Subway

Financing

Subway and Starbucks oust their Brazilian operator

SouthRock Capital, a major food and beverage operator in the country, had its master franchise agreement with Subway terminated after less than a year and lost its license to operate Starbucks.

Operations

Subway opens its new second headquarters

The new office, in Shelton, Conn., follows the opening of its Miami headquarters in May.

The judge awarded nearly $1 million in back pay and damages to employees of a Bay Area 14-unit Subway operator after finding they issued bad checks, kept tips and violated child labor laws.

The Bottom Line: Subway and Burger King have staked their claims as value leaders in their respective segments. Recent events have highlighted the difficulties of that position.

The sandwich giant, which is being sold to Roark Capital, told franchisees that they must accept mobile app discounts by Dec. 28. A lot of the brand’s operators were not pleased.

The Bottom Line: The addition of the sandwich giant will make Roark a bigger player than McDonald's in the U.S. But its position in the sandwich market will not be all that unusual.

Technomic's Take: The sandwich chain has been shedding locations since 2016. But the brand may be poised for a sustained turnaround.

The Bottom Line: A big coupon drop by Subway gives customers some huge value. That’s a potential problem at a brand with profitability challenges.

The company is shifting to a tiered loyalty program, called Subway MVP Rewards, based on level of spending.

The Bottom Line: Ike’s Love & Sandwiches has grown to 100 locations. And a surprisingly big part of its growth strategy involves closed Subway restaurants.

  • Page 4