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The private equity firm that agreed to fork over nearly $10 billion to scoop up Subway faces stiff challenges to revive the troubled brand amid plummeting foot traffic, according to an industry expert.

The family-owned sandwich maker — which accepted a $9.6 billion offer from Roark Capital last week — has seen overall foot traffic at its US franchises plunge 21.6% offer the past four years, according to exclusive data from Placer.ai shared with The Post.

Subway’s dropoff comes as rival Jersey Mikes has seen an increase of 39.1% over the same period from May 2019 to May 2023, the data showed.

The trend doesn’t bode well for Subway’s new owner, according to Andrew Pudzer — the former CEO of CKE Restaurants, whose fast-food brands include Carl’s Jr. and Hardee’s.

You never want to see traffic down significantly, said Pudzer, who helped sell CKE to Roark in 2013 and stayed on as the company’s chief executive until 2017.

If you are going to build your business you cant continue to lose traffic at a significant rate.

Two other two sizable sub chains, Jimmy John’s and Firehouse Subs, also lost traffic during that period but at much lower rates than Subway, according to the data. Jimmy Johns was down 8.8% and Firehouse Subs sank 13.2%.

Subway’s foot traffic began to inch up in the past year, rising .08% from May 1, 2022 to May 1, 2023, but was still well off gains made by Jersey Mikes (13.7%) and Jimmy Johns (2.4%) over that span, according to Placer.ai.

Firehouse Subs was down 4.2% during that period.

Subway, one of the nation’s largest fast food chains with more than 20,000 franchises in the US, touted its positive same-store sales this year, which was up 9.3% in North America compared to the prior year.

We are pleased with the continued progress of our transformation journey, which has refreshed our ingredients, improved our menu, helped boost our franchisees profitability and resulted in 10 consecutive quarters of positive sales, a Subway spokeswoman told The Post on Monday.

Roark Capital — an Atlanta-based private equity firm and backer of restaurant conglomerate Inspire Brands — last week agreed to buy Subway for $9 billion plus $600 million more if Subway hits certain performance targets. The deal still must clear anti-trust regulators.

Pudzer expects Roark to dive into rebranding the troubled chain’s “Eat Fresh” slogan.

When Roark bought Arbys in 2011 from Nelson Peltz it was in serious trouble and a chain few wanted to frequent, Pudzer noted.

The Roark team came up with great new products and the now-ubiquitous ad campaign, We Got the Meats.

Subway needs a new slogan, Pudzer said.

The chain has suffered several public relations nightmares over the past decade — beginning with the conviction of spokesman Jared Fogle for possessing child pornography in 2015.

More recently, it was hit with allegations of selling fake tuna and chicken, and suffered backlash over having soccer star Megan Rapinoe promote the brand and then kneeling during the national anthem.

I think for many years Subway had great success because their target market felt good about going there, Pudzer told The Post.

Theyve kind of lost touch with their target market. People feel its not a place for them anymore. They need to figure out how to make their customer comfortable to be there.

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The big problem facing UK as deadline to finalise US trade deal looms

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The big problem facing UK as deadline to finalise US trade deal looms

When push comes to shove, the question of whether British industry faces crippling tariffs on exports to the US or enjoys a unique opportunity to grow may come back to three seemingly random words: “melted and poured”.

To see why, let’s begin by recapping where we are at present in the soap opera of US trade policy.

Donald Trump has just doubled the extra tariffs charged on imports of steel and aluminium into the US from 25% to 50%. In essence, this would turn a painfully high tariff into something closer to an insurmountable economic wall (remember during the Cold War, the Iron Curtain equated to an effective tariff rate of just under 50%).

Anyway, the good news for UK steel producers is that they have been spared the 50% rate and will, for the time being, only have to pay the 25% rate.

But there is a sting in the tail: that stay of execution will only last until 9 July – on the basis of President Trump’s most recent pronouncements.

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Trump to double steel tariffs to 50%

For anyone following these events from the corner of their eyes, this might all sound a little odd. After all, didn’t Sir Keir Starmer announce only a few weeks ago that British steel and aluminium makers would be able to enjoy not 25% but 0% tariffs with America, thanks to his bold new trade agreement with the US? Well, yes. But the prime minister wasn’t being entirely clear about what that meant in practice.

Because the reality is that every trade agreement works more or less as follows: politicians negotiate a “heads of terms” agreement – a vague set of principles and red lines. There then follows a period of horse-trading and negotiation to nail down the actual details and turn it into a black and white piece of law.

In this case, when the PM and president made their big announcement 28 days ago, they had only agreed on the “heads of terms”. The small print was yet to be completed.

Right now, we are still in the horse-trading phase. Negotiators from the UK and the US are meeting routinely to try and nail down the small print. And that process is taking longer than many had expected. To see why, it’s worth drilling a little bit into the details.

The trade deal committed to allowing some cars to pass into the US at a 10% rate and to protecting some pharmaceutical trade, as well as allowing some steel and aluminium into the US at a zero tariff rate.

When it comes to cars, there are some nuances about which kind of cars the deal covers. Something similar goes for pharmaceuticals. Things get even knottier when you drill into the detail on steel.

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The role of steel in the UK economy

You see, one of the things the White House is nervous about is the prospect that Britain might become a kind of assembly point for steel from other countries around the world – that you could just ship some steel to Britain, get it pressed or rolled or worked over and then sent across to the US with those 0% tariffs. So the US negotiators are insisting that only steel that is “melted and poured” in the UK (in other words, smelted in a furnace) is covered by the trade deal.

That’s fine for some producers but not for others. One of Britain’s biggest steel exporters is Tata Steel, which makes a lot of steel that gets turned into tin cans you find on American supermarket shelves (not to mention piping used by the oil trade). Up until recently, that steel was indeed “melted and poured” from the blast furnaces at Port Talbot.

But Tata shut down those blast furnaces last year, intending to replace them with cleaner electric arc furnaces. And in the intervening period, it’s importing raw steel instead from the Netherlands and India and then running it through its mills.

Read more:
UK city that once ‘clothed the world’ faces existential threat
How expectation of Trump tariffs boosted UK economy

Or consider the situation at British Steel. There in Scunthorpe they are melting and pouring the steel from iron made in their blast furnaces – but now ponder this. While the company has been semi-nationalised by the government, it is still technically a Chinese business, owned by Jingye. In other words, its steel might technically count as benefiting China – which is something the White House is even more sensitive about.

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You see how this is all suddenly becoming a bit more complicated than it might at first have looked? This helps to explain why the negotiations are taking longer than expected.

But this brings us to the big problem. The White House has indicated that Britain will only be spared that 50% tariff rate provided the trade deal is finalised by 9 July. That gives the negotiators another month and a bit. That might sound like a lot, but now consider that that would be one of the fastest announcement-to-completion rates ever achieved in any trade negotiations in modern history.

There’s no guarantee Britain will actually get this deal done in time for that deadline – though insiders tell me they think they could be able to finalise it in a piecemeal fashion: the cars one week, steel another, pharmaceuticals another. Either way, the heat is on. Just when you thought Britain was in the safe zone, it stands on the edge of jeopardy all over again.

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Hundreds of thousands in Gaza ‘catastrophically food insecure’, says aid chief

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Hundreds of thousands in Gaza 'catastrophically food insecure', says aid chief

Humanitarian aid must be allowed into Gaza “at scale” by Israel to avoid a “generation of children that won’t have a chance in life,” the director of the UN’s World Food Programme has told Sky News.

In early March – before Israel resumed its military operations in the Gaza Strip – all aid was blocked from entering the region.

Despite limited aid now being distributed to Gaza through a US and Israeli-backed organisation, the Hamas-run Gaza Health Ministry said Palestinians were killed by Israeli gunfire near one of the sites.

Cindy McCain, executive director of the World Food Programme (WFP), has urged Israel to allow international aid to “get in and get in at scale”.

“We can’t wait for this,” she told The World with Yalda Hakim. “We need safe, unfettered, clear access all the way in and we’re not getting that right now.”

Ms McCain said people in Gaza were “starving, they’re hungry, they’re doing what they can do to feed their families”.

She added: “It’s very, very important that people realise that the only way to stave off malnutrition, catastrophic food insecurity and, of course, famine would be by complete and total access for organisations like mine.”

Ms McCain said the WFP team was “talking every day” to the Israeli government to try to resume aid deliveries.

Palestinians struggle to get donated food at a community kitchen in Khan Younis on Monday. Pic: AP
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Palestinians struggle to get donated food at a community kitchen in Khan Younis on Monday. Pic: AP

“We’re not going to give up, we do believe that it’s not only necessary but it’s urgent that we get in and get in at scale,” she said.

“We’re looking at a generation of children that won’t have a chance in life because they haven’t had the proper nutrients.

“Right now, we’re looking at over 500,000 people within Gaza that are catastrophically food insecure.”

Ms McCain added: “I try and put myself in their situation: I’m a mother and grandmother, and I cannot imagine having my children ask me for food and me not being able to give it them.

“I don’t know what that does to a human spirit but I don’t want to see any more of that as a humanitarian aid worker.”

Ms McCain, the widow of the late US presidential candidate John McCain, said she believes in “principled, humanitarian distribution” of aid.

Asked if she thought Hamas was taking aid, she replied: “I have not seen anything like that. I have no way of knowing because I’ve not been there in person.”

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How Israel’s aid plan unravelled

Aid distribution centres in Gaza were closed on Wednesday after Palestinians were reportedly killed by Israeli gunfire near one of its sites.

The Gaza Humanitarian Foundation (GHF) – which is endorsed by Israel – said the centres would be shut “for renovations, organisation, and efficiency improvements”. The Israel Defence Forces (IDF) warned nearby roads would be considered “combat zones”.

It came after 27 Palestinians were killed while waiting for aid to be distributed in the Rafah area of southern Gaza on Tuesday, according to the Hamas-run health ministry.

The IDF said it fired “near a few individual suspects” who left the designated route, approached its forces and ignored warning shots, about half a kilometre from the aid distribution site of the GHF. It denied shooting at civilians at the aid centre.

Read more:
How Gaza’s aid rollout system collapsed into chaos
Israel ‘without doubt’ committed Gaza war crimes, says ex-Biden official

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That incident came two days after reports that 31 people were killed as they walked to a distribution centre run by the GHF in the Rafah area.

However the IDF said its forces “did not fire at civilians while they were near or within the humanitarian aid distribution site and that reports to this effect are false”.

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New miscarriage of justice watchdog chair calls leadership ‘unimpressive’

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New miscarriage of justice watchdog chair calls leadership 'unimpressive'

The watchdog that examines potential miscarriages of justice has “unimpressive” leadership and is “incompetent”, said its new chair as she takes up her role.

Dame Vera Baird has been appointed to head up the Criminal Case Review Commission (CCRC), which currently has serial child killer Lucy Letby’s appeal in its inbox.

The CCRC is an independent public body that reviews possible miscarriages of justice in the criminal courts of England, Wales and Northern Ireland and refers cases to the appeal courts.

The commission has had four critical reviews in the last 10 years, which Dame Vera said “all find the same thing”.

Andrew Malkinson
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Andrew Malkinson. Pic: PA

Speaking to Sky News after her appointment was announced, she said: “They don’t communicate with applicants, are reluctant to challenge the Court of Appeal, they look for reasons not to refer rather than to refer and are quite often incompetent.”

Dame Vera is now charged with turning things around. She cites the example of Andrew Malkinson who was wrongly convicted of rape and spent 17 years in jail, when for most of that time DNA evidence had emerged that could have cleared his name.

He had applied three times to the CCRC but was rejected twice on cost-benefit grounds.

It’s one of several cases leading to calls for “root and branch” reform of the CCRC from the Justice Committee, which said the watchdog “has shown a remarkable inability to learn from its own mistakes”.

An inquiry by Chris Henley KC also found that case workers missed multiple opportunities to help Malkinson.

The previous chair, Helen Pitcher, was forced to resign in January and chief executive Karen Kneller told the committee of MPs they needed a strong replacement.

Ms Kneller said in April: “We don’t have that figurehead and without that figurehead I think it is difficult for the organisation.”

But that replacement did not think much of her evidence to MPs.

“I didn’t find her impressive,” said Dame Vera, who will be meeting her new colleague next week.

“I was really quite concerned about, first of all, the kind of fairly sketchy way in which she even allowed that they got it wrong in Malkinson, and these assertions that she was sorry that people only judged them by the mistakes, and they all took them very seriously, but actually they were otherwise doing a very good job.

“My fear is that the attitude in the case of Malkinson and others, points to there being an attitude that’s not positive, that’s not mission-driven, that is not go-getter in other cases. So, are they getting it done properly?”

A month later, a committee of MPs said Ms Kneller’s position was no longer tenable.

Committee chairman Andy Slaughter said: “As a result of our concerns regarding the performance of the CCRC and the unpersuasive evidence Karen Kneller provided to the committee, we no longer feel that it is tenable for her to continue as chief executive of the CCRC.”

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Why do medical experts think Lucy Letby is innocent?

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Body found in search for missing Briton
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In February, the CCRC received an application from Lucy Letby, the former nurse convicted of murdering seven babies and attempting to murder seven others. It’s a high-profile, complex case, arriving at a significant moment of flux.

Serial child killer Lucy Letby
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Serial child killer Lucy Letby

Asked if she thought the CCRC could deal with it, Dame Vera said: “Remember I’m quite new to it. It will need complexity. It will need a team. It will need the readiness to commission reports, I would guess from what’s been said about the lack of scientific value in some of the things that were asserted.

“So it’s going to be a very complex task.”

In the Baird Inquiry into Greater Manchester Police last year, Dame Vera strongly criticised the force. She has a reputation for exposing hard truths to institutions, but now she is the institution. She will need to drive the changes.

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