Arch rivals: Subway to surpass McDonald's in number of restaurants
Filed under: Company News, McDonald's
It's hard to imagine a cultural icon with greater ubiquity than McDonald's (MCD). After all, it seems the Golden Arches are present in every town, no matter how small, and at every exit off an interstate highway. But while you'll never have trouble finding a Big Mac, change is on the horizon: The sandwich shop Subway is close to exceeding the number of McDonald's restaurants worldwide. When exactly will Subway overtake MickyD's? "My guess is it's going to be before the end of the year," says Tony Pace, chief marketing officer of the Subway Franchise Advertising Fund Trust. He says consumers are always surprised to learn that Subway has more than 32,000 outlets. "We're not as visible as McDonald's because we can put a Subway restaurant into a relatively small footprint. We can be in a strip mall and don't need to be a big stand-alone restaurant."
It may seem incredible that such venerable American icon as McDonald's could be surpassed by a sandwich shop that began in 1965. Yet the company, which is owned by closely held Doctor's Associates Inc., seems to have hit upon a branding strategy that's stimulated the public's appetite for its subs. Its message is that by eating at Subway, anyone might become healthier. Just look at Jared Fogle, the man who lost 245 pounds by incorporating Subway sandwiches into his diet and subsequently became the public face of the fast-food chain.
That message has struck a chord with many consumers at a time when obesity rates are up and many people feel they lack the time to prepare home-cooked meals. McDonald's, on the other hand, was hurt by the 2004 documentary Super Size Me, which tracked filmmaker Morgan Spurlock as he ate only McDonald's food for 30 days. The result? He gained 24 pounds and his cholesterol skyrocketed.
Yet McDonald's is hardly slacking off. The company said on Sept. 9 that sales at stores open more than a year rose 2.2 percent in August, boosted by new products including the McCafe coffee drinks and the Angus Third Pounder burgers. And even though Subway's locations will soon outpace McDonald's, it's sales are a still a fraction of the burger behemoth's. According to Advertising Age, which cited data from Technomic, the average Subway store made about $445,000 last year, compared with $2.3 million for the average U.S. McDonald's.
That smaller size can be seen as a strategic benefit for competing with McDonald's, says Subway's Pace. "Maybe we'll sneak up on them," he says.
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Reader Comments (Page 1 of 5)
9-21-2009 @ 2:11PM
Robert Bennett said...
Some people like to blame fast food restaurants, i.e., McDonalds and Subway, for the increasing obesity of America but I do not believe they are at fault.
The real fault for America becoming increasingly obese is the pacifier which American Parents use to keep their child quiet, calm and happy. As a result their children grow up believing happiness is having something in their mouths to chew or suck on. Obesity is simply the usual end result.
The fast food restaurant is only a convenience for the obese. It's how much and how often they can have something to chew on, not how long it takes to prepare that makes them happy.
Congress should pass a Law banning pacifiers.
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9-21-2009 @ 4:06PM
David S. said...
HUH?
9-21-2009 @ 4:55PM
Greg said...
Yell "Hey ! FAT A$$" in a public place.. Most everyone will look!! Cuz everyone here is fat!!
9-22-2009 @ 3:52AM
john said...
Sorry but sugar is the primary cause of obesity and organ failures. know your facts please.
9-22-2009 @ 8:08AM
me said...
Congress doesn't need to pass any more laws. They need to repeal a few. However if Congress were to pass a new law it should be one banning idiots from using the internet. That way we wouldn't have to read stupid opinions like yours !
9-22-2009 @ 9:12AM
maximum joe said...
Robert? Are you really that stupid? A pacifier, really? The best part is that you think there should be a tax on it... LMAO, that's the ticket, put more government conrtol in your life numbnuts, I don't need it.
9-22-2009 @ 11:14AM
Kathy v said...
I AGREE !!
I hate to see big kids (2-5 yrs. old)with pacifiers in their face. I want to snach it out of their mouth. The parents are just to lazy to deal with their kids so they shove one in their mouth.A pacifier is Ok if the kids are 3 months or younger.
9-22-2009 @ 12:36PM
aims said...
John, carbs are sugar.....thats why diabetecs count carbs, if you look at a food label the total carbs per serving, the sugar is included in that number.
9-22-2009 @ 1:30PM
Lawrence said...
That excuse and opinion is absolutely hysterical. Pacifiers do not make babies grow up and want to eat sandwiches or hamburgers. They decrease the risk of SIDS, and make babies less likely to smoke as teenagers and adults.
9-22-2009 @ 4:00PM
Kealan said...
I really doubt that. Tons of Americans never used pacifiers, and tons of people outside of America did. Simple fact is, Americans (myself included) are lazy. We have elevators in our gyms!
9-22-2009 @ 3:54PM
Jerry said...
I would like to see a breakdown of the % Subways earning in excess of 400,000. Must be SMALL %-Jerry
9-22-2009 @ 8:26PM
htc said...
Very good post and you're absolutely right.
9-23-2009 @ 8:04AM
bev said...
Robert: I don't think anyone ever thought about a pacifier being part of the problem = something to look into for sure. As far as having the government put a ban on the pacifier = absolutely not. We have a government right now that wants to control every aspect of the people, dont give them more control.
9-21-2009 @ 5:20PM
Seb said...
Exactly, a hamburger doesn't make you obese, eating too much of it does.
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9-22-2009 @ 12:51PM
michele said...
Sure. A kiddie burger (2 oz meat) is 250 calories at McDonalds, and you'll still be hungry. For 280 calories, I can have a 6" turkey on whole wheat, with a bunch of veggies at Subway. Trying to eat healthy at McD's is almost impossible. Even their salads are higher in calories, and that's without the high calorie dressings. It is very difficult to eat healthily at McD's, but easy at Subway.
9-21-2009 @ 4:10PM
bailoutsos said...
Fast food is not the blame. The problem is people's eating habits. Just this weekend while the wife and I were out of town, we ate at two sitdown restaurants and one fast food and we both put on two pounds.
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9-21-2009 @ 4:43PM
Rob said...
Oh, I doubt Mcdonalds has anything to worry about. All the Subways in our part of the country are Indian owned and the service is crap. We don't go to them anymore.
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9-21-2009 @ 6:57PM
tj said...
the service at mcdonalds is crap as well. it so bad i wouldnt even call it service.
9-22-2009 @ 11:31PM
Elizabeth said...
Just because the Subway was Indian owned isn't the reason the service is bad!I worked at our local Subway for 3 years. It was owned by an East Indian family. Our "store" got high ratings in customer service all the time. Now, I did not care for the owners attitude towards the employees, but that did not interfere with the way I treated my customers. The person waiting on people is to blame, not the owners. But, maybe some people can let it effect their job performance....so, I guess it depends on the person. I just don't want to think of you as a racist person. Because if you are going to boycot all Idian owned businesses you might as well stay home. There are more businesses then you know owned by Indian people and you would be missing out!
9-21-2009 @ 4:45PM
mark said...
I lose weight when I eat Mcdonalds...the sizes have shrunk so much that it's calorie control! It's the truth!!
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