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Subway tops the Franchise 500 list for 2004

posted by Jason Kottke   Jan 15, 2004

Subway tops the Franchise 500 list for 2004. I didn’t know UPS Stores were franchised.

Reader comments

pbJan 15, 2004 at 11:46PM

To possibly clarify, they’re referring to Mailboxes Etc which UPS purchased and is renaming UPS Store. The delivery stuff is not franchised.

hallaJan 15, 2004 at 11:54PM

another cool factoid…on the subway page they say there’s more subways than mcdonald’s…

donald tettoJan 16, 2004 at 12:31AM

That is really surprising (in a good way). One of the few “convenience” (fast?) foods I enjoy. Sad to see Panera didn’t make it to the top though. Every meal pales in comparison since I tried their Brocolli and Cheese soup (or their Black Bean, oh man). Although they’ve had shortages (out of bread bowls, out of this soup or that soup) the last few times I’ve gone in. In any case, surprised I’ve never heard of a few of these.

anthonyJan 16, 2004 at 1:13AM

while it is true there are more subway franchises than mcdonald’s franchises, if i were subway i would be careful. in 1995 mcdonald’s made a concerted effort to research and approve all new franchises based on viability, location, and proximity to other franchises, all at the request of current franchise owners. you can see their year to year growth has slowed. here in piscataway, nj there are 4 subways within 10 minutes of my house, 2 of them new in the last year, 3 of them new in the last two years.

pbJan 16, 2004 at 1:13PM

Subway reports that it has 20,000 locations and McDonald’s reports that it has 30,000. I’m wondering how Subway can claim it has more.

pbJan 16, 2004 at 1:15PM

Oh, I see, Subway has more US locations.

BenjyJan 16, 2004 at 1:27PM

However, the average McDonalds does something like 3-4 times the revenue that a Subway does.

jkottkeJan 16, 2004 at 2:18PM

However, the average McDonalds does something like 3-4 times the revenue that a Subway does.

That’s mostly because Subway makes all of their sandwiches to order while McDonald’s pre-makes all of their food. I read an interview with Subway’s founder a few weeks ago and they feel like the revenue disparity is acceptable because fresh-made sandwiches are a large part of Subway’s identity re: their customers.

ChicagoTex!Jan 16, 2004 at 9:47PM

Re: UPS

Yep, so the people from little god-forsaken cities in South Texas like the one I’m originally from can have a drop off point for UPS at the local feed store instead of having to drive 80 miles to the big city! Heh. True, though.

sixtoeJan 16, 2004 at 11:08PM

I remember reading several years ago (in Fast Food Nation?) that Subway doesn’t mind cannabalizing their own franchises by opening up locations two blocks away from each other, as long as they reach the CEO’s shortsighted goal of surpassing McD’s. Looks like they did just that.

NedJan 17, 2004 at 8:46AM

The local UPS Store was a huge letdown for me. And, they add a 10% surcharge to UPS’s prices. Yuck!

Jordon CooperJan 17, 2004 at 5:04PM

sixtoe: I think it was Fast Food Nation that said that and they also said that many consider them to be the hardest on their franchise owners in not treating them that well in other areas. With no territorial rights, they end up competing amongst themselves. That being said, I have never seen a Subway go out of business where I live while franchises like Burger King and quite a few other franchises haven’t made it.

nickJan 20, 2004 at 11:15AM

not only is there a %10 markup on the prices of the UPS store, but what you don’t know is that the boxes that they carry and the price that is charged for said boxes is ridiculous. I worked for one store for eight years and I stopped being able to justify ripping people off.

This thread is closed to new comments. Thanks to everyone who responded.

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