A woman leaves a branch of Subway on July 4, 2017 in London, England. Subway has announced it will create 5,000 jobs in the UK and Ireland with plans to open 500 branches in the two countries by 2020.
The pandemic caused by COVID-19 has affected so many lives and even business conglomerates and establishments, taking a huge toll. Famous fast-food chain Subway is not an exception as they reported 10% of Subway stores close due to the pandemic that also impacted their sales.
The emergence of SARS-CoV-2, the virus that causes COVID-19, has forced the federal authorities to issue a lockdown to prevent the spread of the harmful virus and victimize more people. However, this affected everyone, including Subway, who has no choice but to let go of a percentage of their stores, which might be sad for their fans.
Subway Store Closing
In a Business Insider report, Subways closed down between 2,200 to 2,400 locations last year during the pandemic. They also add that the closure signifies a significant impact on the individual business owners because they do not operate their restaurants, but they rely on franchising.
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Business Insider also notes in Press Form that in the United States, over 1,000 locations of Subways shut down, alongside their sales dropping down to 210 Million US dollars. However, MSN notes an emailed statement challenged this data to Restaurant Business. The Connecticut-based company exclaims that the figure provided is not accurate, noting that the number of permanent closures in 2020 is lower because of temporary closures due to the COVID-19 pandemic.
It is remembered that the federal government issued safety protocols to re4staurants that resume their operations amid the pandemic. It can also be noted that the restriction given includes not allowing people to dine inside the fast-food chains, instead of delivery service and drive-thru are highly encouraged to prevent the further surge of COVID-19 positive patients.
Decrease in Sales
Business Insider references National Restaurant Association says that Subway saw a decline in sales during the coronavirus pandemic onset, as the stay homes orders and restrictions are implemented for many months amid pandemic. They also note that by June, Subway and the Food and Restaurant Industry have lost nearly 120 Billion US dollars in their sales.
This only means that the pandemic has taken a great amount and toll on the restaurant industry and is still thriving to survive the threat until the present time. MSN notes that the closure and some local restaurants paved the way for other fast-food chains to expand their vicinity, and chains with delivery service had the edge and easily adapted to the threat the food industry is facing.
In response to this, Press Form shares that Subway tried to ride the tide, and some of their stores even sold grocery items at more than 250 locations in the United States. However, they could still not cope and compete with other brands like fast-food giants McDonald's because the shop has fewer drive-thru services to offer the customers.
The Subway store closing may be sad for the fans of the sandwich brand. The closures may be treated as evidence that COVID-19 does not only stir or wreak havoc on our health but also spreads its terrors to the food industry.
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