Beyond Meatball Marinara sub
Subway is aiming for a partnership with Beyond Meat to revive its demanding business.
The sandwich chain collaborates with the manufacturer of plant-based meat products, starting with a test of a Beyond Meatball Marinara sub. Limited-time sandwiches will be available at 685 locations in the United States and Canada as of September.
Sales to restaurants accounted for nearly half, or $ 33.1
Euromonitor predicts that the US meat replacement market will grow to $ 2.5 billion by 2023. Flexitarians – omnivores who want to reduce meat intake – make up 98% of meat substitute buyers, according to Nielsen data.
Investor enthusiasm about the growth of vegan meat alternatives and Beyond & # 39; s future opportunities have sent the company's stock increase since its first public offering in May. Shares of Beyond, which has a market capitalization of $ 9.8 billion, is up 544% since the IPO, although it has fallen over the past week following a secondary stock offering.
Partnerships are also part of Subway's comeback strategy. Over the past six weeks, Subway has announced a partnership with King & # 39; s Hawaiian for its bread and Halo Top for its first milkshake ever. There are also remodeling of 10,500 US stores and rolling of delivery across the country.
Subway, which is privately owned, had seen many years of massive expansion. During the 2008 financial crisis, the sandwich chain gained success by $ 5 feet in length. But newer Subway restaurants began stealing sales from nearby locations. Also rivals like Chipotle Mexican Grill and Potbelly appealed to customers with seemingly healthier prices, and rising cost of goods made the signature foot-long sandwich deal unprofitable.
In 2016, Subway closed more restaurants than it opened and has since accelerated the pace of closures. In 2018, it shuttered more than 1,100 U.S. locations, bringing the total number of U.S. stores to fewer than 25,000, according to franchise disclosure documents. Subway is facing several lawsuits from former franchisees who claim they unlawfully terminated their franchise agreements.
Despite the closures, Subway is still the largest American restaurant chain by number of stores, topping McDonald's roughly 14,000 US locations.