MILFORD, CONN. — Subway is expanding its non-traditional business segment with a platform focused on convenient locations and offerings.
Through the first three quarters of 2022, the company’s existing 5,900 non-traditional North American locations had an average 13% growth in same-store sales compared to the same period of 2021. Despite being hit the hardest by pandemic restrictions, there was especially large growth in locations like airports, college campuses and hospitals, increasing by an average of 22% compared to 2021.
“As more of our guests search for dining experiences to meet their ‘in-the-moment’ needs, the brand’s non-traditional locations and platforms can serve them wherever and whenever they are craving Subway,” said Taylor Bennett, vice president of non-traditional development at Subway. “As Subway focuses on strategic and profitable growth, there is a significant opportunity to expand our footprint in non-traditional locations and for franchisees to generate incremental revenue for their business.”
As part of the strategy, Subway will expand its brick-and-mortar presence in non-traditional locations like convenience stores, casinos, hospitals and airports, through its Grab & Go platform that launched in 2020. The platform offers fresh daily sandwiches to over 400 locations in North America and is expected to be the basis for further off-premises concepts.
Subway is also exploring unattended smart fridges as a growth concept, debuting its first fridge at the University of California San Diego in September. The fridge, stocked with Grab & Go products, features an interactive artificial intelligence capable of answering customers’ questions about products contained inside.
The flexible strategy also aims to enable international franchisees to introduce non-traditional concepts across the globe, taking advantage of locations like kiosks, ghost kitchens and drive-thrus.