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Subway and its suppliers are expected to provide franchisees with more than $ 100 million in funding to remodel approximately 40 percent of the channel's units over the next 18 months, the company said Thursday.
The sandwich giant, based in Milford, Connecticut, and its suppliers, give operators $ 10,000 in grants to help spur processing. Subsidies fund about 25 percent of the cost of remodeling, the company said.
Subway said that 10,500 of its nearly 25,000 locations in the United States expect to benefit from the program and a new look by the end of 2020.
The company has refurbished 1,400 sites around the world and another 900 in progress, the company said.
Add it all and Subway, its suppliers and franchisees are investing a total of $ 400 million in renovations over the next 18 months.
"By joining the renovation program, franchise owners are investing and demonstrating their confidence in the brand," said Development Director Don Fertman in a statement.
Subway is making significant efforts to transform its image and stores as the company seeks to recover from a six-year crisis.
System sales declined 3.6% in the US last year to $ 10.4 billion, according to Technomic data. Report of the 500 best chain restaurants. The number of units decreased by 4.3%. The chain has lost more than 2,300 branches nationwide since the peak of 27,103 in 2015.
The company is also resistant to controversy within its franchise operations. The New York Post explained in detail how Subway would bankrupt operators after small violations of the franchise agreement, and the New York Times reported that development agents would terminate operators' services and take over their stores themselves.
Subway, however, invests heavily in its improvement efforts. In addition to the subsidy program, the company spent $ 80 million last year to allow operators to add new beverage stations and sauce options.
The company has also brought many innovations to the menu, adding new rolled sandwiches and cheese bread and garlic. He also tests sandwiches made from King's Hawaiian bread and Halo Top ice cream milkshakes.
The company is also aggressively adding delivery to its US restaurants to compete with the smaller sandwich shops, Jimmy John's, Mike's Jersey and Firehouse Subs, all of which have gained market share in recent years.
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