[BobNJ1960]

Originally Posted by Henry10

Got it. As a CT company, I’d love to see Subway turn itself around. The premise of Subway is not burgers or hot dogs, or spanish food. It’s premise is a NY/CT deli. Very different ball game.

.

One other factor: 30-40 years ago, in its infancy, supermarket delis and Wawa's/Krauser's were not selling many, if any subs. Now they are. The barrier to enter Subway's market is tiny. Small franchising fees, not a hard product to make. That makes its margin of error tiny. I hope they turn it around, but competing on price vs quality with ever higher labor costs does not work, as sandwich making cannot automate much labor away.

[JayCT]

Originally Posted by kidyankee764

But again, where are you getting this information about their Latin America operations being bundled with their executives in Miami? I keep looking, but can’t find anything suggesting such. Seems to be solely speculation.

This article says the space is for both their corporate offices and their Latin American operations. Still it seems like a lot of space. We will see. Jay

https://therealdeal.com/miami/2021/0...100-employees/

[robr2]

Originally Posted by kidyankee764

But again, where are you getting this information about their Latin America operations being bundled with their executives in Miami? I keep looking, but can’t find anything suggesting such. Seems to be solely speculation.

Here it is.

Originally Posted by therealdeal.com

"Its Waterford Business District office will house marketing and culinary staff members and its Latin American regional office, according to a statement."

Having two offices located a few miles apart would make no sense. Even in Milford, Subway has consolidated from 5 buildings to 1 o it's campus.

[kidyankee764]

Originally Posted by JayCT

This article says the space is for both their corporate offices and their Latin American operations. Still it seems like a lot of space. We will see. Jay

https://therealdeal.com/miami/2021/0...100-employees/

Thanks. Yeah, it’s seems huge to just that. How big could Subway’s “Latin American” operations really be? Hardly enough to fill a fraction of that, IMO. That makes me question what their CEO has been saying.

[Stepfordct]

Originally Posted by kidyankee764

Thanks. Yeah, it’s seems huge to just that. How big could Subway’s “Latin American” operations really be? Hardly enough to fill a fraction of that, IMO. That makes me question what their CEO has been saying.

The Latin American operations team is just a handful of people. It's of no real consequence.
Also they spend most of the time in ......Latin America...
The test kitchen might be 700sq ft. tops..... again not a big deal.
Store counts are down, so less need for staff.

Also the training division where new franchisees travelled to Milford is effectively gone due to CV.
This alone occupied a whole building across the street from 325 Subway Dr.
They are training in their home territory

Add in some WFH into the mix and you see that leasing 65k of expensive office space in Miami when this is a private company that owns the real estate in Milford makes zero sense.

They don't have shareholders to impress etc...

[BobNJ1960]

Originally Posted by Stepfordct

The Latin American operations team is just a handful of people. It's of no real consequence.
Also they spend most of the time in ......Latin America...
The test kitchen might be 700sq ft. tops..... again not a big deal.
Store counts are down, so less need for staff.

Also the training division where new franchisees travelled to Milford is effectively gone due to CV.
This alone occupied a whole building across the street from 325 Subway Dr.
They are training in their home territory

Add in some WFH into the mix and you see that leasing 65k of expensive office space in Miami when this is a private company that owns the real estate in Milford makes zero sense.

They don't have shareholders to impress etc...

Great summary. An ex employer had a test kitchen btw, and like you said, minimal square footage. I know many Milford staff still wfh, no end in sight to that.unless they end up gone..in which case they are called in.

I simply hope we get a few more years from them, of some Ct office staff jobs. The 65k space in ultra expensive Miami is obviously there for a long range use beyond just several dozen jobs transferred to Miami.

No matter what, we should feel fortunate to have this hq for as long as we did..as had someone bought them long ago such as YUM, the Milford hq would have been gone inside 18 months.

[robr2]

Originally Posted by kidyankee764

Thanks. Yeah, it’s seems huge to just that. How big could Subway’s “Latin American” operations really be? Hardly enough to fill a fraction of that, IMO. That makes me question what their CEO has been saying.

They had over 21K sq. ft. in their previous space in Doral so about 1/3 of the space they're now leasing - so yes a fraction, but it's a big fraction.

[kidyankee764]

Originally Posted by robr2

They had over 21K sq. ft. in their previous space in Doral so about 1/3 of the space they're now leasing - so yes a fraction, but it's a big fraction.

As of 2017, they only had 65 employees representing their Latin American offices in Doral. That would only require (at the average number of square feet per employee) under 9,000 square feet. Clearly there was more going on, but it wasn’t in the form of actual employees.

[robr2]

Originally Posted by kidyankee764

As of 2017, they only had 65 employees representing their Latin American offices in Doral. That would only require (at the average number of square feet per employee) under 9,000 square feet. Clearly there was more going on, but it wasn’t in the form of actual employees.

Well without insider knowledge, none of us know what they were doing.

BTW, there is also LAC IPC, Inc. (Latin America Caribbean Independent Purchasing Cooperative) is a company owned by those franchisees sourcing product. Maybe that's part of the consolidation.

In any case, I give Subway in CT 24 months. As I noted earlier, the new CEO is in his late 50's, came from Burger King (based in Miami), has a goal of righting the ship, and then being able to walk away with a dump truck full of money based on performance or a cut of the sale price to some bigger company.

[Stepfordct]

Originally Posted by robr2

Well without insider knowledge, none of us know what they were doing.

BTW, there is also LAC IPC, Inc. (Latin America Caribbean Independent Purchasing Cooperative) is a company owned by those franchisees sourcing product. Maybe that's part of the consolidation.

In any case, I give Subway in CT 24 months. As I noted earlier, the new CEO is in his late 50's, came from Burger King (based in Miami), has a goal of righting the ship, and then being able to walk away with a dump truck full of money based on performance or a cut of the sale price to some bigger company.

IPC will not share space as they are independent of the franchisor.