Store Closings, Food Poisoning, Corporate Woes Continue To Beset Subway

For many consumers, it means they've simply stopped going to Subway altogether: "My kids had the same issue after eating there, Italian BMT. Vomiting and diarrhea; we won't go back."

Nearly all Bloomington Subway locations forced to close after licensing issues

FOX 59, BLOOMINGTON, Ind. — The Monroe County Health Department has closed all but one Subway location in Bloomington due to licensing issues. On Monday, a notice was placed on the door of nine Subway locations. The notice states that the owner was operating  without a proper license, in direct violation of the Indiana Retail Food Establishment Requirement …

Subway, Linton Hall Road, Gainesville, VA, USA

2 days ago | last night, meat balls “footlong meatball marinara melt” that happened to my 12 yo child who spent 5 hours vomiting and dealt with diarrhea for much longer

Subway in Bar Harbor Closes, To Be Replaced with Downeast Pizza

WDEA, Maine – Bar Harbor’s last chain restaurant recently closed, with the Subway at 4 Cottage Street next to the Bar Harbor Chamber of Commerce’s Visitors’ Center closing. Set to take its place is Downeast Pizza, owned by Robin Wright …

Another Binghamton Subway Restaurant Preparing to Close

WNBF, March 17, 2023 – A restaurant that’s been a fixture in downtown Binghamton (NY) is about to shut down. People familiar with the situation say the Subway shop at 35 Court Street is expected to close by the end of this month. The restaurant has operated at that site for the past three decades …

Subway, Bay St, Taunton, MA, USA

2 days ago | Spinach: | Symptoms: Diarrhea, Nausea, Vomiting

‘You can only eat so much Subway:’ students want more  options

Investigative series into food availability on campus

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University of Alaska Anchorage, April 3, 2023 – For some students, when asked about food options, the response was quick:

  • “There aren’t any.”
  • “I wish it was more than Subway.”
  • “You can only eat so much Subway.”
  • “Anytime I want lunch, I leave” …

Subway, Central Avenue, Dover, NH, USA

4 days ago | Suspected food poisoning. Symptoms: Diarrhea, Cramps
Onset: Less than 4 hours
Duration: Several days
Additional information: I had a meatball marinara at Dover on Saturday and developed stomach cramps a few hours later. Now I still have diarrhoea


What Happens to Franchisees if Subway Sells for $10 Billion?

Subway is reportedly eyeing a sale of the company, which is valued at nearly $10 billion. However, it remains unclear what will happen to the brand’s franchisees if the sale goes through.

By Jeff Dwyer, Staff Writer, 04/06/23, 1851franchise.com

Subway, the fast-casual restaurant chain that famously offers footlong sandwiches, has reportedly hired financial advisors and is seemingly looking to sell the company to a private investment firm. That’s according to a recent article from The Wall Street Journal citing “sources close to the matter.” The journal claims Subway’s leadership team is eyeing a potential sale of the company, which could be valued anywhere from $8 billion to $10 billion.

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But what would happen to the brand’s thousands of franchisees should Subway get sold? Before we get into that, it’s important to examine the current state of Subway as a franchisor.

The Current State of Subway 

Subway was founded in 1965. Up until just recently, it was run under the ownership of its two founding families. Since its inception, Subway has become one of the largest privately held franchising networks in the world.

As of 2022, the brand has around 20,000 locations in the U.S. and more than 35,000 franchise units globally. Despite this, the brand has been on a relatively downward path over the last few years. Subway has struggled to keep some of its franchise locations in business, an issue that has been attributed to the brand’s eagerness to open up too many units near one another without territory protection protocols in place.

This business model has drawn criticism from the likes of political talk show host John Oliver, who dedicated an entire segment to the franchise on an episode of his show “Last Week Tonight.”

“For decades, franchisees have complained about Subway allowing locations to open near each other and cannibalizing their business,” Oliver said. “A Subway could open right next to yours and cut your sales in half. And none of this really affects Subway corporate. They still get their royalty fees on any sale, plus a $15,000 franchise fee for every new store that’s opened.”

But the proximity of Subway franchises to one another isn’t the only challenge faced by the brand over the years.

Franchise Struggles 

There’s no question that Subway is one of the largest franchise brands in the world. There are Subway restaurants seemingly everywhere you go. As a positive, they can be relatively inexpensive to open. In fact, the initial investment required to open a Subway can range from $116,000 to $263,000, including a generously low franchise fee of $15,000. Reports claim Subway has been waiving its franchise fee in some cases in order to attract buyers at new locations. … READ MORE. 

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