(CNN) — To compete with its fast-growing rivals, Subway makes a big change to its meats.
As of this Wednesday, the nearly 20,000 establishments of the chain in the US will cut their delicatessen meat into fresh slices, which is the biggest change for Subway since two years ago, when it began to renew its menu offer, its ingredients and appearance in restaurants to drive declining sales and become an attractive acquisition target.
About 80% of stores will display the $6,000 slicers prominently (space permitting) near the deli counter with most meat being sliced multiple times a day, including turkey, pepperoni, roast beef, ham and salami. This is a major change from Subway’s previous method of cutting meat at its factories and delivering it to stores.
Subway incorporates these deli slicers into its US restaurants. (Credit: Subway)
In addition to boosting freshness, cutting deli meats in its stores brings the chain in line with the methods of smaller competitors like Jimmy John’s, Jersey Mike’s Subs and Firehouse Subs, all of which have been increasing their number of stores in recent years. This is in contrast to Subway, which has closed some 7,000 stores since 2016.
Currently, Subway locations cut fresh vegetables and bake fresh bread and cookies daily. Adding fresh cut meat “felt like the natural step that we needed to pick up and address,” Trevor Haynes, president of Subway’s North American Operations, told CNN.
Grilled cheese, steak and chicken will continue to be delivered pre-sliced.
To promote the changes, Subway will launch four new sandwiches highlighted by the new slicer: turkey, roast beef with garlic, ham and “La Bestia”, with pepperoni, salami, turkey, ham and roast beef on Italian bread.
A year ago, Subway unveiled the most extensive makeover in its nearly 60-year history. The makeover placed less emphasis on personalization in favor of a “Subway Series” sandwich menu, which now accounts for 20% of sales. Digital growth is also a bright spot for the company, as sales made through its app or third-party services have doubled compared to 2021.
Average annual sales at Subway restaurants in the United States, however, are much lower compared to their rivals in the sandwich business. Data from QSR Magazine reveal that its three rivals make about $1 million per unit, while the average Subway local makes less than $500,000.
Still, privately held Subway said it had a record year in 2022 with sales at its North American stores that have been open at least a year rising 7.8% last year compared to 2021. Sales also topped projections by more than $700 million, but the company did not disclose specific figures.
Subway is also up for sale, with Haynes saying it’s “on track” for an imminent announcement, probably in mid-July.
