Does Subway's Current Marketing Resonate Better Inside the US or Outside the US?

 

Subway, one of the world's largest quick-service brands, has been on a mission to reinvigorate its business, and its marketing strategy plays a critical role. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® asks is Subway's current marketing approach resonating more effectively inside the U.S. or outside? Success does leave clues and according to recent press releases and performance data suggest that Subway’s international markets may be responding more favorably. This article explores why Subway’s marketing appears to resonate differently in the U.S. compared to its global presence and provides four examples for each perspective.

Why Subway’s Marketing Resonates Better Outside the US

1.       International Expansion through Master Franchise Agreements Subway’s global growth strategy focuses on partnering with master franchisees, which has led to explosive growth internationally. In just three years, Subway secured over 10,000 international restaurant commitments, far outpacing its U.S. growth. In 2024 alone, 40% of new Subway openings are set to occur internationally, supported by seven new master franchise deals, including entry into new markets like Paraguay and Mongolia.

This strategy of leveraging experienced multi-unit operators outside the U.S. has been key to Subway’s resurgence. International markets are welcoming these partnerships, which allow Subway to scale rapidly in untapped regions with tailored marketing messages that resonate more strongly with local tastes and preferences.

2.       Localization and Format Flexibility Subway’s international marketing efforts focus on adaptability to local tastes and nontraditional locations. In countries like Spain and Mexico, Subway is expanding into airports, while it’s entering hospitals and college campuses in various regions. This localization provides Subway with a strategic advantage, allowing the brand to cater its product and messaging to different customer bases.

Unlike the U.S., where many locations have closed, these new international venues offer Subway a fresh opportunity to craft hyper-localized marketing strategies that resonate with unique cultural and consumer preferences, enabling stronger brand adoption.

3.       Global Same-Store Sales Growth Subway experienced positive global net growth in 2023 for the first time since 2016, with global same-store sales rising 6.4%. International markets played a significant role in this resurgence, suggesting that Subway's marketing messages are landing well outside the U.S. The brand’s “Fresh Forward” redesign, focusing on enhancing the guest experience with modernized interiors and digital enhancements, has contributed to this growth.

The adaptability of Subway’s marketing internationally—showcasing fresh, healthy options and newly remodeled stores—has proved effective in markets where consumers are particularly responsive to branding focused on health, quality, and convenience.

4.       Engagement through Digital Sales and Rewards Programs Subway’s international digital sales surged by double digits in 2023, significantly driven by the enhancement of the Subway MVP Rewards loyalty program. This digital push aligns with global trends of increasing mobile ordering and delivery services. International consumers, often more receptive to digital innovations, have embraced these efforts.

By focusing on robust digital marketing and rewards programs, Subway has been able to better connect with international consumers. This focus on convenience and rewards resonates more with a global audience that prioritizes digital engagement in their dining experience.

Why Subway’s Marketing Still Holds Appeal in the U.S.

1.       Top 75% of U.S. Stores See Significant Growth Despite the U.S. store count dropping to 20,133 in 2023 (a loss of 7,000 locations since 2016), the top 75% of Subway’s U.S. stores have seen significant same-store sales increases, up 10.1% year-over-year. Subway’s marketing in the U.S. continues to resonate strongly in high-performing markets, likely due to a focus on digital transformation and loyalty programs.

These high-performing locations benefit from modernized restaurant designs, enhanced digital ordering, and loyalty integration, demonstrating that Subway’s U.S. marketing efforts can be effective in areas where the brand has invested in improving the overall guest experience.

2.       Brand Modernization and Digital Sales Subway’s U.S. digital sales have also seen double-digit growth in 2023, driven by its loyalty program and enhanced online presence. The introduction of more user-friendly mobile apps and online ordering has resonated with a U.S. audience that values convenience. In addition, Subway’s focus on healthier options, customization, and affordability continues to appeal to health-conscious U.S. consumers who seek fast yet nutritious meals.

The modernization of Subway’s U.S. stores, coupled with a revamped menu and fresh marketing campaigns, has helped the brand slowly reverse the trend of declining sales, showing that the right digital tools and messages still resonate with American consumers.

3.       Focus on Nontraditional U.S. Locations Subway has entered partnerships with major U.S. companies like Walmart, Aramark, and Love’s Travel Stops, which represent 25% of Subway’s global footprint. This focus on nontraditional U.S. venues, such as convenience stores, gas stations, and supermarkets, has allowed Subway to tap into captive audiences who might be seeking quick, healthier meal options while on the go.

This pivot in marketing to target convenience-seeking consumers shows that Subway understands the evolving needs of U.S. diners. By positioning itself as a quick, healthy option in these nontraditional settings, Subway has found new avenues to drive brand engagement in the U.S.

4.       Roark Capital Acquisition and New Leadership The acquisition of Subway by Roark Capital for $9.6 billion in 2023 marks a significant shift for the brand. Roark’s involvement could lead to a renewed marketing push in the U.S., focused on revitalizing the brand and regaining market share. Roark’s expertise in the restaurant industry, paired with Subway’s size and scale, presents opportunities for growth, particularly through innovative marketing strategies that appeal to both legacy and new U.S. customers.

With fresh leadership and capital infusion, Subway has the potential to reposition itself within the competitive U.S. market through more targeted marketing campaigns that align with current consumer demands for healthy, affordable, and fast options.

Think About This

Subway’s marketing is clearly resonating differently inside the U.S. compared to international markets. While international growth has been more robust, thanks to strategic partnerships and localized marketing, the U.S. still offers significant opportunities, especially in high-performing stores and nontraditional venues. Subway’s ability to adapt its messaging, embrace digital transformation, and modernize its stores will be key to whether it can maintain its relevance both at home and abroad.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Does Circle K Want to Be a Fast-Food Restaurant or Upscale Fast Dinner Solution?

 

Circle K seems to be at a food focused crossroads, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. With the introduction of its new line-up of Meal Deals, the company has positioned itself to compete directly with fast food chains. But here’s the question: is Circle K aiming to be a fast-food destination, or does it want to move toward providing upscale fast dinner solutions? The new Meal Deals—available for breakfast, lunch, and dinner—could signal either path. Let's explore three examples of how Circle K could evolve into each category.

Circle K as a Fast-Food Destination:

1.       Price-Driven Combos: The $3, $4, and $5 meal deals fit the mold of classic fast-food pricing. Circle K is offering value-packed, grab-and-go meals that cater to cost-conscious customers, much like traditional fast-food restaurants. The $3 deal—featuring a roller grill hot dog or Taquito, chips, and a Polar Pop—hits the same note as quick, inexpensive fast-food fare.

2.       Expanded Hot Sandwich Menu: Circle K could expand its hot sandwich menu with items similar to those found at established fast food chains. By adding burgers, chicken sandwiches, and wraps at different price points, Circle K would appeal to on-the-go consumers looking for quick, familiar meals.

3.       All-Day Service Focus: Fast food thrives on availability, and Circle K's ability to offer breakfast, lunch, and dinner deals aligns perfectly with that model. With a rotating menu of hot items, like breakfast sandwiches in the morning and pizza at night, Circle K can position itself as an all-day fast-food stop.

Circle K as an Upscale Fast Dinner Solution:

1.       Personalized Meal Bundling: Circle K's meal deals already allow for some customization, but they could take this further by letting customers build their own "fast dinner solutions." Imagine higher-end options such as artisan sandwiches, premium salads, and fresh sides bundled with select beverages. This would allow Circle K to appeal to the dinner crowd seeking more than just fast food.

2.       Premium Ingredients: To elevate its brand, Circle K could enhance its offerings by using locally sourced or organic ingredients in its meal deals. Upscale fast dinner solutions are driven by quality, so adding options like a gourmet pizza or a fresh, hot entrée made with high-quality ingredients would attract customers looking for a quick yet refined dinner.

3.       Innovative Packaging for Dinner On-the-Go: Convenience and portability are key for upscale dinner solutions. Circle K could introduce innovative packaging that keeps meals fresh and easy to transport, targeting busy professionals or families seeking a convenient but elevated dining experience. Think neatly packed family-style meals with reheating instructions for at-home dining.

As Circle K moves forward with its fresh food initiative, the company has the potential to succeed in either direction—or perhaps even both. Whether they evolve into a fast-food contender or shift toward offering upscale, convenient dinner solutions will depend on how they execute these meal deals. In either case, the key lies in how well they meet the evolving demands of today's customers who crave both value and quality in their food choices.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Foodservice Customer Migration Conundrum

 

Today, value wars are shifting consumer loyalty according to Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  In the ever-evolving world of foodservice, the battle for consumer loyalty continues to intensify as brands adjust their strategies to meet changing customer expectations. YouGov's latest foodservice focused poll reveals a critical shift in value perception that is redefining the competitive landscape, particularly between fast food and casual dining. Consumers are no longer bound by brand loyalty and are increasingly migrating from one dining segment to another in search of better value, flavor, and experience. This migration has direct implications for industry leaders as they navigate the conundrum of delivering perceived value without compromising profit margins.

From the Grocerant Guru’s perspective, the foodservice industry is witnessing a profound shift. Fast food giants, once the kings of convenience and value, are struggling to maintain their dominance in the face of rising prices and evolving consumer demands. The numbers from YouGov's report provide compelling insights into why some consumers are departing fast food brands for casual dining and specialty restaurants.

Fast Food Value Perception Declines

One of the most striking findings is the significant drop in the perceived value of fast food since 2021. The fast-food segment has long thrived on the promise of affordability, but rising operational costs, inflation, and strategic price hikes have eroded this advantage. As of September 26, fast food's Value score stands at 5.2, a sharp decline when compared to casual dining's 7.8. This gap in perceived value reflects a broader trend: customers are beginning to see casual dining as a better return on their dining dollar, despite the traditionally higher price points.

For example, McDonald's, a long-time leader in fast food value, has experienced a noticeable decline in its perceived value due to aggressive price increases. While these hikes have been effective in driving profit, they’ve left a sour taste in the mouths of many customers, prompting them to explore alternatives. This migration isn’t limited to just McDonald's—many fast-food brands are feeling the pressure as consumers reevaluate their dining options.

Migration to Casual Dining

Olive Garden, a stalwart in casual dining, has emerged as the frontrunner in value perception. With a Value score of 25.8, it surpasses not only fast-food chains but also its direct competitors. This shift is more than just numbers—it’s about consumers migrating to places where they feel they get more for their money. Offering unlimited breadsticks and robust meal portions, Olive Garden exemplifies how delivering consistent value and comfort can attract diners weary of the fast-food experience. Other casual dining chains like Cracker Barrel (22.9) and Domino's (23.2) also rank high in perceived value, signaling that consumers are willing to pay slightly more for a more fulfilling dining experience.

Fast Food Faces Tough Competition

As the foodservice customer migration conundrum unfolds, we also see an absence of fast-food chains among the top value improvers. Starbucks, traditionally known for its premium pricing, saw its Value score improve from -17.2 to -11.8—an interesting twist in a market where fast food should logically lead. Chains like The Cheesecake Factory and First Watch, both known for a higher price point, are also improving their value perceptions. This points to a broader trend where consumers are shifting away from the expectation of low prices alone, instead seeking quality, service, and experience.

For instance, when consumers leave a fast-food brand like Carl's Jr. or Long John Silver's—both of which remain on the "poorest value" list—they are often trading up to casual dining options like Olive Garden or even hybrid dining concepts. In this space, restaurants that blend entertainment and food, such as Chuck E. Cheese and Hooters, are similarly failing to capture perceived value. This reflects a growing divergence between consumer expectations for dining out, with many now prioritizing where they can get the most bang for their buck in terms of both food quality and experience.

The Grocerant Solution: Adapt or Lose

As consumers migrate from one brand to another, seeking greater value in casual dining and specialty concepts, it’s clear that fast food operators must adapt or risk losing market share. The fast-food value proposition is being challenged by rising costs and a demand for higher quality, leaving brands in a precarious position. For fast food chains, the path forward lies in innovation—such as improving ingredient quality, enhancing the dine-in or pickup experience, or bundling meals that provide real, tangible value.

The foodservice customer migration conundrum underscores the importance of understanding the evolving preferences of today’s consumers. As brands like Olive Garden and Cracker Barrel pull ahead by offering perceived value through portion size and consistency, fast food chains must reassess their strategies to remain competitive. The modern consumer isn’t just looking for the lowest price—they want value in the form of quality, experience, and satisfaction.

This shift is a critical wake-up call for the industry: dining habits are changing, and those that fail to innovate and align with consumer expectations risk losing their loyal customers to more adaptive competitors.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

Why Will Walmart's ‘Pay by Bank’ Program Drive Customer Adoption and Save Millions in Service Fees?

 

Walmart's newly introduced "Pay by Bank" payment option is poised to make a significant impact on both consumer behavior and the company’s bottom line. As the retail giant seeks to streamline transactions and lower costs, this innovative payment method could lead to widespread customer adoption while helping Walmart save millions in service fees.

Now according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® the success of the program will hinge on just how well Walmart can explain the benefits to consumers.  Let’s see what our Grocerant Guru® thinks. Success does leave clues and Walmart has a clear record of success.

1. Convenience for Customers

The "Pay by Bank" program allows customers to link their bank accounts directly for transactions, bypassing traditional payment networks like Visa and Mastercard. This eliminates the need for credit or debit cards and offers a simplified checkout experience. As consumers become more accustomed to digital wallets and mobile payments, this frictionless payment option is expected to resonate, especially with younger demographics like Millennials and Gen Z who value convenience and efficiency.

2. Cost Savings for Walmart

Payment processing fees, which can range from 1% to 3% per transaction, have long been a significant cost for retailers. By offering a direct bank payment option, Walmart can avoid these card network fees entirely. Walmart handles billions of transactions annually, and even a small reduction in fees can result in substantial savings. Industry estimates suggest that Walmart could save hundreds of millions of dollars each year as more customers opt for this method.

3. Enhanced Security

Direct bank payments come with heightened security protocols, reducing the risk of fraud. By utilizing tokenization and secure bank-to-bank transfers, Walmart can protect customer data more effectively than traditional card-based transactions. This added layer of security is likely to attract cautious consumers concerned about data breaches and identity theft.

4. Building Customer Loyalty

Walmart has long focused on offering customers lower prices and value. By providing a fee-free payment option, the company strengthens its image as a consumer-first brand. Additionally, Walmart could incentivize adoption of the "Pay by Bank" program through exclusive discounts, rewards, or cash-back offers, encouraging customers to use this method regularly. This creates a cycle of loyalty, driving return visits and higher spending.

5. Appealing to Unbanked and Underbanked Consumers

Approximately 5.9 million U.S. households remain unbanked, and many more are underbanked. By enabling direct bank transfers without the need for credit, Walmart opens the door to millions of customers who rely on alternative financial services. This aligns with Walmart’s mission to serve every segment of society, making the "Pay by Bank" program an inclusive solution that could significantly broaden its customer base.

Think About This: A Win-Win Strategy

Walmart’s "Pay by Bank" program is a forward-thinking move that will likely drive customer adoption through increased convenience, security, and accessibility. By cutting down on transaction fees, Walmart stands to save millions annually, a move that could help fund further investments in technology, pricing strategies, or in-store improvements. In essence, this program benefits both Walmart and its customers, positioning the retailer to remain competitive in an evolving digital marketplace.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

What's for Dinner: Convenient Meals for Today’s Families

 

The age-old question, “What’s for dinner?” has evolved dramatically over the decades, shaped by societal changes and consumer demands. In a world where speed of service, affordability, portability, and dietary preferences take center stage, families today are more interested in finding meal solutions that satisfy everyone at the table without sacrificing quality or convenience, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Restaurants, grocery stores, and convenience stores have risen to the challenge, adapting their offerings to meet these evolving needs. Let’s take a look.

A Historical Shift in Dinner Dynamics

Once upon a time, the family dinner was an event where everyone gathered around the table at home, enjoying a home-cooked meal prepared with love. But as the pace of life quickened with dual-income households, longer work hours, and more extracurricular activities for kids, home-cooked dinners have become a luxury for many. The average time a person spends preparing a home-cooked meal has dropped significantly—from over an hour in the 1960s to just 37 minutes in recent years.

Enter the rise of the grocerant niche—where the lines between grocery store and restaurant blur. Retailers offering grocerant meals and meal components, along with fast-food chains and convenience stores, have become key players in providing quick, affordable, and nutritious meals for busy families. But it’s not just about speed; families now demand customization and mix-and-match options to cater to varied tastes and dietary preferences. Let’s break down the elements of today’s successful family meal solutions.

Speed of Service

Today’s consumers want their meals fast. In fact, speed of service is a primary driver behind the rise of fast-food chains and grab-and-go sections in grocery stores. The 2023 National Restaurant Association report showed that the average drive-thru wait time across the top fast-food chains has decreased by 20 seconds year over year, with the fastest chains averaging around 4 minutes and 15 seconds. This might not seem like much, but when you're juggling a busy schedule, every second counts.

Convenience stores are also catching up. According to the 2024 Supermarket News Fresh Foods Survey, nearly 55% of convenience store operators now offer fresh, prepared meals that can be served in under five minutes, a sharp contrast to their historic reputation for unhealthy snack foods.

Price

Affordability is a key factor in the dinner equation, especially for families with multiple mouths to feed. Grocery stores have been particularly adept at keeping prices in check by offering ready-to-eat meals that compete directly with fast food, but at lower price points. According to a 2024 FMI study, the average cost of a prepared meal from a grocery store is 15% cheaper than a comparable meal from a restaurant.

This price-conscious approach has made grocery stores a go-to solution for families looking for affordable, quality meals that don’t require a drive-thru.

Portability

Portability is a major consideration for modern families on the go. Whether it’s soccer practice, after-school tutoring, or a late-night work shift, today’s dinner often happens on the road. Fast-food chains have long dominated in this area, offering portable meal options that can be consumed on the go. But grocery stores and convenience stores have made significant strides, with pre-packaged, heat-and-eat meals that can be easily transported.

Families can pick up entire meals—complete with sides, salads, and desserts—that are portable and ready to eat. The trend toward portability is why 7-Eleven has seen a 10% increase in sales of its portable fresh foods over the last two years. In fact, many convenience stores are now offering meal kits that cater to specific dietary needs and can be easily reheated or eaten cold, providing families with even more flexibility.

Healthy Options

The demand for healthier meal options continues to grow, and the food industry has responded. Fast food chains are now offering everything from salads to fruit cups, and even grocery store delis are prioritizing health. According to the 2024 Supermarket News Fresh Foods Survey, 68% of shoppers now seek out fresh, organic, or plant-based prepared foods in their local grocery store.

Convenience stores, often dismissed as unhealthy food havens, have made impressive leaps forward, with over 60% now offering fresh fruit, salads, and sandwiches. These healthy, grab-and-go options offer families more choices than ever before, allowing parents to feel good about what they’re feeding their kids, even when they’re short on time.

The Perfect Family Meal: Mix-and-Match Components

One of the biggest challenges of family dinners today is finding something everyone will eat. The solution? Mix-and-match meal components. Restaurants, grocery stores, and convenience stores alike are excelling at offering customizable meals that cater to each family member’s preferences.

1. Grocery Stores:
Grocery stores, particularly in their deli sections, have embraced the idea of family-friendly mix-and-match meals. With options ranging from rotisserie chicken to freshly prepared sides like mac and cheese, roasted vegetables, or mashed potatoes, everyone can create their ideal plate. In fact, 42% of families regularly rely on grocery stores for their dinner needs, according to a 2023 FMI report.

2. Restaurants:
Fast food chains like McDonald's and Chick-fil-A have introduced family meal bundles, where customers can choose from a variety of entrees and sides to accommodate picky eaters. For instance, Chick-fil-A’s Family Meals let families mix chicken nuggets, sandwiches, salads, and sides, so everyone gets what they want.

3. Convenience Stores:
Convenience stores have also gotten creative, offering mix-and-match meal solutions with healthier options. Wawa and Sheetz have made significant strides in this area by allowing customers to customize their sandwiches, salads, and sides with various ingredients, making it easier for families to get meals that cater to everyone’s tastes.

Think About This: The Future of Family Meals

The modern dinner solution is all about convenience, flexibility, and choice. Whether you’re grabbing a rotisserie chicken from your local grocery store, picking up a family meal from a fast-food drive-thru, or assembling a personalized dinner at a convenience store, the food industry has successfully adapted to meet the needs of today’s busy families. By focusing on speed of service, affordability, portability, healthy options, and customization, restaurants, grocery stores, and convenience stores are excelling at answering the “What’s for dinner?” question with delicious, family-approved solutions.

The mix-and-match future is bright, and families can continue to expect meals that are not only quick and affordable but also perfectly suited to every family member’s preference.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter