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Subway could be the latest high-profile restaurant to make a big shift in an industry-wide agenda.
Quick Service Restaurants (QSR) is considering a sale and is valued at more than $10 billion, The Wall Street Journal (WSJ) reported Wednesday, citing anonymous sources. rice field.
“As a privately held company, we do not comment on our ownership structure or business plans,” a Subway spokesperson said in an emailed statement to PYMNTS. We remain focused on advancing the brand on our transformational journey to help lift it up.”
The sandwich chain has struggled over the past decade. The company’s U.S. division says he will generate $9.4 billion in sales in 2021, a 13% increase over 2020, but global sales totaled $18 billion at its peak in 2012. I never did.
Subway may think it’s too early to find a buyer now, but difficult economic conditions are making investors hesitant to invest in the restaurant industry. Several news outlets have noted a slowdown in mergers and acquisitions (M&A) activity during 2022.
Certainly, on the consumer side, they are more cautious about restaurant spending these days. According to the PYMNTS survey, “Consumer Inflation Sentiment: Inflation Slowly Retreating, Consumer Outlook Remains Dark”, which was drawn from a survey of more than 2,100 consumers, 78% I’ve found that more and more people are eating at home to save money in
Reports on the brand’s potential sales come as restaurants rethink their identity amid both industry-wide economic challenges and the ongoing paradigm shift caused by the pandemic. Noma, a three-Michelin-starred restaurant that has been repeatedly rated the best restaurant in the world, announced Tuesday (January 10) that it will be closing its doors to become a Flavor Institute.
“In 2025, our restaurants will transform into gigantic laboratories, pioneering test kitchens dedicated to food innovation and new flavor development, and sharing the fruits of our efforts more widely than ever before. It’s a thing,” said Noma’s chef and co-owner. “We have spent the last two years planning and are well positioned to deliver on our goals for years to come.”
Meanwhile, some players in this space are taking the opposite approach and investing more in the industry. Restaurant Business announced Tuesday that casual dining giant Darden Restaurants, which owns Olive Garden, LongHorn Steakhouse, and more, is seeking additional brands for full-service restaurants (FSRs) with high growth potential that appeal to many different people. said that he was trying to introduce consumer type.
According to the report, CEO Rick Cardenas told investors: “In order to sell at a price we are willing to pay, the seller has to be happy.”
Similarly, the Nation’s Restaurant News noted on Monday (Jan. 9) that fast-casual brand BurgerFi also owns Anthony’s Coal Fired Pizza, in addition to the titular chain. Specifies the type of brand.
Overall, it seems that the current economic climate is causing many major restaurants to ask tough questions about the future — even if brands are divided on how to answer those questions.
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