Thursday, April 20, 2017
Subway Shuts Hundreds of U.S. Stores
Subway Restaurants closed hundreds of domestic locations last year, marking the biggest retrenchment in the history of the chain.
The company closed 359 U.S. locations in 2016, the first time that Subway had a net reduction. The store count dropped 1.3 percent to 26,744 from 27,103 in 2015.
The retrenchment appears to because of fierce competition rather than the result of a business cycle trend.
The closely held company is coping with a sales slowdown in the U.S., made worse by the emergence of newer fast-casual rivals.
It was also probably too expensive to run some of the closed shops because of climbing minimum wage regulations.
at 1:10:00 PM