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Jan 19

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Subway’s Footlongs Don’t Measure Up?

Recently, a social media firestorm broke out after some Subway restaurants were exposed serving Footlong Subs which only measured 11 inches. The spark was set in Australia, but with Facebook’s help, it raged across the globe almost instantaneously. To add fuel to the fire, a Manhattan franchise operator stated that “the chain has cut the portions of their cold-cut meats by 25 percent recently and raised the cost of food to individual store owner.” [1]

As if the negative publicity wasn’t bad enough already, a finding that Subway is serving under-sized Footlong Subs  throughout the franchise could cause it to face even more scrutiny and potentially serious allegations such as false advertising.

Franchises commonly strive to provide homogeneous products across all their outlets. In fact, maintaining the same products and level of quality and service across all franchise operations can prove to be difficult. On this point, the company has made a statement to ABCNews.com:

“We are committed to providing a consistent product delivering the same amount of bread to the customer with every order. The length however may vary slightly when not baked to our exact specifications. We are reinforcing our policies and procedures in an effort to ensure our offerings are always consistent no matter which Subway restaurant you visit” [1]

As an accountant and long-time patron of Subway’s restaurants, the next time I walk in will be with a ruler in hand  and a ready request for 42 [2] cents back!

[1] Source: http://gma.yahoo.com/blogs/abc-blogs/subway-foot-longs-coming-short-191925939–abc-news-deals.html

[2] Assuming purchase of a five dollar sandwich with the consumer valuing each sandwich inch equally, the missing inch is approximately 42 cents

About the author

Maksim Dvorkin

Maksim Dvorkin is a consultant at Fulcrum Inquiry, an accounting, finance and economic consulting firm specializing in complex litigation, forensic investigations and appraisal issues across a broad spectrum of industries.

Permanent link to this article: http://betweenthenumbers.net/2013/01/subways-footlongs-dont-measure-up/

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