Subway Holds Franchisee Meeting Amid Sales Decline

Subway convened an urgent meeting with its North American franchisees to address declining sales and profitability following its $9 billion acquisition by Roark Capital in April 2024. Reports indicate that some locations have experienced same-store sales declines of up to 10%, attributed to aggressive discounting strategies that have not generated the expected increase in customer traffic. Franchisees have expressed concerns over promotional tactics that have eroded profits, with one noting that current gross sales are below 2012 levels. While Subway's spokesperson downplayed the urgency of the meeting, describing it as a routine update, restaurant consultants have pointed out the unusual nature of the gathering. Franchisees are eager for new strategies to reclaim market share amid these financial pressures. The meeting is expected to outline plans to improve customer engagement and sales performance.