Subway calls 'emergency meeting' as sales plummet (2024)

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Subway has called an emergency meeting with the franchisees that run its 19,000 restaurants amid tumbling sales and profits.

The sandwich chain - with more locations than McDonald's but much lower sales - will reveal plans to lure in more customers. such as deals and new products.

All fast food chains have suffered in the past year as inflation-weary Americans have eaten a lot less. McDonald's, Burger King and Wendy's have all rolled out $5 meal deals.

But Subway has been particularly badly hit, with sales down 9 per cent - amid complaints of huge price hikes and tired looking shops. And it has yet to roll out a competitive national offer like rivals.

'Maybe Subway is calling an emergency meeting because no one wants to pay $12 for a mediocre sandwich they can make for $3 at home,' Douglas Boneparth, president of Bone Fide Wealth wrote on X.

'I paid almost $20 for a footlong with chips and a drink the other day at Subway. Cheaper to go to Publix and the sandwich is better,' one consumer wrote in agreement.

Others lamented how steeply prices have risen in recent years while others complained of the quality.

'I'm old enough to remember the glory days of the $5 footlong. And glorious they were,' one commented on Boneparth's post.

'You mean you don’t want razor thin “meat” that’s been soaking in water for who knows how long and bread that is part yoga mat for $12-15?' another asked.

An invite from the company sent to local store owners says the corporation will explain plans to win back customers and boost its faltering market share.

'This conference is essential,' the invite, viewed by the Post, read.

'Join us… to discuss the state of the industry and an update on our business.'

The invite, sent out last week will remind franchisee's of thepromotional offers that are being tested.

Some store franchisees have criticized the 'crazy' discounts being pushed when traffic has dipped.

'They are doing crazy coupons,' they told the Post.

'Our gross sales are not even at 2012 levels, and profit then was five times what it is today.'

'Charging $6.99 for any sub while they are $11 on the menu,' they complained of a recent offer.

Subway n does not give out overall sales data but its eastern US region of around 1,000 subways saw sales plunge8.7 percent between June 25 and July 16 compared to a year earlier, the New York Post reported.

A spokesperson for the chain denied that the conference was an emergency, instead insisting 'we consistently and proactively communicate with our franchisees to share business updates and plans.'

All of Subway's locations are franchises, with the company making an 8 percent royalty fee from owners.

In April the company was sold for $9 billion to Roark capital, which also owns Dunkin Donuts, Arby's and Baskin Robins.

It now faces tough interest payments on its debt and cannot afford to see a drop in revenue, sources told the Post.

Subway joins a host of other fast casual and fast food chains that are pushing value deal in an attempt to boost sales from more discerning consumers following years of price rises.

Wendy's,Burger King, Starbucks, Popeyes and Taco Bell have also recently rolled out deals, which were all recently rated for value by experts.

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