Thu, Aug-15-19, 12:57
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Senior Member
Posts: 1,469
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Plan: Banting
Stats: 302/187/187
BF:
Progress: 100%
Location: New Zealand
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Subway closes 91 stores in Australia over 4 years
Subway closes 91 stores in Australia over 4 years
Quote:
Sandwich giant Subway has closed more than 90 stores in the past four years as they struggle to keep up with millennial food trends.
The fast food chain has 1,353 stores across Australia at the moment, down from 1,444 in 2015, which is a drop of 9.2 per cent.
While there are currently no further plans to open new stores, a spokesperson told the publication they do 'anticipate growth' this financial year but will only consider areas that are 'commercially viable'.
However their revenue of €77.6 million ($128.1 million) for Australia in 2017 is down from €88.4 million ($145.3 million) in 2016, making the next move they make in the retail industry very important.
The brand is finding those customers who would normally seek out a Subway sandwich for healthier food are choosing different fast food chains, ones that are low-carb friendly.
'Over the past 10 years, the tastes and the palates of our Australian guests have changed quite significantly, and what they're looking for, for their lunch or for their dinner has changed as well,' Subway's spokesperson said.
Naturally this has wreaked havoc on the lives of those franchisees who opted into the business a decade ago.
Some cannot cover the cost of their own salary, so are forced to work for free, while others are trying their best to sell the shop.
'I cannot afford it. I am in too much debt at the moment I have taken out a lot of personal loans to survive. If I take another loan from the bank I cannot pay as it is too high. My life is hell now. I am stuck,' one business owner told the Brisbane Times.
Subway told FEMAIL that the company is experiencing 'strong growth'.
'Subway restaurants are experiencing strong sales growth and increased Franchise Owner profits due to Subway's menu enhancements, the launch of online ordering and the launch of third-party delivery,' they said.
'Subway has been innovating to increase Franchise Owner profitability and adapt to the changing needs of Australians, while remaining competitive in a market with more consumer choice than ever before.'
In recent times the store has launched rye bread and wraps, a loyalty card to bolster sales, Beyond Meat options for vegans and a salted caramel cookie to add to their growing range of snacks.
They continue to develop innovative strategies to deal with the changing food landscape but only time will tell if they are successful.
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https://www.dailymail.co.uk/femail/...-Australia.html
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