Struggling Subway franchises upset with promos

[Delta]

Originally Posted By: JTK
A real non-chain restaurant sub in my area is easily $10+ from your average pizza and sub shop. Has been for some time. Subway definitely skimps out on their $5 foot longs as you'd expect. Super cheap and processed cold-cuts for those particular subs and very little of it.


Wow, I guess I'm glad I live in a little podunk mountain town. This is local places sandwich menu and prices:

 

[bmwjohn]

my understanding is that Subway (from Doctor's Associates) is one of the cheapest franchises to buy, so it attracts all kinds of beginners, whereas MCD has all sorts of requirements, including training and real estate, so you get a totally different situation.

 

[SatinSilver]

Free appetizers at this place during happy hour. This is for the super bowl as they usually don't put this much free food out.

 

[JTK]

Originally Posted By: Delta
Originally Posted By: JTK
A real non-chain restaurant sub in my area is easily $10+ from your average pizza and sub shop. Has been for some time. Subway definitely skimps out on their $5 foot longs as you'd expect. Super cheap and processed cold-cuts for those particular subs and very little of it.


Wow, I guess I'm glad I live in a little podunk mountain town. This is local places sandwich menu and prices:

That is awesome. Those are about 1/2 sub prices in the Buffalo area. Most places anyway.

 

[Mr Nice]

Originally Posted By: SatinSilver
Free appetizers at this place during happy hour. This is for the super bowl as they usually don't put this much free food out.

Very nice. What part of Ohio is that ?

 

[PandaBear]

Like Jack in the Box, Subway attracts a lot of people wanting to open a franchise, thinking that it is a receipt to print money.

The quality is better than JitB but they are really not great sandwiches, around here at least they are much cheaper than other local higher quality places, and they are honest about being a no frill to go place (almost no place to sit). It is a big deal if you can get a sub for $5 here, when everyone else charge $8-10 at higher quality, if you do not want to eat at McD or other fast food burger.

I have a feeling that the HQ make most of the money off franchisee fee instead of sales.

 

[StevieC]

The shift is to healthier food and Subway doesn't fit this category. As much as they try to make people that "Fresh" comes from a box it just isn't working.

I worked in this industry and owned a sub place, then went on to work for corporate of the brand.

 

[Jarlaxle]

Originally Posted By: FordBroncoVWJeta
I stopped eating at subway, to expensive. A few years ago I could get a sandwich for $5. Then $6. Then $11. Price jumping got way out of hand. Only time I go in there is if I have a coupon or they run a promo.


They usually have a "daily deal", where you can get one type of sandwich for $6.

 

[gman2304]

My wife and I occasionally split a Subway Tuna sub on whole wheat. That’s about all we ever get there, and it’s very good.

 

[NYEngineer]

I live on Long Island and work in NYC. There is never any reason to eat Subway. There is always a family owned deli or some other, better option.
There is a Subway directly across the street from my job on 58th street in Manhattan. It's actually busy. A couple of younger guys I work with used to go there from time to time and I would always ask why. Their reply was always five dollar foot long.
Reading this thread has made me realize they haven't been there in a long time and I haven't seen the five dollar foot long commercial for equally as long. Guess it doesn't taste so good when it's ten dollars.
One block away is a Morton Williams grocery store that makes better sandwiches than most delis I've been to.

 

[Wolf359]

Originally Posted By: PandaBear
Like Jack in the Box, Subway attracts a lot of people wanting to open a franchise, thinking that it is a receipt to print money.

The quality is better than JitB but they are really not great sandwiches, around here at least they are much cheaper than other local higher quality places, and they are honest about being a no frill to go place (almost no place to sit). It is a big deal if you can get a sub for $5 here, when everyone else charge $8-10 at higher quality, if you do not want to eat at McD or other fast food burger.

I have a feeling that the HQ make most of the money off franchisee fee instead of sales.


It's been referred to as a way to basically buy yourself a job. They cost anywhere from about 70-140k on the low end to buy one and maybe about 300k for an expensive one. So owners could make around 50-80k working there. There's a full list of fees somewhere but I think HQ makes about 12.5% of revenue. There's one fee of $2-$20 for customer complaints so I guess if you complain to corporate about something, they hit the franchise owner with a fee.

 

[Mr Nice]

Part of franchise agreement is that you have to remodel your store every few years.

Costs big $$$ to remodel.

 

[SatinSilver]

Originally Posted By: Mr Nice
Part of franchise agreement is that you have to remodel your store every few years.

Costs big $$$ to remodel.


It's more like every 7-10 years.

Remodel every 7-10 years