The Rise And Fall Of Subway
Business Insider・2 minutes read
Subway, the largest global fast-food chain, faced challenges and a 25% decline in business from 2012 to 2017 despite its expansive reach. Founded in 1965, Subway's success was attributed to its open-kitchen format, affordable franchise model, and healthy branding, but it struggled with increasing competition from fresher and healthier alternatives, resulting in sales decline and store closures.
Insights
- Subway's rapid expansion into a global giant with thousands of outlets worldwide has been overshadowed by a significant decline in business and store closures due to intense competition and changing consumer preferences for healthier and fresher food options.
- The success of Subway in its early years was attributed to its innovative open-kitchen format that allowed customers to personalize their sandwiches, coupled with a cost-effective franchise model that made it accessible to aspiring entrepreneurs.
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Subway: Global Fast-Food Chain Faces Challenges
- Subway is the largest fast-food chain globally, with over 42,000 restaurants in 100 countries.
- Despite its vast reach, Subway has faced challenges, closing thousands of stores and experiencing a 25% business decline from 2012 to 2017.
- Founded in 1965 as Pete's Super Submarines, it was later rebranded to Subway by cofounders Fred DeLuca and Peter Buck.
- Subway's success stemmed from its open-kitchen format, allowing customers to customize their sandwiches with fresh ingredients.
- Subway's franchise model made it one of the cheapest chains to franchise, costing between $116,000 and $263,000 to open a store.
- Subway's sales peaked in the early 2000s, marketing itself as a healthy alternative to fast food, notably with the Jared Fogle weight loss campaign.
- However, Subway faced increasing competition from other sub chains and fast-casual restaurants offering fresher and healthier options, leading to a decline in sales and store closures.
