How many subways are there

The company itself does not own any Subway restaurants. Expertise gained from operating company-owned outlets enables parent companies to improve the operating standards of the whole franchise chain. At the same time, the existence of company-owned stores in McDonald's business structure places certain restrictions on its expansion capabilities.

For example, a conventional franchise agreement supposes that the parent company owns the land and the building or secures long-term leases for its restaurants. This requires more capital, which can limit the ability for expansion at the rate of other chains, like Subway. Fee Structures. We have already discussed that the business models of both companies are focused on franchising. A franchise license is an authorization granted by a company to an individual that enables the franchisee to maintain control over purchasing, employment, pricing, and marketing decisions.

To secure a franchise license, the franchisee pays a set of fees to the parent company. The franchise fees to open a new McDonald's restaurant are much greater than that of a Subway restaurant. Thus, Subway is much more affordable for small entrepreneurs. Geographic Segments. While the preceding factors speak to why the number of Subway locations exceeds that of McDonald's, the data reveals that McDonald's, with stores in countries, has a broader geographic representation than Subway, which has stores in countries.

In addition, in some countries, the number of McDonald's restaurants exceeds that of Subway, particularly in China and Japan as well as Europe and South America. The United States is the single largest market segment for both companies. Okay to continue Our website uses cookies to improve your online experience. They were placed on your computer when you launched this website.

You can change your personal cookie settings through your internet browser settings. Published: Friday, November 27, Subscribe Export View Archive Loading Bookmark Follow. Ownership Structure The most important general difference between the two companies is that McDonald's is a public company while Subway is privately owned. Investment and Capital Resources For established companies such as McDonald's and Subway, franchising is one way to expand rapidly with minimal risk to the parent company.

Fee Structures We have already discussed that the business models of both companies are focused on franchising. Geographic Segments While the preceding factors speak to why the number of Subway locations exceeds that of McDonald's, the data reveals that McDonald's, with stores in countries, has a broader geographic representation than Subway, which has stores in countries.

Infographics Live View. McDonald's Restaurants by Country. United States. United Kingdom. At a time when obesity was rising rapidly in America, Subway continued to market itself as a healthy alternative to fast food. Kate Taylor: One of their biggest successes for sure was the Jared Fogle story. Everyone remembers those ads, where it's him in those huge pants where he's showing how he lost all of this weight.

And that just made them so much money, and it really made people think about Subway as a really great health brand. It was one of the biggest advertising wins that any chain's had in recent decades. So that was a huge, huge part of their brand. Narrator: Subway carried Fogle's success story for nearly a decade.

But by , the world was suffering from the effects of the Great Recession. And for many Americans, hunting for deals replaced the obsession with weight loss. So Subway changed up its message. In March , it introduced a new promotion that would come to define the chain. But even the best deals run their course. Narrator: Starting in , Subway's sales began steadily dropping. Behind the scenes, many of the reasons for Subway's success had turned on them. Quiznos was once Subway's main competition, but tons of sub chains, like Jimmy John's, Firehouse, Potbelly, and Jersey Mike's, and fast-casual chains like Panera, were offering seemingly fresher and healthier options.

And they started stealing market share. Taylor: They were competing against people who bring in fresh produce every day. A lot of Subway locations only bring in fresh produce once or twice a week. Narrator: On top of that, fast-food chains that had been around as long as Subway were coming up with healthy alternatives of their own and getting creative with new menus.

Taylor: More and more fast-food chains really want to have that innovation pipeline where they're bringing something out new almost every month. Fast-food places are looking for ways to bring in new customers, drive traffic, and Subway has not tried to do that in the same way other places have. Narrator: But other fast-food chains weren't the only competition for Subway franchises.

With Subway's franchising model making it so easy to open locations, stores inevitably started opening up around the corner from each other in lucrative markets. Take downtown Manhattan, for example. Within a minute walk in less than half a square mile, there are 10 Subway locations. And these locations in close proximity began cannibalizing each others' sales. Libava: The Subway franchise agreement, the contract, it says they can open anywhere.

There is no protected territory. So franchisees really have no say-so in where the other franchisees are going to open. It's a problem. Narrator: And Subway corporate wasn't stopping it, because the company benefited from a high number of locations.

It has about 42, stores worldwide. Subway closed between 2, to 2, locations last year, Restaurant Business reported. Subway also charges its franchisees hefty ongoing fees. Likewise, hundreds of locations have closed recently, showing demand may be falling.

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