Subway is thinking fresh. The restaurant chain is strategizing to boost business growth, with plans to close another 500 stores throughout the U.S.—after 800 closed their doors last year. More stores closed in the U.S. in 2016, as well. This is all part of an ongoing process the restaurant chain is tackling to strengthen itself in international markets, with plans to open 1,000 locations outside of North America—including the U.K., Germany, South Korea, India, and China.
“We want to be sure that we have the best location,” Chief Executive Officer Suzanne Greco, said in a phone interview, according to Bloomberg. “We focused in the past on restaurant count. We’re focused now on strengthening market share.”
While some might wonder why the chain is closing so many stores if it is hoping to strengthen its stance within the industry, Greco is seeing things from a different perspective.
“Store count isn’t everything,” she said. “It’s about growing the business.”
Subway has been struggling to keep up with stiff competition, with other chains like McDonald’s evolving and innovating to meet U.S. demands. The restaurant chain’s shares fell 4.4 percent last year, the news source relays, while McDonald’s rose 3.4 percent.
In addition to competing chains, the sandwich shop stands toe-to-toe with gas stations and the like, which offer grab-and-go options.
It’s not all downhill for the closed locations. Some of the stores are being relocated. Though, the chain looks to greener pastures to set up shop next.
Another way that the chain is hoping to drive traffic is with its new loyalty program that offers $2 discounts and free items at all domestic and Canadian locations. Further, it has plans for “menu innovation,” the news source shares. And the chain is getting a facelift, remodeling stores to offer a sleek look and touch-screen ordering kiosks to stay cutting-edge.
How will these changes assist in boosting sales and consumer interest in Subway’s 50-year-long standing? And will this transition for Subway be reflected in more strategies executed in other restaurant chains? Deli Market News will keep you updated with the latest industry happenings.
