Subway, the world’s largest fast-food chain, is known for its commitment to innovation and continuous improvement. Over the past few years, the sandwich giant has been making several changes to its menu, operations, and business model to enhance the customer experience, boost sales, and regain market share. This article will delve into what changes Subway is making, why they are making these changes, and what the future holds for the company.
Subway is making several changes including a menu overhaul with upgraded ingredients and new sandwich lines, expansion and remodeling of locations, a focus on digital sales growth, a shift in franchising strategy towards multi-unit owners, and expansion into non-traditional locations and platforms. Future plans involve further expansion, the introduction of electric vehicle charging stations at select locations, and international growth.
A Fresh Take on the Menu
One of the most significant changes Subway is making is the overhaul of its menu. The company kickstarted this transformation in 2021 with the “Eat Fresh Refresh” campaign, which involved upgrading its ingredients and changing its bread baking method. This was followed by the introduction of the “Subway Series” in 2022, a line of 12 pre-set sandwiches designed to make ordering simpler for customers.
In 2023, Subway took another major step by introducing “Subway 3.0”, which includes the addition of in-house deli slicers and a new line of “Deli Heroes” subs. This change marked a significant shift from the traditional pre-sliced meats to freshly sliced meats prepared in-house, a move aimed at enhancing the freshness and quality of Subway’s offerings.
Expansion and Remodeling
Subway is also focusing on expanding and upgrading its locations. The company opened nearly 750 new locations in 2022 and aims to increase North American store openings by 35% in 2023. Moreover, Subway plans to remodel 3,600 North American locations in 2023, with a goal to bring the total number of units reflecting the “current Subway image” to 10,000 by summer 2023.
Digital Sales Growth
The sandwich giant reported an 11.4% increase in digital sales in Q1 2023, indicating a robust focus on improving its online presence and offerings. This digital growth is part of Subway’s broader efforts to enhance the overall customer experience and adapt to the changing preferences of consumers in the digital age.
Franchising Strategy
Subway is shifting its focus from single-unit, mom-and-pop operators to more experienced, multi-unit owners. This strategy is evident in the company’s recent announcement of five new multi-unit owner agreements across Texas, Florida, Arizona, and the mid-Atlantic, resulting in the consolidation and transfer of 230 restaurants.
Non-traditional Locations and Platforms
Subway is also expanding its presence in non-traditional locations such as airports, truck stop plazas, college campuses, convenience and gas stores, and hospitals. The company is exploring innovative platforms like unattended smart fridges, further highlighting its commitment to adapt and innovate.
The Future of Subway
Subway’s future plans include continued expansion and remodeling of outlets, the introduction of electric vehicle charging stations at select locations, and international expansion. The company plans to open about 23,000 new restaurants internationally in the next few years, taking its store count to 60,000.
In conclusion, Subway’s changes reflect its commitment to innovation, customer satisfaction, and growth. By continuously updating its menu, expanding and remodeling locations, and improving its digital presence, Subway is poised to regain market share, increase sales, and enhance the customer experience.
Frequently Asked Questions
What does the “Eat Fresh Refresh” campaign entail?
The “Eat Fresh Refresh” campaign was Subway’s initiative in 2021 to revamp its menu. It involved upgrading its ingredients and changing its bread baking method to enhance the quality and freshness of its offerings.
What is the “Subway Series”?
The “Subway Series” is a line of 12 pre-set sandwiches that Subway introduced in 2022. It was designed to simplify the ordering process for customers, offering them a variety of pre-decided combinations to choose from.
What does the “current Subway image” refer to?
The “current Subway image” refers to Subway’s latest store design and layout. It includes updated interiors, new furniture, and a refreshed logo to provide a modern and appealing look and feel.
What is Subway’s strategy for digital sales growth?
Subway’s strategy for digital sales growth involves improving its online presence and offerings. This includes enhancing its website and mobile app, offering online ordering and delivery options, and leveraging digital marketing to reach more customers.
What are some examples of non-traditional locations where Subway is expanding its presence?
Subway is expanding its presence in non-traditional locations such as airports, truck stop plazas, college campuses, convenience and gas stores, and hospitals. This strategy allows Subway to reach more customers in a variety of settings.
