Introduction
Eat This Not That is reporting on the news that America’s largest sandwich chain is overhauling its franchise system. Subway, the world’s largest restaurant chain, is making changes to its franchise system in order to better serve its customers and franchisees. The changes are designed to make the franchise system more efficient and profitable for both Subway and its franchisees. Subway is also introducing new technology and marketing initiatives to help franchisees better compete in the fast-food industry. This article will discuss the changes Subway is making to its franchise system and how they will benefit both Subway and its franchisees.
America’s Largest Sandwich Chain Is Overhauling Its Franchise System — Eat This Not That
America’s largest sandwich chain, Subway, is making some big changes to its franchise system. The company announced that it will be overhauling its franchise system in order to better serve its customers and franchisees. Subway is making changes to its franchise agreement, which will include a new royalty structure, a new marketing fund, and a new franchisee support system.
The new royalty structure will be based on a percentage of sales, rather than a flat fee. This will allow Subway to better reward its franchisees for their hard work and dedication. The new marketing fund will be used to help franchisees promote their stores and increase sales. Finally, the new franchisee support system will provide franchisees with access to resources and tools to help them succeed.
Subway is also making changes to its menu, adding new items and removing some of the less popular items. The company is also introducing a new loyalty program, which will reward customers for their loyalty and encourage them to visit Subway more often. Subway is also introducing a new mobile app, which will allow customers to order and pay for their meals online.
These changes are part of Subway’s effort to stay competitive in the fast-food industry. The company is hoping that these changes will help it remain the largest sandwich chain in the United States. Subway is also hoping that these changes will help it attract new customers and keep existing customers coming back.
If you’re looking for a delicious sandwich, Subway is the place to go. With its new changes, Subway is sure to remain the top sandwich chain in the United States. So, if you’re looking for a delicious sandwich, head to Subway and enjoy the new changes.
After “refreshing” its entire menu in 2021, Subway is now turning its attention to its franchise system. The sandwich chain is embarking on a “multi-year transformational journey,” which will include updating its roster of franchisees, according to a recent company statement.
Specifically, Subway is hoping to swap out a portion of its single-unit franchisees, many of them first-time business owners, with larger franchising companies. “The brand is actively inviting well-resourced, multi-unit franchisees to join the company . . . and to discuss the potential acquisition of restaurant portfolios with existing operators,” reads the statement.
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The transition to larger-scale contracts is part of Subway’s longer-term goal of becoming an “experienced-focused” company. The chain says it wants to improve customer experience at its restaurants and believes that well-financed multi-unit operators are its best bet in achieving that goal. Planned improvements include system-wide store remodeling and investment in off-premise formats.
“To ensure we remain competitive for years to come, we’re scaling up with high-caliber multi-unit franchisees who bring operating expertise, development capabilities, and capital,” said Steve Rafferty, Subway’s SVP of development.
It’s big news for Subway. The brand’s 21,000 locations are mostly run by single-unit, mom-and-pop operators, thanks to the fact that it offers some of the lowest startup costs in the fast-food industry. Initial franchise fees at Subway are as low as $15,000—about a third of what McDonald’s charges, according to a 2019 estimate. It’s a selling point that’s helped the chain become the largest fast-food company in the U.S.
But with its new focus on customer experience, Subway is putting its famous growth strategy to the side, in the hopes of transitioning to a sturdier, more consolidated franchise system, better positioned to deliver a “consistent, high-quality guest experience.” Whether or not the chain will be able to attract that kind of high-caliber client remains to be seen.
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