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by Hominem
4043 days ago
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Subway has a brand problem,most people no longer want the cheapest food around and those that do will go to food trucks or places more "authentic". Subway is now viewed as everything wrong with American food. For one thing, it is insufficiently "artisanal" for today's consumers. If I was opening a sandwich shop, I would actually offer less options. I would offer a "curated" selection of sandwiches, changing daily/weekly, based on local ingredients. I'd charge 10-12 for a 6" inch sandwich. |
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Briefly, the reality of fast food in America is that that they're sustained by poor people who use them for 10+ meals a week rather than by middle class people who use them for 1~2 meals per month. If you charge a multiple of the fast food pricepoint, you have to locate the store somewhere where you can get high traffic of well-heeled customers. That implies expensive real estate. A lot of stores get broken by it simply being impossible to sell enough $10 foozits to cover the rent necessary to sell a single $10 foozit.
Running a restaurant, QSR or otherwise, is by all accounts a brutal business to be in. I think the number usually quoted is 6% margins for the business owner -- i.e. if you sell $1 million in artisanal sandwiches in a year, you make $60k. You will be cutting a lot of bread yourself to earn that.