View from the C-Suite: Subway keeps it fresh

Leylah - sandwiches

When your tagline is “Eat Fresh,” but things are feeling stale, it might be time for a refresh.

Subway knew it, Canadian consumers knew it – and the research backed up those inklings. While at one time, the QSR was a destination for fresh, healthy ingredients in a sea of deep-fried offerings from the other guys, with trends shifting towards consumers demanding more nutritious options, Subway’s stance just wasn’t fresh any longer.

For Subway, it was high time for reinvention.

Earlier this year, the brand launched its Eat Fresh Refresh positioning, which included an onslaught of new sandwiches and ingredients, and the addition of bowl-style meals. And to catch the attention of Canadians, the brand enlisted athletes to spread the word in an authentic way – meaning, Subway leaned into the fact that the athletes had no commercial hosting abilities whatsoever. Hilarity ensued – as well as impressive consumer recall, as Lisa Mazurkewich, head of marketing Subway Canada, tells us below.

Here, Mazurkewich reveals the insights and strategies that led to the next phase of the QSR’s evolution, and how it’s working to reclaim its status as Canadians’ go-to better-for-you choice.

Can you speak to the decision to implement upgraded ingredients and new toppings? What research went into making this decision, and why was now the right time to make those changes?

Canadians’ expectations for variety, selection and quality continue to evolve.

We took a deep dive to understand how consumers’ needs and preferences were evolving and how they viewed Subway. In addition to our regular industry and brand tracking studies, we invested in a qualitative and quantitative research to better understand Canadians. While we learned that consumers still liked Subway, they felt that we hadn’t evolved. They weren’t seeing the innovation or the quality cues that they valued. And we could see the emergence of a younger consumer who demanded better quality, higher culinary and consistent convenience. We could see that we had an opportunity to reignite consumers’ love for our brand.

We were the clear “better for you” option for many years. Canadians have countless accessible options, and more QSR players than ever are offering balanced, healthier meals. The Eat Fresh Refresh was a timely decision to combat ever-increasing options and to reinstate our position as a destination for Canadians.

Last April, we launched Eat Fresh Refresh, including the launch of brand new signature sandwiches, Canadian-sourced ingredients and flavourful sauces, to not only meet, but to exceed our guests’ expectations. The Eat Fresh Refresh is an ongoing, multi-year commitment to deliver Canadians the quality ingredients, menu variety, dynamic flavours and guest experience they deserve.

Who is Subway’s target demographic? How have their wants and needs evolved, and how is Subway accommodating them?

We are focused on a “core” and a “growth” target. Our core consumers visit us frequently and have been loyal to the brand; they love our menu variety and flavourful menu items and believe we are worth the price. These consumers value quality, and are looking for menu offerings that are even more craveable.

Our growth target is younger and visits us a little less frequently; they are seeking easy, on-the-go food that is healthy and nutritious. This group of consumers love that we offer great-tasting, craveable food that they can feel good about feeding their families with, but they feel we can improve our relevance and convenience.

Canadians are looking for new and innovative formats. They’re looking for incredible flavour, great value and high-quality ingredients. We’ve listened to them, and are making major shifts to accommodate. This year alone, we debuted eight new sandwiches, as well as a new format – Signature Rice Bowls – and new sauces. We also introduced new and upgraded ingredients like deli-style turkey and ham, Canadian-raised grilled chicken and smashed avocado, to name a few.

We are continuing to improve our digital convenience, offering mobile ordering, delivery and a loyalty program through our Subway App.

Plus, Subway is driving relevancy to Canadian consumers through our support of Canadian Teams like the Raptors and athletes like Scottie Barnes, and Canada Food Banks through our Never Miss Lunch Program.

Can you share any results from the athlete sponsorship campaign? How has it been received?

Lisa Mazurkewich, head of marketing Subway Canada

Lisa Mazurkewich, head of marketing Subway Canada

Throughout 2022, we have partnered with several famed Canadian athletes, including snowboarder Mark McMorris, tennis player Leylah Fernandez, hockey legend Mark Messier, sprinter Andre de Grasse and most recently, 2021-22 NBA Rookie of the Year and Toronto Raptors forward Scottie Barnes. In addition to these athlete partners, we recently announced multi-year partnerships with NBA Canada and the Toronto Raptors.

These athlete collaborations reflect shared values of supporting balanced, active living, enjoying delicious, quality food and providing unforgettable experiences to Canadians.

It’s well known that across our country, we are proud supporters of our home team, so our partnerships with well-loved Canadian athletes, NBA Canada and the Raptors have allowed us to connect with fans from coast to coast in a never-before-seen way for Subway Canada. These partnerships have generated excitement with Canadians resulting in increased interaction on social media from Canadians in response to athlete partner content and in-store recognition of our partners and the new menu launches.

We’ve seen fantastic results – including 275+ consumer guests at our Signature Rice Bowls pop-up hosted in Toronto with Scottie Barnes. Canadians are getting excited about the changes coming from Subway Canada. Throughout the refresh, our digital, OOH and POP ads all outperformed the norm in terms of recall, with a standout element being our partnership with Canadian athletes.

What are some ways Subway is supporting Canadians experiencing pressures from rising food costs and inflation?

Sharing valuable guest rewards and offering deals to Canadians has always been our priority. This year, we made significant upgrades to our digital presence, including a website redesign and Subway App upgrades – two avenues Canadians can use to earn rewards, cash-in deals and order their favourite foods – whether in-restaurant, for remote pick-up or delivery right to their door. From the launch of this redesign, our website has seen a 26% increase in traffic.

Our Corporate Social Responsibility commitment is very dear to the entire Subway team. We’re proud partners to Food Banks Canada – now in our fourth year of collaboration. The need for food relief is apparent, even more so following the devastating effect of Covid and the recent rising food costs and inflation. We are committed to helping those in need and are proud to operate our Never Miss Lunch program. In partnership with Food Banks Canada’s After the Bell program, we aim to provide nutritious meals to kids in need during the summer break, when many community-based lunch programs end.

In 2022, Subway Canada once again hosted two donation drives, one donation day in June, where $1 from every footlong sold went to the initiative, and a second from November 1 – 20, where $1 from every order placed via the Subway App (or online) will be donated.

Subway Canada’s partnership with Food Banks Canada this year so far has allowed us to provide over $500,000 to the After the Bell program, supporting Food Banks Canada’s goal of delivering 175,000 food packs to those in need in 190 communities across Canada.

Finally, what are some other strategies Subway uses to stand out from its competitors?

We have implemented several strategies throughout the year to spotlight the brand and aid in our mission to stand out from competitors.

Our marketing campaign features five celebrated Canadian athletes – these partners have helped us illustrate the critical role that nutritious food choices play in keeping a healthy lifestyle while celebrating bold, craveable flavour.

These partnerships allowed us to reclaim our standing as Canadians’ go-to for better for you, great-tasting subs, salads and bowls by partnering with loved Canadian athletes known for their commitment to balanced living.

As part of this year’s campaign, we took an omnichannel approach to reach our target audiences; athlete partners amplified our Eat Fresh Refresh messaging on social, TV, radio, digital and experiential activations.

Additionally, throughout the year, the team has been bringing unexpected and epic experiences to consumers through new menu launches like our all-new Signature Rice Bowls, donation programs, event activations and contesting, to name a few.

When launching our all-new Signature Rice Bowls we held national contests, flying winners in from across Canada to attend Bowlway, including a meet and greet with Scottie Barnes, and experience a Toronto Raptors game.

Earlier in the year, in addition to our sponsorship of season eight of The Amazing Race Canada, we hosted two contests – one for at-home viewers and one for our restaurant managers. The “Eat Fresh Refresh” contest for at-home viewers offered the opportunity to win $5,000 and free Subway for a year. At the same time, our internal contest allowed our team to appear in an episode of The Amazing Race.

And, of course, Subway Canada’s Never Miss Lunch program allows us to give back to our community through Food Banks Canada’s After the Bell program while also giving consumers a chance to get involved via two annual donation drives.