Subway Soda War Forces Franchise Owners to Choose Pepsi Over Coke.. What This Means for Your Favorite Subs
Subway franchise owners are facing a tough decision as the chain transitions from Coca-Cola to Pepsi. This change comes amid a $6.99 footlong promotion that many owners oppose. As reported on August 30, 2024, franchisees must sign a new contract or risk losing their ability to serve beverages in 2025.
Key takeaways:
- Subway is switching from Coca-Cola to Pepsi.
- Franchisees must sign a new 10-year contract.
- Many owners are unhappy with the $6.99 promotion.
- Transparency issues are causing unrest among franchisees.
Subway’s Soda War: Franchise Owners Face Tough Choices Amid New Contract
The recent decision by Subway to switch soda suppliers from Coca-Cola to Pepsi has sparked significant unrest among franchise owners. The parent company, Roark, has mandated that franchisees sign a new 10-year agreement by the end of the week. Failure to do so could jeopardize their ability to serve beverages starting in 2025. Many franchisees are pushing back, citing a lack of transparency in the contract details, which they believe could lead to unfavorable financial consequences.
Franchisee Concerns Over Financial Transparency in Subway’s New Deal
Franchise owners have expressed serious concerns regarding the financial details of the new contract with Pepsi. Bill Mathis, chair of the North American Association of Subway Franchisees (NAASF), highlighted the unacceptable nature of signing an agreement without full disclosure. Owners fear that the parent company may benefit from undisclosed discounts and rebates, leaving franchisees in the dark about their actual costs.
Ongoing Issues: The $6.99 Footlong Promotion and Meat Slicers
In addition to the soda supplier change, franchisees are also frustrated with the $6.99 footlong promotion. This promotion was announced during an emergency meeting, leaving many owners feeling blindsided. Furthermore, the introduction of meat slicers in stores has raised safety concerns, with reports of injuries among staff. Franchisees are calling for a review of these changes, questioning their impact on profitability and customer satisfaction.
- Promotion announced unexpectedly.
- Concerns about employee safety with meat slicers.
- Franchisees demand a review of recent changes.
