Sandwich chain Subway has been on a bit of a journey as it hired a new Chief Executive Officer, explored partnerships and menu revamps, and continued its international reach over the past few years. Now, it’s making headlines once more as it looks to sell. As it pursues this deal, the company also announced that new meat slicers will roll out at all of its stores.
“We were one of the few, if only, sub shop that didn’t slice in restaurant [sic]. 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,” Subway Chief Executive Officer John Chidsey previously told CNN.
According to the source, Subway shareholders are exploring a possible sale of the company and have hired J.P. Morgan to help conduct the process.
The Wall Street Journal originally broke the news of the 58-year-old chain’s intent, stating that the foodservice chain could be valued at more than $10 billion.
As the company noted, there is currently “no indication of timing or assurance that a sale will occur” and Subway doesn’t intend to make any further public comments until the process is finished.
The company recently reported that sales at its North America stores that were open at least a year rose 7.8 percent last year compared to 2021, exceeding its projections by more than $700 million.
The industry has witnessed increased consolidation at the retail level, and this sale might signify a similar change in the foodservice sector. We will be watching closely to see how this potential transition could impact the specialty foods space.
Deli Market News will keep an eye on the latest updates in foodservice and retail, so come back for the latest.
