[ad_1]
Subway is hoping that the upgrade to its ingredients and mobile app will help bring customers back to the sandwich chain.
Starting July 13, the company’s American restaurants will offer nearly a dozen new or improved ingredients, as well as 10 revisited or original sandwiches.
“How do we get people to look at the brand again and come back to us? So we’re making some of the biggest and boldest changes we’ve made to the brand in decades,” said Trevor Haynes, director of Subway’s. North American division.
The company struggled to find its place for years, even before the death of founder Fred DeLuca in 2015. The success of its 5ft 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 and Potbelly have attracted consumers, while its large footprint has resulted in sales cannibalization among its remaining customers. And as sales dwindled, ugly 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.
Executives said its restaurants have largely recovered from the coronavirus pandemic, giving the chain momentum for its turnaround. However, sales on college campuses and in urban areas are still declining.
A key part of a business turnaround is to tackle its main menu.
“People were really asking for food innovation. There hadn’t really been a lot of food innovation, and where there had been, it was sort of chasing the shiny object, like the chicken sandwich. de Popeyes will save the brand, ”said CEO John Chidsey.
Chidsey took the reins in late 2019, becoming Subway’s first permanent executive who was not linked to a founder. Before 3G Capital bought Burger King, he was the general manager of the burger chain. Now at Subway, he says the main focus in the United States is sales growth.
Months before Chidsey joined Subway, the chain’s culinary team, along with outside consultants like award-winning chef James Beard, Nancy Silverton, began work on creating two new types of sandwich bread: white. and multigrain. Then the chain worked to improve its protein offerings, bringing back its roast chicken, roast beef, and slices of ham and turkey as thin as a deli. It also adds crushed avocado, fresh BelGioioso mozzarella, and a Parmesan vinaigrette to its range of ingredients.
With the new ingredients, the chain is trying to balance its reputation as a healthier option with “craveability”. Despite the upgrades, customers shouldn’t expect to pay more for their subscriptions once the revamped ingredients roll out.
One menu item that won’t change is Subway’s Tuna, which was recently the subject of a New York Times lawsuit and investigation that claims the protein served at Subway isn’t actually tuna. But the chain sticks to the fish.
“We love our tuna,” said Haynes. “It’s nothing but 100% tuna. And it’s one of the few things we haven’t changed because we’re so proud of the product.”
The day before the big launch, nearly half of Subway’s U.S. footprint will close its restaurants at 6 p.m. local time to prepare. And on July 13, he plans to distribute up to 1 million sandwiches for free from 10 a.m. to noon local time.
Subway plans to continue improving its menu even after launch. Haynes suggested that seasonal sandwiches or protein could happen in the years to come.
The chain also recently relaunched its mobile app with a new dashboard, an overview of out-of-stock items and the ability to place delivery orders in select markets. Further updates are planned for the fall.
Restaurant chains like McDonald’s and Chipotle have also upgraded their tech offerings after the pandemic led to an increase in digital orders over the past year and a half. Digital restaurant orders jumped 124% in the year ended March, according to the NPD Group market research.
To promote the significant changes it is making, Subway is planning a big ad campaign with flashy spokespersons that have yet to be revealed.
“We will be everywhere,” said Haynes.
[ad_2]
Source link