As a business brokerage that strives to provide both business buyers and sellers with our expertise, we stay on top of the latest business news. One franchise that has made headlines these past few years has been Subway. The sandwich and salad chain has had its fair share of good and bad news. Decisions that impact Subway’s corporate office affects their franchisees eventually, so it’s good to be in the know. Whether you own one, want to sell one, or want to buy a Subway franchise, read our brief breakdown of this iconic sub shop and see what’s in store for 2020.
When Subway Skyrocketed
The Subway franchise popularized the open-kitchen fast-food concept. With a business model centered around fresh and healthy ingredients, people liked the idea of seeing their meal customized and prepared in front of them. Since humble beginnings in the ’70s in Bridgeport, Connecticut, Subway at its peak boasted more than 42,000 locations in over 100 countries. Stores popped up everywhere because the brand was iconic, people enjoyed the food, and franchises were reasonably priced to open. It got to the point that stores would even open within walking distance from another.
Subway Franchises These Past Few Years
The Subway boom then led to a crash in 2016, the first year the fast-food chain had to close more locations than it opened. In terms of factors for success, Subway franchises could not keep up with their market competition. Other sub shops opened, and other more healthy fast-food options became available. The sandwich chain would even be competing against each other due to the high saturation of Subway locations in an area.
The Future of the Franchise
Recently, Subway’s initiatives have shifted to refreshing their store designs and consequently, refresh customers’ perception of the sandwich chain. The company expects its “Fresh Forward” program to remodel over 10,000 locations by the end of 2020. Along with the updated decor, expect Subways to offer charging ports, self-ordering stations, and new flavors on their menus. Current franchise owners can apply for $10,000 grants to cover approximately a quarter of the renovation costs. There’s a lot of new ideas from the sub shop to look forward to next year.
To further explore your 2020 possibilities in either buying or selling a Subway, or any other franchise, work with Atlantic Business Brokerage.
Buying With Atlantic Business Brokerage, Inc.
At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.