Subway Enhances Offerings with Additional Foot-Long Bites for Customers
Starting from Tuesday, there'll be three new 12-inch long options, labeled as Dippers, hitting the scene. These bad boys are constructed using Subway's flatbread, filled with either pepperoni and cheese, chicken and cheese, or double cheese, and served piping hot. The $3 roll-ups are part of the Sidekicks menu, beefing up its roster of giant cookies, churros, and soft pretzels.
In these economically challenging times, offering value is crucial for businesses, especially fast food chains aiming to attract cash-strapped customers who are dining out less. With fewer dining opportunities, they're opting for budget-friendly options.
The creation of Sidekicks and Dippers was spurred by Subway noticing a trend among younger customers who prefer snacking. According to Douglas Fry, Subway's North America president, they're focused on providing convenient, portable, pocket-friendly food at a reasonable price.
Fry acknowledged the economic climate shift, observing that customers have been making sacrifices on quantity and quality. He emphasized that Subway provides a compelling value proposition of tasty food made fresh, available for a variety of budgets.
The Dippers are a smart cost-effective move for Subway, using existing ingredients such as flatbread from its recently launched wrap lineup and meats and cheeses already used in its sandwiches.
Subway's new Sidekicks menu forms a crucial part of its revitalization strategy, encompassing various menu changes as it strives to keep up with competitors. Since the launch in January, Fry stated that the chain has sold over 30 million snacks, priced between $2 and $5, and could have sold even more if it hadn't been for the cookie shortage.
The introduction of Sidekicks seems logical, according to David Henkes, senior principal at Technomic. Henkes previously mentioned that Subway needs to boost its revenue since fast food customers have become resistant to price increases amid overall inflation.
"They've struggled in the sandwich segment, so they need to mix things up a bit and attract extra foot traffic," Henkes said. Technomic data reveals that Subway trails behind its competitors in sales for sides and snacks as well.
In recent years, Subway has experimented with adding customization to its menu, placing a stronger focus on mobile ordering, expanding its international reach, and introducing freshly sliced meats - a departure from its previous method of delivering pre-sliced cold cuts.
A significant challenge for Subway is its shrinking store count: In 2023, the chain shut down more than 400 restaurants in the US, leaving it with its smallest number of US restaurants (20,133) since 2005.
Owned by Roark Capital, a privately held company, Subway doesn't usually disclose its financial figures. Roark Capital owns investments in several large restaurant chains, including Arby's, Auntie Anne's, Buffalo Wild Wings, and Sonic.
