{"id":1483885,"date":"2024-08-15T19:45:00","date_gmt":"2024-08-15T23:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1483885"},"modified":"2024-08-15T19:45:00","modified_gmt":"2024-08-15T23:45:00","slug":"subway-calls-emergency-meeting-with-franchisees-as-fast-food-value-wars-potentially-claim-first-casualty","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/subway-calls-emergency-meeting-with-franchisees-as-fast-food-value-wars-potentially-claim-first-casualty\/1483885\/","title":{"rendered":"Subway Calls ‘Emergency’ Meeting With Franchisees As Fast-Food ‘Value Wars’ Potentially Claim First Casualty\u00a0\u00a0"},"content":{"rendered":"

Subway Calls ‘Emergency’ Meeting With Franchisees As Fast-Food ‘Value Wars’ Potentially Claim First Casualty\u00a0\u00a0<\/span><\/p>\n

\n

Quick-service restaurants (QSR) are locked in a\u00a0fierce “value war,” offering cash-strapped consumers $5 meal deals or even better bargains to maintain their market share. This battle for value has intensified as QSR executives recognize that low- and mid-tier households have been financially squeezed by the Biden-Harris economy. With elevated inflation, high interest rates, depleted savings, and maxed-out credit cards, consumers are in rough shape.\u00a0<\/p>\n

McDonald’s was the first to launch $5 meal deals<\/a>, and Burger King followed suit. On Monday,\u00a0Yum! Brands’ KFC said it would unveil a meal deal of its own in the near term:\u00a0“KFC claps back in “Value Wars<\/a>” with more deals for customers every day of the week this fall.”\u00a0<\/em><\/p>\n

<\/a><\/em><\/p>\n

As the QSR value wars heat up, sandwich chain Subway could be the first casualty in the spiraling price battle:<\/p>\n

Here’s more from the New York Post<\/a><\/em>:<\/p>\n

Subway has <\/em>called a hasty meeting with franchisees<\/em><\/strong> of its 19,000 North American sandwich shops as they <\/em>grapple with faltering sales and profits<\/em><\/strong>, The Post has learned.<\/em><\/p>\n

…<\/em><\/p>\n

“This <\/em>conference is essential<\/em><\/strong>,” Subway said in the invite. “Join us \u2026 to <\/em>discuss the state of the industry<\/em><\/strong> and an update on our business.”<\/em><\/p>\n

The NYPost spoke with a franchisee operator who owns twenty stores. The individual said, “Same-store sales are down 5% to 10% in recent weeks compared to the prior year.” The individual blames the downturn in the chain’s promotions, and foot traffic has plunged.\u00a0<\/p>\n

“They are doing crazy coupons,” the franchisee owner said, adding, “Our gross sales are not even at 2012 levels, and profit then was five times what it is today.”<\/p>\n

The latest\u00a0national ad campaign with\u00a0NBA great Charles Barkley appears to have been a flop. Data shared with NYPost showed\u00a0that average weekly same-store sales for the Eastern US region with about 1,000 locations dipped\u00a08.7% between June 25 and July 16 compared to the same period one year ago.<\/p>\n

Restaurant consultant John Gordon said the Thursday meeting appears “very unusual.”<\/p>\n

In recent weeks, Gordon said he had viewed Subway’s same-store sales figures across the\u00a0West Coast and East Coast regions, which show a 10% plunge.<\/p>\n

QSR value wars and emergency meetings by Subway do not occur during boom times; they are ominous signs that the consumer downturn<\/a> is gathering pace.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 08\/15\/2024 – 15:45<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/subway-calls-emergency-franchisees-fast-food-value-wars-potentially-claim-first-casualty<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Subway Calls ‘Emergency’ Meeting With Franchisees As Fast-Food ‘Value Wars’ Potentially Claim First Casualty\u00a0\u00a0 Quick-service restaurants (QSR) are locked in a\u00a0fierce “value war,” offering cash-strapped…<\/p>\n","protected":false},"author":0,"featured_media":1483886,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1483885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1483885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1483885"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1483885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1483886"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1483885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1483885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1483885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}