A Subway sandwich is far more than the sum of its fillings, franchisee Keith Miller says.
Those ingredients cost roughly $2. Then he pays labor. Electricity. Gas. Royalties. Credit card transaction fees. Rent.
All told, Miller, who owns three Subway franchises in northern California, says it costs him well over $4 to produce one of Subway's foot-long subs. And that is why, when the chain announced plans to drop the price of the sandwich to $4.99 starting in January, he and hundreds of Subway's other 10,000 U.S. franchisees sent a strongly worded letter warning that the promotion could force some stores to close.
"The numbers don't work for us," said Miller, who...