Subway denied the Thursday meeting that the sandwich chain reportedly sought to have with North American franchises was an “emergency” one.
The New York Post reported Subway sought to meet with North American franchisees with intentions to go over initiatives to bring more customers into restaurants and other topics. Current promotions were also reportedly on the docket.
The outlet reported a Subway franchisee described it as an “emergency” one and that the invitation for it said the “conference is essential.”
A source at Subway refuted to FOX Business that it was an “emergency” and said the company “consistently and proactively communicate[s]” with franchisees to “share business updates and plans.”
“The terms ‘emergency’ and ‘essential’ were never mentioned in any official company communications to franchisees. The call was scheduled more than three weeks in advance. Additionally, value offers are strategically designed to help increase sales and traffic by attracting consumers. The claim that promotions lead to a decline in traffic contradicts the viewpoint of industry experts,” the source also said.
SOME SUBWAY FRANCHISEES HAVE ‘MIXED REVIEWS’ OVER DELI SLICERS
Recently, some Subway franchisees in North America have been experiencing year-over-over declines in same-store sales, including in Los Angeles and in an area on the East Coast encompassing 1,000 locations, the New York Post reported.
For one Subway franchisee who spoke with the outlet, that has reportedly looked like a decline of 5-10% year-over-over in recent weeks. He suggested Subway “doing crazy coupons” and less customers has contributed to that for his restaurants, per the outlet.
Some other franchisees have praised the promotions.
“As soon as coupons are live, we see a difference in our restaurants,” Kevin Allen, a Subway franchisee in Texas, said in a statement to FOX Business. “Right now, with the increase in food and grocery prices, coupons are more valuable than ever, and they have proven in our market to boost sales and traffic.”
“It is challenging times for the entire restaurant industry,” a Subway spokesperson told FOX Business. “Our approach to value is thoughtful and strategic based on data to help balance consumer needs while protecting franchisee profits.”
Subway’s global presence spans nearly 37,000 restaurants in over 100 countries.
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