The sandwich shop is making new moves, but are they wise?
Would you think that Subway restaurants outnumber McDonald's by more than 10,000 in the United States? This is due to the high number of "non-traditional" Subway outlets, such as those on college campuses, airports, and within convenience stores—in fact, these sorts of locations now account for 25% of the chain's whole North American portfolio.
Non-traditional Subway locations showed an average 13% rise in same-store sales in the first three quarters of 2022 when compared to 2021. With a renewed emphasis on such locations, Subway is placing a huge bet on technology: according to a press release, the sandwich brand has introduced its first fully automated, contactless grab-and-go smart fridge, with plans to roll out more fridges in the future.
Subway's latest innovation is smart refrigerators
Subway has been on a long path in recent years to reclaim its position as America's second-largest fast food chain, trailing only McDonald's. Subway launched its Eat Fresh Refresh campaign in 2021, kicking off a makeover that featured menu changes, including new ingredients, and a revamped online ordering experience.
Unfortunately, the brand's popularity continued to dwindle with this new initiative, so it attempted to shake things up once again. A year after launching the Eat Fresh Refresh program, Subway introduced the Subway Series menu, which provided consumers a simplified selection of 12 iconic sandwiches, each of which corresponded to one of four main menu categories: Cheesesteaks, Italianos, Chicken, and Clubs.
Initially, it appeared that these arbitrary categories would turn off customers, who seemed to love personalizing their assembly line sandwiches. Despite this departure from tradition, Subway's impressive third-quarter sales indicate that the Series menu was a necessary change: According to CNN, Subway saw an 8.4% increase in sales at stores open at least one year in Q3, as well as "record-setting sales" for the 18 months leading up to October 2022.
Explained: Subway vending machines
Subway began testing ready-to-eat "on-the-go" sandwiches in 2020. Franchisees would cook and transport sandwiches to retail sites like as casinos and hospitals where they could be sold; there are currently over 400 locations across North America providing these ready-made subs.
Building on this notion, Subway placed its first smart fridge at the University of California, San Diego, in September. Customers may speak to the machine and inquire about what's inside the fridge, which is filled daily by the nearest brick-and-mortar establishment. The high-tech vending machine also contains weight-sensor shelves that determine accurate pricing and is cleaned with UV-C light after each transaction. Each transaction is cashless and almost completely contactless.
"Subway Grab & Go has quickly gained traction as consumers are drawn to sandwiches made fresh daily from a brand they know and love, as opposed to competitor items that rely on a 14-day plus shelf life," Karla Martinez, director of innovation for non-traditional development, stated in a news statement. "As Subway expands its off-premises concepts, guests can expect to see Subway Grab & Go and smart fridges in more convenient everyday locations such as airports, college campuses, and hospitals."
These vending machine sandwiches are the polar opposite of Subway's famed build-your-own sandwiches. However, if the Subway Series menu is any indicator, customers are willing to sacrifice more convenience—in this case, sandwiches that are potentially accessible 24 hours a day—for a more limited choice.
Though Subway calls them smart fridges, and their AI technology appears to be rather powerful, it's not apparent that they're breaking any new ground; we're OK simply calling these things vending machines. What I can say with certainty is that these machines are unlikely to spit out a footlong Sweet Onion Chicken Teriyaki with provolone cheese and an abundance of added pickles, and if it can't, it's not a Subway sandwich in my book.
#Subway #Sandwich #VendingMachine
SOURCE: thetakeout
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