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The dark side of your $5 Footlong: Business owners say it could bite them
A Subway sandwich is far more than the sum of its fillings, franchisee Keith Miller says.
Those ingredients cost roughly $2. Then he pays labor. Electricity. Gas. Royalties. Credit card transaction fees. Rent.
All told, Miller, who owns three Subway franchises in Northern California, says it costs him well over $4 to produce one of Subway's foot-long subs. And that is why, when the chain announced plans to drop the price of the sandwich to $4.99 starting in January, he and hundreds of Subway's other 10,000 U.S. franchisees sent a strongly worded letter warning that the promotion could force some stores to close.
A Subway sandwich is far more than the sum of its fillings, franchisee Keith Miller says.
Those ingredients cost roughly $2. Then he pays labor. Electricity. Gas. Royalties. Credit card transaction fees. Rent.
All told, Miller, who owns three Subway franchises in Northern California, says it costs him well over $4 to produce one of Subway's foot-long subs. And that is why, when the chain announced plans to drop the price of the sandwich to $4.99 starting in January, he and hundreds of Subway's other 10,000 U.S. franchisees sent a strongly worded letter warning that the promotion could force some stores to close.
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Posted from msn.comPosted in these groups: 
Business
Business
Posted 7 y ago
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