Subway reported on April 24, 2023, that its global digital sales increased 11.4% in the first quarter compared with the same period in 2022. The announcement documented growth in its digital ordering business during a broader program of app updates, restaurant modernization and menu changes.
The company also reported a 12.1% increase in global same-store sales and its ninth consecutive quarter of positive sales. In North America, digital sales rose 21.2% and same-store sales increased 11.7% year over year.
Subway attributed its sales performance to menu innovation, restaurant modernization and changes to the customer experience, including digital services. The announcement did not quantify the contribution of individual initiatives. At the time, Subway said its franchisees operated nearly 37,000 restaurants in more than 100 countries.
App updates and digital ordering
On July 6, 2021, Subway announced app changes alongside its Eat Fresh Refresh menu program, which was scheduled to reach U.S. restaurants on July 13. The company said the updated app included a new dashboard, a revised ordering process and information about out-of-stock items. It also announced that delivery ordering through its app and website was rolling out in select areas across the United States.
The digital changes accompanied more than 20 announced menu updates, including new and revised ingredients and sandwiches. They formed part of a modernization effort that also included restaurant remodels.
Subway had introduced its Fresh Forward restaurant design on July 17, 2017, with 12 pilot locations open in the United States, Canada and the United Kingdom. According to the company’s announcement, the format included digital menu boards, self-order kiosks at select locations and designated pickup areas for orders placed through channels including the mobile app.
Subsequent reporting described mixed customer responses to kiosks. In a Restaurant Business article discussing Subway’s plans for 2018, then-chief business development officer Trevor Haynes said some customers tried the machines but then ordered at the counter. His account described customer behavior observed during the trials; it did not provide a measured adoption rate.
Software supported restaurant network changes
Restaurant Business also reported that Subway had developed modeling software using a mapping program to assess individual restaurants. The company was examining which locations should move, be sold to other franchisees or close, following five years of declining U.S. customer counts. Executives described a shift toward profitability at existing restaurants rather than expansion by location count.
Those efforts came amid disputes over store economics. In December 2017, the Los Angeles Times reported that nearly 900 people from 39 states identifying themselves as Subway franchise owners had signed a petition opposing a planned $4.99 Footlong promotion. The petition argued that frequent discounting hurt restaurant profitability. Subway said participation was optional and that the promotion was intended to address declining customer traffic.