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Is it me, or are Subway franchisees getting screwed over?

Phokus

Phokus

Lifer
I count 13 subways in my small city. Compare that with 2 Mcdonalds, 1 Burger King, 1 KFC, 1 Taco Bell. And that's really all the national fast food chains that i know of.

If Subways can sell so many franchises without restriction on how many you can have in a given area, don't the franchise operators make like no money?
 
It must be worth money cause people are buying. They aren't grabbing people off the street and forcing them to open Subways. The existing owners might be getting hurt, but that's life. Opening a business doesn't make you immune to competition from within, or without.
 
If they were getting screwed, then you would be counting 13 CLOSED subways. But they're not, it's 13 subways open for business. Maybe it's time you opened one to find out how they do it.
 
Subway is also never as busy as McDonald's and those other places, but still busy enough. so they probably don't make as much money as McDonald's but probably still make enough to live well. On the other hand maybe the operating cost is much lower too so maybe it comes up to the same. Deep fryers and burger clam shells use up lot of gas/electricity compared to the little microwave at Subway that only runs for 30 seconds per order (if the customer even chooses to get it toasted). Of course there's the fridges but that's a given for any food establishment.

One thing that is amazing is Tim Hortons. Does not matter how many of them you open they will all be busy. It's a freaking gold mine. Their operating costs are probably rather low too. Bulk coffee/donut products can't be all that expensive.
 
I count thirteen capitalistic pigs, living the rich life and holding down the working man.

To arms, comrades, to arms!
 
obvious answer is obvious:

1 guy owns 13 subways in your city.

economies of scale + monopoly, bitches.
 
The business model works well. The operations of a subway shop allow it to operate very well in locations that a fast food place like McDonalds would fail. Subways can be put on the side of a crappy little stores, gas stations, strip malls, kiosks etc and generate enough traffic to succeed. A typical McDonalds relies heavily on drive-thru sales and significantly higher traffic to support traditional B&M stores.

The typical Subway franchise makes about 25% of what the typical McDonalds does.
 
Subway has been putting less and less meat every year it seems. You basically need to get a ton of vegetables to make the sandwich worth it to all.
 
Very possibly, yes. I've heard of this being an issue with Subway, they're happy to sell a franchise even if it screws an existing franchisee.

On the other hand Subway has low startup costs and operating costs. It's easy to break even.
 
Subway would be dead today if it didn't start that $5 Footlong stuff.

I remember a time when eating at Subway was a luxury.
 
I find the $5 foot long pretty decent to fill up for the day.

I rather take quantity over quality food for a cheap price.
 
What I find more amazing is how Quizno's survives. Equivalent sandwiches are twice as expensive or worse there. And quite honestly not as loaded with toppings. At Subway, I can get extra everything at no extra cost, as long as I'm a regular and know the employees.
 
all of those subway franchises are owned by the same person.

mo subways, mo money.

i also liked it when they had subway decorations / theme inside.
 
SheHateMe said:
Subway would be dead today if it didn't start that $5 Footlong stuff.

I remember a time when eating at Subway was a luxury.
Click to expand...

Yep. They used to be good and expensive. Now they're bad and still expensive. As opposed to Quiznos which is good, bad for you, and expensive.

Subway doesn't seem to be as popular in Canada as it is in the States. There's quite a few of them but they're not on every corner. Tim Hortons is just such a fast food juggernaut, and it has similar fare to Subway. Granted Subway's food is better, though that's not exactly a complement. Even McD's struggles with Tims, which is why they're pushing McCafe so hard here.

Last time I went into Subway, I got a sloppy sandwich on bread that was both stale and burnt. I prefer Quiznos or Mr. Sub but there's not always one near by. Sadly, you don't see too many mom & pop sandwich shops anymore. At least ones that aren't targeted at hipsters, who don't sell $20 grilled cheese.
 
Turbonium said:
What I find more amazing is how Quizno's survives. Equivalent sandwiches are twice as expensive or worse there...
Click to expand...

Nothing Subway sells is remotely equivalent to what Quizno's sells. The difference in quality and taste is night and day.
 
CA19100 said:
Nothing Subway sells is remotely equivalent to what Quizno's sells. The difference in quality and taste is night and day.
Click to expand...

I have had both and subway is better around here then quizno's about 90% of the time.

I think the problem is subway tends to be a lot more consistent so they must have a better training program not to mention generally subway tends to be cleaner and look better as really the only time I see quizno's are in the run down areas and are dirty.
 
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