One of the biggest food chains that have stayed for over more than 50 years is none other than subway. Their tagline ‘eat fresh’ has helped them draw in hundreds and thousands of customers over time. For unhealthy eaters, the subway is their source of “healthy food” and for healthy eaters, the subway is their cheat meal without them feeling too guilty about it. All in all, subway has something for every customer. Subway is a multinational fast-food restaurant that is based in America and serves foods such as submarine sandwiches, bowls, wraps, cookies etc. Why is Subway Failing? Let’s know.
It was founded in 1965 and has more than forty thousand locations worldwide.
Although subway had an amazing growth through the 1900s, it seems that in the current era, the multi-million dollar company isn’t doing so well. This article will talk about why and how is subway failing and losing its dominance in the sandwich-making industry. Subway in 2022 is failing primarily because of the decline in the quality of food. to add to that, their spokesperson: Jared Fogle also hurt the brand to a great extent.
Jared Fogle:
Jared was Subway’s spokesperson who allegedly said that he lost more than 240 pounds solely by eating only Subway sandwiches. when one thinks of the line “eat fresh” they think of Jared Fogle. Unfortunately in 2015, Fogle was convicted for his numerous underage sex scandals which later led to his arrest. Because of this, the brand was immensely harmed and still hasn’t recovered from it.
Eat fresh:
The subway slogan “eat fresh” was mainly used to indicate that the food at this fast-food franchise was healthier, more nutritious and somewhat better in comparison to other fast-food restaurants. But in reality, subway is loaded with sugar, carbs and other things that can cause major health issues.
To add to this, the ingredients that are used in making sandwiches are shipped to subway once a week, which makes the sandwiches not so fresh. In some subway stores, the employees have stated that some toppings that they used were many a time near the date of their expiration.
Problems with meat products: when a customer orders a meat product, they expect the product to be up to the standards of the way it has been marketed (natural and top quality ingredients in the case of subway). It has been discovered that the chicken at subway contains soy and other harmful substances and unknown products.
It was also discovered that the consumers only received 52% of chicken and 47% of tuna in their food.
The covid 19 pandemic:
Due to the coronavirus, there was a huge ripple that had been caused to the US economy. A lot of companies including subway has been hit hard by the pandemic. Subway had decided to give it’s brand a break in over 8% royalty fees but that, unfortunately, lasted only a few weeks and cause a major backlash against the company and its CEO. Because of this, subway had to close up a lot of their stores countrywide.
Maltreatment of employees:
Overtime subway has been accused multiple times of mistreating their employees, which only continues to hurt the image of the brand. For example, subway demands its employees to work overtime but does not pay for it. Also, it fails to pay its employees normal and overtime fees which are required by federal law. Consumers don’t want to spend money on eateries that mistreat their employees which are accounting for subways declining sales over the years.
Leadership:
One of the main reasons why subway is failing is poor leadership. Their CEO is the primary reason for its decline. John Chidsey has not only laid off more than 500 employees, but he has also created menus that not so good items and increased the starting rate of opening a franchise. This affects the confidence of the consumers and impacts sales to a great extent.
Conclusion:
To conclude, from poor management to stale ingredients, subway has made several poor choices which are resulting in its failure. Subway still can revive itself and return to its glory days by making clever choices and providing its consumers with food that is healthy in reality, just the way they market it to be.
Question 1) How many stores does subway have in India?
answer) Subway has more than 590 stores in India as of 2021.
Question 2) Is subway profitable in India?
answer) Yes, subway is very profitable in India. It provides profitable and rewarding options to people who want to start a retail-based food franchise service in India.
Question 3) How much money does a subway store owner make in a year?
answer) In the united states, the owner of a subway store makes around a hundred thousand dollars USD on an average in a year.
Question 4) Is subway halal?
answer) The sandwiches served at subway are said to have contained halal meat since the year 2007.
