Wednesday, October 5, 2011

Subway’s focus is food quality + price + bundled value + service equilibrium continues driving success.

Subway is in the middle of the grocerant niche with ready-2-eat fresh and prepared food and is building new units while building per-unit sales. Consumers are looking for new products, new packaging and time saving options in ready-2-eat  and heat-N-eat fresh prepared food.  They are attracted by the fresh focus; new portion size, price points, and interactive. 
The price, value, service equilibrium is resetting in Restaurants, Convenience stores and fresh prepared food in grocery stores.  The wildly successful Subway $5.00 foot-long stated it.  The QSR value focused $1.00 menu propelled. Now Walgreens, 7 Eleven, Target, Amazon and Sears are all selling fresh food and prepared meal components. Dollar stores are entering the crowed space and the consumer is going to win.
All retail food sectors have noticed a discontinuity in consumer food shopping behavior and all are fighting for share of stomach.   Contributing to this displacement is a focus on short term market metrics particularly price and away from the consumer.   Which in turn has caused a loss is consumer traffic for those with their eye off the consumer.  There are other attributes that are much more important to the consumer, yet many don’t take time to look. 
Outside eyes can deliver top line sales and bottom line profits.  Invite Foodservice Solutions® to complete a grocerant program assessment, brand, product placement or positioning assistance.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Johnson, or

1 comment:

  1. The issue I have with Subway, is that their food offerings are inconsistent. Some are good selections, while others, I would just throw away.
    For example, any sandwich having to do with Chicken at Subway, is just awful, while their lunch meat selections are good and average. Simply put, the food is inconsistent, and there is too much 'air' in their breads. Just me.