Subway also is testing out third-party delivery with providers such as GrubHub, Postmates and DoorDash. The new mobile app, which includes a sandwich-customizing feature, is available now in about 26,000 of the chain’s 27,000 U.S. On average, each location will eventually have about three kiosks, Wenkoff said. They can be changed instantly without having to print new signs and laboriously replace them. Digital menus, meanwhile, are available in hundreds of stores. The technology allows customers to walk in and tailor their meals with more accuracy. So far, Subway is testing about 50 of the new self-ordering kiosks. And a historic bout of food deflation has made grocery-store meals relatively cheaper, adding to the competition. sales for Subway in 2017, pointing to the encroachment of nimble rivals such as Jersey Mike’s.Ĭhipotle and Five Guys also have lured away Subway customers with “sleeker layouts, shrewd marketing touting locally sourced ingredients and fast turnover,” according to the firm. IBISWorld, another research firm, is projecting an additional year of negative U.S. The company, based in Milford, Conn., was founded almost 52 years ago by Fred DeLuca and Peter Buck. sales fell 1.7 per cent last year to $11.3 billion (U.S.), marking the third straight annual decline, according to research firm Technomic.Įarlier this year, Subway confirmed that it was closing hundreds of locations, marking the biggest retrenchment in its history. Traditional fast-food chains are upgrading their equipment and embracing more natural ingredients, robbing Subway of its edge in the healthy-eating arena. Mom-and-pop eateries and prepared meals from grocery stores also are taking market share. The move is a response to competition on several fronts. The company, which has more locations than any other restaurant chain, is also adding digital menu boards and bringing Wi-Fi to some locations. “Customers are demanding a more complete experience.” “It’s really a vision and strategy in how we want to evolve,” Carman Wenkoff, Subway’s chief information and digital officer, said in an interview. Subway says it plans to sue CBC for $210 million over chicken findingsįreshii founder makes pitch to lure franchisees away from rival Subway That’s put pressure on the chain to be quicker and more convenient. sales decline and fast-food competition is tougher than ever. But these days, Subway is reeling from a three-year U.S. Until about a decade ago - when Subway was still booming - its customer-loyalty program relied on sticking stamps on paper cards. It’s a major overhaul for a chain that hasn’t been known for its technological prowess. Subway is even testing dedicated pickup areas for mobile orders, shaking up the five-decade-old format of its restaurants. The sandwich chain is introducing touch-screen ordering kiosks and a new mobile app - a bid to catch up with places like Panera Bread Co., which have credited technology with helping fuel sales. CHICAGO-Subway Restaurants, facing one of the worst slumps in its history, is hoping to win back customers by losing its low-tech image.
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