Subway’s Quest to Reclaim Customer Momentum: Leading with ‘Better for You’

 

As fast food continues to be dominated by price wars and value-driven menus, Subway finds itself on a different path, relying on its foundational “better for you” brand promise according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

For decades, Subway positioned itself as the go-to fast-food option for health-conscious diners, offering customizable, veggie-packed sandwiches and emphasizing freshness over fried. However, regaining momentum in the fast-food market while remaining profitable is no small feat, especially when competitors aggressively leverage pricing to attract legacy customers.

The Core of Subway's "Better for You" Promise

Subway's branding has long revolved around three key aspects:

1.       Customizable options, allowing healthier ingredient choices.

2.       Nutritional transparency, promoting calorie-conscious dining.

3.       Wide availability of fresh produce and lean proteins compared to fried or highly processed alternatives.

While these traits resonate with a portion of consumers, they face pressure to remain affordable in a marketplace driven increasingly by “2 for $5” and other low-price offerings. Competitors are banking on perceived value and volume rather than a niche health positioning to bolster unit sales.

The Challenges: Why Boosting Profits Without New Customers Is Tough

Subway faces a unique set of challenges in its pursuit of higher profitability:

1.       Limited Pricing Flexibility
Subway’s brand is historically tied to affordability, with its $5 Footlong campaign once becoming a cultural phenomenon. Introducing higher-priced menu items risks alienating core customers while failing to attract new ones.

2.       Customer Migration to Competitors
With a portion of consumers opting for bundled deals like McDonald’s Extra Value Meals or Taco Bell’s Cravings Box, Subway’s focus on premium options leaves it vulnerable to losing value-seekers entirely.

3.       Dependence on Loyalty Without Innovation
Without new menu innovations or unique offerings, Subway risks relying on a declining loyal customer base that increasingly demands exciting and diverse flavors.

4.       Operational Efficiency vs. Ingredient Quality
Higher ingredient costs for premium, fresh items can limit profits, particularly without streamlined operations to offset expenses.

Competitors’ Strategies: Leveraging Price to Gain Legacy Customers

Subway’s competitors, particularly McDonald's, Taco Bell, and Wendy’s, are thriving on value-driven campaigns that attract both budget-conscious diners and volume sales:

1.       Bundling and Meal Deals
Competitors frequently roll out family-sized value meals or dollar menu items, encouraging customers to buy more. For example, Wendy’s 4 for $4 has created a loyal following, building traffic in-store and online.

2.       Limited-Time Promotions
Leveraging promotions like McDonald's Famous Orders campaigns, competitors create buzz while keeping prices approachable, creating a fear-of-missing-out (FOMO) effect that drives in-store traffic.

3.       Tech-Driven Value Perception
Mobile apps offer exclusive discounts and rewards, gamifying value-driven eating in ways that Subway has yet to master fully.

4.       Breadth of Menu
Diversified offerings, such as Taco Bell’s variety of nacho boxes or McDonald's mix-and-match deals, ensure repeat visits while staying wallet-friendly.

What Subway Can Do to Stay Relevant

To compete effectively, Subway must amplify its “better for you” message while finding creative ways to appeal to value-conscious consumers without devaluing its brand. Possible strategies include:

·         Offering “Better for You Bundles” with a balanced mix of nutrient-packed sandwiches, sides, and drinks.

·         Introducing Tiered Rewards in loyalty programs to incentivize frequent purchases.

·         Doubling Down on Localized Innovations that offer regional or culturally relevant menu items, leveraging mix-and-match options.

·         Enhancing Tech Integration by personalizing deals based on ordering history, further targeting customer needs.

Subway’s challenge is one of balancing its heritage and profit margins. By evolving its model with smarter pricing, innovation, and a tech-enabled customer focus, the chain may yet regain its stride without abandoning the principles that made it a household name.

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. 

Tocaya Expands its Brand Reach with Boxed Meals: A Grocerant Guru's Perspective

 

In a world where convenience and customization are king, Tocaya Modern Mexican is expanding its reach by launching a new line of Individual Boxed Meals. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® said, I’ve seen time and time again how smart moves like this not only garner new customers but also deepen loyalty with legacy ones.

Tocaya’s strategic decision to branch into boxed catering touches on something more profound than just offering another option—it embodies what the modern consumer craves: personalized, flavorful, and easy-to-enjoy meals that fit seamlessly into their busy lives.

The fast-casual space is increasingly competitive, and brands need more than great flavors to stand out. For Tocaya, introducing these boxed meals is a direct way to connect with multiple customer segments—from the office worker seeking convenience to event organizers looking for dietary diversity. In fact, boxed meals have become a powerful touchpoint for many brands, and Tocaya’s expansion strategy taps into some key industry trends that position it for incremental success.

The Value of Expanding Reach Through Boxed Meals

Expanding your brand through innovative offerings like boxed meals does more than increase revenue streams. It extends the essence of your brand to a broader audience. This type of brand extension accomplishes two crucial things: it captures new customers who may not have tried Tocaya otherwise and solidifies its presence with existing fans. Brands that successfully navigate this delicate balance build long-term relevance in an ever-shifting market.

For Tocaya, offering individually boxed meals caters directly to today’s demand for convenience, while staying true to its core values: health-conscious, flavorful Mexican cuisine. Each boxed meal comes with the customization that modern diners expect, offering options for vegan, vegetarian, pescatarian, and gluten-free diets. When done right, this level of customer-focused expansion turns one-time buyers into loyal advocates.

Let’s break down how this expansion connects on eight crucial customer touchpoints that will ensure Tocaya’s brand stays relevant today and continues to grow tomorrow.

8 Key Customer Touchpoints Driving Tocaya’s Brand Relevance

1.       Convenience
Boxed meals are the epitome of grab-and-go dining. Whether for a quick office lunch, a casual event, or even a personal meal on-the-go, Tocaya delivers the ease of single-serving meals with no hassle. Convenience is paramount in today’s food culture, and by offering easily accessible boxed meals, Tocaya caters to a consumer lifestyle built around speed and efficiency.

2.       Customization
With options for various dietary preferences, including vegan, vegetarian, and gluten-free, Tocaya ensures that no customer feels left out. In a world where personalization is expected, the ability to cater to individual needs with ease makes the brand more attractive to a broad audience. This taps into the growing trend of consumers seeking food choices that align with their personal values and health goals.

3.       Flavorful Experiences
The vibrant flavors that define Tocaya—whether it’s the beef birria fajita burrito or the potato torta—are amplified in these boxed meals. The brand’s signature boldness helps set it apart from competitors, allowing new and loyal customers alike to enjoy an elevated culinary experience without having to dine in. Consistency in flavor is key for legacy customers, who return because they trust the experience will be just as satisfying as their last visit.

4.       Health-Conscious Options
Tocaya’s commitment to serving organic, hormone-free ingredients is a powerful message. Consumers today are not only more health-conscious but are also more discerning about where their food comes from. The boxed meals extend this promise, giving both new and returning customers confidence in the quality and sustainability of their food choices.

5.       Event-Friendly Appeal
The practicality of boxed meals for group gatherings, whether it’s corporate meetings or casual get-togethers, opens Tocaya to new channels of revenue. By tapping into the catering market, Tocaya expands its brand into areas where convenience meets demand—making it the go-to choice for events that prioritize both flavor and simplicity.

6.       Engagement Through Digital Platforms
With its robust online presence on platforms like Facebook, Instagram, and X (formerly Twitter), Tocaya engages customers where they spend much of their time. These channels not only promote the new boxed meals but also encourage user-generated content and feedback, driving ongoing engagement and brand loyalty.

7.       Sustainability Commitment
Modern consumers expect brands to stand for something beyond the product itself. Tocaya’s focus on sustainability and the use of 100% hormone- and steroid-free meats appeals to the environmentally and ethically conscious shopper. This commitment strengthens its relationship with existing customers who value these initiatives while drawing in new ones who seek brands aligned with their values.

8.       Memorable Packaging
Packaging plays a critical role in the boxed meal experience. The combination of visually appealing, eco-friendly packaging and the convenience it offers makes a lasting impression. Thoughtful packaging elevates the experience, making each meal feel curated and intentional, which in turn enhances brand perception.

Want to Build Brand Relevance

and Increase Share of Stomach

The Path to Incremental Success

Tocaya’s new boxed meal offering is more than just a new product; it’s a multi-faceted strategy that touches on the very essence of what modern customers want: convenience, customization, and conscious consumption. By expanding into the catering space with individual boxed meals, Tocaya continues to innovate while staying true to its roots, offering bold flavors, sustainable choices, and health-conscious options that resonate with both legacy customers and new patrons.

For brands in the food industry, the lesson here is clear: To stay relevant and grow, you must meet customers where they are—whether that’s at a corporate meeting, a social gathering, or simply at home. Expanding your brand’s reach, especially in ways that offer personalized, convenient experiences, will drive long-term success. And as the Grocerant Guru® always says, "The path to incremental success is paved with thoughtful touchpoints that resonate deeply with the customer."

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

KFC an Example of Brand Protectionism Stifling Growth

 

Losing customer relevance is a branding disaster.  When a legacy restaurant brand is forced to chase after customer with price it is a sure sign that the brand messaging has been adrift for quite some time according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

Once considered a leader within the grocerant niche KFC and done little other than capitulate chicken meal market share to other chain restaurants, convenience stores, and grocer’s service deli for 20 years. 

Here are 8 potential signs that KFC might be facing challenges:

1.       Shifting Consumer Preferences: Consumers are increasingly health-conscious, favoring fresher ingredients, healthier cooking methods (baked vs fried), and options catering to dietary restrictions (vegetarian, gluten-free). KFC's core menu might be seen as less aligned with these trends.

2.       Competition: Fast food is a competitive landscape. Chains like Chick-fil-A and Popeyes Louisiana Kitchen offer similar fried chicken options, while others focus on healthier alternatives or specific flavor profiles. KFC might need to innovate to stand out.

3.       Value Perception: Fast food is typically seen as affordable. If KFC's pricing is perceived as not offering good value compared to portion sizes or healthier options elsewhere, it could be a turnoff.

4.       Restaurant Experience: The overall dining experience, including cleanliness, ambiance, and service, can impact brand perception. KFC might need to consider if their restaurants are keeping up with competitors in these areas.

5.       Menu Innovation: A stagnant menu can be a sign a brand isn't adapting. If KFC isn't introducing new and exciting menu items, it might risk losing customers who crave variety.

6.       Marketing and Branding: Staying relevant requires effective marketing. If KFC's marketing isn't reaching its target audience or resonating with consumers, it could be missing opportunities.

7.       Negative Press: Negative publicity about ingredients, health concerns, or animal welfare practices can damage a brand's reputation.

8.       Slow Sales Growth: While all data is not publicly available data, stagnant or declining sales figures could be a sign KFC is struggling.

It's important to note that these are just potential signs, and KFC might be taking steps to address them. They may be investing in menu innovation, healthier options, or a more modern restaurant experience. Ultimately, KFC's success will depend on its ability to adapt to consumer preferences and a competitive market.

 

The question is Price the answer? In its bid to win over value-seeking consumers, KFC today introduced a “Taste of KFC Deals” value menu, with offerings starting at $4.99. The KFC Deals, available in-store and digitally, include:

·         $4.99 Meal for One: Two pieces of chicken (drum and thigh), mashed potatoes and gravy, and an extra biscuit for $4.99.

·         Meal for Two: four pieces of chicken (drum, thigh, breast, wing), mashed potatoes and gravy, two extra biscuits. Prices vary by location, but in the Louisville, Ky., market, it is available for $10.

·         $20 Family Meal: Six pieces of chicken (two drums, two thighs, one breast, one wing), four individual sides, and four extra biscuits.

·         Taste of KFC Deal: Available only on Tuesdays and as a temporary offer, this $10 deal includes a bucket of eight drums and thighs.

"We created a value menu that actually has value. The new Taste of KFC Deals menu proves you don't have to sacrifice quality or taste to save on food spending,” CMO Nick Chavez said in a statement.

Do you want a Larger

Share of Stomach

The question other legacy chain operators is:  Are you being overly protection your brand? So, what is brand protectionism?  Brand Protectionism refers to strategies that companies use to safeguard their brand identity and reputation. In the context of grocerants, this could involve things like:

·         Protecting trademarks and logos

·         Maintaining quality standards across all locations

·         Controlling how the brand is represented in marketing and advertising

There are arguments for and against strong brand protection in the grocerant industry:

Arguments for:

·         Consistency: Customers expect a certain level of quality and experience from a particular grocerant brand. Strong brand protection helps ensure this consistency.

·         Reputation: A grocerant chain's reputation is a valuable asset. Brand protection helps to prevent damage to that reputation.

·         Competitive Advantage: A strong brand can be a competitive advantage, attracting customers and differentiating the grocerant from competitors.

Arguments against:

·         Innovation: Overly strict brand protection can stifle innovation and make it difficult for grocerants to adapt to changing consumer preferences.

·         Flexibility: Grocerants may need to be flexible in their offerings to cater to local tastes and preferences. Strong brand protection can make this difficult.

·         High Costs: Implementing and enforcing strong brand protection strategies can be expensive.

Ultimately, whether the Grocerant Guru® is right about brand protection depends on his specific perspective and the context of the situation. There's a balance to be struck between protecting the brand and allowing for innovation and flexibility.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success