Behind the scenes, Subway CEO John Chidsey also is getting tougher on franchisees, requiring that they be open seven days a week, 13 hours a day to capture breakfast, lunch and dinner sales, sources said. That adds up to 91 hours a week versus the 80-hour weeks that is averaged by many, according to sources.
Subway owns none of its own US restaurants, depending entirely on franchisees. Insiders note that Subway makes an 8% royalty off gross sales even if restaurants lose money being open during hours where there is little business.
“Keeping the stores open will increase gross sales which is where Subway makes their money off royalties” a consultant to Subway franchisees said. “But as stores can’t hold on because of margin, it will decrease Subway’s long-term revenue.”
“Go ahead and take my keys,” one franchisee requesting anonymity told The Post, saying he is remaining open only 78 hours a week.