Subway Sees Revenue Decline Second Year Straight

May 24th, 2016 by Fiedler Group

Amidst closing hundreds of underperforming locations and a slow-down of new restaurant openings, Subway restaurants reported a drop in revenue for the second straight year.

The fast-casual restaurant chain saw revenue drop 4.3 percent to $1.11 billion in 2015.

Experts see other restaurant chains like Panera Bread as threats to Subway’s existing market share in the United States.

While Subway has more than 44,000 locations worldwide, the company has seen challenges catering to the millenial demographic keen to order salads and yogurt food products.

2015 was a difficult year for the sandwich chain.

In one year, the company saw a net growth of just 34 restaurants (it grew 313 lcoations in 2014), co-founder and CEO Fred DeLuca passed away, and in November, former spokesman Jared Fogle was sentenced to 15 years of prison.

Further exemplifying the company’s challenge, its longtime slogan “Eat Fresh” is lost in a crowded marketplace of restaurants where freshness is the expectation, not the differentiator.

The company is optimistic for a better 2016, citing culinary improvements and new menu offerings.

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