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Troubled Subway Facing Franchisee Revolt on Low-Priced Promotion

Subway restaurantWhile Subway has more units (over 26,700) in the U.S. and the world (44,000 including the U.S.) than any other single-brand restaurant chain, the Milford, Connecticut-based company’s customer traffic over the past five years has plummeted 25 percent.

Subway is concerned that consumers no longer see its sandwiches as a bargain versus its key competitor, McDonald’s. Subway likewise wants to plow into healthier and more natural fare, including wraps and “all-natural turkey,” according to the [November 30] memo [to franchisees] obtained by The Post.

…More than 400 of them [franchisees] have signed a petition protesting the two-month footlong deal that’s slated to begin in January.

“The national promotional focus over the past five years … has decimated [us] and left many franchisees unprofitable and even insolvent,” petitioners led by Virginia franchisee Mitesh Raval complained in the Dec. 6 letter to Subway. — Josh Kosman, New York Post

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