Subway says August sales were strongest in 8 years, cites new menu

Subway’s menu redesign gave the sandwich chain a first success.

The company said on Tuesday that August sales for its US restaurants were the strongest since 2013. It now forecasts that it will exceed its system-wide sales targets for the year by more than $ 1 billion. dollars.

In mid-July, Subway’s American restaurants began offering nearly a dozen new or improved ingredients, along with 10 revamped or original sandwiches. The menu changes, which had been in the works for over two years, were a key part of the company’s return offer. The chain’s culinary team created new versions of its sandwich bread, improved its protein offering and added new toppings like mashed avocado.

The results released Tuesday are a sign that the turnaround plan is working and a first round of victory for the company, which does not have to report monthly sales results as a private company.

Subway recorded its highest average unit volume per week in eight years in the week the new menu and improved ingredients were released nationwide. In August, sales at American restaurants were up more than 4% compared to the same period two years ago. Subway’s top 25% of restaurants saw sales increase by a third, and the top 75% of its footprint reported an average increase of 14%.

“Our loyal regulars – in addition to many first-time guests – tell our team that they taste a real difference in our new sandwiches and ingredients,” Subway franchisee David Liseno said in a statement.

Subway struggled to find its place for years, even before founder Fred DeLuca died in 2015. The success of its 5-foot deal during the 2008 financial crisis fueled massive expansion, helping the chain to become the largest in the United States in number of units. But new competitors like Chipotle Mexican Grill have attracted consumers and its large footprint has led to sales cannibalization among its remaining customers. And as sales dwindled, nasty fights with franchisees unfolded in court and made headlines.

Subway’s parent company, Doctor’s Associates, reported 2020 revenue of $ 689.1 million, down 28% from net sales of $ 958.9 million in 2019, according to documents. information for franchisees. The sandwich chain has also gradually reduced its massive store footprint since 2016. It ended 2020 with 22,201 locations in the United States.