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The Street
The Street
Veronika Bondarenko

Subway to Make a Big Change to How it Serves This Key Item

Given the endless number of competitors selling customers similar burgers and sandwiches, fast-food chains try to differentiate themselves how they can.

Wendy's (WEN) has long had its "fresh, never frozen" slogan while Atlanta-based Arby's wants to be known for its roast beef and freshly-sliced meats.

DON'T MISS: A Subway Sale Worth Billions Could Be Coming Soon

While Arby's has for years held the most bragging rights in this regard, Subway is quickly carving out a spot by rolling out meat slicers to 80% of its 20,000 restaurants across the country.

Subway

Pre-Sliced Meat Is A Major Move

On July 5, the privately-owned sandwich chain rumored to be exploring a potential sale has unveiled a menu category called Deli Heroes — the Titan Turkey, Grand Slam Ham, Garlic Roast Beef and The Beast (a combination of the different meats) sandwiches will be made with meats that are not pre-sliced but cut on site like at a local New York deli. (The chain launched in 1965 out of Connecticut as a way to bring that New York deli experience to the mass level.)

"The addition of freshly sliced meats is the most impactful yet as it gives our guests a better sandwich – raising the bar even higher for the brand that defined fresh," Subway's North American President Trevor Haynes said in a statement. "We can't wait for America to taste the difference and see how far we have come on our journey."

The slicers cost approximately $6,000 each and, to get them into its stores, Subway invested approximately $80 million into its future business plan. The move is meant to bring it to the level of competitors like Jimmy John's and Jersey Mike's Subs — while both sandwich chains offered meat sliced on-site for years, Subway won out by scope (at one point, it surpassed McDonald's (MCD) as the fast-food chain with the largest number of stores in the world) and brand recognition.

More Changes Could Be Coming to Subway

Around since the 1960s, Subway has been in a period of change after the death of its second co-founder Dr. Peter Buck in 2021. Two years prior, former Restaurant Brands International (QSR) Burger King chief executive John Chidsey became the first person to lead Subway outside the families of the two founders and news outlets started increasingly reporting on complications around family involvement and the brand's future amid growing competition.

While January 2023 reports of a looming sale have so far not materialized, Subway has been working hard to rebrand itself and keep up with competition. After downsizing from 27,000 stores in 2015 to about 21,000 now, the chain has been modernizing stores and promoting a "Subway Series" sandwich line that steers customers away from customization to speed up the order line.

As it has formerly also promoted freshly-baked bread, the freshly-sliced Deli Heroes will be another way for the chain to draw in customers amid these changes — for years, the chain has been in a push-and-pull around "freshness" and the need to cut back staff.

"Over the past two years, we overhauled our expansive pantry of ingredients and debuted a whole new way to Subway with chef-crafted signature sandwiches," Haynes said. "These major changes led to rave reviews from our guests and record-breaking sales. This year's changes are even bigger and more transformational."

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