. I had lunch at Subway today

[NightWatcher]

8. People have more sandwich options than before

And subway only thrives when they're the only game around.

[MountCleaners]

18. Where I live...

In Chicago, there are other sub sandwich chains - local chains - that are comparable or even better. So why bother?

[OnDoutside]

9. No surprise, Subway doesn't have the Jumbo Breakfast Roll....

[madaboutharry]

10. I have been to a Subway twice,

both times because the people I was with wanted to eat there. I found the whole concept kind of gross and didn't think the prep area was kept all that clean. The whole experience was unappetizing.

[TlalocW]

11. I'm kind of like Fletch in his love of sandwiches

Subway, Planet Sub, Firehouse Subs (my fave), no more Jimmy John's (owner's a conservative asshole), Quiznos (we've got a pepper bar!), Lenny's, local shops... love 'em all.

Subway is a favorite because you could be relatively low-calories and get a ton of vegetables on your sandwich. The other places kind of hide what they've got.

[MountCleaners]

19. Pisses me off about Jimmy John's

They offer avocado, my favorite ingredient.

Been making my lunch subs at home lately.

[TlalocW]

46. A lot of Subway's have avocado

Oh, also Pita Pit. Probably not a lot around, but hopefully that will change. That's sandwich-y enough for me, and they have avocado/guacamole and hummus.

TlalocW

[Blue_true]

22. I don't have a Quiznos locally, live in a small city.

The best subs are a few local Italian theme shops and one really good Cuban sandwich place. Other than hot Cuban sandwiches from the Cuban sandwich shop, the best sub that I ever remember eating, I got at a Quiznos in the Denver airport. Amazing how people remember the simplest things that standout.

[TlalocW]

47. Every now and then I can still recall the taste of a dish I had in Mexico

Chiles en Nogada - a meat-stuffed chile smothered in a walnut cream sauce. I've had it twice in America - once my niece, who's a very good cook tried to make it and once at a Mexican restaurant. Unfortunately, neither matched what I had in Mexico over 20 years ago.

TlalocW

[Blue_true]

50. Amazing isn't it. Once you eat an exceptional dish, you sort of hope to have it again somewhere. n

[Freddie]

58. All the Quiznos around here closed

Something shady about the local franchise bosses I heard. The place near here didn't last long.

[Scurrilous]

12. Publix is the best place for subs in my area.

Subway not so much...

[lpbk2713]

15. Publix is where I usually get mine.

I order online.

[Scurrilous]

16. Me too!

[Blue_true]

23. The best sub place in my area is a Cuban sandwich place that has an Irish name.

Go figure. The owner is half Irish-Cuban. There is a good chicken place that serve a good grilled chicken sandwich. Subway and Publix are used only in a pinch for a sandwich, although Publix is good for almost anything else.

[Scurrilous]

48. My backup spot is a Cuban bakery near my house.

Huge Medianoche's and Cuban Sandwiches for under 5 bucks.

My family is Irish American and my sister married a Cuban and my brother and myself both married Nicaraguans. It's a Catholic (and Miami) thing I think...

[The Genealogist]

42. I miss the subs at Publix!

I moved back to Missouri 9 years ago from Florida and still miss getting a yummy sub when I'd go get groceries.

[Demsrule86]

53. I loved Publix subs ...lived in Georgia...and the Cubans too...steak and cheese...yum. Now I am

gluten free (celiac) and when I was in South Carolina at the lake, that publix had gluten free hoagie rolls and even cakes.

[kcr]

68. I wish we had Publix in the north east

The nicest grocery store I've ever been in was a Publix.

[appalachiablue]

13. Subway's subs & chow are ok. More concerning is how many JOBS will be lost?

[BumRushDaShow]

17. It'll always be hard to ask for a "sub" in a "hoagie" city!

[Blue_true]

29. Trully amazing what the sub is called in different regions.

When I first went to Boston years back, I stepped out for a bite to eat and saw a picture that looked like a good sub and went in and ordered a sub, the people behind the counter looked at me like I had just stepped in from another planet. Flustered, I kept pointing at a picture on the order wall and kept saying that I wanted that sub with specific ingredients, the counter people still had no freaking idea of what I was asking for, I might as well have been speaking French. Finally a woman standing in the line could no longer contain herself and bust out laughing and said, "he wants a grinder", the people behind the counter were like "ohhhh!". I recounted the experience to the business people that I met the next morning and after laughing, they explained the score to me.

[Freddie]

59. Around here (Philly)

We are, of course, the origin of the hoagie. A "grinder" here is a baked hoagie.

[BumRushDaShow]

62. Yup. I graduated from UMASS

and while there for the 4 years was introduced to the "grinder" (although as Freddie noted, the "grinder" was toasted in the oven and I know Subway actually does that with their "subs" ), an "elastic" (rubber band), and a "bubbler" (water fountain/cooler).

[Takket]

20. if they want to improve, they should try

baking bread that isn't so hard it shatters like glass when you bang it on the counter.

this pretty much put me off subway.

[Kirk Lover]

25. I've never had hard bread at Subway....location location location!

[jmowreader]

31. Blame that one on Vani Hari

The bread they made before Vani decided to bully Subway with that "yoga mat bread" shit was much better.

[Cha]

65. lOl..

[Kirk Lover]

24. I thought it was franchises? Subway is OK. I snag the 30% back on groupon..

so it's next to nothing for a veggie foot long which lasts for both lunch and dinner. I used to go a lot more but now only go once in awhile.

[kimbutgar]

26. Fake food

Stopped going there at least 10 years ago.

[Algernon Moncrieff]

27. This has been rumored for months.

1) They are still suffering brand damage from Jared
2) Franchisees complain that they are getting killed on the $5 Foot long
3) Franchisees have to locally source fresh veggies, and there is a lot of cost variability.

A lot of Subway franchises are in very small, rural towns and many are not profitable. This 500 store closure is likely not the end.

[Blue_true]

33. I have a friend that owns a place a cut above fast food.

Though she is an experienced restaurant owner, the environment is pretty savage for profit, even in a large city. There is an over abundance of restaurants and some of the better grocery stores are adding grab and go delis. For her, she look for loyal customers that are not cheap, always asking for discounts or bargains, because if she gives 10-15% off all day, her profit is gone and she is in the red. She also wants customers that order fast, enjoy the food and move on, good turnover from paying customers helps her business.

[Proud liberal 80]

28. I dont like subway

Food just doesn’t taste fresh to me. My favorite sub spot is Jersey Mike’s. I also like the subs you can get at grocery store delis.

[Hoyt]

34. Same here. Slimy roast beef aint my thing. J Mikes has fresh stuff, although more expensive.

[mr_lebowski]

55. Another J-Mikes fan here! Worth a couple extra dollars to me for what you get ...

I absolutely love their wheat bread, love the fresh-sliced meats (not wrapped in plastic like friggin subway) and cheese done just for your sammie, and then the cherry-pepper relish is DELISH. Toppings are always super fresh ... I esp. like when I get me $2 off coupon then it's like subway price.

Plus they have a grill for cheese steaks and reubens ...

The ONE thing I have to moan about ... at least where I'm at, the have banana peppers instead of real pepperoncini. That friggin' bums me out ... banana peppers are garbage.

[kcr]

69. I love Jersey Mike's

It doesn't taste like typical chain restaurant food. Much better than Subway.

[left-of-center2012]

30. "the catchy $5 footlong jingle"

Subway cut the sub to $5 to increase sales some time back, but
over the past year a lot of franchise owners have said they can't make a profit with the $5 sub.

[Blue_true]

37. $5 dollar subs and 2 subs for the price of one only works if people buy extras like chips and drinks

If the place get people that order the $5 subs or 2 for the price of one, but order no extras on the sub or things like chips, but do order a fountain drink and refill several times, the restaurant lose on the deal. I know one owner that tries to avoid such deals like the plague, but if the chains around are offering losing deals, the situation becomes dicey, what she hopes for are people that want quality over cheap and do things like order chips and packaged drinks, or just single fill at the fountain machines, those are by far the best customers for her.

[left-of-center2012]

51. I buy a footlong meatball ...

and three cookies

[True Dough]

32. So how does this store shutdown work?

They're franchised, right? Subway picks the 500-plus least desirable or underperforming locations and gives notice that they have to shut down.

Let's say you're the franchise owner. You'd paid the fee for your right to open the store. What happens when Subway closes you down? Do they refund you your costs?

[Blue_true]

41. They may try to move the franchisee, if the franchisee is not deep in the red,

(i.e., has assets left to run the store). I was in a Subway once and overheard the person who appeared to be from the owning family talking to a potential store manager. The family guy seemed to indicate that his family owner three or four franchise branches. People that are lucky enough to own several performing franchises are the lucky ones, the single franchise people typically get the worst stores because they are new.

[True Dough]

44. Yes, I have heard the same about various franchises

Those who are truly doing well own multiple locations, often three or more.

[Blue_true]

49. They typically got in early or had adequate assets to weather growing the store.

Once a new place opens up, those franchisees get to own it, if the place should be high volume. New, single owner franchisees get stuck with weaker stores.

[liberal N proud]

35. I thought they were franchise stores

Are they taking away the franchise from owners ?

[Blue_true]

43. The franchise contract likely has performance clauses in it that favor Subway.

Basically, yes, Subway can likely close the store and leave the owner holding the bag for the least years remaining for the store location and any debt. Subway can afford more lawyers that some franchisee that is tapped out, at that point the clauses in the franchise contract that the franchisee had to accept to get the franchise becomes a weight around the franchisee's neck.

[IluvPitties]

36. Subway is... Bland and boring, IMO.

[mvd]

38. It's very processed IMO. Stopped eating there long ago

I like Jersey Mike's for chains.

[Ferrets are Cool]

39. I hate this news for the lost jobs. nt

[The Genealogist]

45. There's a Subway down the street from me that seems to hardly ever have customers

I have yet to figure out why they put it in where they did. It is in a little, nondescript shopping center on a busy road a couple of blocks from any major intersection. It is near a college, but you'd have to fight some serious traffic to get to it from there. I go past it several times a week, and I have never seen more than two cars there. I'd guess this one might be on the chopping block.

[Demsrule86]

52. Try getting gluten free rolls...Jersey Mike has them now.

[Snake Plissken]

54. What I don't get are Dunkin Donuts, there are at least five of them within a mile radius of me

and another three I can think of within a two mile radius of me.

[gyroscope]

56. Quality of the food has gotten worse

I don't like that there is no option to buy a sandwich without having to pick every ingredient yourself. even the type of bread has to be picked. its annoying.

they would often tell me they were out of the ingredient (s) I wanted. I got tired of it and stopped going.

[Freddie]

60. Subway near me is usually empty

Or one or 2 customers even at dinner time. Just too much competition (my town is Fast Food & Chain Restaurant Mecca) and lousy food besides. It's been there for 20 years or more. Hope they stay.

[JI7]

61. I think they were doing well with the Jared Ads and they no longer have that

without the Jared crap they might not have done as well as they did in previous years.

[RhodeIslandOne]

63. Give me DAngelos any day

New England folks will know what I’m talking about.

[Cha]

64. Wow, 10,000 more than mickeyD's.. that's saying a lot!

I think they can afford to shutdown 5000. Sorry about those who will lose their jobs, though

[Kaleva]

67. The main competition of many Subways are other Subways.