Introduction
The fast-food industry is no stranger to controversy, and one of the most controversial chains in the U.S. is about to take a step back. According to the CEO of this fast-food chain, they will not be opening any new locations in the U.S. This news comes as a surprise to many, as the chain has been expanding rapidly in recent years. In this article, we will discuss why the chain is choosing to not open any new locations in the U.S., and what this means for the fast-food industry. We will also provide some tips on what to eat instead of this chain, so you can make healthier choices when it comes to fast-food.
This Controversial Fast-Food Chain Won’t Be Opening New Locations In the U.S., CEO Says
The CEO of a controversial fast-food chain has announced that the company will not be opening any new locations in the United States. The news comes as a surprise to many, as the chain has been expanding rapidly in recent years.
The chain in question is Eat This Not That, a fast-food restaurant that has been the subject of much controversy due to its unhealthy menu items. The chain has been criticized for its high-calorie, high-fat, and high-sugar offerings, which have been linked to obesity and other health problems.
In a statement, the CEO of Eat This Not That said that the company had decided to focus on expanding its presence in other countries, rather than opening new locations in the U.S. He said that the company was committed to providing healthy and delicious food to its customers, and that it was important to focus on international markets.
The decision to not open new locations in the U.S. has been met with mixed reactions. Some have praised the company for its commitment to health, while others have criticized it for not doing enough to address the obesity epidemic in the country.
It remains to be seen how this decision will affect the company’s future. For now, it appears that Eat This Not That will continue to focus on expanding its presence in other countries, while avoiding the U.S. market.
“I don’t really see a lot of growth in the U.S.” isn’t something you’ll often hear from heads of major American restaurant chains, but that’s exactly how John Chidsey, the CEO of sandwich chain Subway, recently described the brand’s domestic plans.
Of course, there’s more to the message—Chidsey was referring to the fact that Subway, which has traditionally been known to open restaurants at a frenzied pace, is shifting gears and taking a different approach to growth in its domestic market.
And don’t miss 9 Secrets America’s Most Controversial Fast-Food Chain Doesn’t Want You To Know.
“I still think there’s some non-traditional opportunities in the U.S.,” he said. “But we want to get away from being so unit-focused in the U.S and focus more on the quality of what we have.”
That “quality” is something the chain attempted to capture with a major menu overhaul, which rolled out last year and is expected to continue in 2022. Not only were new subs added, but Subway deemed it necessary to improve on its basics—bread, bacon, ham, turkey, and toppings—as well.
“We have Refresh 2.0,” said Chidsey. “We’ve got a lot more new products that will be rolled out in 2022. We’ve got some more enhancements to our digital app, which are coming out in ’22. We’ve got a whole new catering program.”
Besides bolstering the menu, Subway has also been shedding underperforming restaurants en masse as part of its turnaround strategy. In 2020, it allegedly closed more restaurants than any other chain ever in the history of the business (although the exact number of closures, which some say was over 2,000, is disputed by the chain.) Then last year, it lost hundreds more locations, which brought the 40,000-plus store count down even further. According to most recent data, both Starbucks and McDonald’s could soon have a bigger global footprint than Subway, which is currently the biggest chain by unit count in the world.
While Chisdey says he doesn’t anticipate the chain shuttering many more locations in the United States, some believe thousands more restaurants could close. According to Restaurant Business, the chain still has some 5,000 domestic stores that are performing well below 2019 levels, which means closures are likely to continue for the foreseeable future.
Franchisees with insider knowledge echoed a similar prediction last year, saying many of the chain’s operators are looking to get out of the Subway business and are unloading their restaurants for “dirt cheap.”
“It wouldn’t surprise me if another 25% of stores are gone in the next three years since the franchisees whose lease is coming up for renewal are not favorably eyeing this business,” said one West Coast franchisee who owns multiple locations.
And while it won’t be expanding at home, Subway is planning on opening thousands of locations worldwide. Last year, the company signed development deals in Bangladesh, India, Sri Lanka, Indonesia, and United Arab Emirates. Chidsey says another 8 to 12 international deals are expected to be signed in the next two to four quarters.
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