Dive Brief:
- Subway increased same-store sales in North America by 11.7% during the first quarter, the company said Monday.
- The top 75% of its North American locations, roughly 17,000 units, saw same-store sales increases of 17.9% while the top 50% of its locations, roughly 11,500 units, were up 24.4%.
- The sandwich chain, which is in the process of selling itself, said its global same-store sales rose 12.1%, marking the ninth consecutive quarter of same-store sales growth.
Dive Insight:
Subway’s digital channel growth continued during the first quarter, with global digital sales more than quadrupling since 2019, the company said. Digital sales for the chain were up 21.2% in North America and up 11.4% globally during the quarter. A focus on digital promotions in the U.S. led to an uptick in consumers using its app, which helped boost profitability for franchisees. One of its promotions included the return of the Footlong Pass in March, a 50% discount off footlong subs for $15. This discount was redeemable during April.
In addition to its digital focus, Subway also shifted its franchising strategy last year to focus on experienced multi-unit operators. Last week, the company announced the signing of five new multi-unit owner agreements, which resulted in the transfer of 230 units to these operators.
The company is also working toward opening traditional and non-traditional units, such as automated vending fridges. Subway expects to increase its new openings in North America by 35% this year compared to 2022. It is also in the midst of remodeling stores and plans to complete 3,600 redesigns this year, bringing its total remodels to 10,000 by the summer.
The chain said it expects to roll out new menu items and digital enhancements in “key markets” throughout the world. Past menu enhancements have proved successful, including its Subway Series launch last year. Subway called this menu revamp the largest update in its 58-year history. During the Subway Series’ eight-week launch window, same-stores sales increased 7.4% compared to the eight-week launch window of its Eat Fresh Refresh menu debut in 2021.
