Here’s the thing about Subway. They’re ubiquitous. In fact, I’ve traveled to 48 states in the US, 27 in Mexico and 6 provinces in Canada. Wanna know what you’ll find in a downtown of any city across the continent? You’ll always see a Subway.
And it’s a shame, because they let their meats just kind of sit there. Jimmy John’s, for example, doesn’t have any meat kept longer than 72 hours. They seal their meat airtight like Subway, but Subway will keep that meat sitting there for much longer. Jimmie John’s also bakes their bread every 4 hours. And at least twice a week, they use local produce companies to supply their vegetables. Subway is all corporate wholesale. No wonder Jimmie John’s revenue has been consistently up three years in a row.
But Subway is falling. 2.7% of all Subway stores closed in the last year alone. 571 stores were closed in 2022. The year before, even more closures happened, signaling a dangerous downward trend for the chain.
Overexpansion seems to be the main culprit. Too much, too fast. In 2016, they had over 26,700 restaurants in the US. Now, they have 20,500.
Subway had some calming words to soothe investors, but they might not mean much. A rep said, “The slowdown in closures is a result of the progress we have made to get back to smart growth, which will boost franchisee profitability and protect our position in the market. In 2023, our goal is to increase new openings across North America by approximately 35 per cent compared to 2022.”
Good luck with that, as they hope to nab a 10 billion dollar buyout sale.
Add comment