Why the FTC is targeting the Subway sale

Why is the FTC looking into Subway? This episode of the Restaurant Business podcast “A Deeper Dive” features John Gordon, a restaurant consultant out of San Diego, who discusses the apparent investigation of the sale of Subway to Roark Capital. The investigation is apparently examining whether the acquisition of the sandwich giant would give the private equity firm Roark too much power. We discuss that issue, and how much of the restaurant market Roark really would have if the sale were to go through and whether that is all that unusual. (Hint: It’s not.) We also talk about some of the chain’s efforts to push discounting through its app, including its upcoming requirement that franchisees accept digital coupons. As we reported in September, Subway wants franchisees to accept the offers by the end of this month. But we also discuss what this review could mean for the restaurant business as a whole. We’re talking Subway and the FTC so please check it out.