New Haven Register (New Haven, CT)

Subway feels the heat after HBO program looks at franchise deals

- By Luther Turmelle luther.turmelle@hearstmedi­act.com

Subway was a target of the biting satire of HBO’s weekly program “Last Week Tonight With John Oliver” on Sunday and now officials of the Milfordbas­ed company are accusing the producers of the show of mischaract­erizing their relationsh­ip with franchisee­s.

The program, which airs Sundays at 11 p.m. on HBO, devoted 27 of its 34 minutes to Subway.

Oliver, a British comic whose resume includes having worked as a correspond­ent for Comedy Central’s “The Daily Show,” hosts multiple short takes that satirize items from the previous week’s news as well as one or two longer, in-depth segments.

Oliver began the Subway segment by saying it seems like the company “is in the news pretty often and it is rarely for anything good.” What followed were a series of video clips from television news programs covering a variety of accusation­s against Subway and claims that portray the company in a negative light.

Oliver then turned his attention to Subway’s relationsh­ip with franchisee­s.

“Some franchisee­s ... are getting restless,” he told viewers and the program’s studio audience. “Here in the U.S., 100 of them got together and wrote an open letter last year stating that ‘for many of us, this dream has turned into a nightmare.’ ”

The segment goes on to look at the start-up costs of opening a Subway, but also looks average sales at the chain’s stores, what share of that franchisee­s have to pay the company and what is in the contract they have to sign to operate one of the restaurant’s locations.

A spokesman for the chain said in a statement sent to Hearst Connecticu­t Media on Tuesday that the show “inaccurate­ly characteri­zed Subway and the support we provide our franchisee­s.”

“We worked extensivel­y to help the producers understand that we have a new leadership team and a different approach to our business than we had in the past,” the statement said in part. “Today, our leadership team is focused on providing ongoing support to our dedicated network of franchisee­s and delivering better food and a better experience in all Subway restaurant­s.

“More importantl­y, we are concerned that the misleading characteri­zations made on ‘Last Week Tonight With John Oliver’ may have a negative impact on our franchisee­s — thousands of small business owners whose livelihood is serving guests every day in their communitie­s.”

HBO officials were not immediatel­y available Tuesday to comment on how Subway was chosen to be featured on the show. Many of the criticisms of Subway — like awarding franchises so close together that one location cannibaliz­es another’s sales — have been around for years.

David Cadden, professor emeritus at Quinnipiac University’s School of Business, said that if the show’s segment has any impact on sales at Subway locations, it will be limited at best.

“HBO has an audience that is more segmented than the late night shows on the networks, so he’s sort of preaching to the choir of people that probably don’t frequent Subway,” Cadden said.

“The network late night shows get a broader, larger audience and being criticized on one of those show is more likely to have more of an impact on the bottom line.”

Oliver was the talk of Connecticu­t in late summer to early fall of 2020 when he aired a segment decrying the lack of minority representa­tion in juries.

For whatever reason, he targeted Danbury during the segment and it turned into a running back-and-forth between Oliver and then-Mayor Mark Boughton. They eventually reconciled their difference­s with the renaming of the city’s sewer plant after the talk show host.

 ?? Christian Abraham / Hearst Connecticu­t Media file photo ?? Customers wait for food at Subway at the Interstate 95 northbound rest plaza in Milford in 2020.
Christian Abraham / Hearst Connecticu­t Media file photo Customers wait for food at Subway at the Interstate 95 northbound rest plaza in Milford in 2020.
 ?? HBO / Eric Liebowitz ?? John Oliver on the set of “Last Week Tonight With John Oliver.”
HBO / Eric Liebowitz John Oliver on the set of “Last Week Tonight With John Oliver.”

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