Remember earlier this month when we revealed the apparently dire straits that sub shop Subway finds itself in?
Well, I'm sorry to tell you that two weeks on it's not looking any better:
Subway's $6.99 footlong sandwich deal has sparked a revolt from the chain's biggest franchise group — which has raised concerns the discount will spark losses for cash-strapped restaurateurs, The Post has learned. ...
Under the deal, which is only accessible through the Subway app, a footlong sub goes for $6.99 — sharply below regular prices between $11 and $17.
In response, Bill Mathis — chair of the North American Association of Subway Franchisees, or NAASF — speaking for its Board of Directors — advised the group's members to ignore the promotion, which is slated to run through Sept. 8.
That's underselling it. Here's what Mathis advised:
If your franchise agreement allows, DO NOT PARTICIPATE in the $6.99 promotion.
Franchise owners on the $6.99 footlong deal:
To be sure, this might be a comparatively small blip of contention. The NAASF "represents about 2,500 franchisees companywide, who operate a significant chunk of Subway's nearly 20,000 North American restaurants," just about 12% of the store total.
Still. Twelve percent isn't nothing. And "most of" the franchisees in North America reportedly have opt-out clauses for corporate promotions.
And it's not surprising that they'd balk at the deal, given what the numbers apparently show:
NAASF has a variety of talented members including those who are quite proficient with analysis of break evens," Mathis wrote. "In some people's opinions, the traffic lift needed to break even on this promotion is as high as 30%.
Yes, you're reading that number right:
That's a huge lift. Not sure that many people are gonna turn out for a $6.99 footlong!
Bidenomics may have sunk the entire brand!
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