Business · 2

What was cited as the main cause of Subway's shrinking U.S. store count in the 2010s, even as customer demand held steady?

Answer

Franchisee profitability problems

Reports on Subway's contraction pointed to thousands of franchise owners struggling to turn a profit amid oversaturation and rising costs, prompting closures rather than any falloff in customer interest.

💡 Did you know?

Subway passed McDonald's in U.S. restaurant count around 2000 but eventually declined due to franchisee profitability issues, not customer demand.

Other options people guess

  • A drop in customer demand for sandwiches
  • Rising commercial real estate lease costs
  • Increased competition from delivery-only kitchens

Topics

  • fast-food
  • subway
  • franchising
  • business-decline

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