Subway, refresh... Doesn't sound right. This week, Subway launched an “Eat Fresh Refresh” campaign to win customers back from fast-casual competitors like Chipotle. Subway once set the sandwich bar high by pioneering a healthy, customizable sammie menu. But sales have been slipping for years as consumer tastes shift. Enter, Refresh:
- 20+ new ingredients, including new breads, smashed avocado, and fresh mozzarella
- 1M free sandwiches across the country, to whet customers’ appetites
- A fresh online ordering system with revamped in-app ordering and nationwide Doordash delivery
Biz strategies get stale, too… Subway's “healthy” fast food was out-innovated by competitors like Chipotle, that offered premium ingredients and convenient ordering in addition to customizable, "fresh" meals. The pandemic hit Subway hard, since it had few delivery and drive-through options for contactless orders. Meanwhile, competitors saw digital orders more than double over 2020. Subway has also struggled with:
- Good fat > Low fat: Changing consumer preferences caused low-fat options like the Oven Roasted Chicken sammie to lose ground to low-carb and organic alternatives.
- PR disasters: Including fake tuna (#funa) allegations and the sentencing of Subway spokesman Jared Fogle to 15 years in prison.
Innovation is always in season… and even huge, global chains like Subway lose business when they don’t pay attention to changing tastes. Subway relied on its early “Eat Fresh” success for years, even as its reputational lettuce wilted. Now, Subway is trying to win customers back with e-orders and avocados (good fat). But its competitors have already taken a big bite out of the fast-casual market.