Subway Struggles in Australia
- Subway has closed hundreds of stores across Australia due to ongoing struggles.
- Number of Subway stores in Australia has been steadily dropping in recent years.
- The closure of Subway stores in Australia may indicate underlying issues for the popular sandwich chain.
Subway's recent emergency meeting with franchisees across its 19,000 US locations highlights the sandwich chain's struggle with declining sales, a situation that may mirror challenges faced in Australia. Despite having more outlets than McDonald's in Australia, Subway commands only 5.6 percent of the industry revenue, significantly trailing behind McDonald's 20.3 percent. Between 2015 and 2022, Subway closed 202 locations in Australia, reducing its footprint from 1,444 to 1,242 stores. The focus of the US meeting appears to be on strategies to rejuvenate the brand and increase sales, as franchisees report a drop in customer traffic. An invitation sent to store owners indicates that the corporation plans to discuss methods to regain market share and attract customers back to its stores. Reports suggest that aggressive discounting strategies, such as offering subs for $6.99 when the menu price is $11, have been implemented to combat falling sales. Sales data from the eastern US region indicates a troubling 8.7 percent decline in sales from June 25 to July 16 compared to the previous year. While Subway's spokesperson downplayed the urgency of the meeting, emphasizing ongoing communication with franchisees, the situation has raised concerns among employees and customers alike regarding the impact of inflation on pricing. In Australia, Subway has attempted to reposition itself as a trendy option through store renovations, but it faces stiff competition from healthier dining alternatives and meal delivery services. Additionally, a class action lawsuit filed in 2020 over misleading claims about its tuna products has further complicated the brand's reputation.