Subway franchisees say $5 foot long could bankrupt them!

posted by Carolyn McArdle -

I think almost all of us have had a $5 Subway foot long at least once in our lives. 

Well now Subway is looking to drop that price to $4.99…yes, only by a penny….but it’s enough to upset the franchise owners who say that the $5 foot long deal is going to make them bankrupt! They say each sandwich costs about $4 in product to make and then when you factor in labor and electricity from the store and all of the other factors, the owners of the Subway franchises are losing money! 

So when Subway announced that they were dropping the price to $4.99, even though it was only $.01, that was enough for 10,000 franchise owners to write in to management and tell them that this will make them bankrupt.

Jack and Carolyn talked about it on air! Listen here: 

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