McCafé Rewards earned on or before 12/27/2020 are valid through 2/25/2021 at participating U.S. McDonald's. According to Chidsey, the delivery platform in particular has been successful for the brand because of its ubiquity. “So, this hit our system much harder.”. * McDonald's: Periodic McRib offerings. “To date, we have not been affected (by supply chain shortages), though we are obviously watching closely,” Chidsey said. I would love to look up in five years and see our drive-thrus doubled or tripled,” he said. All Rights Reserved, This is a BETA experience. Thus, Subway is much more affordable for small entrepreneurs. In contrast, Subway is owned and operated by the private company Doctors' Associates Incorporated. In the U.S., there are 33,749 Subway … Top Food And Beverage Trends For 2021, The Top 10 Trends In Plant-Based Food In 2020—And Where We’re Going In 2021, Burger King has about 18,000 restaurants now. Despite the seeming ubiquity of McDonald's Golden Arches and the Starbucks mermaid, the sandwich chain Subway actually has the most locations … The franchise fees to open a new McDonald's restaurant are much greater than that of a Subway restaurant. As part of that recovery, he said most safety measures will remain in place for the foreseeable future to “ensure customers and employees feel safe.” This includes limited in-restaurant seating, re-certification of employees on food safety and sanitization and employee wellness checks and masks. Subway said they will update more than 10,500 stores by the end of 2020 and they are optimistic about a post-pandemic recovery. McDonald's has restaurants in 117 countries around the world and employs 1.7 million people. Another plus is that the chain has spent the past two years aggressively focusing on digital initiatives, as well as delivery and takeout. “We are literally the ultimate mom-and-pop business, which makes things more challenging because we don’t have a big portfolio to fall back on,” Chidsey said. Further, that “low point” was perhaps easier to navigate than other major QSR brands, since Subway’s restaurants tend to be much smaller (lower rent costs) and require less employees (lower labor costs). Subway. Search and explore the world’s largest statistical database to find data. The 97 adolescents in the study purchased an average of 1,038 calories from McDonald’s and 955 calories from Subway. Though the seasoned executive has plenty of experience navigating the choppy waters of the quick-service industry—having previously served as CEO of Burger King—there’s no other brand that quite matches the size or scope of Subway. Close. He predicts to return to full marketing weight in mid-to-late June. And, are the differences meaningful beyond a number of restaurants? (3 February 2020) Today Starbucks is the largest coffeehouse company in the world, with 30,626 retail locations as of the third quarter of 2019, followed distantly by coffee shop chains such as Dunkin Donuts with about 10,000 restaurants, Tim Hortons with 4,300 outlets, and Costa Coffee with nearly 1,700 stores worldwide. That’s not to say the storm is over or that it’s been easy. He wants to keep operations simple in the near-term, which likely means no new or major menu innovations until 2021. Subway: Nine-grain bread contains more high fructose corn syrup than grain. Today there are more Subways than any other restaurant brand with 43,600 stores in more than 100 countries. Subway, started by Fred DeLuca in 1965, opened 904 units last year, while McDonald… The difference was not statistically significant meaning that, in terms of calories, there … Leverage our AI Workflow Tools and online data environment to manipulate, visualize, present, and export data. The United States is the single largest market segment for both companies. At the same time, the existence of company-owned stores in McDonald's business structure places certain restrictions on its expansion capabilities. I would love our franchisees to have both traditional Subway locations and drive-thrus. While the preceding factors speak to why the number of Subway locations exceeds that of McDonald's, the data reveals that McDonald's, with stores in 113 countries, has a broader geographic representation than Subway, which has stores in 107 countries. Aside from not having a heavy drive-thru presence, Subway has also been challenged by the small-business nature of the system. So, what's behind this difference in global positioning? “We are half of the way back from where we were at our low point in March. For starters, sales have been consistently improving throughout the past three to four weeks. There are more Subways in the world than franchises of any other food chain, and by a large margin. After a decade of continuous expansion by 290 stores per year on average, the company opened only 108 new ones in 2019. With 40,953 locations worldwide, Subway beats out McDonald's as the largest global chain. Subway CEO John Chidsey expects delivery and takeout channels to accelerate in a post-pandemic ... [+] environment. The Wall Street Journal reports today that Subway now has more locations than McDonald's, the brand that personifies the fast food genre. And, he expects a vast majority of this “mom and pop business” to survive. We have to play to our strength and our strength is our ubiquitous presence,” he said. So, it seems that brand value alone does not explain the difference between the chain size of the two companies. A franchise license is an authorization granted by a company to an individual that enables the franchisee to maintain control over purchasing, employment, pricing, and marketing decisions. Nor does Dunkin', by the way. It will be different all over the world, but Asia gives me hope. “But, conversely, we have a small footprint so we can go into spaces nobody else can go into. In 2018, Subway had 24,798 restaurants based in the U.S., this was 1,110 less than it had the previous year. McDonald's also kept more than 99% of its restaurants open for drive-thru and, in many cases, carry-out. “We came out of 2019 with positive sales and a lot of momentum and I think we’ll be able to pick that back up again.”, Full coverage and live updates on the Coronavirus, I have covered the restaurant industry since 2010 when I was named editor of QSRweb. Subway: Periodic salmonella offerings. Chidsey acknowledged two other advantages that have relatively insulated Subway through this crisis. The chain may promote itself as … As of 2018, Starbucks' profit was $4.5 billion and it had a market value of $70.9 billion. We have been pushing for more (drive-thrus) in the U.S. where possible. © 2020 Forbes Media LLC. At its maximum level of closures, about 15% of Subways were closed in the U.S., and that is because those units were located in malls or on college campuses. The total investment needed to open a new McDonald's restaurant ranges from $1,215,000 to $1,945,000 plus an initial fee of $45,000, while the opening costs of a new Subway range from $116,000 to $263,000 with an initial fee of $15,000. There’s usually a Subway close to them,” he said. Last year, new locations were opened primarily in new markets, while 36 existing stores in European countries were closed. “How many will stay closed? Our tools allow individuals and organizations to discover, visualize, model, and present their data and the world’s data to facilitate better decisions and better outcomes. You can change your personal cookie settings through your internet browser settings. Curated by Knoema’s data analysts to deliver leading short-term and long-term indicators and forecasts from trusted sources for each of the covered industries. Both companies use franchising in their business models but to different extents. Apple reported more dramatic decreases in iPhone revenues during the second and third quarters of 2016 as well as the first quarter of 2018. Though a percentage of Subways do offer the breakfast daypart, it is not a large part of the mix. Archived. You may opt-out by. Subway Wants You To Believe It's More Exciting Than McDonald's (Oh, But Look How It's Doing It) ... but it's got more restaurants than McDonald's. In fact, Subway added partnerships with DoorDash, Grubhub, Postmates and Uber Eats all the way back in 2018 when many brands were still trying to figure out if the channel was worth the hassle. I can't even tell you the degree to which McDonald's is supposedly worth more than Wendy's as a brand, because Wendy's doesn't even make the top-10. More SubwaysThere are slightly more Subway Sandwich locations worldwide than McDonald's. McDonald's currently has 37,855 locations globally. Yum’s three brands combined—KFC, Pizza … Name Number of locations Revenue 1 Subway: 42,600: US$100.4 billion (2020) 2 McDonald's: 38,695: US$20.8 billion (2020) 3 Starbucks: 31,256: US$26.7 billion(2020) 4 KFC: 24,104: US$26.2 billion (2019) 5 Burger King: 18,838: US$1.3 billion (2020) 6 Stock Market Exuberance Over COVID-19 Vaccine? I later added fast casual and pizza beats to my portfolio as editorial director of foodservice media. According to QSR magazine, McDonald's 2012 systemwide sales were $35.6 billion. The McDonald's brand is much more valuable than that of Subway despite both companies ranked among the world's most valuable brands, according to Forbes, up to 2018, when Subway was dropped from the list. The most important general difference between the two companies is that McDonald's is a public company while Subway is privately owned. I have covered the restaurant industry since 2010 when I was named editor of QSRweb. World and regional statistics, national data, maps and rankings, Discover new signals and insights from leading alternative and fundamental data providers, Latest releases of new datasets and data updates from different sources around the world. We’ll continue to do what we’ve done traditionally. Subway (also known as Doctor's Associates Inc.) is an American fast food restaurant franchise that primarily sells submarine sandwiches (subs), salads and beverages. Every week is getting a little stronger,” Chidsey said. We have already discussed that the business models of both companies are focused on franchising. Integrate your data with the world’s data in a personalized and collaborative environment, purpose-built to support your organizational objectives. Forbes evaluated more than 200 global brands to determine the final list of the world’s 100 most valuable brands. For example, a conventional franchise agreement supposes that the parent company owns the land and the building or secures long-term leases for its restaurants. This coverage spanned the gamut of topics that make up the foodservice space, from marketing and customer service, to the supply chain and display technology. So through this, they went from down to flat to ahead of where they were last year,” Chidsey said in a phone interview Monday. investment needed to open a new McDonald's, Number of Starbucks Stores Globally, 1992-2020. Compare McDonald's vs Subway BETA See how working at McDonald's vs. Based on figures reported by the company and regulatory filings, Subway now has more locations worldwide than McDonald's. I feel good about Subway.”. McCafé Rewards earned on or after 12/28/2020 are valid for 60 days at participating U.S. McDonald's. Though Chidsey touts this checklist of advantages, he’s ready to start thinking about Subway’s recovery. Since announcing its results for the second fiscal quarter, Apple's share price has also dropped six percent. Starbucks was founded in 1971 in Seattle, Washington, and incorporated on November 4, 1985, to become the publicly traded Starbucks Corporation.Based on the company's... With its extensive business network, Sweden-based multinational retail-clothing company H&M has become one of the world's leading fashion companies. Quite the opposite, in fact, as the entire restaurant industry has been gutted by this swift crisis, with dining rooms closed across the world and operations shifting fully to off-premise. The McDonald's brand is much more valuable than that of Subway despite both companies ranked among the world's most valuable brands, according to Forbes, up to 2018, when Subway was dropped from the list. Subway is the largest with more than 40,000 stores in 112 countries. List of the largest fast food restaurant chains - Wikipedia there’s a reason why competition from other businesses is actually useful. Though such a large footprint can no doubt compound the unique challenge of a global pandemic, it can also offer some advantages. Subway has just under 500 restaurants in China, for example, and so when the virus first hit that market, Chidsey and his team were able to glean relevant insights of its impact on the business. I cover quick-service, fast casual and pizza restaurants. Sugary drinks, too, added more calories on average at McDonald's than Subway (151 vs. 61 calories). Our Insights blog presents deep data-driven analysis and visual content on important global issues from the expert data team at Knoema. Subway compares on a variety of workplace factors. “That has helped. There were 45 grams of fat in the McDonald’s meal and 42 grams of fat in the Subway meal. At McDonald’s, the teens ate 1,038 calories a meal. The common stock of McDonald's is listed on the New York Stock Exchange and it has been included in the Dow Jones Industrial Average (DJIA) since 1985 due to its market capitalization and its position in the industry. Apple has grabbed the top spot in the Forbes ranking every year since it began valuing the richest brands in 2010. TIL there are more Subway's than McDonald's globally. The Milford-based chain operates 13,247 stores in the United States, 148 more than McDonald's as of Dec. 31. Subway meals contain nearly as many calories and more salt than those from McDonald’s, according to new research. McDonald's is an American hamburger and fast food restaurant chain that was founded in 1940 by Richard and Maurice McDonald as a barbecue restaurant. There are more Subway restaurants (43,600 stores) than any other restaurant in the world ion 2020. Mass Closure of US Bank Branches | Driven by Fintech? And Subway food travels better.”. This requires more capital, which can limit the ability for expansion at the rate of other chains, like Subway. The study also found that although McDonald's sandwiches tended to be less caloric on average than Subway's (572 vs. 784 calories), McDonald's fries packed a much heavier punch than Subway's potato chips (201 vs. 61 calories). Our website uses cookies to improve your online experience. Quick data summaries and visualizations on trending industry, political, and socioeconomic topics from Knoema’s database. Knoema, an Eldridge business, is the most comprehensive source of global decision-making data in the world. Subway operates approximately 35,000 outlets, whereas McDonald's operates 32,000. It is the lowest number of units the chain has accounted for since 2011. The company doesn’t own a single location but collects 8% of revenue from each franchise. All salaries and reviews are posted by employees working at McDonald's vs. For context, Subway is the largest QSR in the world with about 42,000 units. In the latest brand report from Forbes, Apple has ranked the world’s most valuable brand again despite the company recording the decline in its revenue during the second quarter. Let’s Refocus Agri-Food Tech To Solve Today’s Critical Problems, Adapt Or Die: Molson Coors Turns To Partnerships, Non-Alcoholic Beverages For Growth, Brewers, Winemakers And Distillers Have A Little-Known Reason To Cheer Federal Covid Relief, New Napa Treasures From Cuvaison And Brandlin, Consumer Companies Are Accelerating Investments In Regenerative Agriculture To Combat Climate Change, Autonomous Food Delivery Predictions For 2021 And Beyond, A Grocery Revival? Although the chain is 100% franchised, there are over 10,000 franchisees, so the average franchisee owns about two restaurants. TIL there are more Subway's than McDonald's globally. “Our break-even is much lower, so therefore we can survive at much lower sales levels than others can. Each company possesses a strong brand and is an established name in the casual eating restaurant industry. Posted by 8 years ago. In 2013, Subway’s more than 40,000 locations outstripped McDonald’s 35,400 and Starbucks’ 20,000. 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