A Subway Restaurant location in New York, U.S., on Friday, July 2, 2021.
Jeenah Moon | Bloomberg | Getty Photographs
Subway’s menu overhaul is yielding early success for the sandwich chain.
The corporate introduced Tuesday that August gross sales for its U.S. eating places have been its strongest since 2013. It is now projecting it can beat its systemwide gross sales targets for the 12 months by greater than $1 billion.
In mid-July, Subway’s U.S. eating places started providing almost a dozen new or improved substances, in addition to 10 revamped or unique sandwiches. The menu modifications, which have been within the works for greater than two years, have been a key element of the corporate’s comeback bid. The chain’s culinary workforce created new variations of its sandwich bread, upgraded its protein choices and added new toppings resembling smashed avocado.
The outcomes launched Tuesday are an indication that the turnaround plan is working and an early victory lap for the corporate, which as a privately owned enterprise would not need to report month-to-month gross sales outcomes.
Subway noticed its highest common unit quantity per week in eight years through the week that the brand new menu and upgraded substances went nationwide. By August, U.S. restaurant gross sales rose greater than 4% in contrast with the identical time two years in the past. The highest 25% of Subway’s eating places noticed their gross sales climb by a 3rd, and the highest 75% of its footprint reported a median enhance of 14%.
“Our loyal regulars — along with many first-time visitors — are commenting to our workforce that they style an actual distinction in our new sandwiches and substances,” mentioned Subway franchisee David Liseno in a press release.
Subway has struggled to seek out its footing for years, even earlier than founder Fred DeLuca’s demise in 2015. The success of its $5 footlong deal through the 2008 monetary disaster fueled large enlargement, serving to the chain grow to be the most important within the U.S. by variety of models. However new rivals resembling Chipotle Mexican Grill lured shoppers away, and its giant footprint led to gross sales cannibalization amongst its remaining clients. As gross sales slid, ugly fights with franchisees performed out in courts and splashed throughout headlines.
Subway’s guardian firm, Physician’s Associates, reported 2020 income of $689.1 million, down 28% from 2019′s internet gross sales of $958.9 million, in line with franchisee disclosure paperwork. The sandwich chain has additionally been steadily shrinking its large retailer footprint since 2016. It ended 2020 with 22,201 U.S. places.
