A group of Subway restaurant store owners are being heard amid rumors that America’s largest restaurant chain is preparing itself for a possible sale.
An anonymous group of franchisees that claim to represent 250 subway stores or 1 percent of their total US locations posted Open letter to elizabeth delacca on mondayThe widow of her deceased co-founder Fred DeLuca, with a list of demands, they claim could help improve their lot – as well as that of Subway.
The requested changes include facilitating store operators to source their produce, negotiating changes to franchise agreements, and leasing properties from landlords in addition to subways.
“As a subway franchisee, we do not lease our stores directly from the landowner, the letter to DeLuca, 73, states.” We impress them with the subway even though we are the ones who find and choose the locations So if subways want to drive us out of their places for any reason, they are within their legal rights, even if we are playing by the rules the whole time. “
The letter states that Ditto for franchise agreements “Subway may change the rules on us at any time, without notice.”
The letter stated that a strict hold on the operation of the subway store has also prevented some operators from upgrading the quality of the food they sell. And it is making their lives miserable between sales.
“We are franchisees of Subway,” the letter posted on Monday Elisabethelucaopenpreter.com. “We’ve worked hard, struggled, and persevered all in the name of chasing our piece of the American Dream.”
“Unfortunately, for many of us, this dream has turned into a nightmare,” the letter said.
The call for change comes amid rumors that chief executive John Chidsey is cutting costs, including moving operations from Florida to Conford, Conn., In an effort to beautify the company for sale.
The owners of the Burger King and Tim Hortons brands and owners of Buffalo Wild Wings and Arby’s chain, both restaurant brands International, have done due diligence in the subway over the past 18 months, according to a Business Insider Report On April 12, which fueled rumors of a sale.
Chidasi has denied the report. But industry sources tell The Post that the epidemic is the only reason the company did not put it up for auction last year as it was initially planned.
“The plan was to sell in 2020, but by then the auction would have started an epidemic,” said an investor source with knowledge of the company’s plans. The person said that sales would begin in the third or fourth quarter of this year.
According to the franchisees behind Monday’s letter, a sales process could eventually open the door to their demands.
“Their motive is to listen to the franchisee’s suggestions (because they want to listen to the franchisee’s suggestions),” said an organizer of the Web site. “The subway is a sinking ship right now and they have to freeze operations to sell to the company.”
Subway sales recorded a 27 percent drop during September compared to 2019 – one of the hardest hit fast-food chains during the epidemic.
Fred DeLuca loomed extensively on the subway until he died in 2015, leaving Elizabeth and his son Jonathan with half of the Sandwich Empire he co-founded in 1965 with Dr. Peter Buck. His sister Suzanne Greco was also CEO for three years until 2018.
Elizabeth and Jonathan now have two of Subway’s four board seats. Elizabeth, who could not immediately be reached for comment, worked for a time at Subway’s corporate offices, but now lives in the Miami area and is not believed to be involved in day-to-day decisions.