Hundreds of employees at a popular fast-food chain unexpectedly lost their jobs following the closure of a number of branches.

Sandwich chain Subway abruptly closed over 20 stores in the US and Canada last week.

2

2

Managers of the closed stores have denounced the chain, saying that more than 200 employees are unemployed and have not received wages.

At one of the closed stores in Gladstone, Oregon, a sign hangs outside with vague details about the closure.

“This location is temporarily closed. Stay healthy and see you soon,” according to Fox affiliate KPTV.

Store manager Joanne Kennedy, who also manages another store in Oregon, said staff were not given much more information than what was on the sign for customers.

“No warning, no advance warning, no transparency, every one of us was completely taken by surprise,” she said.

However, there were some warning signs a few weeks before the closure.

Kennedy told the outlet that several of her food orders were not delivered.

“We were all swapping food between stores and trying to keep all the doors open, and then the food stopped coming,” she said.

The manager claimed that there was “no communication” from management about these issues and that they were told to “just carry on with their jobs, business as usual.”

Kennedy was told that a solution to the failed food orders was being sought until the sudden closure.

Her colleague Crystal Eang, who is responsible for other Subway locations, similarly complained to the news agency about failed food orders and how everything went wrong last week.

“On Monday they said, you won’t get paid, we don’t have enough money to pay you,” she remembers.

CUT OFF

The 23 closed locations from Oregon to Vancouver are operated as franchises by CapTen Enterprises and Subfecta LLC.

Franchisee Ann Bell revealed that the problems began when her bank account was hacked and her money was stolen.

However, the money is not covered by the FDIC because it was lost through fraud.

The result was that their stores were closed by Subway’s food supplier US Foods, and the company’s management offered no help as it was in the middle of an ownership change.

Restaurant closures in 2024

Bosses of large restaurant chains have announced a series of restaurant closures. The US Sun has compiled a list of the affected chains.

• Cracker Barrel: Stores in Medford, Oregon, Columbia, South Carolina and Sacramento, California, have closed.
• Mod Pizza: In April, the bosses dramatically closed 27 stores, including some in the state of California.
• Frisch’s big boy: Restaurant managers confirmed the closure of a restaurant in Covington, Kentucky in April.
• Outback Steakhouse: The chain will close 41 underperforming locations this year.
• Two dollars: Four restaurants in Ohio closed in April.
• Chilies: A restaurant in Port Arthur, Texas, was permanently closed, as was one in Irvine, California.
• Friendly matches: The bosses confirmed that a branch in Ronkonkoma, Long Island, will be closed.
• Pizza Hut: At the end of March, a restaurant in Glen Falls, New York, closed, followed by four restaurants in Ohio in June and 15 in Indiana.
• Denny’s: Two restaurants in Boise and Nampa, Idaho, have closed.
• Carl’s Jr.: The first location in Boise, Idaho, was closed.
• In-N-Out: An Oakland location was closed earlier this year due to crime in the area.
• Cheesecake Factory: The chain will close a store in Memphis, Tennessee, in July.
• Applebee’s: Has announced the closure of 25 to 35 locations this year.
• Taco John’s: Closed a restaurant in Minnesota and put the building up for sale in May.
• Rubio’s Coastal Grill: Announced the closure of 48 locations in California after filing for bankruptcy.
• BurgerKing: In June, a location in California was closed after 30 years.

“It’s a tough time for our restaurants, margins are thin, inflation is high and we can’t recover,” Bell told KPTV about her decision to close.

“I understand people’s frustration, I fully understand that. The timing couldn’t have been worse.”

Despite working with the Bureau of Labor and Industries to ensure all affected employees are paid, it could take up to 100 days, Kennedy and Eang said, as they worry about paying their own bills.

“I have a car payment coming up, I have insurance, I have cell phone bills,” Kennedy said.

“I live paycheck to paycheck and have to support my children. I don’t know where I’m going to get the money for food now.”

“Now I am in big trouble. Where will I get the money to pay my bills and food?” Eang added.

“I cried for over a week and a half.”

Hopes for the future

In a statement to KPTV, Subway tried to reassure employees and customers:

“Our priority is to ensure that guests can continue to enjoy freshly prepared, high-quality and delicious food by identifying experienced operators in our system who can quickly take over responsibility and reopen the restaurants.”

Bell, meanwhile, claimed that the closure of the stores was not permanent. Once new owners were found, the stores would reopen and former employees could return.

But elsewhere in the industry things are not going well.

Another Subway franchisee filed for bankruptcy in June, affecting 48 branches.

Meanwhile, according to the Daily Mail, Subway management called a “crisis meeting” with all franchisees earlier this week due to weak sales figures.

A corresponding news article states that it is not only the catering industry that is struggling with problems.

Fans of a popular grocery chain fear the chain is in a “death spiral” as 32 stores face permanent closures, while the CEO admits the chain is in trouble.