EXCLUSIVE: Subway Talk About their Plans to Expand Beyond the High Street

There has been increasing discussion among the QSR community about the trend towards opening stores outside of the traditional high street footprint.

One of the biggest chains to recognise the possibilities of these locations is Subway, so QSR Media sat down with the chain to learn more about what makes these 'non-tradtional' locations attractive, and what their plans are in this space:

QSR: Why do you see ‘non-traditional’ locations as the key to growth? Is it related to demographic changes, or how and when people consume takeaways?

The SUBWAY® brand is continuously developing and evolving its product offering to meet consumers’ demands and needs. Food to go as a sector has seen rapid growth in recent years, as customers seek convenient options that fit into their daily routines, whether that’s calling into a store for a quick, nutritious breakfast or lunch, or a quick stop at a forecourt to refuel their bodies as well as their vehicles.

Due to the simplicity of the operation, The SUBWAY® brand is able to offer an adaptable approach to the size and physical layout of its stores – ideal for non-traditional locations, such as within c-stores, petrol forecourts, hospitals, transport hubs or at universities and colleges.

The SUBWAY® brand’s partnerships with retailers are an important part of the development of the SUBWAY® brand in the UK and Ireland. We now have more than 450 SUBWAY® stores open or in development in non-traditional locations across the UK and Ireland thanks to partnerships with the likes of Blakemore Retail, Euro Garages, Applegreen and Welcome Break.

Partnering with the SUBWAY® brand offers a great product for retailers and their customers, affiliation with a strong brand known worldwide and increased footfall. We are seeing a great deal of demand for SUBWAY® stores at non-traditional locations due to their simple operations and minimal space and equipment requirements. The affiliation with a successful brand is also one of the main appeals - partnering with the SUBWAY® brand provides excellent dual branding opportunities, high rental returns and increased customer market share. The outlets are efficient, convenient and provide a quick service, which draws a steady flow of customers – creating energy and a beneficial atmosphere.

QSR: Are you seeing increasing interest from competitors for locations at these sites?

Food-to-go is continuing to grow as a sector – customers are looking for a quick and tasty snack or meal, but they also want value and choice. The SUBWAY® brand is able to meet those consumer needs, with all Subs made fresh to order to the customers’ personal preference.

The SUBWAY® brand is a committed partner to the UK Government’s Public Health Responsibility Deal and is the only Quick Service Restaurant to have endorsed eight nutrition-related pledges. It is also continuously developing and evolving its product offering to meet consumers’ demands and needs, to meet the needs of customers seeking a healthier food-on-the-go option.

QSR: How do these sites differ from regular sites?

The format of a SUBWAY® store means that a non-traditional location is able to offer the same offering as any SUBWAY® store found on a traditional high street. The adaptability means that staff levels can be increased at peak times and downscaled to one employee during quiet periods. A SUBWAY® store can also maintain a full range of products maximising sales throughout the day, whilst managing wastage at less than 1%. Unlike traditional food outlets, there is no need for grills or fryers in a SUBWAY® store.

QSR: Are there any factors franchisees would need to consider before opening in a non-traditional site vs a ‘traditional’ site?
 

SUBWAY® stores come in all shapes and sizes and can be found just about anywhere. The simple operations, alongside minimal space and equipment requirements mean that the stores are well suited for a whole variety of location.

QSR: How many ‘non-traditional’ sites do you intend to open in 2015?

The SUBWAY® brand is one of the UK’s most popular franchise opportunities, recently opening its 2,000th store in the UK and Ireland. Of these stores, over 450 are open in non-traditional locations.

Non-traditional development continues to be a key area of focus for the SUBWAY® brand. A significant level of growth was experienced in 2014, which the brand is looking to replicate in 2015.

QSR: What factors do you look for in a ‘non-traditional’ site? i.e. what makes some sites preferable over others- is your process for site selection different from that you use for regular sites?

There are a number of factors considered when choosing a non-traditional site to enable the store to be as successful as possible, such as having a good steady footfall and a demand for an on-the-go food option. However, as all SUBWAY® stores are individually owned by franchisees or corporate partners, they choose the locations based on their individual needs and requirements.