- Subway’s co-founder says that the company needs to consider making major changes like opening new “sub-chains.”
- The chain’s same-store sales have dropped 13% since 2013.
- Subway is trying to turn its business around with new store designs and digital innovations.
As Subway’s sales plummet, the sandwich chain’s co-founder believes the company needs to start anew.
“How about opening four brand new sub-chains?” Subway co-founder Dr. Peter Buck said in an interview with the New York Post.
According to The Post, Buck — who lent Subway co-founder Fred DeLuca $US1,000 in 1965 to start the sandwich chain and still holds a 50% equity stake in the company — is unhappy with the company’s sales.
In 2016, sales at the chain fell 1.7% and its store count dropped by 359 locations in the US — marking the first time in the company’s history that the chain closed more stores than it opened. The chain’s same-store sales have dropped 13% since 2013, according to Restaurant Research.
The company did not respond to Business Insider’s request for comment.
Subway executives have different plans than Buck to turn around the business. The chain is currently rolling out a new store design in an attempt to modernise the chain. And, Subway is trying to catch up with competitors like Starbucks with an upcoming digitally-focused loyalty program.
However, these initiatives have faced challenges.
“The loyalty program is a year behind, with many false starts,” a franchisee told The Post. “A reason is that it hasn’t been able to work yet because of software difficulties, including the corporate platform not talking to the store point of sale systems.”
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