{"id":2233106,"date":"2024-04-29T20:05:02","date_gmt":"2024-04-30T00:05:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/subway-could-shrink-to-smallest-size-in-years-as-californias-20-minimum-wage-does-major-damage\/"},"modified":"2024-04-29T20:08:25","modified_gmt":"2024-04-30T00:08:25","slug":"subway-could-shrink-to-smallest-size-in-years-as-californias-20-minimum-wage-does-major-damage","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/subway-could-shrink-to-smallest-size-in-years-as-californias-20-minimum-wage-does-major-damage\/","title":{"rendered":"Subway Faces Downsizing Due to California&#8217;s $20 Minimum Wage Impact"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsubway-could-shrink-to-smallest-size-in-years-as-californias-20-minimum-wage-does-major-damage%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2233106&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Subway chain\u200c is experiencing a decline, with 733 \u2063American store closures in 2023, influenced by \u200dCalifornia&#8217;s \u2062<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/shark-tank-powerhouse-investor-says-he-wont-invest-in-california-bad-policy\/\" title=\"Shark Tank investor rejects California due to 'poor policy\">high <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/under-trump-americans-have-seen-their-best-wage-growth-in-40-years\/\" title=\"Under Trump, Americans Have Seen Their Best Wage Growth In 40 Years\">minimum wage<\/a><\/a>. Despite opening 396 new stores, the overall count\u2064 decreased\u200d by 443. Labor\u200d costs are a\u200b significant concern, prompting\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/38-iranian-dissidents-urge-biden-to-keep-trumps-pressure-on-despotic-regime\/\" title=\"38 Iranian Dissidents Urge Biden To Keep Trump\u2019s Pressure On Despotic Regime\">price hikes<\/a> and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/metro-weighs-layoffs-and-service-cuts-to-close-750-million-budget-gap\/\" title=\"Metro considers layoffs and service reductions to address 0 million budget shortfall.\">reduced operating hours<\/a>. Private\u200d equity firm Roark Capital seeks to acquire Subway for $9.6 billion, subject to FTC\u2064 review. The Subway chain is facing \u200da downturn, marked by 733 American store closures in 2023 due to California&#8217;s high minimum wage impact. Although launching 396 new stores, the \u2064net count dropped by 443. \u200dRising\u2063 labor costs led\u200b to price increases and shortened business hours.\u200b Roark Capital eyes a $9.6 billion acquisition of Subway pending\u200b FTC approval.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/news\/\">  News <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/russdavis\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/russdavis\/%20\"><span>Jack Davis<\/span><\/a> <\/span> <span>   April 29, 2024 at 4:28pm <\/span> <\/span>  <\/header>\n<section>\n<p>The Subway chain is shrinking in a trend that could grow now that California\u2019s sky-high minimum wage for fast food workers is in effect.<\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/woman-charged-1000-subway-sandwich-leaving-without-money-groceries-refund-yet-made\/\" target=\"_blank\" rel=\"noopener\">Subway<\/a> closed 733 American stores in 2023, according to the <a href=\"https:\/\/nypost.com\/2024\/04\/29\/business\/californias-minimum-wage-law-could-shrink-subway-further-experts\/?utm_source=twitter&#038;utm_campaign=nypost&#038;utm_medium=social\" target=\"_blank\" rel=\"noopener\">New York Post<\/a>.<\/p>\n<p>Although it added 396 stores and acquired some others, overall the chain\u2019s store count dropped by 443.<\/p>\n<p>Overall, Subway began 2024 with 20,133 American stores. It started 2023 with 20,576 stores.<\/p>\n<p>In November, CEO John Chidsey estimated a net loss of about 100 stores.<\/p>\n<p>\u201cWe\u2019ll be treading water in the U.S. at worst,\u201d Chidsey said.<\/p>\n<p>Subway peaked with about 27,000 locations in 2015 and has <a href=\"https:\/\/www.westernjournal.com\/woke-soccer-star-megan-rapinoe-adds-subways-failure-2021-1000-stores-close-amid-backlash\/\" target=\"_blank\" rel=\"noopener\">declined<\/a> every year since then.<\/p>\n<p>Also, in 2023, unit volumes were 25 percent where they should have been to keep pace with inflation, according to the website <a href=\"https:\/\/www.restaurantbusinessonline.com\/financing\/subway-slowed-its-closures-last-year-not-much\" target=\"_blank\" rel=\"noopener\">Restaurant Business<\/a>.<\/p>\n<p>John Gordon, a restaurant analyst at Pacific Management Consultant Group, told the Post that the April 1 hike in the minimum wage for fast food workers from $16 per hour to $20 per hour was only going to hurt the restaurant chain.<\/p>\n<div id=\"firefly-poll-container\">\n<p>Is a $20 minimum wage bad?<\/p>\n<\/p><\/div>\n<p>\u201cThey are still hemorrhaging stores,\u201d Gordon said. \u201cSubway is still a troubled brand in the U.S.\u201d<\/p>\n<p>The Post cited sources it did not name as saying labor costs represent 28 percent of a \u00a0Subway outlet\u2019s costs, which means an increase in wages could cut profits.<\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">\u201cSubway is no longer the most popular chain in the world this year after closing hundreds of stores. McDonald\u2019s has taken the lead with 40,000 stores. Subway and Starbucks follow with 38K and 33K stores each. At a distant fourth is KFC. Pizza Hut beats out Burger King for\u2026\u201d <a href=\"https:\/\/t.co\/qZnWNxsH07\">pic.twitter.com\/qZnWNxsH07<\/a><\/p>\n<p>\u2014 Dr. Elden Wayne Whalen III, ShD (@wayne_effect) <a href=\"https:\/\/twitter.com\/wayne_effect\/status\/1777314932423282892?\">April 8, 2024<\/a><\/p>\n<\/blockquote>\n<p>\u201cYou\u2019ll see a lot more people deciding to close when their leases expire,\u201d a California franchisee the Post did not name said. \u201cWhy would I choose to stay open if I was only scraping by?\u201d<\/p>\n<p>The Post said price hikes of between 7 and 10 percent have been many franchise\u2019s responses to the higher wage.<\/p>\n<p>Some outlets want to reduce the hours they are open, which would cut <a href=\"https:\/\/www.westernjournal.com\/mcdonalds-25-deal-angers-customers-shows-damage-californias-20-minimum-wage-fast-food-industry\/\" target=\"_blank\" rel=\"noopener\">labor costs<\/a>.<\/p>\n<p>Private equity firm Roark Capital, which owns Dunkin\u2019 Brands, Arby\u2019s and Jimmy John\u2019s, is trying to buy Subway for $9.6 billion.<\/p>\n<p>The Federal Trade Commission is reviewing the deal.<\/p>\n<hr>\n<div>\n<p><b><i>An Important Message from Our Staff:<\/i><\/b><\/p>\n<p><i><span>We who work here at The Western Journal have fought for years against Big Tech and the elites who want to shut us down and then shut America down. <\/span><\/i><\/p>\n<p><i><span>Make no mistake \u2014 nothing will be the same after November 2024. Will you help us fight? Will you <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>help us expose the America-hating elites<\/span><\/i><\/a><i><span>  who will do everything they can to steal this election? <\/span><\/i><\/p>\n<p><i><span>We\u2019re a small group of people fighting to save the country for our readers and for our own family and friends. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Can we count on your help?<\/span><\/i><\/a><\/p>\n<p><i><span>At this point, Big Tech has cut off our access to 90% of advertisers. Imagine if someone took 90% of your paycheck and there was nothing you could do. They\u2019re trying to starve us out.<\/span><\/i><\/p>\n<p><i><span>Donations from readers like you have literally helped keep our lights on, and <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>we need you<\/span><\/i><\/a><i><span>  now more than ever. <\/span><\/i><\/p>\n<p><i><span>We operate on a shoestring budget, but with that budget, we terrify the globalists. Please help us continue the fight. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Stand with us<\/span><\/i><\/a><i><span>, and we will never surrender.<\/span><\/i><\/p>\n<p><i><span>Thank you for reading The Western Journal and for believing in America. <\/span><\/i><\/p>\n<p><i><span>It is a pleasure to serve you.<\/span><\/i><\/p>\n<p><i><span>P.S. Please don\u2019t let the America-hating left win. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Stand with us today<\/span><\/i><\/a><i><span>!<\/span><\/i><\/p>\n<\/p><\/div>\n<div id=\"author-info-44685\">\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/russdavis\/\">  <\/a> <\/p>\n<div>\n<p><label for=\"summary-tab-radio-44685\">Summary<\/label><label for=\"more-info-tab-radio-44685\">More<span> Biographical Information<\/span><\/label><label for=\"posts-tab-radio-44685\">Recent<span> Posts<\/span><\/label><label for=\"contact-tab-radio-44685\" onclick=\"if( typeof grecaptcha=='undefined' ) { let cap_s=document.createElement( 'script' ); cap_s.src='https:\/\/www.google.com\/recaptcha\/api.js?render=6LeJFcsUAAAAAPsIEqvB1EebWbZfqRUe6ebMpGy7'; document.body.appendChild( cap_s ); }\">Contact<\/label><\/p>\n<div>\n<p>Jack Davis is a freelance writer who joined The Western Journal in July 2015 and chronicled the campaign that saw President Donald Trump elected. Since then, he has written extensively for The Western Journal on the Trump administration as well as foreign policy and military issues.<\/p>\n<\/p><\/div>\n<div>\n<p>  Jack Davis is a freelance writer who joined The Western Journal in July 2015 and chronicled the campaign that saw President Donald Trump elected. Since then, he has written extensively for The Western Journal on the Trump administration as well as foreign policy and military issues. <br \/> Jack can be reached at jackwritings1@gmail.com. <\/p>\n<p>  Location <\/p>\n<p>  New York City <\/p>\n<p>  Languages Spoken <\/p>\n<p>  English <\/p>\n<p>  Topics of Expertise <\/p>\n<p>  Politics, Foreign Policy, Military &#038; Defense Issues <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a recent trend, the Subway chain is downsizing, possibly influenced by California&#8217;s high minimum wage for fast food workers. Closing 733 American stores in 2023, Subway also opened 396 stores and acquired additional locations, as reported by the New York Post on April 29, 2024, at 4:28 pm<\/p>\n","protected":false},"author":661,"featured_media":2233107,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/04\/Subway.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2233106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/04\/Subway.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2233106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/661"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2233106"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2233106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2233107"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2233106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2233106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2233106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}