In light of recent food wars such as the Llaollao and Yole debacle, we have another fast-food chain which could possibly be in hot soup.
I am talking about Subway. But not to worry, Subway in Singapore is not affected yet, as the current kerfuffle is happening in America.
It is one messy affair, messier than you trying to devour a foot long sub.
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So let me break it down to you, one ingredient by one ingredient
Customers are dropping
According to the New York Post, Subway is hit with a 25 percent drop in customer traffic over the past five years. With fierce competition from McDonald’s, Subway might not be able to hold a candle to the former’s menu.
Lowering the price
To combat McDonald’s dollar menu, they have decided to lower their prices of their sandwich such as bringing back the limited-time $4.99 footlong sandwich promotion.
Additionally, they want to incorporate more healthy ingredients such as wraps and “all-natural turkey”, whatever that means.
Julian Shelton of Ashland, Va. Said: “We need to improve our food and we need to be bold about it,” Shelton said. “We are too cautious with our flavours.”
Suggesting that Subway should try new flavours like teriyaki glaze and adobo chicken seasoning.
The double-edged sword
While lowering the cost of the subs might seem like a great idea, franchisees aren’t too pleased.
More than 400 franchisees have already signed a petition protesting the aforementioned foot long deal.
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“The national promotional focus over the past five years … has decimated [us] and left many franchisees unprofitable and even insolvent,” petitioners led by Virginia franchisee Mitesh Raval complained in a letter to Subway.
However, a Subway spokesperson declined to comment and mentioned that most franchisees support the footlong promotion.
Told you it was going to be messy.
Subway has already started with their regional town hall meetings so that they can engage and convince their franchisees that the discount will eventually lead to profits.
They have also promised $25 million to boost marketing for all the 44,000 outlets worldwide.
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Thoughts
It sure does look like it’s a he said, she said situation.
If things don’t go as planned, I could foresee the issue trickling down to our shores.
For now, let’s enjoy their subs while we can.
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This article was first published on goodyfeed.com
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