Fast meals sandwich chain Subway expects to shut about 500 shops in North America this 12 months.
But it is also hoping to open as many as 1,000 shops abroad.
The firm has 44,000 areas globally — greater than another retailer. The National Retail Federation put its US retailer rely at practically 27,000 as of 2016, in comparison with 17,500 for Yum Brands (, which runs Pizza Hut, Taco Bell and KFC, and the 14,000 areas for )McDonald’s (. )
The firm mentioned Wednesday it expects shops to shut after it rolls out a revitalization plan, introduced final summer time, that can require franchise house owners to speculate extra of their operations. All Subway shops are franchise owned, fairly than owned by the corporate. The plans to revamp areas embrace including self-service kiosks, extra comfy seating and Wi-Fi and USB charging ports. In February, Subway additionally introduced plans for a loyalty program to win again clients and stem slumping gross sales.
Store closings are new for Subway. It had a web lack of greater than 350 US shops in 2016, the primary 12 months within the firm’s historical past that it trimmed fairly than elevated its number of stores. The privately held firm has but to reveal its 2017 retailer rely, however there have been studies of lots of of retailer closings.
“Looking out over the next decade, we anticipate having a slightly smaller, but more profitable footprint in North America and a significantly larger footprint in the rest of the world,” the corporate mentioned on Wednesday.
Many of Subway’s areas are smaller in comparison with different quick meals rivals. That’s one of many causes there are such a lot of of them — it is a lot cheaper for a franchisee to open a Subway storefront fairly than one for McDonald’s or Burger King.
Many conventional brick-and-mortar shops have been closing areas in recent times, as individuals purchase extra items on-line. But that hasn’t been the case for quick meals, the place there’s just about no competitors from on-line opponents.
Fast meals gross sales then again are getting hit by the drop in retail foot site visitors within the locations like malls, in addition to the rising demand for more healthy meals.
Subway additionally took a public relations hit in 2015 when Subway spokesman Jared Fogle pleaded guilty to costs of kid pornography and crossing state traces to pay for intercourse with minors. He was sentenced to greater than 15 years in jail. The firm had not used him in a tv business since 2013, and it rapidly minimize ties with him when his authorized issues grew to become public.
CNNMoney (New York) First printed April 25, 2018: 5:20 PM ET