Subway Expands Breakfast Options, Offers Lessons in the Breakfast Category

Subway expanded its options in 2010 to include breakfast, and the sandwich chain says the program has received positive feedback from its guests. With breakfast, Subway has multiplied its potential to build incremental revenue in the early morning hours and leverage its high-traffic retail locations. Now, Subway has expanded its breakfast options via its Fresh Fit Breakfast Sandwiches.

Guests were greeted in January by three new options under 200 calories: Steak, Egg White and Mornin’ Melt Flatbread; Black Forest Ham, Egg White and Cheese Mornin’ Melt Flatbread; and Egg White and Cheese Muffin Melt. Lanette Kovachi, Subway dietician, says that testing was conducted in 2008 and 2009 prior to the rollout.

"The inspiration was to offer additional choices to the regular Fresh Fit sandwiches – to create a Fresh Fit day part line so customers could have better-for-you breakfast choices," she says.

"Subway offers a unique breakfast program in the sense that customers can customize their sandwiches with the desired vegetables, cheeses and sauces to create their own sandwich," says Alison Goldberg, Public Relations. Multiple combinations are possible because guests have added topping options using egg whites, ham, steak and turkey, she adds.

The breakfast program at Subway is successful for two reasons, notes Bill Cross, vice president of Restaurant & Food Brand Licensing for the Broad Street Licensing Group. Cross has led multiple restaurant concepts in developing solid retail strategies and building a presence in the consumer packaged goods (CPG) arena.

1. "They flog it endlessly. Most QSR breakfast initiatives fail because they don’t advertise/market the move sufficiently," says Cross. He notes that other chains have rolled out breakfast, only to "pull the plug" later when they realized the ROI wasn't sufficient.

2. "Subway's competition isn’t stiff," adds Cross. There are no big fast food players promoting breakfast options, he says. "[Subway] menu offerings are ‘custom made,’ which gives an illusion of difference with other chains." The variety of toppings designed to help guests customize their sandwiches has been a hallmark of the Subway sandwich concept.

Competing sandwich chain Wendy's recently announced the rollout of breakfast on a national scale for its restaurants in 2012. In a recent investor conference, it noted that beyond the franchisee buy-in of the rollout, it also needed incremental marketing muscle. Building breakfast day parts requires sufficient velocity in enhancing not only the customer experience, but also the ad spend to renew a brand's messaging.

For success in the breakfast arena, QSRs need to understand two things, says Cross. "First is coffee – no consumer will buy their coffee at one location and their breakfast at another. Second, is marketing." Burger King's experience with its own Breakfast Muffin advertising and resulting sales spikes drives home the latter.

Subway also offers a Fresh Fit line for the afternoon and evening day parts, which was launched in 2007, with healthy children’s options as well. Subway's Kovachi says "Fresh Fit for Kids meals offer a mini sub (turkey, roast beef, or black forest ham) with the choice of low fat milk or juice, and apple slices."

Customers continue to look for value in breakfast, as well as a unique experience. In the Fresh Fit breakfast options, Subway has added to its momentum in making its early day part successful.

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(01-31-12)

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