The Biggest Flops In Subway's History

Over half a century ago, Fred DeLuca and Peter Buck opened a submarine sandwich shop called "Pete's Subway" in Bridgeport, Connecticut. By 2010, the business grew to more than 40,000 locations worldwide as fans devoured favorites such as the Subway Club, Spicy Italian, and Meatball Marinara. The franchise's road to (and from) success hasn't always been as smooth as its sandwich toppings, though. Plagued by scandals, including one lawsuit alleging their tuna isn't really tuna (Subway claims they use "wild-caught skipjack tuna regulated by the FDA"), the "Eat Fresh" enterprise began a downward spiral in the 2010s.

According to Restaurant Business, Subway is no longer the sandwich king: Its share of the limited-service sandwich market has taken a hit over the past decade. Sales challenges and restaurant closures have "cut its market share of the Top 500 sandwich chains to 28%" and forced it into a negative growth trajectory surpassed only by Einstein Bros. Bagels. Meanwhile, Jersey Mike's sales have tripled.

Instead of focusing on fresh ingredients and staying competitive, Subway has initiated the equivalent of 29 litigation actions (mostly arbitrations) per 1,000 franchisees, compared to 1.4 actions for McDonald's, Dunkin' Donuts, Pizza Hut, Burger King, and Wendy's combined, the New York Times reports. Not to mention, they've made some pretty big blunders, from menu items to ads, corporate policies to publicity initiatives. Keep reading to learn more about how some of Subway's heroes turned into zeroes.

In 2014, Subway received a great deal of bad publicity and pressure to remove azodicarbonamide, a chemical compound also found in yoga mats, from its bread recipe. As it turns out, though, the chemical is found in nearly 500 common brands and products (per the Environmental Working Group). Eventually, Subway phased out the ingredient, but their slow response was a flop in itself that was difficult to recover from.

Adding to the bread chemical debacle, an Irish court ruled that, due to its high sugar content (more than five grams per six-inch sub roll), the bread shouldn't even be classified as bread at all, but rather as a confectionary. The ruling, citing Ireland's Value-Added Tax Act of 1972, stated that the sugar and fat in the bread "should not exceed 2% of the weight of flour included in the dough." But a Subway spokesperson protested, "Subway's bread is, of course, bread. We have been baking fresh bread in our stores for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes."

Subway now boasts five mainstay bread choices (9 Grain Wheat, Multi-Grain Flatbread, Italian, Italian Herbs & Cheese, and regular Flatbread), with select locations offering Hearty Italian, 9-Grain Honey Oat, Jalapeño Cheese, Monterey Cheddar, Parmesan Oregano, Roasted Garlic, Rosemary & Sea Salt, Rye Bread, and Gluten-Free Bread. Their website invites customers to "follow the smell of our baking bread," so perhaps their bread brouhaha has died down — but it's fascinating that the foundational element of Subway's product has threatened multiple times to be their undoing.

As of 2018, Subway no longer required franchisees to serve breakfast. Low interest was to blame: More than 40% of Subway customers didn't stop there for breakfast, and 19% didn't even know they offered the morning meal, a Bloomberg study revealed. Other reasons cited for change include staffing shortages and formidable breakfast competitors such as Taco Bell, Dunkin' Donuts, and McDonald's. In an email to Business Insider, James Walker, vice president of Subway North America, said, "We are continuously evaluating every consumer touchpoint (including hours of operation, menu, day part, etc.) and making adjustments as needed to help Subway franchisees be more successful."

Ultimately, each individual business owner has the final say on whether breakfast stays or goes, but Subway's official menu makes no mention of bacon and eggs. It probably didn't help much that the eggs were shipped to franchisees in the form of floppy, unappetizing disks (per Business Insider). Some fast food restaurants' breakfast offerings are arguably the best part of their menu. Unfortunately, in Subway's case, it's just the opposite.

Fans of taco creations in the UK will have to run for the border, not Subway, since Britain-based franchisees removed taco beef from their offerings in 2019. A Subway spokesperson explained, "We're adding lots of exciting new menu options and there are more to come. This meant we had to say goodbye to some of our less-loved ingredients." Taco-meat enthusiasts can order a Subway taco (billed as "a sub filled with ground beef and salsa") in Japan, where it debuted in 2015. Foodbeast's take on this taco, however, wasn't so flattering, describing it as "sketchy ground beef, covered with a ton of lettuce, wrapped in flat bread."

USA Today writer Nick Swartz called the creation "the worst taco of all time," before specifying that "it's not even a taco." Japan isn't the only place in the universe one can try their luck at finding an adequate Subway taco. "Subway Skippergata" in Oslo, Norway calls their version "A TexMex inspired sub with taco flavoured minced chicken and nachos. Superb with salsa and Rømme sauce." "Rømme" means sour cream in Norwegian (we looked it up — you're welcome). Overall, this sandwich doesn't look too bad. But it does prove that you may have to travel the world to find an adequate taco (or taco-esque offering) from Subway, because in most locales, it seems to be a bust.

Subway regulars may recall a "Subway Club" punch card that allowed them to earn rewards (such as a free sub) after a certain number of visits. Cardholders would receive one free 6- or 12-inch sub free after they earned six punches for either (buy six of either size, get one free). A drink purchase (any size) was also required, and double meat, extra cheese, bacon, and avocado cost extra.

Although many may have accrued stamps worthy of a freebie, the club was discontinued in 2005 due to fraud. Tech-savvy swindlers were creating fake punch cards so they could abuse the rewards program. Some were even selling the cards on eBay, Wired reports. Fivestars Insights deemed Subway Club a "loyalty program blunder," condemning the paper cards as "easy to copy with photo-altering software." Subway now offers MyWay Rewards, an app allowing customers to earn rewards such as free cookies, free delivery, and buy one, get one free deals.

From removing popular menu items to forcing restaurant owners to sell shoddy sandwiches, Subway franchisees have frequently expressed their frustration with the company's choices. In an open letter to Elizabeth DeLuca, the widow of Subway cofounder Fred DeLuca, more than 250 franchisees said their Subway dream "turned into a nightmare. We didn't understand that language in our Franchise Agreements was written in a way so that Subway could change the rules on us at any time, without notice, for anything."

Business owners, aka important Subway brand ambassadors, listed six requests such as "Franchisees should have the right to source fresh vegetables every day and offer higher quality ingredients when they are available," and "Any change to our Franchise Agreements must be mutually agreed upon."

In yet another foolish move, Subway recently announced new rules pertaining to when stores can close, requiring them to remain open during a snowstorm, electrical outage, or terrorist attack. If franchisees violate these rules and close down more than once per year (barring an "act of God," per Business Insider), they might forfeit their ownership — and if they don't agree to surrender their business should the corporation demand it, Subway will increase their royalties to 10% on that location. If you asked Subway franchisees and employees about the biggest flop in company history, they might say it's the long track record of alienating and frustrating franchise owners. A company's people are, after all, the most important ingredient in its success.