In an industry largely known for greasy fries and far too much sodium, Subway has long stood for the healthier side of things. What started as a solitary sandwich shop in Connecticut is now one of the world's largest restaurant brands, boasting over 37,000 locations across 100 countries.
Last year proved to be an especially eventful one for Subway.Same-store salesincreased by 5.9% in North America and 6.4% globally. Meanwhile, the chain pledged to bring deli slicers to all of its restaurants to increase on-site food freshness. Subway spared no expense with this initiative, as each slicer costs$6,000!
"We were one of the few, if only, sub shop that didn't slice in-restaurant. Not only does it give the guest a better perception of seeing the nice, fluffy meat, but we save a lot of money since we were paying a lot of money to have it sliced upstream," CEO John Chidsey told CNN last year.
Of course, the biggest Subway story of last year had to be the announcement of tentative plans for a sale to equity firm Roark Capital Group. Privately held since its inception in 1965, Subway was officially acquired by Roark in April of this year for roughly $10 billion.
"The entire Subway system is excited that our sale to Roark is complete," John Chidsey said in a press release. "As we look to our future, our growth journey is far from over. With a continued strategic focus on delivering better food and a better guest experience, our next chapter will be the most exciting yet."
While Subway anticipates no changes to its overarching leadership, strategy, or operating plans following the sale to Roark, the sandwich brand has already rolled out a number of exciting changes and innovations this year with an eye toward happier customers and even larger profits. Here are five major changes underway at Subway in 2024.
Major Menu Changes
This year, Subway introduced an absolute flurry of new menu items. April 2024 saw the nationwide rollout of new wraps inspired by Middle Eastern cuisine "served on hearty, lavash-style flatbread." The chain claims their new flatbread can hold far more ingredients than a wheat tortilla, allowing these 6-inch wraps to pack a foot-long protein punch. The wraps are available in four variations: Homestyle Chicken Salad, Honey Mustard Chicken, Turkey, Bacon & Avocado, and Cali Caprese.
Just a few weeks later, the chain announced the limited time return of its coveted Honey Wheat Bread after a four year absence, the permanent addition of Creamy Sriracha sauce to the menu (previously available at select restaurants only), and a "first-of-its-kind chip collaboration" with Miss Vickie's Kettle Cooked Potato Chips. Subway shops all over the country now offer an exclusive Miss Vickie's flavor (Baja Chipotle).
Skipping ahead to last month, and Subway released yet another bevy of menu changes, updates, and additions. Their sweet and tangy BBQ sauce is back by popular demand after a three-year hiatus, and an all-new Cheddar Cheese sauce has arrived as well. Additionally, the sandwich chain added some serious crunch to the menu with SubKrunch. In the chain's own words, this "first-of-its-kind crunchy topping was developed to add an audible crunch to every bite, coated with a savory seasoning and then fried to perfection."
These releases coincided with the reveal of three new Subway Series sandwich options: Honey Mustard BBQ Chicken, Spicy Nacho Chicken, and Cheesy Garlic Steak. Also, for a limited time only, Subway is the only place to enjoy Doritos' new Sweet & Tangy BBQ chips.
Sidekicks Snack Menu
All that would probably be enough for most sandwich shops, but Subway continues to constantly reinvent its menu in 2024.This summer has been all about savings in the fast-food industry, and in June, the chain joined in on the value craze by debuting all-new Footlong Dippers for just $3 each. Featuring melted cheese and meat "rolled in Subway's soft and bubbly lavash-style flatbread," the dippers are available in three varieties (Pepperoni & Cheese, Chicken & Cheese, Double Cheese) and come with one of Subway's 11 signature sauces.
Crucially, the Footlong Dippers are the latest addition toSubway's Sidekicks menu, which wasunveiled in January of this year. The Sidekicks menu also offers a Cinnabon Footlong Churro for $2, Auntie Anne's Footlong Pretzel for $3, and a Footlong Cookie for $5. We've tried them all to see how they stack up against each other.
"We're excited to team up with Subway to bring guests the fun and flavor of two of our iconic brands – Cinnabon and Auntie Anne's," commented Dave Mikita, President of International and Retail Channels at Focus Brands. "These fan-favorite snacks will delight guests in new, craveable ways."
Prioritizing Pepsi
Afterserving Coca-Cola drinks at its restaurants for close to two decades, Subwayannounced a new 10-year agreement with PepsiCo that will start in 2025 (Coca-Cola products will still be available at Subway locations for the rest of the year). In addition todrinks, the sandwich brand also extended its agreement with Frito-Lay (a subsidiary of PepsiCo) through 2030.
Once the new deal begins, Subway locations will offer customers various PepsiCo beverages such as Pepsi, Pepsi Zero Sugar, Mountain Dew, Starry, Tropicana, Lipton, Aquafina, and Gatorade.
"Coca-Cola has been a significant part of our U.S. franchisees' business for nearly two decades, and we appreciate their partnership," a Subway rep told TODAY.
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Global Expansion
While Subway may already have an impressive presence all over the world, the sandwich chain isn't content with complacency. A few months ago Subway divulged plans to partner with McWin Restaurant Fund SCSp ("McWin"), a private investment Fund specializing in the foodservice industry, as part of a larger strategy aimed at expanding its European presence in a major way.
More specifically, Subway will focus on France, the Czech Republic, Luxembourg, and Belgium by entering into new master franchise agreements with McWin affiliates in those nations. There are already around 400 franchise locations in those countries, but this plan calls for another 600 new restaurants over the next decade.
Moving across the map to Asia, Subway signed another master franchise agreement just last month that will bring the sandwich chain to the Mongolian market for the first time ever. The first Mongolian Subway is already open in Ulaanbaatar, and the agreement calls for close to 50 more locations across Mongolia in the coming years.
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Entering the Grocery Game
March was National Sauce Month, so it was only fitting that Subway announced its saucy entry into the grocery game. Thanks to their partnership with T. Marzetti Company, a leading specialty foods manufacturer, shoppers can now find Subway's signature sauces in major grocery chains and retailers such as Walmart, Albertson's, and Kroger.
The 16-ounce bottles are available in four flavors: Sweet Onion Teriyaki, Roasted Garlic Aioli, Baja Chipotle, and Creamy Italian MVP.
"This partnership takes our sauces to another level and enables our fans to take their culinary creations from ordinary to extraordinary while also contributing to an important cause," said Paul Fabre, Senior Vice President, Culinary and Innovation at Subway, in a press release.
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