Sandwich chain looks to bounce back
Subway is having a rough couple of years. Aside from the obvious (the scandal involving former spokesman Jared Fogle), the sandwich chain with about 27,000 U.S. locations has suffered from declining sales and increased competition.
Sales dipped 3.3% last year to $11.9 billion, from $12.3 billion in 2013, marking the largest loss across the chain-restaurant industry, as tracked by research firm Technomic, Chicago. A 2013 class-action lawsuit alleging Subway’s 6-inch and footlong sandwiches are shorter than advertised also may have hurt the chain’s image.
But Subway is looking to turn things around. In response to the suit, the company in October announced a proposed settlement that would require franchisees to have a measurement tool in stores and adhere to regular compliance inspections that would include measuring a sampling of baked bread to make sure loaves are 12 inches.
It also announced plans for U.S. restaurants to switch to meat raised without use of antibiotics beginning early next year, Bloomberg reports. Subway said it would begin serving chicken raised without antibiotics in March 2016, while turkey raised to those standards will also be introduced next year; the full transition is expected to be complete by the end of 2019. Beef and pork raised without antibiotics will be in Subway restaurants by 2025.
McDonald’s made a similar announcement in March, declaring it would stop serving chicken raised with some antibiotics during the next two years.
Ordering groceries from home catches on
Online grocery delivery is hot, and many retailers are looking to cash in on it.
According to a Nielsen survey, one-quarter of global respondents say they are already ordering grocery products online, and more than half are willing to use it in the future.
And with more and more consumers skipping long lines for convenience that’s a click away, it’s not surprising sales are climbing. Sales from online grocery are expected to jump more than 16% to $13 billion this year, according to market research firm IBIS World.
Two companies looking to reap those benefits include Amazon and Wal-Mart. Amazon’s AmazonFresh offers registered users in select areas same-day and early morning delivery for a yearly membership fee of $299. Wal-Mart’s online grocery service is still in test mode, but for a $3 to $7 fee, consumers can shop more than 30,000 items. Meanwhile, third-party delivery service Instacart has partnered with Target, Whole Foods Market, Costco and Petco to bring groceries and goods to customers in an hour.
Wage Gains
Americans’ wallets keep on expanding. The average American took in $44,569.20 last year, marking an increase of 3.5% from 2013.
| Year | Average Wage |
| 2010 | $39,959.30 |
| 2011 | $41,211.36 |
| 2012 | $42,298.21 |
| 2013 | $43,041.39 |
| 2014 | $44,569.20 |
Source: Social Security Administration
Pot Profits
On Oct. 1, it became legal to buy recreational marijuana in Oregon, and sales are surpassing that of Colorado, Portland news source KGW.com reports.
$3.5 million: First-day sales of recreational marijuana in Oregon
$11 million: How much Oregon dispensaries made in the first week
$5 million: How much Colorado made in its first week of recreational sales
$2 million: How much Washington made in its first month
Source: kgw.com
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