Good Lifestyle

Being a franchisee of America's largest rapid catering chain is not only difficult, but also financially, according to metro operators, we talked in a few weeks. Faced with operational obstacles, downwards and to receive no help from management belongs to a growing number of them to seek output strategies ... and fast.

As theNew York Times Close in 2018, the rapid expansion of the chain came to the detriment of his franchisees, who had to bear the franc of the metro draconian tactic by transforming a profit. According to the operators who have spoken toEat this, not that! (but wanted to remain anonymous for fear of the reward of the Company), they included unreliable franchise agreements, take control of restaurants deliberated by metro business development agents, as well as threats of action in court against anyone who speak.

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This year, in the middle of omnipresent rumors thatThe chain is being treated for saleThe problems were presented in the open air when the operators formed together and published an open letter to Elisabeth Deluca, the widow of the original founder of the current chain and co-owner. However, the letter hasYet receive an answerFranching frustration among franchisees, which operates 100% of the brand's restaurants.

Data from the research companyTechnomic NIGHTTRED that the subway sales dropped to $ 8.3 billion in 2020, $ 10.2 billion in 2019. And the decline in the business was accompanied by the massive closure of the stores. Since March 2020, the metro had far closed thelarger number of locations Among the large fast food chains, reporting 1,557, less than one year ago, a net loss of 6.6%. Currently, the channel has more than 22,200 restaurants, but insiders say that the number is probably lower and could continue to give up considerably the following years.

"Since our summit of more than 27,000 stores [in 2013], we are down nearly 25%," said a franchisee from the west coast that has several locations. "If the metro continues to ignore the franchisees and do nothing, it would not surprise me if 25% of the stores have been gone over the next three years since the franchisees whose lease arrives for renewal does not fail this company. . "

According to another who spoke toInternal business communityThe franchisees are trying to unload stores "Dirt not cheap" to get out of rental and property contracts. He stated that the value of a metro restaurant has declined considerably in its California State over the last five years, from $ 300,000 to $ 400,000 to $ 100,000 at best.

The experts seem to agree. The mark is considered aAdverse investment opportunity Thanks to the growing competition in the sandwich arena and the low profitability of metro locations.

"The potential profit is considerable - it is not very logical to continue to exploit it," said the West Coast Franchisee. "It's sad because this destiny is completely avoidable."

Eat this, not that! Has met the metro to comment but has not yet received an answer.

For more information on catering channels, checkThis bankruptcy sandwich chain is about to disappearAnd do not forget toSubscribe to our newsletterTo get the latest news from the restaurant delivered directly to your inbox.