SANDWICH WARS
Subway unveiled a major change to its menu as it aims to win back customers in the US fast food market.
Subway Restaurants has sported the “Eat Fresh” slogan for years, even as it peddled limp tomatoes and processed deli meats.
Now, with new breads, smashed avocado and fresh mozzarella, the sandwich chain is trying to bring back the customers who’ve defected to more modern eateries like Jimmy John’s and Chipotle Mexican Grill Inc.
The closely-held company has announced what it calls the biggest changes ever in its more than half-acentury history. Dubbed the “Eat Fresh Refresh,” Subway is rolling out two new bread recipes, several on-trend premium ingredients and a handful of new sandwiches, plus nationwide delivery service.
It’s hoping those changes will lure diners back to its stores after five straight years of declines. Sceptics of the brand say it won’t be so simple.
Subway is one of the most recognisable names in the restaurant industry, and its more than 22,000 US locations makes it the largest by store count, dwarfing even McDonald’s Corp. But its massive size obscures a simple fact: American tastes have changed.
“Subway has sat on its laurels for so long; it’s kind of difficult to pull out of this hole,” said John Gordon, principal at Pacific Management Consulting Group. “The sales have fallen so much in the store.”
Although 2020 was a boom year for many fast-food rivals, fewer than one in 10 Subway stores has a drive-through, meaning it missed out on much of that low-contact demand.
In fact, the Subway app didn’t even offer delivery — it’s rolling that out this summer as part of the refresh.
The upcoming changes are meant to reinvigorate the brand, which took a series of high-profile hits in recent years: Ireland’s Supreme Court ruled last year that its bread had too much sugar to be called bread, its tuna’s origin has been called into question and it’s hard to forget Jared Fogle, the company’s pitch-manturned-child-pornography-convict in 2015. Another successful marketing campaign, the catchy $5 footlong jingle, was retired after franchisees said soaring rent and wage costs made the offer untenable.
The makeover is meant to address some of those concerns.
“One of the things we heard from both franchisees and from consumers was that there hadn’t been a lot of food innovation in recent years, maybe potentially chasing a lot of shiny objects, and it became apparent to us, really focusing on our core menu items, and really upping the quality and improving that, was the most important thing in terms of improving the guest experience,” said chief executive John Chidsey.
“It’s a great way to rally franchisees, to show them that we hear them, we understand what we need to do, and it brings a certain amount of pride.”
Subway said the turnaround initiative would have “minimal cost impact to our franchisees,” but declined to provide specific numbers.
“Keeping store owners happy is key to Subway’s long-term success,’’ said Aaron Allen, principal at consulting firm Aaron Allen & Associates.
“They have been cost-cutting their way into failure for years now,” he said. “The company needs to win back franchisees’ hearts and minds and put money into building the top line.”
In addition to the new bread, mozzarella and guacamole spread, the turkey and ham are now thinly sliced, the steak has a new seasoning and there’s a new parmesan vinaigrette.
Subway is also upgrading its veggie patty, now offering a vegan option from Dr. Praeger’s. But the sandwiches won’t be getting bigger.
The popular but much-discussed tuna, which the company says is “100% wild-caught,” won’t change.
Subway doesn’t plan to bring back the Beyond Meatball sub that it ran as a limited time offering in 2019.