Subway has always been a popular eatery across America with several outlets. The attracting menu offered by Subway has saturated the American market in the last few years. However, in 2016, Subway restaurants closed down 359 of its outlets, which can be termed as one of the biggest retrenchments in the history of the restaurant. Subway has been making remarkable efforts to restore its status by eradicating antibiotics from its chicken and using care-free eggs. This is expected to attract several health-freak consumers in the next few years.
Rising Number of Competitors to Restrict Growth
America has witnessed an emergence of several new outlets serving fast food, which has gained immense popularity in the last few years. This has resulted in shut down of hundreds of domestic locations in America. In 2016, the company lost around 350 locations in the U.S.; however, the brand still remains a popular eatery after McDonald’s.
Furthermore, the marketing strategies and advertising techniques that are being used extensively by rival brands have contributed significantly towards the downward trend of Subway restaurants across America. Thus, the brand is making efforts to cope up with the industry’s heavy dependence on promotions and discounts. The introduction of delivery services by Subway for its consumers is likely to attract a large number of consumers in the near future.
Emergence of New Products to Encourage Growth
As per the statistics provided by MillerPulse Data, the sales of subway restaurant products has dropped 0.6% in the last four months. However, on an international level, this popularity of Subway is increasing substantially. The marketing team of Subway is working on introducing new and healthy products to gain the competitive advantage and retain its leading position across America. This is likely to supplement towards the overall development of the brand name in the coming years.