2023 focus on smart growth to drive continued profitability for franchisees
MILFORD, Conn., Feb. 2, 2023 /PRNewswire/ -- Subway®, one of the world's largest restaurant brands, completed another record-setting year as a result of its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience.
The company ended 2022 exceeding global sales projections and achieving eight consecutive quarters of positive sales. Key drivers of its positive sales momentum include new product introductions and growth in digital and non-traditional channels.
Highlights include:
Global Results
- 9.2% increase in same-store sales, compared to 2021, and a 29.1% increase in same-store sales, compared to 2020.
- Double-digit growth in digital sales around the world, compared to 2021, and more than tripling since 2019.
North America Results
- 7.8% increase in same-store sales, compared to 2021, with the top three combined quartiles (about 17,000 restaurants) up 12.5%.
- Consistently breaking decade-old highest average unit volume (AUV) per week sales records.
"As part of our journey to transform the brand, we are improving across every aspect of our business and, after two years of record sales results, we can confidently say that Subway is getting its swagger back," said John Chidsey, CEO of Subway. "Across every region, the team's efforts have set the stage for another year of strategic and profitable growth and exciting enhancements to our guest experience."
2022 Key Accomplishments
Subway continues to focus on delivering better food and a better guest experience. In the U.S., home to more than 20,000 restaurants, the brand launched Subway Series, an all-new menu with signature sandwiches ordered by name and number, resulting in an acceleration of the brand's already positive sales momentum and driving substantial increases in brand attributes of craveability and quality.
In addition, Subway refreshed its catering program, elevated its digital experience, and expanded the roll out of non-traditional platforms, including Subway Grab & Go and smart fridges. It also continued to invest in modernizing its image, with nearly 8,500 locations across North America now offering a more contemporary, inviting environment to guests. In fact, 2,600 remodels alone were completed in 2022.
In other markets worldwide, Subway also innovated and evolved its menu, launching a version of Eat Fresh® Refresh in Canada and testing new ingredients and craveable menu items in key regions around the world.
"There is currently a lot of excitement around the Subway brand amongst fellow franchisees, their teams and guests," said Dennis Reed, multi-unit Subway franchisee for over 25 years. "The company's focus on elevating the guest experience and operations over the past 24 months has resulted in positive feedback about the brand's updated, energetic and innovative new menu and look, and ultimately, is leading to an increase in traffic and sales at my restaurants."
2023 Focus on Smart Growth
Heading into 2023, Subway is focusing on strategic brand growth to boost franchisee profitability and protect the brand's position in the market.
Key to achieving smart growth is ensuring all restaurants across the system are in the right location, format and image, and operated by the right franchisees who have the resources and passion to be part of the brand's transformation journey. This includes plans to remodel an additional 3,600 locations across North America this year.
Internationally, building on the more than 5,300 future restaurant commitments from recent master franchise and development agreements, Subway remains focused on partnering with strong, well-established operators with specific expertise in a market and strategically expanding its footprint around the world.
About Subway® Restaurants
As one of the world's largest quick service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads and bowls to millions of guests, across more than 100 countries in nearly 37,000 restaurants every day. Subway restaurants are owned and operated by Subway franchisees – a network that includes thousands of dedicated entrepreneurs and small business owners – who are committed to delivering the best guest experience possible in their local communities.
Subway® is a Registered Trademark of Subway IP LLC. © 2023 Subway IP LLC
SOURCE Subway Restaurants
