Subway freezes marketing fees to help franchisees

By Sarah Stowe | 01 Apr 2020 View comments

Subway Australia has announced a financial assistance program to support its 1300 restaurants through the COVID-19 (Coronavirus) crisis.

Among the measures the global sandwich chain is taking is freezing marketing fees to help cashflow.

Subway freezes marketing fees as one measure to help

Country director for Australia, Chris Churchmichael, said “Subway has waived all marketing fees and will collect just 50 per cent of royalty fees, with remaining fees deferred until after the crisis.

“We will continue to monitor the impacts of coronavirus and consider further measures to support our franchise owners.”

Churchmichael said Subway had been working to develop a series of support packages, designed to provide immediate and ongoing relief for franchisees.

“While the health and safety of our teams and guests will always be our top priority, we are also very focused on assisting our franchise owners to navigate their way through this unprecedented crisis,” Churchmichael said.

Subway includes actively negotiating with lenders to help franchisee cashflow among its measures.

The franchisor is also talking with landlords and suppliers to ease immediate financial pressures and helping franchisees understand available government COVID-19 support programs.  

 

Not business as usual

Just three weeks ago the sandwich chain was celebrating the opening of its 100th so-called next generation store. The outlet, in Sydney’s Ultimo, opened 23 years ago and was last refurbished in 2004.

While the new look stores include digital menus, USB ports, and comfortable seating, the message is all about the fresh produce used.

Operating in the new normal, Subway restaurants are open for takeaway and pre-orders through the Subway Australia app.

The chain is also available for delivery through Uber Eats and Deliveroo.