America’s largest sandwich chain is losing customers and this is its biggest, fastest growing rival

America’s largest sandwich chain is losing customers and this is its biggest, fastest growing rival

Last year, in an effort to regain some of its old popularity with customers, America’s largest sandwich chain Subway announced a major menu review. Ingredients were exchanged for better quality versions, new menu signatures were introduced and a million of them were offered to customers for free.

According to Subway’s subsequent sales figures, the move appears to have paid off. Its sales in August, which were immediately boosted by the new menu, increased by 4% compared to 2019. On an annual basis, despite the fact that the chain closed almost 1,000 restaurants in 2021, its sales throughout the system increased by 13%.

While this is undoubtedly a step in the right direction for a chain struggling to stay relevant, recovery may not be as important as it first seems.

And do not miss America’s largest sandwich chain that now sells subscribers using this unusual method.

According Restaurant Business, this growth is pale in comparison with the average increase among other similar sandwich chains, which was about 21.5%. In addition, the company’s market share has fallen by 10% since the pandemic began, according to data from Technomic’s Top 500 Chain Restaurant Exhibition. More specifically, Subway’s market share has fallen from 58% to 53% in the last two years. In other words, it is doing well, but it is losing customers to its competitors.

And right now, the biggest opponent seems to be Jersey Mike’s Subs. What started as a small store called Mike’s Subs in Point Pleasant, NJ, has grown into a chain of sandwiches known for quality ingredients. The chain has more than 2,000 locations nationwide — with these stores averaging about 20% of EBITA margins across the business, according to Franchise 500. In fact, its sales have increased by 65% ​​in the last two years.

jersey mike's subs

jersey mike’s subs

So what does Jersey Mike have? Many, including a fan base so loyal that one fan even became the owner of a franchise.

Restaurant Business also notes that Mike Jersey’s performance was due in part to “early use of technology, a quick decision to jump enthusiastically into the third-party delivery band, and [the CEO’s] willingness to oppose the franchisor’s contract by doing something so daring as to pay for franchisee rebuilds ”.

Then there is his commitment to give back. For example, on March 30, all Jersey Mike restaurants offered 100% of their sales – a record $ 20 million – at the 2022 US Special Olympics.

“It’s our biggest sales day ever. We thank our customers, franchise owners, team members and the Special Olympics family for making a difference!” said Caroline Jones, senior vice president of Jersey Mike’s Franchise Systems. In 2021, the chain raised $ 3 million for Feeding America.

CEO Peter Cancro estimates that the franchise will reach 3,000 units within three years. “We’re riding a wave,” Cancro said Franchise 500. “Nobody ever knew about us. And for the last two years, they know it.”

For Subway, Mike’s is what you will be watching for years to come.

Eat this, not that

Eat this, not that

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