Subway hits refresh as it tries to rebound with massive overhaul, media push

After years of struggles, Subway is unveiling an “Eat Fresh Refresh” transformation plan that overhauls its menu, packaging, app, and even how it delivers. Subway hasn’t announced how much the multi-year effort will cost but it has been working on the brand refresh for more than 18 months and is planning a heavy dose of marketing to highlight the changes. Subway is the largest restaurant chain by the number of locations — with some 40,000 globally, including 22,000 in the U.S. — and remains the dominant player in sandwiches. But details the privately-held company doesn’t disclose paint a different picture. Subway’s U.S. sales have fallen for seven consecutive years as it struggles to stand out in a category with competition from a number of growing chains such as Jersey Mike’s, according to data from analysts. Subway suffered even more than usual in 2020 as more people stayed home and made sandwiches or other meals on their own. Subway’s systemwide sales plunged 18.5% to nearly $8.32 billion last year, according to data compiled by Technomic. The chain even had to deal with negative PR from an investigative feature in the New York Times last month about a lawsuit over whether the tuna it serves contains tuna. Subway’s lengthy response confirmed its use of 100% tuna. Now, the chain says that its tuna isn’t changing as part of the overhauls being announced. So, if the tuna isn’t changing, what is? A lot. Subway is making one of the largest media investments in its history to support the Eat Fresh Refresh, according to Carrie Walsh, Subway’s chief marketing officer for North America. Subway has been working on the Eat Fresh Refresh with McGarrryBowen, Current Global, United Entertainment Group, Jack Morton, Carat and Proof Advertising since 2020, she added. New commercials aren’t out yet, but Subway is explaining the Eat Fresh Refresh on restaurant signs. Some 11,000 U.S. Subway locations will shut down on July 12 at 6 p.m. local time for a “Refresh Break.” On July 13, Subway will reopen and offer up to 1 million free new Turkey Cali Fresh six-inch subs, with each store able to give out 50 of them from 10 a.m. to noon local time. The largest menu overhaul in Subway’s history includes adding 11 new and updated ingredients including two new types of bread — Artisan Italian and Hearty Multigrain. Subway will also begin to serve deli-thin sliced ham and turkey, hickory-smoked bacon, smashed avocado, BelGioioso fresh mozzarella, and a new parmesan vinaigrette. New sandwiches include an All American Club and a Subway Club, and Subway is also revamping some existing sandwiches. The chain will also begin to offer in-store pickup, contactless curbside as an option, and delivery directly from restaurants, which gives diners the same prices they’d see in the store, and could be more profitable for its franchisees than using third-party apps that charge sometimes hefty fees. Subway’s app is also getting a refresh, making the ordering process more similar to the in-person experience. The changes come as more Americans are starting to venture out and as restaurants nationwide have started to reopen for in-person dining. They also come as Subway’s results continue to show signs of stress. In 2018, Subway was the third-largest restaurant chain in the country, according to Technomic’s annual ranking, even as its annual sales continued to fall. In 2019, it fell to sixth place. And based on 2020’s tally, it’s in eighth place. Following the 2015 arrest of former pitchman Jared Fogle and the death of co-founder Fred DeLuca, Subway has tried a number of ways to rebound, including bringing in new marketers internally and working with a dedicated Dentsu Aegis agency team. Still, the company has faced multiple complaints from franchisees, and thousands of shops have closed. Some insiders, according to Business Insider, blame strategies established by DeLuca for ongoing issues. Subway has had its eye on an overhaul for some time. The chain announced it worked for more than two years on the new bread recipes, for example. In the meantime, it’s been relying on the popularity of a variety of pitchmen, with those featured this year including Marshawn Lynch, Draymond Green, Jayson Tatum, and, most recently, Tony Hawk.

Subway hits refresh as it tries to rebound with massive overhaul, media push

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