Subway has closed hundreds of stores across Australia in recent years, with the number of outlets dropping from 1,444 in 2015 to 1,220 currently, a decline of 14%. The sandwich chain now has 1,220 stores, while competitor McDonald's is closing in with 1,043, despite the cost to open a Subway being a fraction of that for a McDonald's.
Industry data shows Subway holds only 5.6% of Australia's fast-food revenue, compared to McDonald's 20.3%. The closures come as Subway faces challenges from changing consumer eating habits and rising inflation. Accredited dietician Anna Debenham noted that Australians are 'more aware of what's going in their bodies' and are choosing salad bars, healthy Mexican restaurants, sushi rolls, or fresh food delivery services like HelloFresh and Marley Spoon.
Subway has called an urgent meeting with its 19,000 US franchisees to discuss falling sales and traffic. The meeting, described as 'essential' in an invite viewed by the New York Post, will cover plans to win back customers and boost market share. Some US franchisees have criticised 'crazy' discounts, with one saying, 'Our gross sales are not even at 2012 levels, and profit then was five times what it is today.'
In the eastern US region of around 1,000 stores, sales plunged 8.7% between June 25 and July 16 compared to a year earlier. A Subway spokesperson denied the meeting was an emergency, stating, 'We consistently and proactively communicate with our franchisees to share business updates and plans.'
Online commentators have cited high prices as a deterrent, with one Australian noting that a six-inch sub now costs as much as a footlong used to ($9.95), and footlongs are now $15. Another said, 'Maybe Subway is calling an emergency meeting because no one wants to pay $12 for a mediocre sandwich they can make for $3 at home.'
