Healthier menu options and catering to niche markets will aid industry growth
New York, NY (PRWEB) February 11, 2015
The Sandwich and Sub Store Franchises industry has experienced consistent growth in line with the economic recovery. Industry revenue grew in 2011 as consumer confidence and spending rebounded from the recession, in part due to Subway's success with the Five Dollar Footlong promotion. Franchisees managed to maintain that momentum during the following years by developing new menu options that capitalize on society's increasing awareness of the health risks associated with a high-fat diet. As a result, the industry has been able to thrive, despite rapidly evolving consumer preferences for fast food, which have led to the stagnation and decline of other quick-service restaurants. During the five years to 2015, IBISWorld expects industry revenue to grow, including an increase this year.
Sandwich and sub store franchises exist within the quick-service restaurant sector, which has traditionally been dominated by fast-food giants, such as McDonald's and Burger King. Nevertheless, these restaurants have been rocked in recent years by the rapidly evolving tastes of a new generation of consumers. According to IBISWorld Industry Analyst Will McKitterick, “millennials have turned increasingly to fast-casual restaurants to satisfy their hunger when dining out.” This means companies like Chipotle and Shake Shack have begun to usurp market share from some of the fast-food segment's most important players, such as McDonald's. Unlike other fast-food giants, most sandwich and sub store franchises have been able to thrive within this highly competitive environment by catering to consumers' health and wellness concerns. For example, Subway is well known for its low-calorie menu options, which it spent a number of years developing. By advertising the healthful nature of their products, many sandwich franchises avoided the declines that the rest of the quick-service segment experienced during the period.
“In the coming years, industry operators will continue to face stiff external competition from members of the fast-casual food segment,” says McKitterick. In turn, many sandwich franchises will continue to expand their menu options to include a wider variety of healthy food options. 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 2020, these trends are expected to contribute to revenue growth.
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 serve custom sandwiches and subs. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 http://www.ibisworld.com or call 1-800-330-3772.