The Post reported that, according to an internal memo, Subway's traffic has fallen 25% over the last five years.In 2016, sales at the chain fell 1.7% and its store count dropped by 359 locations in the US — marking the first time in the company's history that the chain closed more stores than it opened.Struggling to develop a subway business business plan?
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Franchisees say that the $5 footlong deal and other promotions that the company has rolled out as a response to plummeting customer traffic are pushing their businesses to the edge.
"The national promotional focus over the past five years …
“As part of the optimization plan we shared last year, to achieve this goal some owners will close, relocate, or remodel their locations and that will result in slightly fewer, but more profitable restaurants,” the spokesman said. James Walker, vice president of North America, resigned last week.
The company’s franchisees, who own the restaurants, have been remodeling “hundreds of restaurants” across the country. The company is also looking for a permanent chief marketing officer as well as a permanent CEO.At the same time, however, the company had been struggling to evolve beyond the footlong deal that helped it grow for so long.And it has faced mounting competition from smaller chains such as Jimmy John’s, Firehouse Subs and Jersey Mike’s.There are a number of aspects that require consideration to craft a winning business plan.If you need help to design a business plan for your next venture, we are here to simplify it for you.has decimated [us] and left many franchisees unprofitable and even insolvent," petitioners led by Virginia franchisee Mitesh Raval complained in a letter that was sent to Subway and obtained by The New York Post.More than 400 franchisees have reportedly signed the petition, which protests the chain's plans to roll out its famous footlong deal in January.Subway is reportedly planning on bringing the footlong deal back in January.More than 400 franchisees signed a petition to protest the deal, saying that the chain's previous promotions have "decimated" business.We have support from the majority of franchisees on this program and many others we are testing.However, we typically do have a number of restaurants that don’t participate in our national promotions. Subway is in the midst of a massive transformation, and change of this size takes time.