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Subway gears up for holidays; targets franchise profitability in 2024

Currently, Subway is launching value meals nationwide, following its successful barbecue sandwich campaign.

Subway is gearing up for increased profitability for franchisees and unit volume (UV) growth in restaurants, following its preparation for the Christmas season with cookies and value deals.

Shane Bracken, Subway Managing Director in Australia & New Zealand, said that Subway is shifting towards making the brand more dynamic and relevant, which involves collaborating with big partners.

“We've just come out of our SUBBBQ campaign, and then really quickly into Christmas where we're going to be using cookies again, driving value boxes, value meals, and delicious cookies for Christmas,” he said.

Bracken explained that the brand’s focus on increased profitability is not just a focus for Subway but is also reflective of broader trends in the Australian QSR industry. Part of this plan includes refreshing and remodelling restaurants to ensure they stay relevant and appealing to customers.

“More profitability for our franchisees and AUV growth in the restaurants. If we're doing both, then our franchisees are reinvesting back into the network, we have refreshed and remodelled our restaurants, and look just being relevant with our guests and our customers and making sure that we nail that for next year,” he added.

Bracken also mentioned driving tastes that appeal to modern consumers and partnering with notable names like Hamish and Andy, and Football Australia, supporting teams like the Subway Socceroos and the Matildas.

In terms of providing value, Bracken said that they are starting with snack ranges and making sure that consumers can have a lower-end price range option.

“So say where we're looking to make sure that whatever you're looking for within the subway, you've got a there's a lower end price range that you can do. But when you even talk about value, it's about value in abundance in combos and worth it. So that's what we're pushing,” he cited.

Bracken noted the current economic situation poses a unique challenge for QSR brands, which makes it necessary to drive value across multiple platforms to remain relevant and maintain traffic.

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