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Subway closed more than 1,000 restaurants in the United States last year — way more than it originally planned.


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Subway, the world's largest fast-food chain, is struggling to adapt to more health-conscious, tech-savvy customers. So it's rapidly downsizing.

 

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As consumer tastes change, fast-food and quick-serve restaurants have struggled to keep up. Starbucks (SBUX) and Burger King have redesigned and added drive-thrus. McDonald's bought a tech startup that will help improve mobile ordering. Chipotle (CMG) is redesigning stores and its menus. Panera completely revised its breakfast options. And the whole industry has begun offering healthier food options and digital kiosks for faster orders.

 

The NY Post originally reported this:

 

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An annual financial disclosure statement filed in Wisconsin Monday says a net 1,108 restaurants closed nationally in 2018.

 

Subway had forecast that about 500 would close, according to media reports.

 

That 1,108 is higher than the prior record of 866 net closures in 2017 and 357 in 2016.

 

Subway overall has 24,798 US locations, down from 27,129 at the end of 2016.

 

The number of New York state restaurants fell from 1,222 in 2016 to 1,016.

 

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8 minutes ago, skillzdadirecta said:

Also Jersey Mike's and Jimmy Johns make better sandwiches

This right here. Also, I have a Subway a block away from me, and a Jimmy John's about half a mile away from me. Even with delivery costs, it's similar in price (maybe $2 different plus tip) to get a better sub from JJs and will take the same amount of time to get it delivered than it would take for me to walk that block to Subway and back.

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2 minutes ago, SaysWho? said:

 

According to the links, it's Subway closing stores so they can be more profitable.

 

But, like, what does that mean? Just closing their corporate stores? Or also declining to renew franchise agreements?

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It’s cheap to buy a subway franchise, like $10k for the franchise fee and only another $25-30k for buildout and initial inventory. I believe Subway also has no territory restrictions, which is why you’ll find literally 5 or 6 in relatively close proximity, or multiple locations even in small towns.

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1 minute ago, sblfilms said:

It’s cheap to buy a subway franchise, like $10k for the franchise fee and only another $25-30k for buildout and initial inventory. I believe Subway also has no territory restrictions, which is why you’ll find literally 5 or 6 in relatively close proximity, or multiple locations even in small towns.

 

I love how we posted at the same time and you gave the technical details while I gave a real life example. Haha.

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I tried to find a link and couldn't, but I recall reading an article a few years back about how Subway was incredibly aggressive about opening new stores, but didn't really care much about their survival. They have a sales structure where people get paid for how many stores they open and almost nothing else. One of the results of that was Subway got more FTC(?) complaints than every other food franchise combined.

 

When I was trying to find that article I found a bunch of different ones all reiterating the same thing that the OPs articles did, but they were from almost every year since 2010. Over time the articles went from "Subway is terrible to its franchisees, but it's still growing so fast!" to "Subway is terrible to its franchisees, and now they're shrinking."

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2 hours ago, skillzdadirecta said:

 

Their bread tastes like rubber... and they had too many stores anyway to be honest. There's like FIVE within walking distance of my house. Also Jersey Mike's and Jimmy Johns make better sandwiches.

In college I worked at a Walmart that had a Subway inside, and the smell the bread made while it 'baked' is one of the most revolting scents I've ever had the displeasure of experiencing.

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13 minutes ago, Chris- said:

In college I worked at a Walmart that had a Subway inside, and the smell the bread made while it 'baked' is one of the most revolting scents I've ever had the displeasure of experiencing.

 

I worked at a Subway one summer and had to stop taking my free meals because I became convinced the food was making me woozy.

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The number of locations gets really ridiculous when you count downtown food court Subways. Adjacent buildings each with a Subway inside plus street level stores. There are over 20 of them in an area measuring a square mile with a few more a few hundred meters outside that zone.

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4 hours ago, skillzdadirecta said:

 

Their bread tastes like rubber... and they had too many stores anyway to be honest. There's like FIVE within walking distance of my house. Also Jersey Mike's and Jimmy Johns make better sandwiches.

JJ would be better if they had meatball sandwiches.  I would prefer Jersey Mike's but it's too far to walk to and they don't deliver here.

2 hours ago, Dodger said:

 

 

Serious, you can't even get a $5 footlong anymore. $12 for a shitty sandwich, $.99 bag of chips and a coke is too damn much. 

 The one i go to has any 3 footlongs for $18 special atm.

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3 hours ago, Remarkableriots said:

JJ would be better if they had meatball sandwiches.  I would prefer Jersey Mike's but it's too far to walk to and they don't deliver here.

 

 

Both Jersey Mike's in my neighborhood are too far away to walk to too. Subway is across the street and Jimmy John's is in the building next door :p

 

Do you guys have Blimpies where you live or is that just a Jersey thing?

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5 hours ago, Chris- said:

In college I worked at a Walmart that had a Subway inside, and the smell the bread made while it 'baked' is one of the most revolting scents I've ever had the displeasure of experiencing.

I don’t understand how it’s possible to make baking bread smell bad but I guess shitty fast food will find a way.

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1 hour ago, skillzdadirecta said:

 

Both Jersey Mike's in my neighborhood are too far away to walk to too. Subway is across the street and Jimmy John's is in the building next door :p

 

Do you guys have Blimpies where you live or is that just a Jersey thing?

The only other sub sandwich place nearby is Quiznos and the bread tasted like it was a week old. I used to go to a different Quiznos which tasted way better but that one is too far away now. Blimpies is a 4 mile walk from where i live so maybe i'll try it sometime. I don't have a vehicle so i walk everywhere.

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1 minute ago, CastlevaniaNut18 said:

Eh, Subway is okay. I feel like I've been eating it a lot lately since it's the only thing in the cafeteria at my hospital open at night and I haven't been home enough to cook lately. 

I miss being able to cook but my current apartment only has a microwave unfortunately.

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3 hours ago, DarkStar189 said:

I've been going to Subway less and less over the years. Prices keep going up and its just not worth it. I can make almost all the stuff at home anyways. 

 

Especially with the loss of the $5 footlong deals, it's hard to justify choosing Subway if you have a Publix, Firehouse or Jersey Mike's nearby.

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