Subway Restaurants shut down hundreds of locations last year

Subway Restaurants shut down hundreds of locations last year, marking the biggest retrenchment in the history of a chain that for decades had dotted the country with restaurants.

In 2016, the company pulled out of 359 US locations, the first time that Subway had a net reduction.

The store count fell 1.3 per cent to 26,744 from 27,103 in 2015, but the chain continued to be the nation's most ubiquitous eatery, while McDonald's topped the list by sales.

The closely-held company is now struggling as sales slowed in the US. To add to its woes, newer fast-casual rivals had arrived on the scene and the trend of heavy reliance on discounts and promotions had made matters worse.

Subway had also lost some of its appeal as a place to go to for healthier food. To address this, the company was looking to eliminate antibiotics from its chicken and switching to cage-free eggs.

Furthermore, Subway was adding delivery services, a strategy that had also been adopted by McDonald's. It had also unveiled a new, more contemporary logo.

But the measures had not helped much as sales fell 1.7 per cent last year to about $11.3 billion.

Industrywide, same-store sales continued to slip in the US in March, declining 0.6 per cent in the fourth straight month of decreases, according to MillerPulse data.

Subway said yesterday its 2016 US sales totaled about $11.3 billion, down from $11.5 billion in 2015.

According to the company's statement, the dip was due to a "focus on international growth," where sales were up. Its stores abroad brought in $5.8 billion, up 3.7 per cent from the year before.

Subway said in a statement, "Going into 2017, we are undertaking an exciting transformation that includes introducing new and improved products, creating an even greater customer experience, refining operations, and positioning Subway franchisees for continued success".