The very popular sandwich chain Subway would reportedly close 500 more locations this year.
That comes on the heels of the shutdown of around 800 stores last year and shutdowns in 2016 as well. Suzanne Greco, the CEO of the sandwich chain said that the company no longer is focused on having the most possible locations. Greco said, “We want to be sure that we have the best location.” Further, she said, “We focused in the past on restaurant count. We’re focused now on strengthening market share.” She added, “Store count isn’t everything and it’s about growing the business.”
The company has made the announcement of the plans to compete with the others in the quick-service industry as the chain experiences pressure to adapt to the consumer requirements. The company recently launched a mobile app and is installing touchscreen ordering systems in many restaurants.
On top of shutting down some locations, Subway has got plans to use data to relocate the other stores into better areas in order to improve service for the customers. Subway even has got plans to include more than 1,000 locations outside of North America as the popularity increases in the foreign markets.
A spokesperson for Subway said that the 500 shutdown is a projection and not an official number. The company even made it transparent that it does not own any restaurants and that every location is independently owned and operated.
The company said, “In North America, we are implementing an aggressive revitalization plan, which we expect to result in the closing, consolidation or relocation of a few hundred locations in 2018. Simultaneously, outside of North America, we expect to open more than 1,000 new restaurants this year. Looking out over the next decade, we anticipate having a slightly smaller, but more profitable footprint in North America and a significantly larger footprint in the rest of the world.”