Store Count at SUBWAY Contracts for First Time Ever
The worldwide sandwich shop has bragged for years that there were more Subways around the world than any other chain of restaurants. However, during 2016, the sandwich chain shuttered more stores than were opened, which means the store count of the chain dropped.
Subway now has 26,744 stores in operation across the United States, which is 359 less than the prior year. In all there are over 40,000 Subway locations worldwide, which means it does have more locations that any other chain of fast food restaurants.
McDonald’s is the fast food chain with the second highest number of restaurants worldwide with approximately 36,000, though in overall sales it beats Subway.
Subway on Thursday announced that its U.S. sales for 2016 were just over $11.3 billion, which was down from its 2015 sales of more than $11.5 billion.
In a prepared statement released by the company it said that the drop in overall sales was due to the company focusing on its growth outside the U.S, where sales increased.
Its international locations had sales of more than $5.8 billion, which was up over 3.7% from the prior year.
Subway hinted as well that it was planning to make a couple of big changes during 2017 that are aimed at reinvigorating sales growth in the U.S.
Going into this year, Subway said it was undertaking a big and exciting transformation which included introducing some new as well as improved products, refining operations, positioning the franchisees for success and creating a customer experience that is even greater than it was.
Subway is not the only fast food chain to see sales drop. McDonald’s posted a drop of sales at same stores of 1.3% for its 2016 fourth quarter. The drop came even though there was a concerted effort of keeping many stores in the chain open around the clock.
McDonald’s also has extended its breakfast to all day and has added in several new healthy choices to the menu. The healthy choices include foods and salads that are low in salt and calories.
Many theories exist as to why the fast food industry faced challenges during 2016. One of those theories is that the industry has saturated with both companies that are mainstream such as Subway, Little Caesars and Chipotle along with a huge variety of other smaller niche market players such as Arby’s and Panera.