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Author Topic: Subway suspends ties with spokesman Fogle after raid at home  (Read 4092 times)
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« Reply #25 on: September 15, 2015, 04:58:33 PM »

Great American success story.  Too bad he died so close in time to this scandal. 

Subway sandwich chain co-founder dead at 67
By Candice Choi
AP Food Industry Writer
Sep 15, 2015
   

Subway co-founder Fred DeLuca posed for a photo at a Subway restaurant in New York in May 2014. DeLuca died Monday evening after being diagnosed with leukemia two years ago, the company said Tuesday. He was 67. (AP Photo/Candice Choi)

NEW YORK » Subway co-founder Fred DeLuca, who turned a sandwich shop he started as a teenager into the world's largest fast-food chain, died Monday evening. He was 67.

DeLuca's death came two years after Subway said he had been diagnosed with leukemia and was scaling back on his leadership role at the company. It also came just weeks after the 50th anniversary of Subway, which is known for its "Footlong" sandwiches and says it has more than 44,000 locations around the world.

The company traces its roots to 1965, when DeLuca opened a sandwich shop at the age of 17 to help pay for college. The idea came from a family friend, Peter Buck, who was co-founder and provided the $1,000 to start the business.

"I knew nothing about making sandwiches, nor the food industry," DeLuca later wrote in a book.

DeLuca and Buck opened their first store in Bridgeport, Connecticut under the name "Pete's Super Submarines," with the priciest sub selling for 69 cents. The name was changed to the snappier "Subway" in 1968, and the pair decided to fuel growth by franchising, or letting others open Subway stores in exchange for fees.

By 1988, Subway had 2,000 locations. By 1990, it reached the 5,000-store mark. And by 1994, it had more than 8,000 locations.

Subway, based in Milford, Connecticut, is privately held and doesn't publicly report its financial performance or executive pay packages. But this year, Forbes magazine pegged DeLuca's net worth at $3.5 billion, making him the 259th-richest individual in the United States.

In July 2013, Subway announced that DeLuca had been diagnosed with leukemia. It said DeLuca was in regular contact with his management team, but on a reduced basis as he received treatment. Then earlier this summer, Subway said DeLuca's younger sister, Suzanne Greco, would take over as president and oversee day-to-day operations. DeLuca remained CEO.

The company did not immediately say Tuesday if a successor had been named as CEO.

Subway has been facing some recent challenges in addition to DeLuca's health. The company cut ties with longtime pitchman Jared Fogle this summer after Fogle agreed to plead guilty to allegations he paid for sex acts with minors and received child pornography.

In addition, some feel Subway has overextended itself with its more than 27,000 U.S. locations. Last year, average sales at established U.S. locations fell 3 percent, according to Technomic.

In DeLuca's book "Start Small Finish Big: Fifteen Key Lessons to Start — and Run — Your Own Successful Business," DeLuca recalled living in public housing in the Bronx as a child. His father hadn't graduated high school, but his mother had stressed the importance of education while growing up.

After he graduated high school, DeLuca had planned on becoming a doctor. That was why he started the sub shop with Buck — to support his college education.

"It wasn't intended to support me forever," DeLuca wrote.

DeLuca is survived by his wife, son and sister, according to Subway, which announced his death Tuesday.

http://www.staradvertiser.com/news/breaking/20150915_subway_sandwich_chain_cofounder_dead_at_67.html
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« Reply #26 on: September 16, 2015, 05:18:15 AM »

 I guess Jared really meant it when he said... Cool...eat fresh.
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« Reply #27 on: October 29, 2015, 02:26:50 PM »

'Dr. Phil' airs secret Jared Fogle recordings
By Tom Kludt   @tomkludt

jared fogle portrait

Secretly recorded audio tapes that reportedly helped bring down disgraced former Subway spokesman Jared Fogle were played before a national audience for the first time on Thursday.

The recordings, in which Fogle apparently details his sexual attraction to minors, aired on Thursday's episode of "Dr. Phil," and the content was disturbing. Dr. Phil McGraw, the host of the daytime talk show, warned viewers that the graphic recordings may be inappropriate for children.

"I like all ages," Fogle says in one of the recordings. "That's the thing I mean. I like all of them. You know."

The apparent recordings were made by Rochelle Herman-Walrond, a former journalist who became suspicious of Fogle after he was a guest on her radio show. It was during that meeting when Herman-Walrond heard Fogle say that he was attracted to middle school girls.

In the years that followed, Herman-Walrond taped her conversations with Fogle for the FBI, providing damning evidence that ultimately led to the famed pitchman's arrest earlier this year.

Fogle, 38, pleaded guilty in August to child pornography charges and to paying for sex with minors. He has paid out $1 million to 10 of his victims, and will be sentenced by a judge in November.

"Dr. Phil" will air more of the recordings on Friday's episode.

The FBI declined to comment on the tapes until their investigation was complete.

On Thursday's show, Herman-Walrond described to McGraw how she cultivated a relationship with Fogle in order to bust him. In the recordings, Fogle often discusses fantasies that involve both children and Herman-Walrond.

In the tapes aired on Dr. Phil, Fogle is heard talking bluntly about plans to have sex with both boys and girls and involving Herman-Walrond in the activities. He also describes how he lured young children into sex and told Herman-Walrond that it was not hard "at all."

The interview was intense for Herman-Walrond, who broke down in tears as she described the emotional scars from her interactions with Fogle.

"I don't trust people like I used to," she told McGraw. "I have nightmares constantly."

Subway ended its ties with Fogle when the allegations surfaced.

Russell Taylor, the former director of Fogle's foundation, also pleaded guilty to child exploitation and child pornography.

CNN's Ryan Young contributed to this report

http://money.cnn.com/2015/10/29/media/jared-fogle-tapes-dr-phil/index.html
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« Reply #28 on: November 12, 2015, 01:31:23 PM »

Prosecutors Seek 12½-Year Sentence for Ex-Subway Pitchman Jared Fogle
by M. ALEX JOHNSON

Federal prosecutors asked a judge to sentence former Subway spokesman Jared Fogle to 12 years and seven months in prison next week because it would send a strong message to others who exploit children.

Fogle, 38, a father of two, pleaded guilty to traveling to engage in illicit sexual conduct with a minor and to distributing and receiving child pornography. He could have faced as long as 50 years, but prosecutors agreed to the shorter sentence in a plea agreement.

In a sentencing memorandum filed Thursday, prosecutors also asked Judge Tanya Walton Pratt to put Fogle on supervised probation for the rest of his life and order him to register as a sex offender in any state where he lives or works.

As part of the plea deal, Fogle agreed not to seek a term of less than five years in his own sentencing memorandum.

"These sentences matter," prosecutors said.

"In many ways, the results of these cases help to deter and teach by example," they said. "There is no avoiding the point that, whatever the result in this matter, it will be closely watched by current and potential offenders who have not yet been identified."

According to the memorandum, Fogle committed some criminal acts of his own, but his biggest role was as a co-conspirator with Russell Taylor, former executive director of Fogle's Jared Foundation charity.


Jared Fogle at a birthday promotion for Subway in New York in August 2014. Mark Von Holden/Invision/AP

Prosecutors said about 5.6 terabytes of pornographic videos and images of children as young as age 9 — some of them depicting explicit sexual conduct — were secretly produced using multiple hidden cameras set up in Taylor's residences from March 2011 and April 2015. That's the equivalent of 56 100-gigabyte hard drives.

Fogle obtained and viewed child pornography given to him by Taylor "to fuel his sexual fantasies involving children," prosecutors said. They said they had identified 14 victims.

Documents filed in the case against Taylor show he could face up to 35 years in prison and a $250,000 fine after agreeing to plead guilty to 13 counts of sexual exploitation of a child, distribution and receipt of child pornography and a related conspiracy charge.

Many of Fogle's victims have already received $100,000 restitution checks, and the rest are scheduled to.

Fogle became a Subway spokesman more than 15 years ago after he shed more than 200 pounds as a college student, in part by eating the chain's sandwiches. Subway ended its relationship with Fogle after authorities raided his suburban Indianapolis home in July.

http://www.nbcnews.com/news/us-news/prosecutors-seek-12-year-sentence-ex-subway-pitchman-jared-fogle-n462386?cid=sm_fb
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« Reply #29 on: November 23, 2015, 05:33:45 PM »

Ex-Subway spokesman Jared Fogle gets more than 15 years in prison
Published November 19, 2015
FoxNews.com


Nov. 19: Former Subway pitchman Jared Fogle arrives at the federal courthouse in Indianapolis (AP)

Jared Fogle, the disgraced former Subway pitchman, was sentenced Thursday in federal court to more than 15 years on child porn and sex charges.

The sentencing came after Fogle pleaded guilty to child pornography and sex crime charges, telling the judge he understood that he will likely go to prison. Fogle agreed in August to plead guilty to one count each of travelling to engage in illicit sexual conduct with a minor and distribution and receipt of child pornography. The charges followed a July raid on his suburban Indianapolis home and the resulting criminal case destroyed his career with the sandwich restaurant chain.

Before entering his guilty plea during Thursday's hearing, U.S. District Judge Tanya Walton Pratt asked Fogle whether he understood the punishment he could face and he answered, "Yes, your honor. I do."

Fogle has admitted paying for sex with girls as young as 16 and receiving child pornography produced by Russell Taylor, the former executive director of The Jared Foundation, a nonprofit Fogle started to raise awareness and money to fight childhood obesity.

Authorities said Taylor secretly filmed 12 minors as they were nude, changing clothes, or engaged in other activities using hidden cameras in his Indianapolis-area residences to produce child pornography. Taylor has agreed to plead guilty to child exploitation and child pornography charges.

Prosecutors said in a sentencing memorandum filed last week that Fogle received photos or videos from Taylor of eight of those 12 youths, and that some of those images were of girls as young as 12. Fogle could have stopped Taylor from victimizing some of minors, prosecutors have said, but he instead encouraged Taylor to produce additional child pornography.

In the government's filing, prosecutors said "Fogle has sacrificed absolutely everything he had built -- including his family -- to engage in sexually explicit conduct with two minors. He emboldened a molester and a producer of child pornography."

Court documents detailing the charges against the 38-year-old father of two say that Fogle had sex at New York City hotels with two girls under age 18 -- one of whom was 16 at the time -- and paid them for that sex.

Fogle agreed to pay a total of $1.4 million to his 14 victims, with each getting $100,000. Before Fogle entered his guilty pleas Thursday, one of his attorneys told the judge that Fogle had paid 12 of the 14 victims and turned over the checks for the last two victims before the proceedings began.

Fogle became a Subway spokesman after shedding more than 200 pounds as a college student, in part by eating the chain's sandwiches.

Subway ended its relationship with Fogle after authorities raided his suburban Indianapolis home in July.

In their sentencing memorandum seeking a five-year prison term, Fogle's attorneys said he "is profoundly sorry for what he has done." They also wrote that Fogle suffers from "hypersexuality and alcohol abuse/dependence" and is committed to receiving treatment for his medical conditions.

In addition, Fogle's attorneys stressed that he never engaged in any sexual conduct with any of Taylor's minor victims and played no role in producing any of the images or videos recorded by Taylor.

Fogle's attorneys said in their sentencing memorandum that Fogle's offer to pay each victim restitution demonstrates "both the genuine remorse he feels and his commitment" to help his victims "move forward" with their lives.

As of last week, 11 of those victims had received their restitution and the three others should have arrangements in place to be paid by Fogle's sentencing hearing, Assistant U.S. Attorney Steven DeBrota said.

The Associated Press contributed to this report

http://www.foxnews.com/us/2015/11/19/ex-subway-spokesman-jared-fogle-pleads-guilty-to-child-porn-sex-crimes/
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« Reply #30 on: November 24, 2015, 06:09:14 AM »

 15 years of free foot-longs.
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« Reply #31 on: March 16, 2016, 11:24:36 AM »

Jared Fogle Beaten & Bloodied in Prison Yard Ambush by Older Inmate — Report

Jared Fogle’s time in prison continues to go even more horribly than an average stint behind bars.

Not only has the convicted pedophile reportedly gained lots of weight during his short time on the inside, but he was also allegedly beaten to a bloodied pulp by a fellow inmate in a yard brawl.

A fellow convict named Steven Nigg, who is 60 years old, started a fight with Subway’s former pitchman on January 29, pushing him to the ground and “then [unloading] a barrage of punches to his face,” TMZ reports.

The 38-year-old was left with a swollen face, bloody nose, and lacerations all over his neck.

His attacker, despite his age, reportedly only came out with a small cut on his left hand from serving up the vicious beating.

The older man is in prison for a weapons charge and made the first attack because he has “major issues” with child molesters like Jared.

Steven's family isn’t even surprised by the incident and says he was miffed about how many underage sex predators are housed in Colorado’s Englewood federal prison — Fogle just happened to be “the last straw.”

Steven was put in solitary confinement for his bad behavior, while we’re sure Jared turned to an entire box of Honey Buns for comfort.

http://www.wetpaint.com/jared-fogle-prison-beating-fight-bloody-1479598/?postId=786105&socialTitle=&utm_campaign=vrl&utm_medium=fnpg-network&utm_source=facebook.com&utm_term=1458132548051605
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« Reply #32 on: March 18, 2016, 12:11:20 PM »

What an incredible fall from grace.  All this dummy had to do was eat free sub sandwiches, workout, not get fat, and obey the law. 

Hidden camera victim sues Jared Fogle, accomplice
USA Today NetworkTim Evans, The Indianapolis Star
March 17, 2016

INDIANAPOLIS — An underage Indiana girl secretly filmed changing clothes and bathing by hidden cameras set up by the former head of the Jared Fogle Foundation, who then shared the images with Jared Fogle, has filed a federal lawsuit seeking at least $150,000.

The lawsuit claims the Connersville, Ind., girl was among several children who would visit and stay with Russell Taylor and his wife, Angela, at the couple's homes in Indianapolis. The suit seeks money from Fogle, Taylor and Taylor's wife.

The lawsuit filed Tuesday in the federal district court for the Southern District of Indiana does not name the victim. She is described only as Jane Doe, a minor who lived in Connersville when the videos were made between March 2011 and January 2015.

Nephew: Inmate sent message beating disgraced Subway pitchman Jared Fogle

Angela Taylor, who has not been charged in the federal child pornography case that sent her husband and his former boss to federal prison, formerly lived in Connersville and has family in the Fayette County community. Court testimony at Taylor's sentencing revealed the children he secretly filmed with cameras hidden in clock radios place in bathrooms and bedrooms included family members and their friends.

The lawsuit says the Taylors assumed responsibility for the minor children in their home and then failed in their duty to protect those children, in part, because they knew they were being recorded while nude and that those images were being shared. The suit also says Fogle knew about the hidden cameras and failed to take any action to protect the children.

Russell Taylor, 44, was sentenced in December to 27 years in prison — a term that will lock him up until he is at least 65 years old. Fogle, 38, was sentenced in November to more than 15 years in prison for his role in the child pornography case that drew international attention..

It was not clear from the lawsuit whether the victim was among 14 minors Fogle paid $100,000 each as part of his plea deal. The money was intended to help with counseling and other needs created by the trauma of being child pornography victims.

"It is accurate that on Tuesday, March 15, 2016, we filed a Complaint for Damages against Jared Fogle, Russell Taylor, and Angela Taylor in the United States District Court for the Southern District of Indiana, for the significant emotional trauma our client has suffered," the woman's attorney, M. Michael Stephenson, said in a statement.

"We are confident in Indiana’s legal system and fully intend to allow the legal process to play out in this case. Because of the sensitive nature of the subject matter, we are concerned that our client is not further traumatized; therefore, in an effort to respect our client’s privacy, we will not be making any further comments or statements on this matter at this time."

Jared Fogle transferred to Colorado prison

The lawsuit says Fogle and the Taylors "had knowledge of the presence of hidden cameras throughout the Taylor residence and knowledge that said hidden cameras were being used with the intent that they would capture various minors changing clothes, showering, bathing, or engaging in other personal and private activities."

​On Wednesday, it was reported that Fogle, the former Subway pitchman, was beaten at the Federal Correctional Institution, Englewood, which is in Littleton, Colo. According to the attacker's family, Steven J. Nigg, 60, wanted to draw attention to the number of prisoners at the minimum-security prison in Colorado who are serving sentences for sexually based offenses.

Taylor, according to the lawsuit, distributed "sexually explicit images of Jane Doe and videos of Jane Doe and other minor children to Jared Fogle."

The lawsuit also says that Angela Taylor "knew or reasonably should have known" about the hidden cameras and failed to help provide a safe environment for the couple's minor guests.

Only one of Taylor's victims has so far spoken publicly about the case — a then-16-year-old girl who appeared on the Dr. Phil show in November.

The blonde, who was identified only as "Analissa," said she was friends with Taylor's stepdaughter and that Taylor bought her beer and vodka when she was 14. She also said he made inappropriate sexual comments and appeared to be grooming her to have sex with him after she turned 16.

Jared Fogle accomplice gets 27 years in child porn case

At the time she was visiting the Taylors' home, however, the girl said she did not know she was being photographed or filmed while changing clothes and in the shower. Once she learned she had been a victim, she said her life was turned upside down.

“He took my happiness, he took my trust, he took my pride, everything. I feel so low. I feel like nothing,” she said of Taylor during the televised interview.

There is no indication in the lawsuit if that young woman is the Jane Doe victim now suing Fogle and the Taylors.

Another Jane Doe

It was another "Jane Doe" — this one an adult woman from Indianapolis — who set in motion the criminal probe that ensnared Fogle and Taylor.

The Indianapolis woman knew Taylor and his wife through Jane Doe's husband, who died in 2013.

That friendship took a disturbing turn in 2014, according to court documents. Communications with the woman from Taylor and his wife, often via text messaging, went from friendly and flirtatious to something over the line when Russell Taylor offered to send Jane Doe images of child pornography.

Sordid details in double life Jared Fogle and partner in crime lived

The woman contacted a state police officer and her report was passed on to an Indianapolis Metropolitan Police Department Cybercrime Unit detective. Investigators from several law enforcement agencies participated in the probe, which ramped up after an interview with Jane Doe in early October 2014. The woman told police she had not deleted Taylor's messages that "concerned her" and provided them access to her cellphone.

The series of text messages included an offer by Taylor to provide her with images of various illegal pornographic acts, including of young girls. She declined. In one of those text messages, according to the affidavit, "Russell Taylor asked her if he and another adult female she identified could come to Jane Doe's residence and engage in" an act of bestiality. The woman did not agree to that request, but told investigators "you could tell (Taylor) was serious." She also told investigators that "she received an image file via text from Russell Taylor that depicted (another act of bestiality)."

It was during a search of Taylor's home in Wayne Township, Ind., that investigators found videos Taylor secretly recorded of the other, underage Jane Doe — along with more girls ages 11 to 16 in a bathroom. Another video depicted a young boy in the bathroom, also nude. There were other videos of some of the same children nude in a bedroom.

http://www.usatoday.com/story/news/nation-now/2016/03/17/victim-sues-jared-fogle-russell-taylor/81903842/
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« Reply #33 on: October 24, 2016, 02:59:43 PM »

Jared Fogle’s Ex-Wife Sues Subway, Says Chain Hid His Sexual Misconduct
Katie McLaughlin accuses the company of being “driven by sales rather than the safety of kids.”
10/24/2016
Nina Golgowski    
Trends reporter, The Huffington Post
 
The ex-wife of former Subway spokesman Jared Fogle is suing the sandwich chain, accusing the company of knowing about his sexual interest in children for years but turning a blind eye to it ― even though his promotional work included visits to schools.

In Katie McLaughlin’s lawsuit, filed Monday in Indiana, the mother of two claims that Subway was informed about his sexual misbehaviors on at least three occasions. Instead of reporting it to authorities, she says the company kept it from the public to protect Fogle, whom her suit referred to as their “cash cow.”

“Finding out that Subway did not act upon at least one complaint while continuing to utilize Jared as their spokesperson and facilitate his visits to those hundreds of schools is beyond comprehension,” McLaughlin read from a statement at a press conference Monday.

According to a copy of the lawsuit obtained by The Huffington Post, Subway was alerted to Fogle’s misconduct as early as 2004 ― that’s 11 years before he was arrested on crimes, including distributing and receiving child pornography and traveling out of state to engage in illicit sexual conduct with a minor. Fogle was sentenced last year to more than 15 years in prison.

In that 2004 warning, the company’s vice president of marketing received a complaint stating that he approached a young girl in Las Vegas for a sex act. The company responded by having a public relations employee speak with him, according to the suit.

“Driven by sales rather than the safety of kids, Subway sent its then senior public relations manager to ask Jared and the franchise owner, rather than the victim, about the incident,” the suit states.

Four years later, the suit claims, a Subway franchise owner in Florida contacted Subway’s then-CEO Jeff Moody and informed him about some disturbing comments Fogle had made about children. The comments included Fogle saying how he had sex with children and “really like[d] them young.”

According to the suit, Moody interrupted the franchise owner from continuing, telling her: “Please don’t tell me any more. Don’t worry, he has met someone. She is a teacher and he seems to love her very much, and we think she will keep him grounded.”

In 2009, one year after that incident, Fogle became engaged to McLaughlin and they married in 2010. She has two children, ages 3 and 5, from the marriage.

McLaughlin, who was seen fighting back tears at Monday’s press conference, said that “like the rest of America,” she had no idea about the allegations against Fogle until his 2015 arrest. According to her suit, had she known about the allegations, she would not have married him.

McLaughlin accuses Subway of intentionally turning a blind eye to her now ex-husband’s horrid crimes so that their sales wouldn’t be harmed.

“When the FBI banged on my door on July 7th, 2015, I thought it was the worst day of my life,” she said, referring to the day the family’s Indiana home was raided by the FBI. “I had no idea that the nightmare was just beginning. Like the rest of America, I was shocked by what I learned in the weeks and months to follow.”

Her lawsuit cites five counts against Subway, including invasion of privacy /misappropriation of likeness, intentional infliction of emotional distress, negligence, negligence per se, and right of publicity.

The misappropriation of likeness count stems from the company’s use of images depicting McLaughlin and her children in their ads, which she said was done without her consent.

McLaughlin’s attorney said their lawsuit was a last resort after the fast food chain repeatedly refused to give them answers about their involvement in Fogle’s crimes.

“Our private efforts at communication with Subway have been unsuccessful and that’s what necessitated the filing of this lawsuit and the discovery process to begin,” attorney Mike Antrim stated Monday.

A spokesperson for Subway declined comment, citing pending legal action.

Read McLaughlin’s full statement below:

When the FBI banged on my door on July 7th, 2015, I thought it was the worst day of my life.  I had no idea that the nightmare was just beginning.  Like the rest of America, I was shocked by what I learned in the weeks and months to follow.

First let me say, to the victims of my ex-husband, you are never far from my thoughts and prayers. I can only imagine what you have been going through. A mother’s most basic instinct is to protect her children and this is one of the most horrific of crimes. I know the healing process is lifelong.

Finding out that your husband and the father of your children is a child predator, and knowing that his job involved him visiting schools on a regular basis is devastating.

Finding out that Subway did not act upon at least one complaint while continuing to utilize Jared as their spokesperson and facilitate his visits to those hundreds of schools is beyond comprehension.

I filed this lawsuit because I have questions. Questions that someday my children will ask me and that I imagine the families of the 14 victims are asking.  Questions to which I have no other way to get answers.  Questions like what did Subway know and when did they know it?  What investigations, if any, did they conduct? Did they ever notify the authorities?

I also filed this lawsuit because I am seeking damages from Subway. As the complaint alleges, there have been news reports that Subway received at least one complaint that Jared had sexual interest in children.  Subway even took the step of marketing him as a family man and used my children’s and my likenesses in that campaign.  I did not give them the consent to do this.

This is not a position I ever wanted to be in.  Bringing this lawsuit was not an easy decision to make.  I am by nature and practice a very private person.  I have kept my children out of the public arena, despite their father’s career, arrest, and conviction.

I actually want to thank you all in the media for respecting my privacy and the privacy of my children over the past year.  I recognize that filing a lawsuit is taking a public step.  However, I chose to make this statement today, rather than risk media presence at my home and in my neighborhood.  I would ask that you please continue to respect my privacy and the privacy of my children.

http://www.huffingtonpost.com/entry/jared-fogles-ex-sues-subway_us_580e6989e4b0a03911ee4069
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« Reply #34 on: December 22, 2017, 06:08:03 PM »

The Jared effect?

Subway Closes 909 Stores In 2017: It's The "Beginning Of A Crisis"

by Tyler Durden
Dec 22, 2017

Earlier this year, we reported that in its 52-years of operation sandwich chain Subway - for the first time ever - contracted in 2016, closing 359 U.S. locations. Bloomberg described the situation as the “biggest retrenchment in the history of the restaurant chain” whose total store count dropped 1.3% from 27,103 in 2015 to 26,744, while the company failed to keep up with the latest fast-food eatery trends.

“Subway is in the midst of a massive transformation, and change of this size takes time,” a representative for the company told Business Insider. “Our goal is to strengthen the Subway brand in every market around the world to give Subway franchisees the greatest opportunity to successfully grow their businesses.”

Confirming that Subway has indeed peaked in its 5 decades-long business cycle, even as management desperately attempts to engineer a soft landing, a Subway representative said that another 909 locations have been closed in 2017, representing more than 3% of the chain’s 2016 U.S. stores.

This is the second consecutive year that subway has closed hundreds of locations. The company is currently operating 25,835 shops in the U.S., compared with 26,744 at the end of 2016. Sales in 2016 have also declined -1.70% after 359 locations were dropped. It’s evident that a domestic sales slowdown has rippled its way through the company in 2017, and will most likely persist through 2018.

There is more bad news: the company’s international business has stalled with the decline of 471 international shops. In 2017, the chain had 44,014 worldwide, down from its 44,485 stores in 2016. Subway has failed to keep pace with fast-casual competitors: Panera, Starbucks, and Sweetgreen, as the company, is not deemed cool by millennials.

"Today, people are ever more educated on nutrition, food sourcing, and ethical holistic business models," Sara Bamossy, the chief strategy officer at ad agency Pitch, told Business Insider. “To create (or to rekindle) loyalty and sales, it is not enough to label something as ‘natural’ and it’s not enough to be affordably priced.” On top of Subway’s troubles, the overall restaurant industry is waning and could fry the dreams of a smooth transition by management.

The private company has been pressured not only by a sharp recent decline in US restaurant traffic and sales – an industry which as we reported recently suffered its worst collapse since 2009 – but by the industry’s heavy reliance on discounts and promotions.

Subway also has lost some of its luster as a healthier-food option, Bloomberg notes as it has been working to restore its status by eliminating antibiotics from its chicken and switching to cage-free eggs. 

Mitesh Raval, a Virginia franchise owner, said “the national promotional focus over the past five years … has decimated [us] and left many franchisees unprofitable and even insolvent.” More than 400 franchise owners have banded together and signed a petition, which “protests chain’s plans to roll out its famous $5 footlong deal in January."

The deal officially starts on Jan 1, 2018, while the appetite for a more larger crisis with franchisees could be evident in 2018.

And of course, no one can forget Subway’s former spokesman Jared Fogle, who turned out to be a creep, charged with having sex with minors and possessing child pornography. Subway bet the farm on branding with Fogle and cut ties with him in 2015, just around the time when store closures started.



In summary, the compounding effect of store closures, eatery trends, waning restaurant industry, and poor advertisement choices, have ultimately dethroned Subway, and now forced the company into a contraction phase for the second year in a row.

http://www.zerohedge.com/news/2017-12-22/subway-closes-909-stores-2017-its-beginning-crisis
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AbrahamG
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The vagina is my third favorite hole.


« Reply #35 on: December 22, 2017, 07:34:18 PM »

Wonder how his asshole is holding up?
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Las Vegas
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! Repent or Perish !


« Reply #36 on: December 22, 2017, 07:39:52 PM »

I doubt the sledgeplow is searching for him, but you can bet he regrets every moment of his life right about now.
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