Tuesday, March 8, 2011

Say It Ain't So!

I was stunned at the news yesterday. After decades of being the world's biggest fast food change, McDonald's has been outdone. Subway may promote itself as a fast food option that helps shrink the waistline, but the chain is now the largest kid on the restaurant block, surpassing McDonald's with more stores, coming in at 33,749 units compared to McDonald's 32,737.

We've come to think of McDonald's as an iconic symbol of American consumerism, can Subway fill those same shoes? It's got lots of room yet to grow in developing countries, with just 199 stores in China thus far. It passed McDonald's as the largest quick serve chain, store-wise, nine years ago, thanks to Subway outlets in gas stations, Walmart stores and pretty much anywhere it can sandwich in a $5 foot-long.

It's not all bigger and better for Subway though. McDonald's makes more money, bringing in $24 billion last year compared to Subway's $15.2 billion.

This focus on who or what is bigger never ceases to amaze. Back when Best Buy was the upstart battling Circuit City, the two would go back and forth about which was bigger. One had more stores but the other was more profitable, then had more sales, and finally Best Buy overtook Circuit City in all things. Circuit City filed for Chapter 11 bankruptcy protection in November 2008 and ultimately liquidated all its stores in early 2009.

However long the battle for dominance, and the means by which its measured, looks like it's Jared vs. Ronald to the death.

Thanks to Laura Heller for her contributions to this story.

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