A distribution problem has left several Subway locations in the Atlanta area without deliveries for the past two weeks, prompting some operators to temporarily close locations until they can get enough supplies.
Numerous Subway locations in the area were temporarily closed, according to multiple sources. The problems are rooted in a new distributor that apparently failed to provide products to the chain’s restaurants.
The Miami-based sandwich chain confirmed the issues in an email to Restaurant Business. The company said that it is working to get products to the affected restaurants, using other distributors that work with the company.
Subway said that it is working with its Independent Purchasing Cooperative, or IPC, “to address a supply chain disruption in the Atlanta area. Our teams are collaborating closely and working to get product delivered from additional trusted distributes to the restaurants.”
Franchisees in the Subway system own and control the IPC, which manages the company’s supply chain.
Subway has 20,000 restaurants in the U.S., each of which is owned and operated by franchisees.
The issue comes at a tough time for the chain, which has seen sales weaken this year amid consumer frustration over high prices.
Subway is pushing more discounts through its mobile app in a bid to get customers back in the door. But that has run into resistance from some franchisees who say that they lose money on the deal, particularly in high-cost areas.
The issue in Atlanta follows the termination of a 23-unit Subway operator in Oregon and Washington in August, where stores were closed. The restaurants featured signs saying they were temporarily closed.
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