Subway Slashes US Restaurant Growth; Sales Fall

September 15th, 2015 by Fiedler Group

After opening 638 new restaurants in 2013 and over 800 in 2012, Subway cut its new US restaurant growth in half in 2015, opening just 313 new stores.

With slower growth, according to QSR Magazine, Subway’s sales fell 3% last year, to $11.9 billion.

The world’s largest restaurant chain noted instead of opening new locations, its current focus is boosting sales within its existing restaurant franchise network.

After trailblazing a healthier alternative to traditional fast food using made-to-order processes, Subway became one of the world’s biggest restaurant chains, boasting over 43,000 restaurant locations.

But when other restaurant industry rivals also offered fresh food options, Subway did not evolve to consumer demands quickly enough to satisfy customers’thoughts on what is defined as “healthy.”

Coupled with this eroding quality perception, Subway’s spokesperson — Jared Fogle – now also faces criminal charges.

So while the brand is still looking to improve its “fresh” positioning statement, its spokesperson scandal will likely cannibalize any progress, and ultimately, sales growth.

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