Latest news with #JohnChidsey
Yahoo
03-05-2025
- Business
- Yahoo
Subway closed 600 locations last year; 7,600 since 2015: Report
The Brief Subway closed 600 locations in 2024, marking the first time in 20 years the sandwich chain dipped below 20,000 U.S. restaurants, according to a new report. The company has shut down 28% of its U.S. locations since 2015, with a total of 7,600 closures – equal to the number of Taco Bell restaurants nationwide. Despite shrinking store count, Subway remains the largest U.S. restaurant chain by unit count, still ahead of Starbucks. MIAMI - A new report reveals that Subway closed hundreds of locations in 2024 – the first time in 20 years that the chain had fewer than 20,000 locations. This is according to the company Restaurant Business, which obtained the Miami-based sandwich giant's franchise disclosure documents. By the numbers According to the documents, Subway closed 600 locations in 2024, finishing the year with 19,502 restaurants. The company has now shed 7,600 restaurants since 2015, when it peaked at 27,100 restaurants in the U.S. This means the franchises closed 28% of the chain's locations in less than a decade. The 7,600 locations Subway has closed is equal to the number of Taco Bell restaurants there are in the U.S. Dig deeper Still, Subway remains the largest U.S. restaurant chain by unit count. In fact, it still operates 2,600 more locations than the next biggest, Starbucks, which finished 2024 with just under 17,000 coffee shops. RELATED:Subway is revamping itself by going old-school with deli slicers Last year's unit volumes increased just 1% compared with 2023, so the average Subway unit lost customers after factoring in 4% restaurant menu price increases. And it remains low compared with its rivals and other sandwich concepts. Subway's average-unit volume was lower than all but 19 other restaurant chains on the Technomic Top 500 last year. The company generated $9.5 billion in system sales in the U.S. last year, down 3.8% compared with 2023. The backstory In 2023, Subway agreed to sell itself to private equity firm Roark Capital. Roark beat out a late challenge from a rival bidding group led by TDR Capital and Sycamore Partners, which also submitted a final bid of more than $9 billion, Reuters reported, citing people familiar with the matter. The private equity firm has several noted restaurant brands in its portfolio under Inspire Brands, including Arby's, Buffalo Wild Wings and Jimmy John's. "This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," Subway CEO John Chidsey said at the time. The Source The information for this story was provided by Restaurant Business, which obtained the Subway's franchise disclosure documents and used data from Technomic. FOX Business also contributed. This story was reported from Los Angeles.
Yahoo
03-04-2025
- Business
- Yahoo
Subway's new footlong for the inflation era is mostly just Doritos
Subway is getting into nachos – but not just any kind. The sandwich chain says it's now offering a footlong trough of $5 Doritos nachos, in hopes of boosting sales by wooing inflation-weary consumers. The debut comes as core inflation hits 2.8%, according to Bureau of Labor Statistics data, still above the Federal Reserve's 2% target. The limited-time offering features Nacho Cheese chips topped with shredded Monterey cheddar cheese, jalapeños, and red onions. Customers can add rotisserie-style chicken or steak at no extra charge, with smashed avocado available for an additional cost. The company added that its rewards members can get a free order of the XXL dish on April 10, if they purchase a footlong sub. The launch comes as Subway faces significant financial challenges. The chain has seen declining same-store sales in recent years, with some franchisees reporting drops of 5% to 10%. Rising food and labor costs have also led to store closures and discontent from franchisees. Subway has responded by ramping up digital promotions with athletes and introducing value meals, but these efforts have yet to reverse its financial struggles. With its U.S. store count at its lowest since 2005, Subway is searching for ways to regain momentum. Subway's XXL nachos could be a TikTok ploy, especially for Gen-Z diners, who've made it one of the most discussed fast food chains on social. Even today, Subway is still one of the biggest chains in the U.S. Subway CEO John Chidsey said he would step down at the end of 2024, ending his five-year tenure. Meanwhile, the company has faced legal challenges, including a lawsuit in which a customer accused it of skimping on meat. In early 2025, Subway bid farewell to Coke (KO) in favor of its new beverage supplier, Pepsi (PEP). In Feb. 2024, the sandwich maker also reintroduced its discounted footlong, joining other chains in efforts to cater to price-conscious consumers. For the latest news, Facebook, Twitter and Instagram.
