Subway has just announced that they expect to close about 500 North American locations this year. However, they also have the goal of opening 1,000 more stores overseas. Subway does not corporately own any of the stores, with each store being franchise owned.
They will now be requiring franchise owners to invest more money into their store operations, which is why it is believed that Subway will close so many of the stores in North America.
This mandatory extra investment into store operations is all part of a plan to improve customer experience inside of Subways around the world. The stores will be getting a complete revamp that will add self-service kiosks, improve seating options, comfortability, WiFi connectability, and charging stations with USB ports. Subway also plans to implement a loyalty program in an effort to turn around its recently declining sales as well as give their customers an incentive to keep coming back.
The new loyalty program will give customers $2 off any menu item for every $50 spent. When talking about the importance of the new loyalty program, Subway’s Chief Digital Officer, Carissa Ganelli, said, “It’s important to use that we deliver a seamless, convenient experience to help our customers get what they want when they want it.” This shows how dedicated Subway is to providing a memorable experience for their customers.
Subway recently stated, “Looking out over the next decade, we anticipate having a slightly smaller, but more profitable footprint in North America and a significantly larger footprint in the rest of the world.” It seems that Subway is trying to focus their national efforts on decreasing the number of stores while increasing customer experience, which will in turn drive sales and profit. This goes to show how important providing a valuable customer experience is when it comes to increasing sales.
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