Subway looks to fix its low-tech image as sales fall

Subway Restaurants, facing one of the worst slumps in its history, is hoping to win back customers by losing its low-tech image.

The sandwich chain is introducing touch-screen ordering kiosks and a new mobile app in a bid to catch up with places like Panera Bread Co., which have credited technology with helping fuel sales. Subway is even testing dedicated pickup areas for mobile orders, shaking up the five-decadeold format of its restaurants.

It’s a major overhaul for a chain that hasn’t been known for its technological prowess. Until about a decade ago — when Subway was still booming — its customer-loyalty program relied on sticking stamps on paper cards. But these days, Subway is reeling from a three-year U.S. sales decline and fast-food competition is tougher than ever. That’s put pressure on the chain to be quicker and more convenient.

“It’s really a vision and strategy in how we want to evolve,” Carman Wenkoff, Subway’s chief information and digital officer, said.

The company, which has more locations than any other restaurant chain, also is adding digital menu boards and bringing Wi-Fi to some locations. The move is a response to competition on several fronts. Traditional fast-food chains are upgrading their equipment and embracing more natural ingredients, robbing Subway of its edge in the healthy-eating arena. Mom-and-pop eateries and prepared meals from grocery stores also are taking market share.

Subway’s U.S. sales fell 1.7 percent last year to $11.3 billion, marking the third straight annual decline, according to research firm Technomic.

Subway also is testing out thirdparty delivery with providers such as GrubHub Inc., Postmates Inc. and DoorDash Inc. But it hasn’t teamed up with any of the services on a larger scale.