closing down the restaurant getting a smoke machine and a dj that's gonna add up subway has
faced a lot of challenges recently so if you're curious to know what happened to this former gem
of a restaurant here are 10 reasons a subway is falling behind i'll give you one last chance to
come clean just tell me what happened breakfast fiasco it's the worst bed and breakfast we've
ever been to we gotta shut this place down back in 2010 subway began selling egg-based sandwiches and
opening at 7am every day to give its customers the opportunity to get all three meals at subway if
they wanted to it sounded like a good marketing strategy at first and the company put a lot of
money and resources into the introduction of the new breakfast items but at the end of the day it
flopped to break people's breakfast habits is no easy task and with already remarkably strong
competitors like mcdonald's and starbucks it was practically a lost cause we're gonna lose we're
gonna lose the breakfast options never really caught on in the eight years they were featured on
the menu it seems most people weren't interested in subways so early in the morning a market
research firm even found that 43 percent of subway customers never visited for breakfast and that 19
didn't even know the chain served breakfast the other issue that came with a breakfast service was
the difficulty subway had in finding employees to work the early hours let's just say that
breakfast is not subway's cup of tea and didn't help at all during the hard times it went through
well oh going in the wrong direction i'm sorry bad reputation a bad reputation is better than
no reputation at all even though subway has always been health focused the company really
began tapping into the craze in the 1990s and early 2000s around the time health was becoming
more of a priority for many americans in 1997 subway released a campaign advertising its seven
low-fat sandwiches by comparing them to popular fast food offerings claiming it was the smarter
alternative another campaign that greatly helped the chain build on its reputation is the one with
jared fogle a man who claimed to have lost over 200 pounds by eating subway sandwiches
subway is a healthy way to eat fast food and lose weight fogle was seen on commercials everywhere
and practically became the face of the company after the first commercial aired sales rose by 20
however a couple of years later fogel was arrested and jailed for incidents involving minors and with
that all credibility was lost after his arrest sales dropped and the healthy clean-cut reputation
subway had built for itself was gone it's only after we've lost everything that we're free to
do anything fierce sandwich competition everybody loves him i can't compete with this guy there was
a time when subway was the coolest kid on the block it was the number one spot to get your
sandwich fix and remained the preeminent sub shop for decades however that advantage quickly
became useless as the concept started catching on and more quick service sandwich restaurants
started to appear to give subway a run for its money as the numerous sandwich chains began to
flourish the competition obviously grew as well and subway began losing a huge slice of the market
today according to qsr magazine five of the 32 largest restaurant chains in the u.s primarily
serve sandwiches bad news for subway indeed bad news bad news even when it's good news it's bad
news while chains like jersey mike's orbeez and jimmy johns have all been taking business away
from subway the sandwich biz isn't the only place the company is lacking restaurant chains offering
healthy menu options such as panera bread and chipotle have also been on the rise and subway
has yet to take on the challenge basically it's as if subway rested on its laurels and didn't bother
her to move forward its slow adaptation and lack of effort made subway fall behind in the race and
could be one reason why it keeps on sinking why didn't you wait for me many public embarrassments
don't embarrass yourself any further just leave i'm not embarrassed you're embarrassed you've
probably heard about the very controversial chicken incident from 2017 also known as the
mystery meat chicken findings it all started when cbc marketplace decided to do dna testing
on six different fast food chicken items which included two subway sandwiches the roasted chicken
sandwich and the sweet onion chicken teriyaki the test results were not exactly what everyone
expected they revealed that customers were only getting about 53 chicken in the oven roasted
samples and 42 percent in the teriyaki samples the rest soy while subway claimed the tests were wrong
people were outraged and disappointed oh you are unhappy i am so sorry oh i'm not unhappy i'm angry
according to the company only one percent or less of soy was allowed to be included in their
chicken products and they ended up suing for defamation but the damage had already been done
customers understandably started to think that maybe subway wasn't as
fresh or healthy as it seemed resulting in the chain's main distinguishing characteristics to be
once again questioned another striking lawsuit was the 11-inch sub-case the lawsuit claimed
that the foot-long subs were only 11 inches long and not the 12 inches advertised by the company
subway got sued for ripping off the customer and lost the little bit of dignity it had left
sorry i can't grant a favor to someone i don't respect anymore subways over expansion oh honey
you are all over the place many people like to believe that mcdonald's is the largest fast food
chain in the world when in fact that title goes to subway indeed subway has more locations worldwide
than any other restaurant making it a pretty big deal however just because subway is widespread
it doesn't necessarily mean that was the best decision to make you see subway started out as
a single sandwich shop in bridgeport connecticut that one location quickly turned into dozens then
hundreds and thousands until half the world was conquered by the mighty sandwich company
the company expanded aggressively even during the worst recession in 75 years
they're gonna take over the world the only problem was even as the chains traffic started to fall the
expansion didn't slow down they kept opening new outlets left and right instead of taking
care of the ones they already had in other words subway got way too big way too fast soon enough
the only place to go from there was down and the chain began closing locations at an alarming pace
since 2015 subway has closed over 2 300 stores in the united states and the change shrunk by 12 one
of the reasons why subway is falling behind in the fast food world wish i could help you but we're
closing subway's financial struggles i'm alive and i'm broke exactly when the sales began to decline
isn't set in stone but all we know is that it happened around 2014 as subway faced a sales
decline of three percent two years later things were not getting any better as sales dropped again
this time going to 11.3 billion dollars in 2016 down from 11.5 billion the previous year
from there it pretty much went downhill and the chain began closing locations and for the first
time in history subway closed more u.s stores than it had opened the year before when 2019
arrived sales dropped 210 million dollars from the previous year to a shocking 10.2 billion and the
permanent closure of stores continued i know we're losing a lot of money i feel it the number of
locations closing down keeps on growing while the financial deficits keep on growing and obviously
the arrival of the pandemic surely didn't help the matter technically the huge loss of revenue
could partially be blamed on the fewer number of locations and fewer locations means fewer profits
unfortunately even individual restaurants are performing rather poorly as well estimated unit
sales went from 482 thousand dollars in 2012 to 420 thousand dollars a solid fifteen percent
decline you're losing you're losing badly shift in management please welcome our new manager
good with tentacles you can tell a lot about a company just by looking at the management
and if we look at subways it's easy to see why everything is falling apart ever since the founder
fred deluca passed away in 2015 things have been a little rocky to run a successful business you need
stability and consistency which is not something recently experienced at subway hq deluca's sister
suzanne greco took over as ceo after her brother's passing in hopes of keeping subway on the right
track however sales were dropping drastically a lot of people in the industry felt like she wasn't
the most qualified to keep the ship afloat your manager here needs a manager after a tumultuous
three-year run subway brought in several new executives and named john chidzey as its new
ceo this meant yet another change in management after only a few months chidzey began putting
his stamp on the company as three top executives left the executive level wasn't the only one to
be shaken up chidzy also let his presence be known to the rank and file and over 300 employees were
laid off at the connecticut headquarters which represented about 25 of the workforce if the
management seems to be in disarray no wonder the whole company is too management what is happening
unhappy subway franchisees i'm unhappy okay i've been unhappy for a long time
franchisees usually risk a great deal when opening a restaurant instead of investing in firms that
own other fast food locations and many of them have expressed time and again how they wished
they had done things differently many franchisees have been rather vocal about the treatment they
received from subway especially when it comes to the aggressive expansion approach as subway
was focusing more on the number of restaurants being opened rather than on each location itself
a lot of restaurants ended up opening within a few blocks of one another this created some
direct and unnecessary competition between the now rival stores cannibalizing subway's revenues
if only that was the only issue houston we have a problem franchisees have also had some trouble
with subway regarding its business practices you see the stores are divided into regions which
are all overseen by development agents often store operators themselves they are in charge
of inspecting locations to ensure compliance but more often than not they don't act in good faith
some subway owners think it creates a conflict of interest and gives the agents power to close
competing stores we can't do business here subway's shaky marketing i am a marketing genius
nowadays saving time is crucial we're always on the go pressed by time which is why grabbing lunch
should be quick and easy and on top of that due to the new pandemic reality we live in the less we
have to interact with people to get it the better and the best way to get all of those components in
the same place that's right drive-throughs it's the perfect balance between convenience and time
sensitivity the majority of fast food joints already have a pretty solid drive-through game
however subway is a little behind on that and this is where it needs to catch up and fast marketing
you're up slay it might sound a little tricky at first to order your customized sub without seeing
it being made but with the touch screen kiosks it is still very much possible to have total control
over your sandwich as of 2017 only about 2500 subways have drive-throughs which accounts for
only about 10 of all the stores this low number of locations is definitely not enough to keep subway
in the game for very long the moment you need to park your car walk inside and wait it's not
considered fast food anymore at least not if you could go somewhere you don't need to do all that
maybe instead of trying to come up with new breakfast ideas subways should invest in the
development of more drive-throughs where do you invest your money liz loss of interest
nobody likes us nobody back in the day subway had everything going for it the cool concept the
healthy image the fast expansion killer marketing and the overall crazy hype surrounding the chain
but as the years passed and nothing new or exciting came from it people grew a little
tired of the same old same old as the competition started to rise subway began to lose its magic
especially after the chain abandoned its famous 5 foot long promotion everybody knows the catchy
song that would play in every subway commercial advertising the promotion this song is stuck
in my head and my head loves it for a while it really did help subway gain some customers back
but eventually they had to stop the promotion as subway was losing money every time it sold
a five dollar footlong when subway got rid of its marketing gold mine
traffic and sales began to decline it was mostly attributed to the loss of value perception
and the chain is still struggling to overcome it there are a lot of things subway could do to avoid
falling behind even more but for that it needs to be ready to let go of some stuff and make
room for a new and improved business model you're gonna rise we're open 24 7. just tap or click for
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