Sandwich and Sub Store Franchises in the US Industry Market Research Report Now Available from IBISWorld

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During the past five years, the Sandwich and Sub Store Franchises industry experienced consistent and aggressive growth, despite a struggling economy; going forward, healthy-eating trends will contribute to continued growth. For these reasons, industry research firm IBISWorld has added a report on the Sandwich and Sub Store Franchises industry to its growing industry report collection.

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Healthier menu options and catering to niche markets will aid growth.

During the past five years, the Sandwich and Sub Store Franchises industry experienced consistent and aggressive growth, despite a struggling economy. Over the five years to 2013, IBISWorld expects industry revenue to grow at an average annual rate of 3.5% to $19.6 billion. Moreover, industry revenue grew 6.8% in 2009, despite shrinking consumer confidence and reduced consumer spending, largely as a result of Subway's success with the Five Dollar Footlong promotion. The industry managed to maintain that momentum through the end of 2012 and in 2013, revenue is expected to jump an additional 2.0%. By developing new menu options that capitalize on society's increasing awareness of the health risks associated with a high-fat diet, the industry has been able to thrive, despite the volatile economic conditions.

As the economy fell deeper into a recession and unemployment numbers rose, consumers became more selective about how they use disposable income. In 2009, consumer spending declined 1.9%, and luxuries such as dining out were among the first expenditures to be curtailed. The Sandwich and Sub Store Franchises industry avoided these downward trends primarily as a result of industry leader, Subway, and its wildly successful Five Dollar Footlong promotion, which began in 2008. Because Subway offered sandwiches at an attractive price point, the company generated enough consumer interest to help negate the effects of the weak economy. Consequently, consumer-spending trends reversed from 2010 onward, with individuals spending more on higher-priced chains such as Jimmy John's and Jersey Mike's.

The industry was one of the first quick service segments to capitalize on consumers' health and weight concerns. In 2000, Subway began an extremely successful advertising campaign using Jared Fogle, a man who lost a significant amount of weight by eating Subway sandwiches. As a result of the campaign, many sandwich franchises avoided the declines that the rest of the quick service segment experienced. Many operators have also expanded their menu options to ensure that they can retain a large portion of their customers' dining out dollars. For example, in 2010, Subway added breakfast items to their menu, and in 2011, it introduced Subway Cafes, which offer coffee, paninis, muffins and other pastries. Over the five years to 2018, these trends are expected to contribute to revenue growth.

The Sandwich and Sub Store Franchises industry displays a high market share concentration. The major companies in this industry are Subway and Jimmy John’s. Overall, the sandwich market is dominated by Subway. The company experienced immense success by being at the forefront of the healthy fast food movement. For example, the company greatly increased its ad campaigns to target health-conscious consumers, displaying ads with weight loss testimonials and showing the nutritional value of its menu. Once Subway's healthy image was established, the company encouraged all of its franchise locations to alter the menu to include value-priced sandwich items. This strategy came at the onset of the US recession in 2008, when consumers became greatly concerned with overspending on activities like dining out. Jimmy John's has also thrived over the past five years and gained significant market share.

For more information, visit IBISWorld’s Sandwich and Sub Store Franchises in the US industry report page.

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IBISWorld industry Report Key Topics

The Sandwich and Sub Store Franchises industry comprises franchise establishments that prepare and/or serve custom sandwiches and subs. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude non-franchise data. They show the total number of franchise outlets, franchise network-sales (revenue) and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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