Subway hopes new meat slicers will boost sales after record 2022 | Business News

Subway says it had a record year for sales in 2022, helped by a major menu revamp and store renovations. The company believes its plan to cut meat in front of customers could make 2023 another record year.

Subway is a privately held company that doesn’t typically release quarterly results, but it gave reporters a glimpse of its finances as the company may be considering a sale. Sales at North American stores open for at least a year grew 7.8% last year compared to 2021, which Subway said exceeded its projections by more than $700 million (specific numbers weren’t released) .

“It’s been another great year for us on our transformation journey,” Subway CEO John Chidsey told CNN.

Chidsey did not comment on a possible sale of Subway, which The Wall Street Journal reported on last month and which could value the fast-food giant at more than $10 billion.

Subway Loyalty Program Changes

The Subway logo is seen on takeaway boxes at a restaurant in Londonderry, NH on Friday, February 23, 2018.

Digital growth has also been a highlight for the company, with sales made through its app or third-party services doubling compared to 2021. Its international presence also grew, with the opening of more than 750 restaurants over the past year, which helped its global same-store sales grow 9.2%. Year for year.

Last July, Subway unveiled its most comprehensive overhaul in the company’s nearly 60-year history, with less emphasis on customization. Sales from the Subway Series menu now account for 20% of sales, Chidsey said. He said the new sandwich combos are a “win-win” for his workers and franchisees because it’s easier.

“We’re never going to move away from customization because that’s how Subway is built, but I can see in the future we could be at 40% to 50% of ‘Subway Series’ sales,” he said.

Renovations remain a focus for the brand, with about half of its approximately 20,000 restaurants across the United States being remodeled. Another 3,600 will be converted this year.

Subway continues its international expansion and relaunches its loyalty program, and Chidsey announced another menu overhaul this summer that will be “all about craving.” He did not want to give any further details.

However, what Chidsey is most looking forward to is new meat slicers that will be launched in all stores. Restaurants now slice meat in front of guests, a reversal of the previous method of shipping pre-sliced ​​meat to locations.

“We were, if only, one of the few sub-shops that didn’t cut up in the restaurant. Not only does that give the guest a better perception of seeing the nice, fluffy meat, but it also saves us a lot of money since we had to pay a lot of money to have it cut upstream,” he said. The cost savings will be reflected in the upcoming ones Menu changes reinvested.

The CNN Wire

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