We are always afraid to take risk in our lives. If you have taken a giant risk to barrow money to start your own business; why not risk spending some more money to save it? Sometimes the issue is that we spend the money wrong.
Drew Harwell’s Rise and fall argues that Subway, the worlds once most ubiquitous restaurant chain is struggling with its profits. Also, retaining its loyal customers and attracting new customers. In this new generation we want to follow new trends. Out with the old, and in with the new. Unfortunately, Subway has failed to look for new things to spice up its name.
While other fast good franchise are constantly updating their menus; Subway has kept the same ingredients options. So it’s no surprise that customers are turning their attention elsewhere. Many other food chain switch up their menu or add seasonal items to keep grasping their customer attentions. They also don’t spend as much money on their advertisement. Their funds are put towards their menu items.
Subway takes a different approach. They spend most of their money towards advertisements rather than using it towards new ingredients. Most people will agree that subway has basically the same ads just different actors. Subway has only added a few new ingredients but it’s a little too late. Even when they did add a new ingredient it was so small no one really noticed. Some people did notice though! Not in a good way. Why is that you may ask? I’ll let you why, Subway charges extra. How much extra? $1.50! Holy Guacamole! That’s a lot for an extra ingredient.
The franchise sales declined $400 million in sales last year. That should be a wakeup call. Instead of advertising they have fresh ingredients like every other food franchise; their funds should be used to become more creative. The issue is Subway wants to keep their healthy name. Unlike, their fast food competitors they have more of a limited options. Also, healthier ingredients are more expensive than fast burgers. That’s another issue Subway may run into. At this point it’s worth spending that extra money to keep put their name back on the top.