Subway hasn't revealed the average annual sales volume for its U.S. restaurants, but industry experts and insiders put the figure at less than $500,000, making it one of the lowest in the industry. Subway's new franchise strategy isn't going too well:
NEW YORK - Subway is seeking big new franchisees in the United States in a push to revamp its ownership model, but low restaurant profits and outdated stores are making it a tough sell for the global sandwich chain.
Subway, which has closed thousands of U.S. locations since 2016, said a year ago that it wants to shift away from its current base of small franchisees that own just one or two shops, which tend to be family-run and sometimes barely scrape by. "There is strong interest in growth opportunities with Subway from multi-unit operators," Subway said in a statement to Reuters for this story. "All five multi-unit owner agreements were significant investments that demonstrate the confidence that both existing and new operators have in our brand and future."
Subway told Reuters that in May, it "achieved its highest weekly average unit volume in the U.S. since 2010," but declined to disclose the dollar amount.In Subway's booth at the International Franchise Expo in New York on Friday, its green, yellow and white flyers touted the brand's more than 12% comparable sales growth and laid out qualities it wants in multi-unit operators: strong leadership, shared values and a net worth of at least $150,000 per location.
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