Subway hopes to be a affordable ‘break' from home cooking amidst pandemic
ANZ country director Chris Churchmichael discusses the sandwich chain’s off-premise strategy, thoughts on grocery delivery and franchisee support.
Traditionally relying on foot traffic, especially during lunch, Subway was no stranger to the pains the rest of the industry were feeling due to the pandemic.
“COVID-19 has forced retailers to improve their digital customer service. Three areas have been critical during the pandemic: community trust, delivery and franchisee support," Australia and New Zealand country director Chris Churchmichael explained to QSR Media in an exclusive interview.
Trust, for him, meant continued messaging on their health and safety processes, ensuring those live up to consumers' expectations for hygiene.
“We want our guests to have confidence that we remain a safe and healthy option during these times.”
To offset some of the lost footfall at their 1,300-plus stores, Subway had expanded its delivery footprint in the past few months, partnering with Deliveroo and DoorDash whilst continuing its team-up with Uber Eats - offering free delivery promotions.
"For many of our restaurants, our delivery options have meant that we have been able to continue serving guests from home, even though they are not walking into our restaurants at lunch,” Churchmichael said. "We've also seen more guests choosing our express pick-up options, by ordering ahead with the Subway app, to pick up in-restaurant.”
Lower interest in grocery delivery vs int’l markets
Whether they would expand their off-premise strategy to grocery and pantry staples similar to the chain’s international markets, Churchmichael said the level of interest is not the same, saying the chain is seen as an alternative to home cooking.
“In Australia, we haven't seen the same interest in grocery options from quick service restaurants, which is largely due to our supermarkets maintaining a strong consistent supply of basic goods, even during the height of lockdowns. Our guests are choosing Subway as a break from cooking at home,” he said.
“Proactive” approach to franchisee support
Churchmichael acknowledged that meeting government business regulations during COVID-19 restrictions was one of the most significant operational challenges, seeing how each state and territory developed different policies to maintain public health.
“As a franchisor, we have actively supported our franchisees through the past few months with everything from franchise fee waivers to support for rent negotiations and additional operational training. COVID-19 has been incredibly difficult for many businesses and we have been taking a proactive approach to supporting our franchisees," he said.
“We have worked closely with our teams to ensure restaurants are not only meeting these specific social distancing and cleanliness requirements but also able to deliver on our brand promise.”
Long-lived economic impacts anticipated
For the future, the Subway boss finds it “very encouraging” to see the industry begin to recover “quickly” from the pandemic, but noted that economic impacts will be long-lived.
“Australians will be more conscious of health and safety with a focus on hygiene practices in the food industry. We can also expect to see Australians being more focused on the cost of food, as the economic impacts are realised later in the year."
