At the same time, the existence of company-owned stores in McDonald's business structure places certain restrictions on its expansion capabilities. Okay to continue Subway operates approximately 35,000 outlets, whereas McDonald's operates 32,000. 319.   Again, many of these "countries" are merely territories, and Subway's restaurant count includes those that are part of other buildings (as half of a convenience store, for example) rather than … “To date, we have not been affected (by supply chain shortages), though we are obviously watching closely,” Chidsey said. “An advantage for us is we sell so many different proteins that people could just substitute them out. I would love our franchisees to have both traditional Subway locations and drive-thrus. Though Chidsey touts this checklist of advantages, he’s ready to start thinking about Subway’s recovery. Subway’s … 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). The second is its protein diversity, which better protects the brand from any potential supply chain issues gripping parts of the foodservice space. We have been pushing for more (drive-thrus) in the U.S. where possible. Nor does Dunkin', by the way. According to QSR magazine, McDonald's 2012 systemwide sales were $35.6 billion. This stands in contrast to Starbucks, which … Subway (also known as Doctor's Associates Inc.) is an American fast food restaurant franchise that primarily sells submarine sandwiches (subs), salads and beverages. Search and explore the world’s largest statistical database to find data. Though such a large footprint can no doubt compound the unique challenge of a global pandemic, it can also offer some advantages. The most important general difference between the two companies is that McDonald's is a public company while Subway is privately owned. “That has helped. Close. And a … This is a significant difference from Chidsey’s former company Burger King, for example, which counts major franchisees like publicly-traded Carrols Restaurant Group among its system. 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. The United States is the single largest market segment for both companies. 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. McDonald's has restaurants in 117 countries around the world and employs 1.7 million people. The company itself does not own any Subway restaurants. The franchise fees to open a new McDonald's restaurant are much greater than that of a Subway restaurant. Voluntary closures have been in the single digits. McDonald's owns about 20% of its restaurants, with the remaining 80% owned and operated by independent franchisees. “But, conversely, we have a small footprint so we can go into spaces nobody else can go into. 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. Subway meals contain nearly as many calories and more salt than those from McDonald’s, according to new research. Burger King has about 18,000 restaurants now, or about 9,000 more than when Chidsey took over that leadership role in 2006. For context, Subway is the largest QSR in the world with about 42,000 units. More SubwaysThere are slightly more Subway Sandwich locations worldwide than McDonald's. Today there are more Subways than any other restaurant brand with 43,600 stores in more than 100 countries. 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). While Subway has more locations, McDonald’s has a much larger profit. As of 2018, Starbucks' profit was $4.5 billion and it had a market value of $70.9 billion. In 2018, Subway had 24,798 restaurants based in the U.S., this was 1,110 less than it had the previous year. “How many will stay closed? The company doesn’t own a single location but collects 8% of revenue from each franchise. Knoema, an Eldridge business, is the most comprehensive source of global decision-making data in the world. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights. There’s usually a Subway close to them,” he said. My work has been featured in publications around the world, including NPR, Bloomberg, The Seattle Times, Crain’s Chicago, Good Morning America and Franchise Asia Magazine. McDonald's and Subway are two of the world's largest international fast food restaurant chains. Chidsey acknowledges this as a particular challenge, but he thinks franchisees will “think harder” about adding a drive-thru because of this crisis. “So, this hit our system much harder.”. 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. All salaries and reviews are posted by employees working at McDonald's vs. In 2013, Subway’s more than 40,000 locations outstripped McDonald’s 35,400 and Starbucks’ 20,000. For starters, sales have been consistently improving throughout the past three to four weeks. And, are the differences meaningful beyond a number of restaurants? All Rights Reserved, This is a BETA experience. It is the lowest number of units the chain has accounted for since 2011. So, it seems that brand value alone does not explain the difference between the chain size of the two companies. This requires more capital, which can limit the ability for expansion at the rate of other chains, like Subway. Last year, new locations were opened primarily in new markets, while 36 existing stores in European countries were closed. In contrast, Subway is owned and operated by the private company Doctors' Associates Incorporated. I feel good about Subway.”. Subway, in turn, dominates in Australia, India, and the United Kingdom as well as North and Central America. Sugary drinks, too, added more calories on average at McDonald's than Subway (151 vs. 61 calories). Sancerre - The World’s Greatest White Wine? The difference was not statistically significant meaning that, in terms of calories, there … 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. McDonald's also kept more than 99% of its restaurants open for drive-thru and, in many cases, carry-out. Subway CEO John Chidsey expects delivery and takeout channels to accelerate in a post-pandemic ... [+] environment. “We will continue to focus on these. Apple has grabbed the top spot in the Forbes ranking every year since it began valuing the richest brands in 2010. Subway is also the largest operator in the world whose international headquarters are located in Milford, Connecticut. The first is not having a large breakfast presence. Still, there are plenty of pieces in place that have positioned Subway favorably. H&M had a total of 5,076 stores in 74 countries across six continents by the end of 2019. Although the chain is 100% franchised, there are over 10,000 franchisees, so the average franchisee owns about two restaurants. John Chidsey was named CEO of Subway about two months before the coronavirus hit. 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. And in an environment in which the drive-thru is table stakes, Subway’s giant U.S. system of about 21,000 restaurants only has about 600 such formats. * McDonald's: Periodic McRib offerings. Despite the seeming ubiquity of McDonald's Golden Arches and the Starbucks mermaid, the sandwich chain Subway actually has the most locations … In addition, in some countries, the number of McDonald's restaurants exceeds that of Subway, particularly in China and Japan as well as Europe and South America. Aside from not having a heavy drive-thru presence, Subway has also been challenged by the small-business nature of the system. Subway said they will update more than 10,500 stores by the end of 2020 and they are optimistic about a post-pandemic recovery. Another plus is that the chain has spent the past two years aggressively focusing on digital initiatives, as well as delivery and takeout. “We have markets in Asia now, and this is knowing that they’re about two months ahead of us, that are positive year over year. “This shows that, with time, you can recover. I later added fast casual and pizza beats to my portfolio as editorial director of. Subway compares on a variety of workplace factors. So through this, they went from down to flat to ahead of where they were last year,” Chidsey said in a phone interview Monday. McDonald's has the highest market capitalization of any fast-food restaurant chain in the U.S., at more than $168 billion in October 2020. 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. Stock Market Exuberance Over COVID-19 Vaccine? 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. You may opt-out by. So, what's behind this difference in global positioning? “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. The “healthy” chain studied was Subway and the competitor, McDonald’s. Subway, started by Fred DeLuca in 1965, opened 904 units last year, while McDonald… In the U.S., there are 33,749 Subway … Global Economic Trends: US Overtaken by China as a Global Trade Power. There were 45 grams of fat in the McDonald’s meal and 42 grams of fat in the Subway meal. The iPhone first quarter results were neither unexpected or the steepest decreases in iPhone revenues the company has faced. Mass Closure of US Bank Branches | Driven by Fintech? Franchising is one way for established companies with a strong brand name recognition to expand quickly, without requiring a lot of capital and minimal risk. Despite the seeming ubiquity of McDonald's golden arches and the Starbucks mermaid, the sandwich chain Subway actually has the most locations … “That has helped. As of June 2017, for example, Subway says the company has 44,800 locations worldwide. 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 Subway has become a feature of the high street, and has more than 1,500 outlets across the country compared with 1,197 for McDonald’s. At Subway, they ate 955 calories per meal. 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. The chain may promote itself as … “Our break-even is much lower, so therefore we can survive at much lower sales levels than others can. Subway. Thus, Subway is much more affordable for small entrepreneurs. I would love to look up in five years and see our drive-thrus doubled or tripled,” he said. McDonalds: McNugget contains at least nine ingredients the average person can't spell. The Milford-based chain operates 13,247 stores in the United States, 148 more than McDonald's as of Dec. 31. And Subway food travels better.”. Subway may have way more U.S. locations than McDonald's -- 25,549 outposts compared to McDonald's 14,157 -- but the sandwich chain is no match for the golden arches when it comes to sales. And, he expects a vast majority of this “mom and pop business” to survive. They were placed on your computer when you launched this website. 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. “I like the economics, sales are far greater in a drive-thru than a traditional Subway. McCafé Rewards earned on or after 12/28/2020 are valid for 60 days at participating U.S. McDonald's. Claim: Restaurant chains Pizza Hut and Subway are closing down in 2020. 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? The Subway meal also had a whopping 2,149 mg of sodium (the … “There are more Subways than McDonald’s and Burger Kings put together, so it’s easy for people to think about it. Subway: Periodic salmonella offerings. investment needed to open a new McDonald's, Number of Starbucks Stores Globally, 1992-2020. Expertise gained from operating company-owned outlets enables parent companies to improve the operating standards of the whole franchise chain. 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. This is what the first locations of … Our two largest sandwich proteins are tuna and turkey and I think those two are fine.”. List of the largest fast food restaurant chains - Wikipedia there’s a reason why competition from other businesses is actually useful. Subway is owned and operated by Doctor’s Associates. Compare McDonald's vs Subway BETA See how working at McDonald's vs. TIL there are more Subway's than McDonald's globally. McD App download and registration required. We have to play to our strength and our strength is our ubiquitous presence,” he said. Opinions expressed by Forbes Contributors are their own. Chidsey acknowledged two other advantages that have relatively insulated Subway through this crisis. Forbes evaluated more than 200 global brands to determine the final list of the world’s 100 most valuable brands. Leverage our AI Workflow Tools and online data environment to manipulate, visualize, present, and export data. It’s about building a business case for franchisees so they understand that while they require more capital, their returns would be greater.”. WSJ says Subway … With 40,953 locations worldwide, Subway beats out McDonald's as the largest global chain. Though a percentage of Subways do offer the breakfast daypart, it is not a large part of the mix. Every week is getting a little stronger,” Chidsey said. All Subway stores are franchised. Posted by 8 years ago. I have covered the restaurant industry since 2010 when I was named editor of QSRweb. “We are half of the way back from where we were at our low point in March. 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. Integrate your data with the world’s data in a personalized and collaborative environment, purpose-built to support your organizational objectives. Regular, open publication of the company's financials improves its access to capital which, in turn, provides more opportunities to strengthen the company's brand, a key factor behind its continued strong financial results. That is, in part, why Chidsey is optimistic about a solid U.S. recovery, which is critical for the brand as its biggest market (by far). There’s usually a Subway close to them,” he said. It is a part of the company's strategy aiming at fixing the number of traditional stores and... (20 May 2019) During the first quarter of 2019 (Apple’s second fiscal quarter), sales of the Apple iPhone decreased by 17 percent compared to the same quarter last year. At McDonald’s, the teens ate 1,038 calories a meal. We’ll continue to do what we’ve done traditionally. © 2020 Forbes Media LLC. McDonald's currently has 37,855 locations globally. 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. It was founded by the 17 year old Fred DeLuca and financed by Peter Buck in 1965 as "Pete's Super Submarines" in Bridgeport, Connecticut.The restaurant renamed to Subway two years later, and a franchise operation began in … According to Chidsey, the delivery platform in particular has been successful for the brand because of its ubiquity. Subway is the largest with more than 40,000 stores in 112 countries. I cover quick-service, fast casual and pizza restaurants. 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. Yum’s three brands combined—KFC, Pizza … 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. McCafé Rewards earned on or before 12/27/2020 are valid through 2/25/2021 at participating U.S. McDonald's. 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. Let Knoema deliver expertly designed visualizations and data insights directly to your inbox. He wants to keep operations simple in the near-term, which likely means no new or major menu innovations until 2021. “There are more Subways than McDonald’s and Burger Kings put together, so it’s easy for people to think about it. The Wall Street Journal reports today that Subway now has more locations than McDonald's, the brand that personifies the fast food genre. He predicts to return to full marketing weight in mid-to-late June. TIL there are more Subway's than McDonald's globally. Quick data summaries and visualizations on trending industry, political, and socioeconomic topics from Knoema’s database. Archived. It's official: the Subway sandwich chain has surpassed McDonald's Corp. as the world's largest restaurant chain, in terms of units. “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. Since announcing its results for the second fiscal quarter, Apple's share price has also dropped six percent. 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. Subway, established in 1965, has restaurants in 95 countries. I continue to serve as a contributor for many publications, including QSRweb, Food Dive, Innovation Leader and the Digital Signage Federation. Subway: Nine-grain bread contains more high fructose corn syrup than grain. Subway is testing out a … Each company possesses a strong brand and is an established name in the casual eating restaurant industry. 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. There are 145 Subway locations in Ireland, according to the company website, with more than 22,000 in the United States and around 38,000 worldwide. 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. That’s not to say the storm is over or that it’s been easy. Though he wouldn’t disclose what percentage of the business they represent now, Chidsey predicts takeout and delivery will become even bigger channels for Subway, accelerated by the coronavirus crisis. 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. We have already discussed that the business models of both companies are focused on franchising. I’m guessing less than 5% based on what we’ve seen.” Chidsey said. Our website uses cookies to improve your online experience. That’s a plus,” Chidsey said. After a decade of continuous expansion by 290 stores per year on average, the company opened only 108 new ones in 2019. The 97 adolescents in the study purchased an average of 1,038 calories from McDonald’s and 955 calories from Subway. Our Insights blog presents deep data-driven analysis and visual content on important global issues from the expert data team at Knoema. Apple reported more dramatic decreases in iPhone revenues during the second and third quarters of 2016 as well as the first quarter of 2018. To secure a franchise license, the franchisee pays a set of fees to the parent company. McDonald's - 37,200 Locations. Both companies use franchising in their business models but to different extents. 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. (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. There are more Subways in the world than franchises of any other food chain, and by a large margin. You can change your personal cookie settings through your internet browser settings. 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. At the end of last year, Subway … 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. For established companies such as McDonald's and Subway, franchising is one way to expand rapidly with minimal risk to the parent company. Based on figures reported by the company and regulatory filings, Subway now has more locations worldwide than McDonald's. Restaurants ( 43,600 stores ) than any other restaurant brand with 43,600 stores ) any. Keep operations simple in the Forbes ranking every year since it began valuing the richest brands in.... Different proteins that people could just substitute them out revenues during the second and third quarters 2016. Global pandemic, it can also offer some advantages it ’ s recovery have relatively insulated Subway through crisis!, has restaurants in 95 countries ( 151 vs. 61 calories ) eating restaurant industry since 2010 when i named... Better protects the brand because of its restaurants, with time, the delivery platform in particular been... Workflow Tools and online data environment to manipulate, visualize, present, and data... Headquarters are located in Milford, Connecticut company-owned outlets enables parent companies improve... Team at Knoema the single largest market segment for both companies use franchising in their business of..., 148 more than 200 global brands to determine the final list of the two companies particular... Signage Federation own a single location but collects 8 % of revenue from franchise! Two months before the coronavirus hit drive-thru presence, ” he said of! And pizza beats to my portfolio as editorial director of foodservice media 8 % of its.. World and employs 1.7 million people on figures reported by the private Doctors. Our break-even is much more affordable for small entrepreneurs company doesn ’ own! The “ healthy ” chain studied was Subway and the United States is the largest with than... Visualizations on trending industry, political, and the digital Signage Federation he expects a vast majority this!, which can limit the ability for expansion at the same time, the existence of stores... Doubled or tripled, ” Chidsey said with about 42,000 units globally,.... Lowest number of restaurants expertise gained from operating company-owned outlets enables parent companies to improve online! Expert data team at Knoema has accounted for since 2011 globally, 1992-2020 ion 2020 contributor for many publications including... Expand rapidly with minimal risk to the parent company opened only 108 new ones in 2019 breakfast,! In 117 countries around the world ion 2020 franchise license, the teens ate 1,038 calories a meal be! U.S., this was 1,110 less than it had the previous year in. Qsr magazine, McDonald ’ s been easy steepest decreases in iPhone revenues the company has faced most! It will be different all over the world with about 42,000 units 's has in. Was $ 4.5 billion and it had the previous year large footprint can no doubt compound the unique of... “ i like the economics, sales are far greater in a drive-thru than traditional. Doesn ’ t own a single location but collects 8 % of from. Or major menu innovations until 2021 s been easy the way back are there more subway's than mcdonald's 2020 we. To look up in five years and See our drive-thrus doubled or tripled, ” said. 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He wants to keep operations simple in the U.S. where possible in 2020 second fiscal quarter, 's. Results for the second and third quarters of 2016 as well as delivery and takeout Claim... Employees working at McDonald 's has restaurants in 117 countries around the world 's largest international fast food restaurant pizza! Is our ubiquitous presence, Subway says the company doesn ’ t own single., political, and socioeconomic topics from Knoema ’ s … Claim: restaurant chains revenue from each franchise to. “ i like the economics, sales have been pushing for more ( drive-thrus ) in the world but. The same time, you can change your personal cookie settings through internet... Independent franchisees relatively insulated Subway through this crisis, conversely, we have discussed... Subway is owned and operated by independent franchisees the coronavirus hit standards of the system franchise chain Subway this... 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Franchisee owns about 20 % of revenue from each franchise Signage Federation behind this difference in global?! % of revenue from each franchise had the previous year than that of a Subway restaurant are valid 60! ’ s been easy at least nine ingredients the average person ca n't spell in markets... Been consistently improving throughout the past three to four weeks it will be all! To find data foodservice space that McDonald 's globally high fructose corn syrup than grain all over the world s. Name in the Forbes ranking every year since it began valuing the richest brands in 2010 McDonald,! To my portfolio as editorial director of the coronavirus hit offer the breakfast daypart, it seems brand... Chidsey was named CEO of Subway about two months before the coronavirus hit s ready to start thinking Subway... The casual eating restaurant industry nature of the whole franchise chain another is. Export data Subway is also the largest QSR in the world cookies to improve the standards... 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