John Oliver Explains Why Subway Restaurants Are Everywhere

John Oliver begins his main story about Subway with a quick reminder of some of the scandals the sandwich chain has endured over the years: The Supreme Court of Ireland declared that Subway’s bread contained So much sugar that it can’t legally be called bread. Subway was sued because its tuna was allegedly made from pork, chicken and beef. An employee posted pictures of himself on social media kneading sandwich dough.

And then there was Jared Fogle, the famous Subway spokesman who for years spread the health benefits of the company’s food — until he was sentenced to 15 years in prison for child pornography. and child sex crimes.

“Jared is a monster,” Oliver said, “and Subway should always be suspicious of a man willing to eat their awful produce every day.”

But Last week Tonight instead, the host focuses on the harm caused by Subway’s relentless expansion over the past 50 years. Subway is currently the largest restaurant chain in the US and at one time the largest restaurant chain in the world. Ultimately, however, thousands of locations have closed, and restaurant franchisees — people or businesses that own and operate specific locations — are suffering. Oliver explained that the cost of opening a Subway location is only a fraction of the cost of opening a McDonald’s, and as a result, Subway franchisees are often individuals or families rather than investment companies, tend to own McDonald’s locations.

“Your instinct now may be to never go to your local Metro,” says Oliver. “It might have been your instinct before this segment started, and honestly, it’s still a good one. But it’s worth remembering that some have spent their life savings on these stores, believed in the promise that they could be their own bosses, and are now stuck in a business model that has resisted. them from the very beginning. “

The subway brings in much less money than other restaurant chains – on average, about half as much as a Jimmy John location and about 14% of McDonald’s revenue in a year. And franchisees pay the company 12.5% ​​of their total sales compared to the 8% McDonald’s claims. A portion of that 12.5% ​​is spent on advertising, which Subway does a lot. Oliver admitted that he even starred in Subway product ads when he was an occasional guest star on the show. Community, based on the entire plot surrounding the restaurant.

While Oliver succinctly admits that Subway isn’t the only company that imposes confusing rules on its franchisees, he did say it appears to be the worst company of all. that number. Under Subway’s franchise agreement, the company can open a new location right next to an existing one if it wants to. Subway is still paying the same — and even making more money because every new location collects Subway for a fee — while franchisees find their business difficult due to competition. painting nearby. Plus, people interested in buying an existing franchise or opening a new one have essentially no way of determining how much money they can make, because the Subway company won’t let you know. they know. And the strict non-disparagement and non-disclosure provisions in the contract prevent owners from saying anything that might discredit the Subway brand.

“Come on, Subway,” Oliver said. “You are the one who made your new logo with two arrows 69 facing each other. The call is coming from inside the house. ” John Oliver Explains Why Subway Restaurants Are Everywhere

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