ArticlesBlog

Fast Food Chains That Are Struggling To Stay In Business

Fast Food Chains That Are Struggling To Stay In Business


Even in the best economy, the restaurant industry
is all about struggle, and now is a particularly tough time for fast food establishments. With that in mind, let’s look at some of the
major fast-food chains that are facing some major problems today. Subway has over twenty-thousand locations
in the U.S., yet it’s still on the verge of imploding. “Did you take my sub?” “No. This one got avocado on it.” “Oh, mine had avocado on it.” “Wow, how ’bout that?” “Heh, I don’t —” The Washington Post reported a twenty-five
percent drop in foot traffic over the last several years. Worse still, some estimates suggest a third
of all Subways are losing money. Franchisees seem to think leadership is the
problem. Subway is still mostly owned by its founders,
and what the founding family says, goes. Former CEO Suzanne Greco, sister of deceased
co-founder Fred DeLuca, told CBS in 2017: “Oh, I’m extremely proud to be leading this
brand. It’s really, really exciting for me.” Perhaps it was too exciting: Greco retired
as CEO in June 2018, and the chain’s problems still haven’t been fixed. There are simply too many places to get a
Subway sub. In fact, the chain may be eating into its
own sales. In June, Subway hired management consultants
Bain and Company to help organize the chain and quite possibly prepare it for a sale. If the chain is sold, it’s likely that quite
a few stores will close. Don’t get us wrong: BK is still The King when
it comes to brilliant ads. “I say, this new lamb burger in my starboard
hand is top notch!” But the fast-food chain has got some problems. It’s owned by Restaurant Brands International,
the same company that owns Canadian donut and coffee chain Tim Horton’s. Fights between Tim Horton franchisees and
Restaurant Brands International have gotten so heated, the Financial Post reports, that
the company has occasionally tried to lock franchisees out of stores. BK outlets have suffered the same steady drop
in foot traffic that’s wounded restaurants across the board. And the menu isn’t helping matters: It’s barely
been revised in recent years. While the chain is still profitable, it’s
about to be put to the test. The company is well behind fellow burger chains
in remodeling its thousands of restaurants, a process that franchisees usually have to
help pay for. There’s lots of uncertainty that this will
make up the gap, especially since no remodel of the menu is on the way. In other words, the King is about to learn
just how loyal his subjects are. Remember in July 2018 when Qdoba mocked Chipotle’s
“Free Guac Day” by delivering avocados to its rival by the truckload? That was an awesome way to remind customers
that it always offers guac for free. But it was also a reminder that less than
a year earlier, Qdoba had insisted that their free guacamole was eating into the bottom
line because avocado prices were being driven up. And there’s more bad news: In late 2017, the
chain was sold by owner Jack In The Box to Apollo Management, a company that specializes
in turning around distressed assets, sometimes with leveraged buyouts. We doubt their ad campaigns are helping to
boost sales. “We’ll always be united by our love for flavorful
quesadillas.” Chipotle just had a terrific quarter despite
years of bad press, and Moe’s is rapidly rising as a popular eatery, but Qdoba is currently
standing on a foundation of financial queso, and it doesn’t have much time to shore it
up. If Sonic’s pickle slushie left you cold, you
weren’t alone: Sonic has seen eight straight quarters of declining sales. It’s not hard to see why: Sonic is a drive-in,
when headlines are screaming about climate change. And it serves sugary drinks and fried food
right when obesity and public health are very much on people’s minds. And no wonder they’re hurting: Sonic competes
with massive brands like McDonald’s and Wendy’s. In 2018, Sonic was sold to Arby’s parent company
Inspire Brands, and they picked up the chain for 2.3 billion dollars. That means Inspire Brands is banking on an
outdated concept that feels like the culinary equivalent of chain-smoking in a coal mine. “Crunchy Fritos, warm chili, melty cheese,
all together for 99 cents. It’s like real comfort food.” “I’m trying to get out of my comfort zone
and these guys keep pulling me back in. Pulling me!” The Papa has taken a hard fall. It starts and ends with John Schnatter, founder
and former CEO of Papa John’s. “Better ingredients. Better pizza. Papa John’s.” Schnatter had an unfortunate habit of weighing
in, very publicly, on non-pizza-related issues. That habit came to a head at the end of 2017,
when he demanded that NFL players stand for the national anthem, blaming them for poor
pizza sales. He eventually stepped down as CEO, but not
before Papa John got dissed on social media by fellow pizza-makers DiGiorno: “Damn, oh, that tweet’s not delivery. It’s de-EVA-stating!” He still owned 31 percent of the stock, though,
and was still chairman. Then in July it came out that he used a racist
slur on a conference call. Schnatter resigned as the chairman, but planned
to take back full control of Papa John’s. According to complaints, Schnatter ignored
a toxic corporate culture. There were also several allegations of sexual
harassment. The damage he’s done is enormous. The company has spent millions trying to prop
up suffering franchisees and clean up its image, and it’s lost its lucrative gig as
the official pizza place of the NFL to Pizza Hut. These days, no one wants anything to do with
Papa John. “Some football players want Papa John’s name
off the football stadium.”

Comments (100)

  1. Which fast food chain do you hope will stick around for a long while?

  2. Burger kings food is cold when I was buying it , Michael tore up the building and have a fence around it , I hope a different restaurant goes in. Place !!!!

  3. BK have a MILKSHAKE

  4. My kids won't eat there! No McD, 🍔 king or any fast food!
    I won't because the prices are stupid! I can go eat lunch at a Chinese buffet, eat all I want for $7.99 with a huge assortment. Not paying $10 for a burger that taste like cardboard!

  5. Well why did Burger King practically switch their entire menu for crying out loud?

  6. B K NASTIEST fast food in america ! Place has made me sick twice , I will never eat there again ! Subway no 2 in aweful !

  7. Get rid of all of them & go back to the "Mom & Pop" corner Café & Restaurants. Better food, better service, better for Nation's Health. Let's execute Ronald McDonald & Burger King & Arby's & Taco Bell & etc. , etc. , !!!!

  8. Burger king in south korea is supernpopular

  9. All these chains think if they locate into the busy areas they will have more traffic ,but they need to do the opposite find small towns away from busy areas ,you will have steady traffic and steady income ,go to the suburbs that's where the business is move to the border areas of the four state area in the small towns ,they would love not to have to drive 20 miles to get fast food that is cold by the time they get home

  10. Burger Kings food is not as good as it use to be. I think they must be chopping up humans into their meat or something? It's just not good anymore!! What's with those buns? They are just too damn sweet the whole thing together just taste gross. That's why I don't eat there anymore.

  11. We were at Midway Airport in Chicago last week. Found a place selling hot dogs cold drinks & French fries. All good-and the French fries were real-not anything like those bullrohr so called "French fries" at McD's!

  12. Fast food is expensive now, food is getting smaller. Man i really miss the old days my grandparents brings me to fast food restaurant everyweek.

  13. A third of all Subways are losing money? Gee, that wouldn't be due to the fact their expensive sandwiches are losing filling, would it?… Burger King may be the king of ads, but they're hardly the king of food, with microscopic burger sandwiches, with microscopic ingredients, that cost $4. Remember, "Have it your way!"? They still say you can have it your way, so long as the tiny piece of meat is totally incinerated… Sonic is on the tail end of 8 straight quarters of depressing sales? As long as they offer a foot long chili dog, then hand the customer a 7" chili dog, or offer a vanilla malt, and the customer gets a vanilla slushy of ground ice, they're bound to keep losing money and customers… Nobody wants Papa John. That's no surprise. The one time I went to Papas the employees were impatient and rude to the point I didn't hang around and left without ordering…

  14. 49 seconds in: that is the hottest Subway employee I've ever seen by at least 2 orders of magnitude.

  15. Rent, debt service, cost of sales, taxes, wages, management, royalties, advertising etc all add to the operating costs that are fixed….there are very few controllables left…..most locations are not for passive income and most investors usually end up working their own location to watch the money and the operation……essentially buying a job…..a good manager helps, but at what cost…..throw in very strong competition and it can get worse…..

  16. But fastfood was and should never have been for the health conscious, like come one y'all….

  17. Can we stop with the climate change nonsense, blaming it for Sonics decline.

  18. They got to expensive

  19. As long as Burger King continues to insult the intelligence of their clientele with that idiotic Creepy King mascot, they can expect to lose business. Costumed characters are for preschool kids. That asinine mascot was retired in 2011 because it was a stupid concept. So why are we still seeing it in 2019?
    As far as BK not changing their menu… any new items added are those horrible burgers like the Texas Whopper or the Angry Whopper. I wouldn't order those if they paid me. Who comes up with these terrible ideas? Put the Double Whopper back on the menu board!

  20. Subway lost my business years ago. At one time they had the best sandwiches around, but then they allowed the quality of their food and service to gradually deteriorate. My last Subway sandwich consisted of a dry bun crammed so full of lettuce that there wasn't much room left for the four razor-thin slices of supermarket lunch meat. I haven't eaten there in years, and can only imagine how much worse they've become since.

  21. Burger King food looks like shit, tastes like shit and will give you the shits

  22. I haven't bought Papa John's since the racist slur

  23. Waiting for the world to become like vietnam…less fast food chain, more street food vendors. Did u see why western guys pool their money to vietnamese girls and still being needy? The food of cuz is what makes them slim

  24. They're struggling because they are oversaturated the market and the last few times I have ate there I told them I would give them more money if they actually put toppings on the sandwich looked at me like I was crazy 4 black olives 5 pieces of green bell pepper sliced within an inch of its life sprinkled lettuce cheap motherfukers charge me $12.95 stop f**** around Five Dollar Footlong f*** you

  25. Burger King is horrible.

  26. You can't beat moe's, Love that place.

  27. I papa johns I hope they go out of business

  28. Most of us are not so obsessed with fake global warming, that we won't go through a drive through. And what's wrong with the BK menu? Much better than MacDonalds, and much more economical than Wendy's. Service is much better too.

  29. burger king is way better then Mc Donakds

  30. 3:06 Called it !!!!! guy on a Segway ! haha!

  31. awww poor football players , some one made them stand during the national anthem, they are so hard done by with their millions of dollars pay checks.

  32. papa john volunteered to state an opinion even though at some point the left would have dragged him in anyway. just like their trying to do to dunkin doughnuts. they also kept badgering taylor swift until she gave in.

  33. I hate Subway. Stopped going 5 or 6 years ago.

  34. stopped eating fast food back in the 90s. Full of fat, salt, carbohydrates have destroyed American's health!

  35. WE LOVE PAPA JOHN'S!
    —- do they have gluten-free pizza???

  36. Burger King in my town had their sign taken out by a storm in december and did not get it fixed until the end of may.Yeah I think they are goin out of business.

  37. That is good it is unhealthy food and who needs all that.

  38. Higher prices, crappier quality, crappier service.

  39. It’s just rude employees that make you not want to go to these fast food joints. Customer service is shit now. People have no manners now. But there is rude customers that contribute to cause

  40. liars.theyre not giving the workers 8 hr /6 days of work.and even stealing labor.making them employees work off the clock.and hiring them illegal and violent people (most of them) south of the border.

  41. Feesees Burgers. They didn't last long.

  42. The prices are too high. No one wants overpriced garbage.

  43. No one goes to Arby's anymore.

  44. Burger King is so white fresh. All dirty and nasty. I swear they are all next to bus lines with people who do meth.

  45. Papa John used a racial slur… ok, so did every rapper ever. Except Will Smith

  46. Good move, send the franchisees, who had been promised great income, out of business…always the little people have to suffer…

  47. BK would be good if they kept their decent burgers. One of the best burgers I've ever had is the Steak House King!!

  48. The rich don't eat at fast food joints. The middle class cannot afford fast food so that only leaves the poor and fast food restaurants don't accept food stamps.

  49. I like Burger King, their menu doesn't need any changes, and they are way better and cheaper than McDoosh bag.

  50. I don't want to pay 10 dollars for a happy meal that the 15 dollars an hour morons are going to screw up anyway.

  51. What happened to Burger kings flames broilers? Their meat doesn't have that flavor anymore

  52. The prices are too high! McDonald's started driving up their prices and that hurt everyone even themselves! If McDonald's lower their prices by 20 percent then everyone will benefit!

  53. Well here in Texas we have Whataburger. We just learned that they sold out to a Chicago bank. A CHICAGO BANK? WTF. There's a petition for us Texans to buy Whataburger back. JJ WATT of the Houston Texans kinda started it. Thing is we're not playing about this. We a know that if we don't it's goodbye to our favorite burgers. DAMN.

  54. A friend of mine who used to work at Sonic in Colorado said he hated it lol.

  55. Thats great and all but when does Tony Ferguson get his title shot?

  56. I never knew how Burger King stayed in business. It's one of those places that you see around but never go to. Once in a blue moon a friend says, "Wanna go to Burger King? I'm starving and a Burger King is literally right here." And you say, "Sure, fine, whatever" because you just want to eat. I don't know anyone who goes out of their way to find a Burger King.

  57. burger king will never struggle, either will subway

  58. Sonic Drive Ins are hurting because Climate Change and no one wants to go to a drive in because bad weather? This isn't The Day After Tomorrow, I don't know anyone whose reason to not go to Sonic is fucking Climate Change

  59. LOL Arby's serves decent food but the wait during rush hour is insanely long and this is coming from someone who worked at Arby's. I would not support this company because i've seen first hand how they overwork the hell out of you and understaff to cut down on costs. Terrible company.

  60. The Papa Johns near me sucks. Soggy and uncooked center of pizza. Quick going to them and go to a local
    Ma & Pa Pizza store which has the best pizza around me.

  61. The world is downing in debt. There is no real capital left in the system. This is not just a fast food problem. This is a problem in every sector of the economy. We are all bankrupt.

  62. Taco Bell sucks!

  63. Subway is terrible. Why spend $8 for a sandwich worth a buck?

  64. I went to burger king on stockton blvd in sacramento, Calif. I forgot a item and tried to add on at the window. I was told No add on at the window. I would have to go through the drive thur again. I don't go to burger king anymore…..

  65. Let’s see, expensive prices, cheap ingredients, teenagers who are more into their texting on their cellphones than taking care of you, in filthy restaurants (same teenagers who don’t want to clean), and unhealthy food, naturally equal disinterest.

  66. 1: im actually kida starting to hate Burger king im sorry but its ture! The reason its cause My favorite burger hasnt been Servide Since 2 or 3 months now!!!

  67. So true got to have something that is price down not up learn why that is

    https://ls-info.com/d/CbRSRR

  68. Some of these place suffer from poor customer service. I guess some if these companies can't see that.

  69. Thank God they are struggling people will be healthier

  70. Burger King where I live gives bad customer service. Dirt dining rooms.

  71. Well at least McDonald's isn't struggling

  72. I used to love Subway until they started skimping on they're meat.

  73. Mashed is so SJW its pathetic. If this channel says its bad I will definitely go and eat there. The people running this channel probably never get out of their mommy's basement

  74. Papa John's pizza is overpriced and taste like crap! Little Ceasar's and Domino's for me!

  75. Subway sucks What you see isn’t what you get And the Whopper w cheese used to be a great burger, today Ur lucky if it’s barely arm and the counter people don’t speak English

  76. I love the way this video ends 🤔

  77. …JUST GIVE ME A SACK OF KRYSTAL BURGERS AND FRIES AND I'M ALL SET!!

  78. I wish I could talk to the CEO of subway. I'm a fan of subway, but subway is boring. When you walk into a subway, it's the same food. I would like to see more exciting meals, rather then pita pocket chicken meals…. there's a way to turn subway around, but they're doing this wrong. [email protected]

  79. Papa Johns does fine here in IL…..no sign of slowing down.

  80. I know there dollar tacos sux

  81. Why? Because it's expensive food that is not healthy and tastes bad. They can all close as far as I am concerned.

  82. Burger 🍔Jet 🛫…Seattle Washington…mid 60's…

  83. Papa John's is one of the best. Can't believe the way this silly SJW piles on here. I think I've heard enough of this manipulative twit.

  84. I think all fast food restaurants should stay out of politics! I don’t go to any restaurant that supports Trump.

  85. Subway, like most failing franchise companies suffered due to corporate control and greed from the parent holding companies. Whenever a franchisee speaks our or against the stupid decisions these companies make, then they will simply cut you off and rehire another franchisee. They operate like the mafia, but use their contracts as weapons. Best go independent than buy into a ponzi scheme.

  86. Although BK WAS my favorite fast food. Their extremely POOR customer service and dirty restaurants make me not go anymore.

  87. its sad that papa johns is struggling to stay in business because i think they make the best tasting pizza out of any fast food pizza place
    but i do have to admit their pizza was better in like 2008-2013 they started to care less about the prep and ingredients in the later years

  88. The economy is weak. Plain and simple .

  89. I hope Burger King does not close

  90. I dont know where some of you guys are eating but my local Burger King is amazing… I dont eat there every day but I do love it…

  91. I really like Burger King but they closed a lot around my area. There are only 3 burger king restaurants in my city. And most of them are located near busy places. Right now if i want to go to Burger King I have to drive far to the place or move out to a busier area. That's why I go to Mcdonald's cuz there are pretty much everywhere. I do however prefer Burger King over McDonald's but it's all about convenience and not just about the food.

  92. Subway is dying cause it’s expensive!! Every time I walk past a subway in Britain they is like one or two people ordering or sitting inside

  93. Burger King is also dead as the food is bland and the burgers just look plain

  94. Papa Johns is hideous pizza

  95. The burger king near me ,has a problem ,food is old ,hamburger not done , French fries are cold ,buns not fresh ,

  96. The Burger King app still keeps me going to BK decent deals

  97. Feeling sorry for subway

  98. Been out of USA for several years… Did Papa John's actually start placing the topping where they are showing in the video… ON TOP OF THE CHEESE!? I'm in Thailand and all Thai people think toppings goes under the cheese which makes me think of PAPJO.. Soggy toppings are disgusting..

  99. Who is here after Qdoba went bankrupt 😥😥😣😣😓😟

Comment here