Subway closes 130 stores in Australia

A SUBWAY store just north of Toowoomba is one of 130 outlets that have closed across the country.

The Subway in Highfields has closed, along with others nationally.

Analysts say Subway has failed to deliver the comprehensive dining experience that modern families want.

While other fast-food chains promote shared dining to attract groups, Subway has relied on low prices to get people through the door, according to a spokesman for consumer research firm Technomic.

Technomic - which has reported a drop in outlets from 1444 in 2015 to 1311 today - says over half of patrons are solo diners.

This translates into lower customer satisfaction and lower expenditure.

Technomic research shows Subway customers are considerably less likely than those of similar fast-food chains to consider the experience “excellent” or “unique”.

A spokesman for Subway declined to elaborate on the closures, but said: “Restaurant changes and relocations occur for a variety of reasons, including rental increases, site suitability and convenience, or lease completion.”

There are still a number of Subways operating in Toowoomba and since the closures Subway has been trying to woo customers with a range of incentives.

On August 1, it launched a new loyalty program, giving away six-inch subs to the first 100,000 people to sign up online.

It has also expanded its salad and bread range, as well as cookie offerings.

Subway’s first Australian franchise was opened in Perth in 1988.

Despite its recent woes, Subway still has more outlets in Australia than McDonald’s, however its takeaway market share is only two per cent, compared with 19.5 per cent for Macca’s, according to IBIS World research.