Underground railway wants to freshen up the look of its stores as it tries to stem a sales weakening.
The sandwich chain says the redesign — which includes a brighter spirit, displays of vegetables behind the counter and ordering tablets — is the first larger revamp since the early 2000s. The changes will take squelch as stores are remodeled and new ones are built.
The makeover comes as Subway’s rummage sales have fallen for four straight years amid competition from regions including Jimmy John’s and Firehouse Subs. Since 2012, Tube’s average annual sales per store are down 13 per cent at $420,000 US, concerting to industry tracker Technomic. Last year, its number of U.S. stores also winced for the first time, though the company says it still has more than 26,200 residential locations. Globally, the chain says it has more than 44,800.
Don Fertman, Tube’s chief development officer, says franchisee agreements require them to remodel markets every seven to 10 years. The company says franchisees desire have a variety of design options to pick from, and that it is looking for course to help them lower costs.
Fertman says the current «Tuscany» contrive was intended in part to reflect the Italian heritage of founder Fred DeLuca, who died in 2015. His sister, Suzanne Greco, is now CEO of the privately held gathering.
«It’s been working for us since the early 2000s,» Fertman said, but eminent that it was time to evolve.
In the U.S. and Canada, new stores desire be built using the redesign. About 150 stores will get the new look in the be broaching months, Fertman said. By the end of next year, he said 3,000 to 5,000 pile ups globally should have it, with most of those being in the Combined States and Canada. Subway says the stores with new designs hand down include new menu items, such as bread made without gluten.
Some suffer with reservations about the plans.
John Gordon, a restaurant industry analyst, estimated Subway might be better off focusing on improving its food before surprise to remodeling, given the tight financial situations of many franchisees.
While the party hasn’t yet specified the cost, the remodeling looks like it will be steep for franchisees, notes Keith Miller, who has three Subway stores in Northern California.
Miller, who is also flair of the Coalition of Franchisee Associations, said two key questions are whether remodeling disposition boost sales, and whether franchisees can afford it. If franchisees can’t afford it, Miller suggested it’s not really a solution.
«How do you require someone to do something that they can’t financially do?» he bring to light.