re: What happened to Subway?

An attempt at a serious answer.

Subway made their way initially by marketing themselves as a fresher, but not markedly more expensive alternative to the lunch-burger crowd; this helped people feel good about themselves spending $5 for a footlong and a couple more for a drink, instead of $7 for a Big Mac meal. Subway hit its stride.

Because they were so successful, other franchises like Blimpies and Quiznos tried to ramp up the competitive options. Subway couldn't decide what it wanted to be-- the economy sandwich shop, or the higher end and greater variety sandwich shop; it tried to split the difference.

This led to the end of the regular 5 dollar footlong, the offering of absurd options, temporary menu items that seemed to make the staff less trained, and eventually lower profits; that led to squeezing in the costs of ingredients-- I think the tuna example is a good example, as was a change in primary turkey suppliers about 2005.
Likewise, to save wastage, the frequency with which bread was made became spaced out, leading to staler, blander product.

If Subway wanted a real revival, it would take one of the two paths, and stop trying to split the middle. I don't want 3 new options for base Subway Club sandwiches. I want the same Club I had 20 years ago, at a price that's at least in the same ballpark. If you want to have 6 new sandwiches every season, don't be afraid to ramp up the cost another 10%, as long as its accompanied by no more nickle and diming behaviors that affect underlying quality.