For The First Time In Its History, Subway Shutters Hundreds Of US Stores

Tyler Durden's picture

For the first time in its 52 years of operation, Subway announced that it contracted in 2016, shuttering 359 US locations which as Bloomberg described was the "biggest retrenchment in the history of the restaurant chain" whose total store count dropped 1.3% from 27,103 in 2015 to 26,744 even as it remained the most ubiquitous fast-food eatery in the US, although McDonalds still tops if by sales.

“Sales for 2016 reflect our focus on international growth,” the Connecticut-based company said in a statement. “We are undertaking an exciting transformation that includes introducing new and improved products, creating an even greater customer experience, refining operations, and positioning Subway franchisees for continued success.”

Confirming that the domestic sales slowdown has continued into 2017, even as the Sub-par chain has been competing with dozens of newer, more exciting fast food eateries, U.S. same-store sales continued to slide during March, dropping 0.6% in the fourth straight month of decreases, according to MillerPulse data cited by Bloomberg.

The good news is that despite the domestic contraction, Subway is still growing internationally with sales outside the U.S. rising 3.7% to $5.8 billion as it continued to open locations.

The private company has been pressured not only by a sharp recent decline in US restaurant traffic and sales  - an industry which as we reported recently suffered its worst collapse since 2009 - but by the industry’s heavy reliance on discounts and promotions. Subway also has lost some of its luster as a healthier-food option, Bloomberg notes as it has been working to restore its status by eliminating antibiotics from its chicken and switching to cage-free eggs.

In another bid to revive growth, Subway is adding delivery services -- a strategy that’s also been embraced by McDonald’s. And it even unveiled a new, more contemporary logo. But so far, the changes haven’t helped much: Sales fell 1.7 percent last year to about $11.3 billion.

As Bloomberg adds, the sandwich chain, which infamously lost its iconic spokesman Jared Fogle in 2015 under humiliating circumstances, has also been overhauling its management team. On Wednesday, the company said it’s bringing on former McDonald’s executive Karlin Linhardt to lead marketing for the more than 30,000 Subway stores in the U.S. and Canada.

Last year, Subway hired Katie Coleman to handle global public relations. She was tasked in part with helping the chain recover from a scandal involving former spokesman Jared Fogle. He pleaded guilty to child pornography charges and was sentenced to prison in 2015.

 

Subway, owned by Doctor’s Associates Inc., was founded about 52 years ago by Fred DeLuca and Peter Buck. DeLuca died in 2015, leaving the company in the hands of his younger sister, Suzanne Greco, who became chief executive officer. The chain’s restaurants are entirely owned by franchisees.

Meanwhile, as US eaters seemingly grow tired with Subway's choices, UBS was out with the following report...

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Deathrips's picture

Subway is shit. Dont eat shit

 

RIPS

Son of Loki's picture

Sears has been quietly closing more stores than it said it would — here's the list


http://www.businessinsider.com/list-of-sears-and-kmart-stores-closing-2017-4

 

8 years of "Hope & Change” has consequences.

svayambhu108's picture

Only rats eat at the subway

Yukon Cornholius's picture

I thought Jared was a pizza guy. Pizza subs with cheese count I guess.

auricle's picture

Because they to serve fake food. 

FrozenGoodz's picture

Do whatev you gotta do UbSway ... Jared stays in prison

Donald Trump's picture
Donald Trump (not verified) FrozenGoodz Apr 20, 2017 3:53 PM

Is not just Subway or retail stores that are going down ... is the Economy, Stupid !

The orange magic is starting to wane

The US Economy Becoming Disappointing Under Trump

http://dailywesterner.com/news/the-us-economy-becoming-disappointing-und...


Dig Deeper1's picture

I'd rather see him wane than wax.

Yes We Can. But Lets Not.'s picture

IIUC, it is not Subway that is 'shuttering stores', but franchisees closing up.  Because Subway owns zero stores.

cheka's picture

dont see how people eat that crap

Déjà view's picture

Subway..never ate there...My Way Or Highway...

Janet...moar student loans, EBT to stoke TITANIC boilers...full speed ahead...smooth sailing on this placid sea of debt...

WOMEN & CHILDREN FIRST...

glenlloyd's picture

Yeah I don't get to Subway too much, the only sandwiches that are reasonable are the specials, otherwise seems like too expensive. I will get one if I have no other option and need food, but otherwise pass.

When your biz can't innovate and change to fit the times it goes bust, that's exactly what's supposed to happen. You're not supposed to bilk the company out of money or borrow heavily to do stock buy backs just to stay afloat. All the people who think this is the way a biz is run are idiots.

Businesses have a life cycle, perhaps Schlubway has reached the end? Clearly some are closer than others....Sears etc.

yogibear's picture

Coupons and they don't know how to cook or prepare a sandwich. Basically lazy.

newdoobie's picture

Subway allows franchises to open right next door to each other. It seems like there is one every block.

 

I used to like their bread but even that turned bad years ago

jcaz's picture

Little marketing tip to the franchisees:

Don't let the mothership hire pedophiles as the face of your company.....

TwelveOhOne's picture

"... still tops if by sales."

Wow, ZH, seems you might have read/seen "The Shipping News"...

2_legs_bahhhhhd's picture

Subway has been around for 52 years? Hard to believe they've lasted this long.

gruden's picture

Preservatives. Lots and lots of preservatives.

Bigly's picture

Pedo spokesperson

11" footlongs

Meat that is 50% filler

Veggies that are tasteless 

Do we need more reasons?

ThuleNord's picture

Better get Jared out of jail

rtb61's picture

If you are going to market healthy ahead of tasty, then you better not be caught out as unhealthy. We are entering a new era, where your advertising hangs around and can be challenged for veracity, long after you pulled customers in the door. Anyone can pay for these kinds of tests and then expose the outcomes on their blog, youtube, twitter link, to draw in those clicks, a marketing investment.

Using their own tools against them, funny how things turn out.

Implied Violins's picture

I think you got that backwards...that's what you eat when you go there.

TheVillageIdiot's picture

soon to be replaced by 8 years of Shock and Awe

baghead's picture

subway is overfranchised,you could swing a dead cat and hit one.They are due to shrink back.

justin423's picture

Hope and change? Try an egotistical hedge fund manager getting into a business that doesn't involve ripping off the gullible.

 

yogibear's picture

Instead of subway they should call it 

Subshit.

NevadaMirage's picture

Subway is shit and gives me the shits, stopped eating there long ago. I think it's the preservatives they use on their vegetables.

general ambivalent's picture

Or the 'chicken' made out of soy and meat glue.

Vageling's picture

Something like that. Fucking Subway was some alien thing to me in the US. Fresh? Yeah... I see it defrosting. Some sauce. I love the one. Something like chipotole. Easy peasy to make. To your own flavour. But what is so hot about Subway? Overpriced (gee, I can duplicate more or less 5 sandwiches for the price of one) . Fuck em. Bring service to us? And demand fee? Losers. Dead end track. Those squint eye fellows run their scam even better. 

JoeSoMD's picture

In my area the sub shops that have opened in gas stations has hurt them.  WaWa and Sheetz in particular.

Vageling's picture

I looked at the WaWa stuff. Them funny multiple layer sandwich again. They got stuff with cheddar. Which is NOT cheese to me! Stuff like WaWa Credit card? Like stamps? Every time you buy shit you get "credit"? Unfortunately I don't know. That stuff never crossed my path. Getting a "normal" bread was (means no candy cotton) was though enough on me,  

Elmo Blatch's picture

Most of the town gas stations around Ft Knox make fresh sandwiches for $1.50 or so. Chips,drink,and sandwich less than $4. The #1 seller is bologna.

In Ze No's picture

Here in Syracuse lunch is $10 with 20% going to NYS taxes ;)

Notenoughtoys's picture

Did not realize the chicken was so crap until I saw the segment on Marketplace. I just figured "Doctors Associates" had sold it out to "Undertakers Inc". Use to eat there at least once a week and now haven't been in over 3 months and counting....

TheLastTrump's picture

If you do, you'll look like shit.

 

Or Jared.

inhibi's picture

Let's be honest: not much difference

benb's picture

"Subway is shit. Dont eat shit"

 

You saved me a post. Thanks

SilverRoofer's picture

Where is Jared going to Eat now!

Oh yeah In prison fucking pedophile!

AViewFromDublin's picture

Subway is Subpar only rivalled by McShit.

AViewFromDublin's picture

Subway is Subpar only rivalled by McShit.

hannah's picture

many many years ago some of the subway shops were clean and had 'fresh' tasting food....no longer. havent eaten at one for more than a decade. the employees are all illegal. dont speak english. obviously had different ideas on hygeine and bad food higher prices and a free helping of fecal matter finally killed off my one fast food place i could eat at and not get the runs............funny how the liberal globalist food corps dont get the idea also that belittling whites and employing minorities that fuck with your food isnt a path to lasting success.

HRClinton's picture

Subway does a Super-Massive Preemptive Layoff that Lil Kim would be proud of. 

yogibear's picture

"Subway is shit"

It truely is. Probably one of the worst subs out there. Not much meat. 

rickv404's picture

Nah, that would be Jersey Mike's or Sobik's. And Subway is quite generous with the meat where I come from.  

enfield0916's picture

While riding my bike from OKC to Dallas, I had no choice but to have Subway for lunch.

Usually I go to Firehouse Subs and when I had that cheap ass POS sub in a small town on 35E, I could tell the difference between Firehouse's amazing quality and the crap they market and sell as premium so called "food".

aminorex's picture

Actually, it is one of the very few healthy prepared food options available broadly, and very economical.  Moreover, when you order, you get exactly what you ask for.  If you don't want "shit", then don't ask for "shit".  Problem solved.

rent slave's picture

The Jews charge too much rent for most people to afford Subway.

TheLastTrump's picture

The Nazi's charge too much per thought for them to be able to think.