Subway's $6,000 Slicers Stir Controversy Amongst Franchisees

Subway, the global sandwich franchise known for its "eat fresh" slogan, has recently come under scrutiny from some of its franchisees over the introduction of new $6,000 meat slicers. Restaurant Business magazine conducted an interview with Bill Mathis, a Minnesota-area Subway franchisee and chairman of the North American Association of Subway Franchisees (NAASF), revealing the discord during an episode of their podcast "A Deeper Dive."

Mathis's primary concern centers around the fact that no data supports the idea that these expensive machines are driving sales or improving profitability. Instead, Mathis and other operators indicate that the slicers may be causing waste due to "end cuts" and additional labor, particularly in lower volume stores where meat may have to be discarded before reaching its shelf life.

The implementation of the new slicers, meant to be rolled out to all 22,000 Subway restaurants, began early in 2023. Subway CEO John Chidsey defended the rollout in a CNN interview, claiming the switch would save money and enhance the fresh-food image of the chain. The move was meant to align Subway with other sub shops that already slice meats in-house.

However, feedback from Subway workers on social media platforms such as Reddit tells a story of discontent, with concerns about the increased prep workload and operational difficulties during peak times. Conversations have turned into sharing tips on coping with the change and the effect on closing shifts, with some franchisees labeling the initiative a "stupid waste of time."

In contrast, Subway's spokesperson insists that these are not the views shared across the board by all franchisees. The company claims that the slicers, provided at no cost for installation, signify Subway's commitment to better quality fare and guest experience. Furthermore, Subway has pointed to other franchisees who approve of the new slicers. Michael Rodriguez and Jonathan Tolliver, multi-unit Subway franchise owners, have both endorsed the updated equipment, attesting to the enhanced quality of food and increased trust with customers they have observed.

While these polarizing views highlight the challenges Subway faces in implementing company-wide changes, the debate underscores the tension between franchisor mandates and individual franchisee business operations. In terms of the big picture for the Subway franchise, this conversation is another layer of the ongoing transformation journey the company has embarked upon to maintain and grow its market share in the highly competitive quick-service restaurant industry.