To Avoid Collapse, Subway Hires Bain & Co. To "Prepare For Sale"

[DamianTV]

https://www.zerohedge.com/news/2018-...o-prepare-sale

The accelerating demise of Subway, the world’s largest sandwich chain, will one day be just another case study of how to run a once-magnificent business empire into the ground, as Americans quickly abandon five-dollar footlongs.

The New York Post recently uncovered new knowledge about the 52-year old sandwich chain, which has been in a sales slump since 2016, has hired the infamous consultant Bain & Company to “professionalize operations and position the company for a future sale.”



You may remember in the 2012 presidential election cycle, the abundance of campaign ads focusing on former Republican presidential candidate Mitt Romney, who co-founded Bain & Company, detailing the firm’s destructive path of stripping companies of wealth.

The truth about Subway’s fate, well, the capitalist vultures who ‘eat the carcass’ of companies are circling above - waiting to dive into their next feast: footlongs.

Take, for example, the 2005 leverage buyout of Toys ‘R’ Us via Bain Capital, KKR & Co., and Vornado Realty Trust. It has been 13 years since the group of private equity firms loaded up on Toys “R” Us with debt to take it private; however, the plan did not work too well, and the company ceases to exist.

Toys ‘R’ Us filed Chapter 11 bankruptcy protection in the U.S. on September 2017, and at the end of 1Q18 — announced that U.S. operations of the company were, after 70 years, going out of business and liquidated all 735 locations across the country.

What do the world’s largest toy store and restaurant chain have in common? Well, you guessed it, likely similar fates as the walk down Wall Street is not so random, after all.

While neither Subway, nor Bain, would confirm the reports, the New York Post cites two Subway insiders who confirmed the news of a restructuring plan, then the eventual sale of the company.

The recent downturn in Subway has sparked internal feuds with management, along with many of its struggling franchises.

Last month, Chief Executive Suzanne Greco, the sister of Fred DeLuca, the co-founder of the company, retired after 45 Years.

Trevor Haynes was named interim CEO. The Post said Haynes is on a listening tour of stores and franchise owners across America.

“I think hiring Bain signifies that the board needs a professional business organization to give advice so it can change its downward trend,” one Subway insider said.

“They are running out of options that might positively impact the company.”

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Full article at link.

[timosman]

FBI raids home of 'Subway diet' spokesman Jared Fogle for child pornography - https://www.ronpaulforums.com/showth...ld-pornography

[RJB]

Subway once served decent food. In the last ten or more years they cut every corner they could and served crap. The fact that they stayed in business so long is a testament to habitual behavior and how long you can live off a formerly good name.

[VIDEODROME]

I dunno. that Subway is bad, but maybe to basic?

I mean they specialize in being a place where you pick basic ingredients from bread, meat, cheese, veggies, and sauce. Maybe they're just mediocre and losing out to other sandwich places like Firehouse or Jimmy Johns? The Jared Fogel thing was certainly a terrible P.R. blow.

I also wonder if people really prefer a fixed menu over going to Subway and going over all the individual ingredients. I think other shops offering things like Panini or Roasted Peppers or Tomatoes have better flavor.

[Schifference]

Maybe they should create a more welcoming environment. Allow people to just come in and sit, use wifi, and the restroom without mandating that they purchase anything. I think going into private establishments and using their amenities is a right. Furthermore, if a person is hungry and lacking the financial wherewithal to purchase food, they should provide them with a meal at no charge, especially if they are families.

[TheTexan]

[Danke]

I dunno. that Subway is bad, but maybe to basic?

I mean they specialize in being a place where you pick basic ingredients from bread, meat, cheese, veggies, and sauce. Maybe they're just mediocre and losing out to other sandwich places like Firehouse or Jimmy Johns? The Jared Fogel thing was certainly a terrible P.R. blow.

I also wonder if people really prefer a fixed menu over going to Subway and going over all the individual ingredients. I think other shops offering things like Panini or Roasted Peppers or Tomatoes have better flavor.

Jimmy Johns uses fresh(er) ingredients, stuff is cut up in the store. Whereas Subway, it all comes pre-cut in a bag.

[VIDEODROME]

Jimmy Johns uses fresh(er) ingredients, stuff is cut up in the store. Whereas Subway, it all comes pre-cut in a bag.

Hmm.. It might vary from different owners or where Subway's are in the country or if the Subway is close to their supplier. When I was truck driving they had freakin Subways everywhere. Some seemed better than others, but if possible I'd really rather go to a Quizno's or Blimpie's.

In general what you're saying is probably right in that over time Subways are getting worse.

[Keith and stuff]

Subway is by far the best value in Submarine sandwiches. However, out of all of the submarine sandwich chains, it has the lowest quality.

[nikcers]

Maybe Subway and Starbucks should merge into one.

[VIDEODROME]

Maybe Subway and Starbucks should merge into one.

[devil21]

I stopped going to Subways when one late evening I went to their door at 9:50 (advertised 10pm closing), the door was locked and the hispanic employees were sitting inside with their feet up on tables and literally laughed at me when I tried to go in. Looked right at me and laughed. I filed a complaint with the franchise owner, who offered me 5 free sandwiches and said he would fire the entire staff if my report is confirmed. I've never been back to a Subway since.

[VIDEODROME]

I stopped going to Subways when one late evening I went to their door at 9:50 (advertised 10pm closing), the door was locked and the hispanic employees were sitting inside with their feet up on tables and literally laughed at me when I tried to go in. Looked right at me and laughed. I filed a complaint with the franchise owner, who offered me 5 free sandwiches and said he would fire the entire staff if my report is confirmed. I've never been back to a Subway since.

Geez are all Subways to blame for the service performance of one franchise?

Anyway maybe it was a slow night and they started cleaning and putting things about a little early. Then they were just waiting to clock out when you showed up.

Hell I had the same thing happen with a Dominoes pizza a few weeks ago. They're lights and open sign were still on and I didn't even know their closing time. They said they were closing up and did not serve me. Whatever, I got something else from a convenience store. No big deal, I've worked in restaurants and know what it's like working around hot equipment for low pay and wanting to go home.

[devil21]

Geez are all Subways to blame for the service performance of one franchise?

Anyway maybe it was a slow night and they started cleaning and putting things about a little early. Then they were just waiting to clock out when you showed up.

Hell I had the same thing happen with a Dominoes pizza a few weeks ago. They're lights and open sign were still on and I didn't even know their closing time. They said they were closing up and did not serve me. Whatever, I got something else from a convenience store. No big deal, I've worked in restaurants and know what it's like working around hot equipment for low pay and wanting to go home.

If it were simply closed I probably would have written it off as a flood or broken fridge or whatever other reason my imagination could come up with. But laughing at me while you're sitting around with your feet on the tables that you presumably just cleaned? Nope sorry, that's where my line in the sand is. It tells me all I need to know. I ended up finding a much better non-chain sandwich place in the neighborhood that I didn't know about before so for that I am grateful to the lazy employees.