Get the latest tech news

Subway calls 'emergency' meeting with franchisees as sales plummet

“They are doing crazy coupons,” the franchisee griped. “Our gross sales are not even at 2012 levels, and profit then was five times what it is today.”

SubwayThe confab — which one franchisee called an “emergency” meeting, noting that the invite was only mailed out last week — will include a recap of promotional offers that are being tested in restaurants. Subway, which owns none of its restaurants and makes its money through 8% royalty fees it collects from franchisees, now faces interest payments on debt following its sale to Roark and can’t afford to have declining earnings, sources said. Nevertheless, fast-food restaurants excluding pizza joints in July saw same-store sales down 2.9% compared to negative 1.9% in June, according to Bank of America credit and debit card numbers.

Get the Android app