Subway has indeed faced significant challenges with declining sales. Recently, the sandwich chain, which was acquired by Roark Capital in May 2024, called an urgent meeting with its North American franchisees to address this issue. Company data from various regions indicates substantial drops in same-store sales, with some areas experiencing declines as steep as 10% compared to the previous year. These struggles come amidst additional financial pressures, including interest payments on debt from the recent sale. Despite downplaying the urgency of the meeting, franchisees have expressed serious concerns, particularly regarding aggressive discounting strategies that have eroded profits without driving expected sales growth. Subway plans to outline new strategies aimed at increasing customer traffic and regaining lost market share. It’s worth noting that the fast-food industry as a whole faces fierce competition, with chains like McDonald’s, Taco Bell, and Wendy’s also introducing aggressive pricing strategies.
Sources:
www.entrepreneur.com/business-news/subway-holds-franchisee-conference-as-sales-plummet/478533
www.restaurantbusinessonline.com/financing/subway-plans-big-discount-it-works-reverse-sales-slide
www.modernretail.co/retailers/why-subway-still-faces-challenges-despite-recent-sales-growth/