Eggs are going by the wayside at Subway Restaurants.
Eight years after jumping into the U.S. breakfast market with omelet sandwiches and a mandatory 7 a.m. start time, the chain is quietly allowing franchisees to opt out. That’s because relentless competition has eaten into profit margins, and the menu items have failed to catch on in some locations. A labor shortage, meanwhile, has restaurant owners struggling to find enough workers to staff the early hours.
The 2010 initiative to offer breakfast sandwiches (which today cost about $4 to $6) and Seattle’s Best coffee came at a moment when Subway was still expanding aggressively in the U.S. Its restaurant count swelled to more than 27,000 in 2015 but has fallen since then. The company estimated as many as 500 locations may close this year including some that may be combined or relocated.
Via:: Ad Age Marketing