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Subway to Introduce In-Store Meat Slicing

07/10/2023

Since inception, Subway has delivered sliced deli meats to participating franchise stores.  In an attempt to actually increase freshness or create that perception, the Company will install equipment in each store to allow regular slicing of turkey, roast beef, ham and salami used in sandwiches. 

 

Subway is engaged in intense competition with Jersey Mike’s Subs and Firehouse Subs both gaining market share at the expense of Subway that has closed 7,000 underperforming locations since 2016.

 

Trevor Haynes, president of Subway, North America Operations noted, “Subway locations currently fresh slice vegetables and freshly bake bread and cookies daily so slicing meat is a natural step that we need to get to.” In 2022, Subway commenced refurbishing selected stores and upgrading menus including introduction of the Subway Series now accounting for close to a quarter of sales volume.

 

It is estimated that Subway locations achieve annual sales of $500,000, half that of major competitors.  Subway claimed a 7.8 percent increase in sales value for stores in operation for at least a year during 2022. A proportion of this increase may be attributed to higher menu prices rather than to traffic.  Initiatives to improve sales and quality are related to the fact that Subway is on the block, having evaluated offers from potential suitors.  Despite efforts to improve image through an intensive promotional program in mainstream and social media, the Company has been decidedly unsuccessful in attracting large operators of QSR franchises. These are favored by major franchisors including Yum! Brands,  McDonalds and Restaurants Brands International.