Subway is a chain of restaurants famous for selling custom sandwiches all over the world. Subway is the brand name for the Performance Food Group (PFG), which has been showing steady growth during the previous five years (PFG 26). In 2018, the company’s total sales were more than 17.6 billion, making it one of the most profitable restaurant chain franchises (PFG 26). Currently, the restaurant chain’s central products are submarine sandwiches (or “subs”); however, the company also sells wraps, salad, paninis, baked goods, coffee, and “personal pizzas” in some stores (PFG 1-2). The product line varies depending on regional preferences. The company also offers vegetarian menus and Pepsi soft drinks.
The company operates in the fast-food industry, which has been snowballing during the previous years. In the last year, the global market size was $570 billion, with 12% attributed to sandwich shops (“Fast Food Industry Analysis 2020″). However, the demand has shifted to the Fast Casual sector due to health concerns, as fast food is considered harmful by the public (“Fast Food Industry Analysis 2020”). In order to become healthier, fast food restaurants turn to vegan sandwiches. For instance, McDonald’s made vegan burgers a part of the permanent menu in the US (Nelson).
Considering the factors mentioned above, the company needs to introduce vegan sandwiches into the menu, which is associated with several arrangements. PFG will need to partner with vegan meat and cheese producers, such as Impossible Foods and Beyond Meat. At the same time, the company will need to train the staff about healthy and vegan foods. The company will require expertise in terms of creating healthier menus. The cost of the initiative is difficult to measure, as it will be associated with a reworking of menus, training of staff, hiring experts, and negotiations with new partners. Additional research is required to measure the possible financial implications.
Works Cited
Fast Food Industry Analysis 2020 – Cost & Trends. Franchise Help, 2020.
Nelson, Brooke. McDonald’s First-Ever Vegan Burger Is Now a Permanent Menu Item. Readers’ Digest. Web.
Performance Food Group. Annual Report 2018. Annual Reports, 2019. Web.